Shanghai publishes blockchain plan to support trade, metaverse, government affairs

Shanghai today published an action plan to boost the technical development of blockchain in the city up to 2025, as the Chinese city continues its web3 drive.

Under the plan, Shanghai intends to achieve breakthroughs in the fields of blockchain system security, cryptographic algorithms, blockchain-specific processors, smart contracts, cross-chain, storage, privacy computing and regulation, the Shanghai municipal government said in a statement.

Such technological developments can offer support for the construction of the municipal blockchain basic service platform and the development of key areas such as government affairs, cross-border trade, supply chain, finance, metaverse and data element circulation, the statement continued.

The Shanghai government will also look to support the development of zero-knowledge proofs. To address the need for improving the efficiency and usability in the space, the city aims to enhance the performance of general zero-knowledge proof protocols, the statement said.

“By 2025, the efficiency of zero-knowledge proof algorithm proof generation would be improved by 2 times compared to similar international protocols like Plonk,” the Shanghai government said.

The government further hopes to nurture talent specifically for the blockchain industry. In the plan, the government said it encourages research institutes and companies to "make good use" of the country's foreign talent recognition standards to hire blockchain professionals in Shanghai.

"[We] will also guide universities, research institutes and companies to step up their efforts in cultivating young blockchain talents, creating interdisciplinary and cross-industry platforms for exchange and development opportunities, and supporting young talents to take on significant roles and become key figures," the plan said.

China’s blockchain ambition

This is not the first time Shanghai has outlined plans for blockchain development. In June, the city government released a document that aims to improve blockchain infrastructure by 2025 and explore the possibility of establishing links with Hong Kong and Singapore to test cross-chain applications.

While China banned all cryptocurrency transactions in September 2021, the country remains bullish on homegrown blockchain technology and digital economies — with Chinese tech giants, such as Alibaba and Tencent, focusing on developing their own consortium blockchains.

In May, Beijing released a white paper aimed at promoting innovation and development of the Web 3.0 industry. The government is looking to position Beijing as a global innovation hub for the digital economy.

Last month, the Sichuan province published a draft action plan that aims to expand its metaverse industry to hit a market size of 250 billion yuan ($34.4 billion) by 2025. The Shandong province also aims for its metaverse-related initiatives to reach a market size of 150 billion yuan ($20.5 billion) by 2025.