Despite the continuous spread of the Corona virus epidemic and its impact on the global economy, the blockchain technology was not affected by what is happening, but rather the opposite, as the number of blockchain companies exploded in China, and more than 10,000 companies related to blockchain technology were established in the first seven months of 2020.

According According to LongHash, a blockchain and crypto analytics platform LongHash, the number of new blockchain companies established in China in 2020 is on track to surpass that of 2019.

#covid19 It hasn’t stopped the blockchain boom in China. Over 10,000 new blockchain companies were created in the first seven months of 2020. The number of new companies on track to surpass those established in 2019. Chart 👇 pic.twitter.com/yP6XSeU8bl

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– LongHash (longhashdata) August 8, 2020

Of the total of 91,373 registered blockchain companies, only about 30,700 blockchain companies are currently in operation, with about 61,000 companies losing their legal status or having their license revoked.

South China’s Guangdong Province hosts the largest number of blockchain companies in the country, with 26,196 blockchain companies registered there.

While Xinjiang Province ranks second in terms of the number of blockchain companies, where coal is abundant and crypto-mining energy is cheap, the report counted 5,405 blockchain companies.

China is moving forward with blockchain development:

Chinese President Xi Jinping praised blockchain technology in 2019, and urged a national strategy that supports research, development and investment in blockchain, and the president’s statements sparked great interest in blockchain technology in various sectors.

China recently announced plans for a blockchain-based governance system in the country’s capital, Beijing, and Chinese companies are expected to invest $2.7 billion in blockchain technology by 2023, according to a report by International Data Corporation.

In addition to the Chinese Ministry of Human Resources and Social Security adding blockchain functionality in its main services, in addition to many other projects such as the blockchain services network that connects companies and unifies their efforts in the development of the blockchain.

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This means that there is a wide demand for blockchain technology and its development in the country, as data indicates a growing interest in this field in China.

According to LongHash, over 46% of registered blockchain companies currently operate with small capital.

Despite the ongoing trade war between the United States and China, Chinese fintech companies have raised a total of $39 billion in funding as of June 2020, according to figures from the China Internet 2020 Report, and about 80% of these companies included in the report. They are startup companies.

Chinese blockchain companies:

By virtue of the Chinese President’s statement about blockchain technology and the need to develop and adopt it, companies in China are racing to use the blockchain, and some of them incorporate the name “blockchain” to the company’s name without a real use of the technology.

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stated Mr. Bai Liang, Deputy Director of the China Institute of Cryptocurrency, during a speech in 2019 stated as follows:

The truth is that 96% of over 30,000 blockchain companies in China do not actually use blockchain technology.

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