How the Emerging Technology Solve a Problem: Blockchain Technology

Emerging Technology
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Emerging Technology
Introduction
           Blockchain technology has moved past the hype - and hysteria – of digital currencies to become an emerging technology adopted in countries to secure and shape processes across various sectors. China has been a developer and rapid adopter of blockchain technology, especially in medicine, finance, energy, and supply chain industries. The government’s support of these tech firms and applications have encouraged the use of blockchain across China, improving security, transaction speed for customers and advancing the country’s competitiveness within the international market. In 2019, President Xi Jinping declared that China would grab the opportunity to invest in blockchain, emphasizing that they should join the world in setting standards for this emerging technology. The purpose of this paper is to summarize the problem of adopting blockchain, its possible solution, and what is needed to implement the solution. 
Problem
           As noted in Topic 3, China’s political system is largely centralized. However, blockchain technology operates without the existence of a central authority. The fact that the Chinese government wants to control blockchain makes it difficult to adopt the technology. The country also has a weak relationship with foreign nations like the US. These two factors reduce the country’s ability to adopt blockchain technology and reap from it. Therefore,China must experiment with its local policies while limiting opportunistic centralization activities to benefit from this emerging technology. Researchers show that China is the first country in the world to ban crypto transactions and crypto services. However, the government is making remarkable efforts to explore different decentralization avenues. 
Solution
           The solution to the stated problems is the adoption of a central bank digital currency (CBDC) . The CBDC will help China avoid disintermediation from the commercial banks. China is experiencing a change in its financial system. The country’s new digital currency is expected to replace physical cash completely. Cryptocurrencies use blockchains to remain decentralized and anonymous, avoiding the need for a supervisory authority. Digital currencies also use blockchains, but they operate with a centralized command and require user identification. Emerging technologies used in this implementation include cryptography, peer-to-peer network, and clud computing. Without these solutions, China could experience challenges in implementing blockchain in Fintech and other sectors such as healthcare.
           Having a centralized political system, China will find it pr...