The blockchain can be a nightmare for the people of China

Saying that the blockchain can give people freedom, opposing world governments, and greedy financial institutions. But if you look at it from the other side? Suddenly the blockchain really is the perfect tool for a totalitarian state? We already wrote the methods China is gradually introducing technology, but now you should think, what it can mean.

The system of social rating in China

A couple of weeks ago China’s President XI Jinping surprised the world, calling the blockchain breakthrough technology and announcing additional funding. Shortly after the announcement, the Chinese government outlined plans to create a sovereign digital currency, and the press hinted at the various uses of the blockchain in the military space.

In other words, China is clearly interested in making technology a distributed registry on all levels. There is a possibility that the blockchain sooner or later start to use in the system of so-called social ranking.

This system is a special circuit that monitors the behavior of citizens, evaluates them and rewards or punishes based on their social ranking.

China’s President XI Jinping. Source: Bitcoinist

About it it became known five years ago, and the system should be fully implemented by the end of 2020. It takes into account the interaction of people in social networks, purchase history, location data and behavior in public by surveillance cameras with facial recognition.

Full set of personal data of millions of people will be stored in a single network. And that such a system fits best, if not the blockchain? And if this scenario is realized, then the blockchain may be a curse for residents with low scores. After all, their “credibility” will be permanently recorded in the blockchain without the ability to change the data.

The system already works

While China is preparing a Grand launch for next year, similar schemes have already been implemented by some city councils and private technology companies. Although none of them are related to Baccano.

Earlier this month, media reported that Chinese billionaire Wang to Suzuno by order of the Shanghai court was forbidden to buy property, stay in luxury hotels, to travel first class, to play Golf, or take a break. And the reason for such strict “civil discrediting” lies in the debt in the amount of 21 million dollars.

The Central Bank Of China. Source: WAMU

A billionaire’s son Huan Weijun also subjected discredit for what is owed to the local Chinese companies 86 thousand dollars. Here is what he says on this matter.

I could get to his native city only by a public bus and this path has required 20 hours. My private property has been frozen, and I was not allowed to sell a house or invest the money elsewhere. It was first necessary to repay the debt.

However, the debt is not the only reason for the sanctions. Any violations may affect the credibility and provoke the system start-up.

See also: Bitcoin Maverick said, what China really wants to develop the blockchain

What about corporate social rating?

It should be noted, China is now working on a system of social rating, rating for companies and for officials. Theoretical and technical perspectives of the blockchain is perfect for all three systems.

Source: Thomas Pieterse

Last week, local news resource for the South China Morning Post, citing multiple sources, reported that the corporate system of social credit in China may cause problems during the negotiations with the European Union in the framework of the bilateral investment Treaty.

As noted in the EU, China will be able to use this system for sanctions against companies. In addition to this, the representatives of the more liberal part of the world in General is concerned about the intentions of the Chinese government to restrict personal freedom of citizens, their freedom of movement and rights to privacy.

In our cryptodata of hontarov with a huge social rating you will find still a lot of other useful information. Also check in Yandex Zen.

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