HSBC participates in the launch of China-backed blockchain BSN Spartan Network – Ledger Insights

The blockchain-based service network (BSN) has launched a beta version of its BSN Spartan network. It is the international version of the Chinese BSN, which includes versions of popular public blockchains such as Ethereum, Cosmos, and PolygonEdge, which do not use cryptocurrencies. Public authorized network validating nodes are operated by large companies such as HSBC, Emperor Group and Lan Kwai Fong Group, although many current companies have connections in Hong Kong or China. The beta testing phase will last two months.

“99% of the world’s computer systems do not use public cryptocurrency-based chains to avoid being involved in unregulated and volatile cryptocurrencies,” said Yifan He, CEO of Red Date Technology, l BSN Technical Architect. He envisions people around the world using it for “any traditional computing system to leverage the capabilities of the underlying blockchain technology in an easier and more cost-effective way.”

Yifan He likes to say that the internet has gained ground because it costs little to launch a website, and he wants to do the same for blockchain.

In 2019, the first Chinese version of BSN was unveiled, built by Red Date Technology in a joint initiative with UnionPay, the State Information Center (SIC), and China Mobile. The goal is to provide low-cost, low-friction access to blockchain technology.

Soon after, plans for an international network were announced. The original goal was for the international version to provide low-cost access to standard public blockchains with an interoperability layer. Since then, China has banned cryptocurrencies. Therefore, the BSN Spartan network repeatedly refers to blockchains as “non-crypto” or NC. The Spartan Network even has an NTT token, which stands for Non-Tradable Token and is used to pay for blockchain transactions, gas.

“We are excited about the possibilities that the BSN Spartan Network opens up for Hong Kong businesses to digitize, tokenize and automate their business processes,” said Vincent Lau, Regional Head of International Payments for Asia-Pacific at HSBC. “We look forward to exploring how our HSBC DLT Settlement Utility (HDSU) solution can streamline payment processes for trading partners across the network.”

Many in the West will portray BSN as the equivalent of using Huawei telecommunications equipment which has been banned in the US and partially in the UK. But not everyone in the Asia-Pacific region will share this view.

BSN will argue that the companies control the nodes, although the companies mentioned in the current phase have strong ties to Hong Kong or China.

Conventional public blockchains have all the data on public display, so some might ask, what’s the difference? First, there is a stronger connection with identities. And it depends on the data put on the string. If it’s just a fingerprint or a hash of data that can’t be interpreted as confidential, there’s no risk. The APIs connecting any blockchain to enterprise systems must be perfectly secure, whether it’s BSN or any other solution.

Meanwhile, last year, Red Date raised a $30 million Series A round led by Prosperity 7 Ventures, an indirect subsidiary of Saudi Aramco.

About Nereida Nystrom

Check Also

How to Get Invited to the Diablo IV Closed Game Beta

Blizzard revealed some exciting news on Monday, giving players a chance to test out endgame …