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Blockchain
TechPolicy

Blockchain-managed IDs arrive in China with new government-backed scheme aiming to reduce data leaks

  • A new system from China’s Blockchain-based Service Network and the Ministry of Public Security uses real-name verification for cryptographic keys
  • The RealDID system, meant to keep identifying information only in the hands of the government, is expected to issue 5 million IDs through 2024

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A new project in China uses real-name verification and public keys published on a blockchain to create a digital ID that citizens can use across platforms without revealing personal information. Photo: Shutterstock
Xinmei ShenandMatt Haldane

China is set to start experimenting with a real-name verification system based on blockchain, which authorities say will allow internet users to log into online platforms without using their personal information such as phone numbers.

China’s state-backed Blockchain-based Service Network (BSN) and the Ministry of Public Security’s First Research Institute together launched the Real-Name Decentralised Identifier (RealDID) system on Tuesday. The event was also attended by officials from the National Development and Reform Commission and the National Data Administration.

Anicert, a subsidiary of the research institute, will be responsible for issuing, managing and verifying user identities through its Cyber Trusted Identity (CTID), which is already used by banks and other institutions to verify Chinese identities.

Red Date Technology CEO He Yifan introduces how RealDID works with the Blockchain-based Service Network during the launch event for the digital identification system on December 12, 2023. Photo: YouTube / BSN Base
Red Date Technology CEO He Yifan introduces how RealDID works with the Blockchain-based Service Network during the launch event for the digital identification system on December 12, 2023. Photo: YouTube / BSN Base

The new project aims to eventually cover all 1.4 billion Chinese citizens, but BSN has acknowledged that ramping up will be slow. It expects to issue 5 million RealDIDs over the next year across different pilot projects, BSN said in a blog post on Wednesday.

While public keys are managed and accessible on BSN China’s blockchain Yanan Chain, RealDID operates solely within China, similar to the bifurcated approach that BSN has taken with other projects. It is not accessible to internet protocol (IP) addresses outside the mainland, according to BSN.

BSN China operates separately from the international organisation and is a collaboration with state-owned enterprises China Mobile and China UnionPay. Red Date, the technological architect of the BSN, also keeps operations between the mainland and Hong Kong separate.

Red Date Hong Kong and the recently announced BSN Foundation, based in Singapore, have sought to distance themselves from China. BSN and Red Date were recently targeted by name in US legislation seeking block government use of China-linked blockchains.

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