Blockchain-based Service Network

Short description: Blockchain Technology

The Blockchain-based Service Network (BSN) is a non-cryptocurrency blockchain infrastructure that enables a distributed cloud environment within existing private or public clouds for mainstream businesses or institutions to build and manage distributed applications.[1] The BSN was founded in 2018 under the lead of the State Information Center of China, a government think tank under the National Development and Reform Commission, and was officially launched in 2019. Other founding members include China Mobile, China UnionPay, and Red Date Technology Limited.[2] The BSN’s primary function is to provide a set of DLT-based cloud environment software[3], supporting traditional cloud service providers, data centers, and businesses in setting up private or public[4] distributed networks and thus simplifying the adoption of blockchain technology for their users.[5][2]

On April 25, 2020[6], The Blockchain-based Service Network (BSN) was announced for commercial use, categorized into Chinese and International operations.[7] On June 29, 2022, the BSN-DDC Network surpassed Ethereum’s transaction volume (938,166 transactions) within a 24-hour period (974,517 transactions).[8] In September 2022, the BSN Spartan Network, the equivalent of BSN-DDC outside Mainland China, was officially launched in Hong Kong with initial adopters including HSBC, Prenetics, and FUJIFILM Business Innovation Hong Kong.[9]

## Contents

* 1 Technology Stacks
* 1.1 Enterprise BSN
* 1.2 Public BSN
* 1.2.1 BSN-DDC Network
* 1.2.2 BSN-Spartan Network
* 2 Bifurcated Operation
* 3 References

## Technology Stacks

The Blockchain-based Service Network functions as an infrastructure network rather than a standalone blockchain protocol, integrating dozens of independent blockchain frameworks.[10][11] The BSN establishes a foundational cloud environment supporting the deployment of distributed Multi-Party Systems, or Public IT Systems[12], which allows developers on these platforms to use shared computing resources rather than installing a full set of cloud services or computing infrastructure. [13][14]

The technology stack of the Blockchain-based Service Network includes both Enterprise BSN and Public BSN. The latter operates under two distinct governance frameworks for Mainland China and international users.

The technology stack of the Blockchain-based Service Network (BSN)

### Enterprise BSN

Enterprise BSN is an enterprise-level software platform integrated into public cloud, private cloud, or intranet for enterprises and institutions to embed a blockchain-based environment into their existing systems.[15] While traditional cloud environments handle centralized private IT systems, Enterprise BSN, working in parallel, manages distributed Multi-Party Systems or Public IT Systems to establish a private network where developers can design, deploy, and manage the lifecycle of blockchain applications.[16]

Enterprise BSN's environment can manage cross-cloud, cross-framework, and cross-application virtual machines and resources directly on top of OpenStack.[17] The platform integrates permissioned frameworks like Hyperledger Fabric and FISCO BCOS and public blockchains such as Ethereum and EOS as operating systems.[18]

### Public BSN

#### BSN-DDC Network

The BSN-DDC comprises over ten Open Permissioned Blockchains (OPBs), adapted from public chain blueprints such as Ethereum to align with Chinese regulatory frameworks.[19] The network operates exclusively in Mainland China and adopts Distributed Digital Certificate technology, a “Chinese version of NFT,” as the certification and distributed database technology that can be applied in business or government scenarios where digital proof is required.[20] The data center software of the BSN-DDC Network mandates permissions and KYC procedures.[21] Examples include Xi'an Qujiang Cultural Tourism and Chongqing News's Shangyou News, both of which have established DDC platforms on the BSN-DDC Network to promote local culture and tourism industries.[22]

#### BSN-Spartan Network

The BSN Spartan Network is a public infrastructure network built on the BSN Spartan data centers, which functions as the gateway to the network and is open-source, free, and KYC-free[23][24], operating exclusively outside Mainland China[25]. The BSN Spartan Network integrates several Non-Cryptocurrency Public Chains (NC Chains), which are non-crypto hard forks derived from their original public chains.[2] The network is developed to support the adoption of blockchain for mainstream enterprises without exposure to the volatility and regulatory uncertainty of the cryptocurrency market.[26]

## Bifurcated Operation

According to the United States–China Economic and Security Review Commission’s investigation, the BSN architecture is bifurcated between Chinese and international users.[1] BSN China operates under the guidance of the BSN Development Association (BSNDA), which is backed by Chinese government-linked entities and major state-owned enterprises [27]and uses cloud infrastructure from China Mobile, China Telecom, and Baidu AI Cloud[28]. The BSN Spartan Network functions independently under the BSN Foundation based in Singapore, and uses Amazon Web Services[18] and other commercial cloud service providers in Hong Kong, USA, and Europe[28]. In November 2023, five founding members of the BSN Foundation were announced in Singapore: Blockdaemon, GFT Technologies, TOKO, Zeeve, and Red Date Technology, with membership from the USA, Europe, and Asia.[29]

Despite the separation of the Chinese vs international businesses, BSN's Chinese origins have elicited apprehension from some in the global community.[30] These concerns are reminiscent of challenges faced by companies such as TikTok vs DouYin.[31] On Nov 8, 2023, a U.S. bill[32], titled the Creating Legal Accountability for Rogue Innovators and Technology (CLARITY) Act, proposed to outlaw federal agencies from using the Blockchain-based Service Network (BSN) and its IT infrastructure service Spartan Network, along with the tech provider Red Date Technology over national security and privacy concerns.[33]

BSN Foundation member Red Date Technology responded to media requests for comment in a statement clarifying that BSN is a politically neutral, application-agnostic technology initiative. The Spartan Network is fully open source for code auditing and is under decentralized governance by the Singapore-based BSN Foundation. The Hong Kong-based Red Date Technology, a voting member of the Foundation, holds no special status.[26]

## References

1. ↑ 1.0 1.1 "THE CHINESE COMMUNIST PARTY'S ECONOMIC AND TECHNOLOGICAL AMBITIONS: SYNTHETIC BIOLOGY, NEW MOBILITY, CLOUD COMPUTING, AND DIGITAL CURRENCY". p. 200. https://www.uscc.gov/sites/default/files/2021-11/Chapter_2_Section_2--CCPs_Economic_and_Technological_Ambitions.pdf.
2. ↑ 2.0 2.1 2.2 Kharpal, Arjun (2022-05-23). "China's state-backed blockchain company is set to launch its first major international project" (in en). https://www.cnbc.com/2022/05/22/chinas-state-backed-blockchain-firm-to-launch-major-overseas-project.html.
3. ↑ Areddy, James T. (2021-05-11). "Beijing Tries to Put Its Imprint on Blockchain" (in en-US). Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/beijing-tries-to-put-its-imprint-on-blockchain-11620735603.
4. ↑ "China's BSN predicted as long-term global project, still ahead of others" (in en). 2020-11-14. https://cointelegraph.com/news/china-s-bsn-predicted-as-long-term-global-project-still-ahead-of-others.
5. ↑ Bhimani, Alnoor; Hausken, Kjell; Arif, Sameen (2022-08-01). "Do national development factors affect cryptocurrency adoption?". Technological Forecasting and Social Change 181: 121739. doi:10.1016/j.techfore.2022.121739. ISSN 0040-1625. https://www.sciencedirect.com/science/article/pii/S0040162522002657.
6. ↑ "Commercial use of China's blockchain-based service network kicks off - Xinhua | English.news.cn". http://www.xinhuanet.com/english/2020-04/26/c_139009492.htm.
7. ↑ Yuming, Lian (2022-09-05) (in en). Sovereignty Blockchain 2.0: New Forces Changing the World of Future. Springer Nature. ISBN 978-981-19-3862-7. https://books.google.com/books?id=2HGHEAAAQBAJ&dq=blockchain-based+service+network&pg=PA40.
8. ↑ "Back to Fundamentals: Five Predictions for Crypto in 2023". Newman Capital. 4 January 2023. https://www.newmancapital.com/post/5-predictions-for-crypto-2023.
9. ↑ "HSBC, Hong Kong firms sign up for China's state-backed blockchain" (in en). 2022-09-06. https://www.scmp.com/tech/tech-trends/article/3191553/chinas-state-backed-architect-non-crypto-blockchain-makes-first.
10. ↑ "China's New Belt and Road Has Less Concrete, More Blockchain" (in en). Bloomberg.com. 2021-03-24. https://www.bloomberg.com/news/articles/2021-03-24/china-s-new-belt-and-road-has-less-concrete-more-blockchain.
11. ↑ Ma, Winston (2021-01-19) (in en). The Digital War: How China's Tech Power Shapes the Future of AI, Blockchain and Cyberspace. John Wiley & Sons. ISBN 978-1-119-74891-5. https://books.google.com/books?id=lAYTEAAAQBAJ.
12. ↑ DiBiasio, Jame (2022-05-24). "BSN is building blockchain future without the crypto" (in en-US). https://www.digfingroup.com/bsn-spartan/.
13. ↑ "China Launches National Blockchain Network in 100 Cities - IEEE Spectrum" (in en). https://spectrum.ieee.org/china-launches-national-blockchain-network-100-cities.
14. ↑ Dhuddu, Rajesh; Mahankali, Srinivas (2021-03-13) (in en). Blockchain in e-Governance: Driving the next Frontier in G2C Services (English ed.). BPB Publications. ISBN 978-93-90684-46-5. https://books.google.com/books?id=sxcjEAAAQBAJ.
15. ↑ Gordon, David; Nouwens, Meia (2022-11-29) (in en). The Digital Silk Road: China's Technological Rise and the Geopolitics of Cyberspace. Taylor & Francis. ISBN 978-1-000-88520-0. https://books.google.com/books?id=gXqfEAAAQBAJ.
16. ↑ "亚马逊云科技案例研究：红枣科技" (in zh-CN). https://aws.amazon.com/cn/solutions/case-studies/reddate-case-study/.
17. ↑ Clohessy, Trevor (2023-02-24) (in en). Blockchain in Supply Chain Digital Transformation. CRC Press. ISBN 978-1-000-84420-7. https://books.google.com/books?id=IGqwEAAAQBAJ.
18. ↑ 18.0 18.1 "China May Have Banned Bitcoin, But Its Blockchain Ambitions May Help Other Nations Launch CBDCs". Nasdaq. 14 December 2023. https://www.nasdaq.com/articles/china-may-have-banned-bitcoin-but-its-blockchain-ambitions-may-help-other-nations-launch.
19. ↑ Feng, Coco (25 January 2022). "China introduces state-backed NFT platform unlinked to cryptocurrencies". South China Morning Post. https://www.scmp.com/tech/tech-trends/article/3164681/china-introduces-state-backed-nft-platform-unlinked.
20. ↑ Ma, Winston; Huang, Ken (2022-08-19) (in en). Blockchain and Web3: Building the Cryptocurrency, Privacy, and Security Foundations of the Metaverse. John Wiley & Sons. ISBN 978-1-119-89110-9. https://books.google.com/books?id=v5SDEAAAQBAJ&q=BSN+Open+Permissioned+Blockchains.
21. ↑ Harsono, Hugh (2022). "The Utilization of Web3 Native Resources to Create a Centralized Base of Authoritarian Power". Journal of International Affairs 75 (1): 153–168. ISSN 0022-197X. https://www.jstor.org/stable/27203126.
22. ↑ "中办国办印发《"十四五"文化发展规划》丨数字艺术每周观察（8.22） - 21财经" (in zh). 26 August 2022. https://m.21jingji.com/article/20220826/herald/8b9a660225daf30be6d79d9bdbb2184c.html.
23. ↑ Shen, Xinmei (6 September 2022). "China's state-backed architect of non-crypto blockchain makes first major push outside mainland". South China Morning Post. https://www.scmp.com/tech/tech-trends/article/3191553/chinas-state-backed-architect-non-crypto-blockchain-makes-first.
24. ↑ Lam, Sheila (2022-10-10). "Can BSN Spartan Network Reignite Public Blockchain Interest?" (in en). https://www.cdotrends.com/story/17422/can-bsn-spartan-network-reignite-public-blockchain-interest.
25. ↑ "China-Backed Crypto Guru Wants to Unify World's Blockchains" (in en). Bloomberg.com. 2020-07-26. https://www.bloomberg.com/news/articles/2020-07-26/china-backed-crypto-guru-wants-to-unify-the-world-s-blockchains.
26. ↑ 26.0 26.1 "US lawmakers target Chinese blockchains in Web3 decoupling push" (in en). 2023-11-09. https://www.scmp.com/tech/policy/article/3240921/us-lawmakers-target-chinese-blockchains-bsn-conflux-bill-brings-tech-decoupling-web3.
27. ↑ V.S, Anoop; S, Asharaf; Goldston, Justin; Williams, Samson (2022-12-23) (in en). Blockchain for Industry 4.0: Blockchain for Industry 4.0: Emergence, Challenges, and Opportunities. CRC Press. ISBN 978-1-000-81244-2. https://books.google.com/books?id=h3qfEAAAQBAJ.
28. ↑ 28.0 28.1 "Knowledge Base: Blockchain-based Service Network (BSN, 区块链服务网络)" (in en). 2 July 2021. https://digichina.stanford.edu/work/knowledge-base-blockchain-based-service-network-bsn-区块链服务网络/.
29. ↑ "Blockchain Infrastructure Organization BSN Foundation Officially Established in Singapore" (in en). https://www.binance.com/en/feed/post/2023-11-16-blockchain-infrastructure-organization-bsn-foundation-officially-established-in-singapore-1789024.
30. ↑ Ekman, Alice. "CHINA'S BLOCKCHAIN AND CRYPTOCURRENCY AMBITIONS". https://www.iss.europa.eu/sites/default/files/EUISSFiles/Brief_15_2021.pdf.
31. ↑ "China's BSN builds blockchain systems on its own terms — with no crypto and Xi's guiding hand" (in en). https://www.dlnews.com/articles/markets/china-bsn-builds-crypto-systems-without-cryptocurrencies/.
32. ↑ Nunn, Zach. "A Bill". https://nunn.house.gov/sites/evo-subsites/nunn.house.gov/files/evo-media-document/clarity-act.vf_.pdf.
33. ↑ "Nunn Introduces Bipartisan Legislation To Combat Critical Chinese National Security Threat | Representative Nunn" (in en). 2023-11-08. http://nunn.house.gov/media/press-releases/nunn-introduces-bipartisan-legislation-combat-critical-chinese-national.

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