Main companies in the industry: Ping An of China (601318), Donggang Co., Ltd. (002117), Information Development (300469), Yuanguang Software (002063), Boss Software (300525), Feitian Integrity (300386), Sifangjing Chuang (300468), Industrial and Commercial Bank of China (601398), SF Holding (002352)
The core data of this article: China’s blockchain market size, the number of China’s blockchain tenders, and the number of China’s blockchain companies
Industry Overview
1. Definition
In a narrow sense, blockchain is a combination of data blocks that are sequentially connected in chronological order. Chained data structure and cryptographically guaranteed distributed ledger that cannot be tampered with or forged.
Broadly speaking, blockchain technology uses block chain data structures to verify and store data, uses distributed node authentication algorithms to generate and update data, and uses cryptography to ensure data Security of transmission and access, a new distributed infrastructure and computing method that uses smart contracts composed of automated script codes to program and operate data.
Blockchain is not a single technology, but a combination of new technologies. Each of these technologies performs its own role, solves different problems, and is combined to form a blockchain. As the basic structural unit of the blockchain, the block consists of two parts: the block header and the block body containing transaction data.
2. Industry chain analysis: the downstream industry covers a wide range of areas
The upstream of the blockchain industry chain is mainly the underlying technology and infrastructure. The underlying technology includes core basic components, protocols and algorithms. Represented by Bitcoin, Litecoin, and Ethereum, a network environment, transaction rules, and miners joining the network have been built based on blockchain technology such as distributed algorithms, digital keys, data storage, P2P network protocols, and identification mechanisms. As for the node reward mechanism, representative companies include Xiaoyi, Quantum Chain, Wanxiang Blockchain, etc.; the infrastructure is mainly mining machines.
The midstream is the platform layer, which mainly provides developers with applications based on blockchain technology. It provides productized services such as smart contracts, information security, and data services based on the underlying technology to improve development It provides convenience and scalability for developers to develop applications at the platform layer.
Downstream is the vertical industry application layer. It manifests itself as core application components, including smart contracts, programmable assets, incentive mechanisms, member management, etc.
Industry development history: We are in the era of blockchain 3.0
From the perspective of the development history of global blockchain, in 2008, an anonymous person signed by "Satoshi Nakamoto" published The paper "Bitcoin: Peer-to-Peer Network Electronic Cash System" originally expected to launch a peer-to-peer electronic cash that could circulate freely. The issuance of Bitcoin represented the beginning of blockchain technology; later, in 2013, the launch of Ethereum directly Pushing the blockchain into the 2.0 era; at the end of 2017, the popularity of stablecoins and the launch of MakerDAO pushed the blockchain into the 3.0 era. By June 2019, Facebook released the Libra white paper, which attracted attention and discussion from all walks of life around the world, and various countries regulated Departments have spoken out one after another, showing the huge potential of blockchain technology in reshaping global financial infrastructure. After entering 2021, NFT-based identification technology has emerged and is the first to be applied in the art field.
Industry policy background: Promote the all-round development of blockchain
In 2016, the State Council issued the "Thirteenth Five-Year Plan for National Informatization", which listed blockchain as a new technology for the first time. The scope and cutting-edge layout indicate that my country has begun to promote the development of blockchain technology and applications. Since then, various localities in the country have successively introduced blockchain-related policies, providing a good environment for the development of blockchain.
In February 2019, the "Blockchain Information Service Management Regulations" issued by the Cyberspace Administration of China was officially implemented, standardizing the filing basis for the development of my country's blockchain industry. The purpose of promulgating the "Regulations" is to clarify the information security management responsibilities of blockchain information service providers, standardize and promote the healthy development of blockchain technology and related services, avoid blockchain information service security risks, and facilitate the provision of blockchain information services. , use, management, etc. to provide effective legal basis. The introduction of this "management regulations" also means that my country's "supervision era" for blockchain information services has officially arrived.
At the end of October 2019, the Political Bureau of the Central Committee of the Communist Party of China held its 18th collective study session on the current status and trends of blockchain technology development. Central leaders clearly emphasized the use of blockchain as a core technology for independent innovation An important breakthrough to accelerate the development of blockchain technology and industrial innovation. This fully demonstrates that blockchain technology has risen to a national level. Chen Chun, a professor at Zhejiang University and an academician of the Chinese Academy of Engineering, who gave a lecture on the collective study of the Political Bureau of the CPC Central Committee, said at the 2019CCF Blockchain Technology Conference hosted by the Computer Society of China on October 12 that the development of the domestic blockchain industry is ushering in " "Spring Breeze", the research hotspots of China's blockchain technology will focus on two aspects: the key technology of the alliance blockchain and the blockchain supervision technology.
Current development of the industry
1. The market size will grow by more than 90% in 2020
From 2016 to 2018, large IT Internet companies have deployed blockchain. Start-ups have entered a blowout mode, and the industry scale continues to expand. According to IDC data, China's blockchain industry has experienced changes from a market size of US$85 million in 2017 to an industry scale of US$561 million in 2020.
2. The number of related companies is growing rapidly
In terms of the number of companies, in 2020H1, my country provided blockchain professional technical support, products, solutions and other services, and had input or output The number of new blockchain companies reached 303, a year-on-year increase of 274.07% nationwide. As of the end of 2020, the number of blockchain-related companies in my country reached 64,062, a year-on-year increase of 52.88%.
3. Blockchain finance is the largest downstream application market
According to the disclosure of the "China Blockchain Development White Paper (2020)", as the implementation of blockchain applications accelerates, "Blockchain+" business has become the focus of development for Internet backbone enterprises to enter the blockchain industry. In addition to financial business, it actively deploys the Internet, traceability, supply chain & logistics, digital assets, government and public services, and knowledge. Applications in property rights, law, medical and other fields. Among them, finance is the most explored field in the application scenarios of blockchain technology, with specific projects implemented in subdivided fields such as supply chain finance, trade finance, payment and settlement, and fund management.
4. The number of blockchain tenders is increasing year by year
From a year perspective, from 2016 to 2020, the number of government tenders for blockchain-related projects has been growing exponentially. , on the one hand, it benefits from the increasingly prominent application value of blockchain technology, and on the other hand, it also reflects the government’s increased demand for and emphasis on blockchain.
Industry competition situation
1. Regional competition: Beijing and Guangdong have the most blockchain technology research and development-related companies
In terms of company distribution, as of the first half of 2021 , the distribution of enterprises is obviously tiered. Among them, Beijing and Guangdong rank in the first echelon with 348 and 341 blockchain development-related companies respectively, and the number of companies in Jiangsu, Shanghai, and Zhejiang reaches 164, 127, and 81 respectively.
As an important carrier for the development of blockchain industrial clusters, local governments are accelerating the construction of blockchain industrial parks. Judging from the location distribution of industrial parks, there are a large number of blockchain industrial parks in cities such as Beijing, Shanghai, Hangzhou, Guangzhou, Chongqing, Qingdao, and Changsha, forming a Bohai Rim agglomeration effect dominated by Beijing and Shandong, with Zhejiang and Shanghai , the agglomeration effect of the Yangtze River Delta dominated by Jiangsu, the agglomeration effect of the Pearl River Delta dominated by Guangdong, and the agglomeration effect of Hunan, Guizhou, and Chongqing dominated by Chongqing and Hunan. Combined with the positioning and development of the industrial park, it is based on the premise of serving enterprises to create a blockchain innovation platform and industrial highland. This positioning also provides the basis for the aggregation effect of enterprises.
2. Enterprise competition: Alibaba’s blockchain is the strongest
In March 2021, at the China Mobile Communications Federation Blockchain Professional Committee and the China Science and Technology System Reform Research Association Under the guidance of the Digital Economy Development Research Group and the Organizing Committee of China’s Top 100 Blockchain Enterprises List, Chain Tower Think Tank screened and evaluated thousands of projects and enterprise lists, and finally released the 2020 China’s Top 100 Blockchain Enterprises List.
In the context of the outbreak of the epidemic in 2020, the 2020 Blockchain Top 100 List has adjusted the dimensions of enterprise inspection to a certain extent to highlight the performance of outstanding blockchain companies in 2020.
It is divided into five main dimensions, namely commercial operation weight accounting for 25%, technology research and development weight accounting for 20%, product application weight accounting for 30%, team composition weight accounting for 15% and marketing promotion accounting for 10%.
Industry development prospects and trend predictions
1. It is still in the introduction period
Currently, my country’s blockchain industry is in the introduction period, and the industry is showing Two main characteristics: First, large industry companies are actively applying blockchain technology to improve their own businesses, but they are still mainly trying, and the main application scenarios are also non-core businesses in the industry. For example, companies such as Ping An, China UnionPay, and Ant Financial are limited to non-core businesses in their exploration of blockchain applications; secondly, the business development of companies focusing on blockchain technology services is mostly in their infancy, and their product technology systems and The business model is not mature enough, and the demand side’s understanding of blockchain needs to be improved. Blockchain has already formed some application cases in scenarios such as judicial certificate storage, government affairs management, people's livelihood services, food traceability, supply chain management, etc., but it still needs to be further optimized and improved.
2. The market capacity is expected to exceed US$16 billion in 2026
Blockchain technology is a key direction for China’s new generation of information technology independent innovation breakthroughs, and contains huge innovation space. In the fields of chips, big data, cloud computing and other fields, innovation activities are becoming increasingly active, and innovation elements are constantly accumulating. The application of blockchain technology in various industries continues to deepen, which will give rise to a large number of new technologies, new products, new applications, and new models.
China focuses on accelerating the transformation of its economic development model, pays more attention to the improvement of economic quality and people's living standards, and uses new generation information technology, including blockchain technology, to transform and upgrade traditional industries and enhance the quality of traditional industries. Develop quality and efficiency, and improve the level of social management, public services and intelligent home life. The huge market demand in the future will bring rare development opportunities and broad development space to blockchain technology. Researchers compiled and analyzed that China’s blockchain market will maintain rapid growth, with a compound annual growth rate of 73% in market size from 2021 to 2026. The market size in 2026 will reach US$16.368 billion, and in the next 20 years, China’s blockchain market will The industry market size is expected to reach the trillion level.
The above data refers to the "China Blockchain Industry Market Foresight and Investment Strategic Planning Analysis Report" by the Qianzhan Industry Research Institute.