Blockchain consortium Hyperledger's next move: connecting China's blockchain

If blockchain is the right direction, national borders will gradually disappear. Immutable and shared ledgers of transactions and goods will exist as long as we are alive, bought and sold from the same little planet.

But this is far from guaranteed, and different blockchain developers are competing to implement different applications.

For example, the blockchain consortium Hyperledger was originally founded by Western countries. However, this year, the consortium has attracted more than 20 Chinese companies and 10 Japanese and Korean companies, as well as many members from other countries around the world.

Hyperledger executive Brian Behlendorf also faces the challenge of creating a system that allows information to flow seamlessly between multinational members, just as data on a blockchain does.

He hopes to have a Chinese technical working group, and if his current proposal is accepted by members, it will help narrow the cultural differences around the world.

Behlendorf said:

“If we can create these systems correctly, it can help us move faster using common technology platforms across borders.”

Behlendorf seeks to create a community to strengthen the sense of belonging among Chinese companies and allow them to connect more easily, rather than turning this bridge into a barrier between members.

Among the Chinese members, many start-ups specialize in blockchain research. The two members who joined recently are also the largest.

Huawei, a Shenzhen-based private electronics company with $60 billion in revenue, joined the alliance in October. In September, Wanda Group, another Beijing-based company with $38.8 billion in annual revenue, joined as a VIP member of the alliance.

In theory, the more companies that join, the stronger the network effect.

China Blockchain

Chinese investors and financial institutions have also begun to accept blockchain technology this year, and even the government has expressed similar views.

On May 11, several Chinese companies formed the ChinaLedger Alliance, and at the end of the same month, 31 China reached an agreement to establish the Shenzhen Financial Blockchain Alliance. The purpose of both alliances is to help China better utilize the efficiency of blockchain.

Just after the Shenzhen Financial Blockchain Alliance was established, Shenzhen-based Ping An Group became the first Chinese financial institution to join the New York-based R3CEV blockchain alliance.

But creating cross-border infrastructure also involves working with businesses on public blockchains.

A month later, blockchain startup Circle announced that it had received $60 million in Series D funding led by Beijing IDG Capital. This investment is also seen as a way for the company to expand into China.

proposal

It was against this backdrop that the Hyperledger executive sent out his first email proposing what he called a China Technical Working Group.

On October 26, Behlendorf wrote that the established working group will serve as a bridge between the global Hyperledger community and Greater China.

Reaction to the proposal has been positive, Behlendorf said.

At a meeting of the Technical Steering Committee on March 3 last week, he further explained the idea that the group should consist of 11 people, including the co-chairs, who would likely attend the English Technical Steering Committee meeting.

If the proposal is passed, the co-chairs will most likely be volunteers, he said. Huawei, a member of the technical steering committee, has publicly expressed its willingness to serve as a volunteer to bridge the communities and help bridge the language barrier.

“It’s not just about asking questions and getting support, but helping these developers become actual contributors to the project,” Behlendorf told CoinDesk. “The intellectual property we gain will far outweigh the cost.”

More than just language

Of course, it’s not just the language barrier that’s separating Chinese members of Hyperledger from the rest of the community. There are many other factors as well.

Another Huawei member who speaks English very well said at a meeting last week that he doesn't think language will be as big of an issue as time zone differences.

Another possibility currently under discussion is the introduction of a rotating chairperson role for the weekly Technical Steering Committee calls.

Zhibei Yu, product manager at Hyperledger member CloudElephant Technology, confirmed that the company is willing to participate as a volunteer and believes that the working group is a very good idea.

The founder and CEO of Shanghai-based Bitse, an early Hyperledger member, said his company had no experience in cross-border collaboration. But it was something worthwhile.

DJ Qian told CoinDesk the working group would be an especially beneficial way to bring new members to Hyperledger’s unique multinational culture.

“We think this is a very good management training tool for new Chinese members,” Qian said. “It will help accelerate the globalization of blockchain.”

Seek truth from facts

Currently, Hyperledger’s executive officers are in the process of writing the actual proposal for a formal vote.

If all goes well, the working group will be established during Hyperledger’s first China hackathon, scheduled for January 7-8, 2017.

Wanda Financial Group, one of the organizers of the hackathon, was also busy with the work group during the meeting. He hopes that all members will participate in the hackathon.

Now, an unnamed company that specializes in helping foreign businesses find professionals in China is working with Hyperledger’s newly hired sales and finance managers to help expand the alliance’s profile.

“We are seeing growth in the team,” Behlendorf concluded.