Shanghai Government Sets Ambitious Goal to Run Entire City on Blockchain
Discover how the government of Shanghai plans to revolutionize urban infrastructure by virtualizing city operations using blockchain technology. Learn about their research initiatives, governance strategies, and potential impact on global tokenization developments.
Posted 2 months ago in Blockchain
The government of the city of Shanghai is embarking on a groundbreaking endeavor to virtualize city operations using blockchain-based technologies. The ambitious project aims to research and develop various blockchain applications, including multichain communication, quantum-proof security, and content monitoring mechanisms. To achieve its goals, Shanghai will begin by creating the necessary infrastructure, such as advanced computer processors and high-bandwidth wireless electronics. The city will then focus on container technology, enabling the sandboxing of different applications on multiple chains, protected by innovative encryption and zero-knowledge proofs.
In terms of governance, Shanghai plans to utilize economic penalties as a deterrent to discourage undesirable behavior. Integrated behavioral analysis will help identify such behavior, and on-chain keyword and image filtering will be implemented to regulate content and track user engagement. Preliminary tests will be conducted in various scenarios, encompassing government affairs, cross-border trade, and supply chains. Furthermore, Shanghai aims to explore the potential of blockchain technology in the metaverse, signaling its commitment to continuous innovation.
By taking this bold step, Shanghai could potentially accelerate developments in tokenization. The city's initiative puts the US at risk of falling behind in the tokenization race, as banks and other institutions struggle to realize the full potential of this technology. While some financial institutions have tested tokenized money transfers, the industry is yet to standardize a method for swift physical asset transfer following blockchain settlement. Additionally, the ability to interact with digital representations of physical items in the metaverse remains a complex challenge that lies ahead.
Regardless, the co-founder of Tether, William Quigley, predicts that tokenization businesses will gain significant traction in the coming years. Quigley expects a surge in tokenization innovation in 2024 and 2025, as the industry continues to evolve. Shanghai's groundbreaking efforts will undoubtedly contribute to this momentum and shape the future of blockchain technology.
Last updated 9/27/2023, 7:18:37 PM
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