The Chinese certifying body Beijing Certificate Authority (BCA) has introduced the Blockchain Security Assessment Service for analyzing the software of firms working in the field of blockchain.
BCA is the only body authorized by the Chinese certification and accreditation Administration (CNCA) to work in the financial sector. The tool developed by BCA will allow you to evaluate the main technical characteristics, performance and security level of blockchain-based platforms. In addition, the service will allow you to analyze the speed of transaction processing, as well as audit nodes, registries, and encryption algorithms. With the help of the Blockchain Security Assessment Service, audit firms will be able to verify whether the encryption keys used in open applications are actually created in China.
According to local law, any encryption technology used in public applications must be developed in China and registered in Beijing. For example, the Hyperledger project is going to present a version of its system that will be improved using a special Protocol developed in China. This is necessary so that the Hyperledger platform can be used in the country without violating the requirements of local regulators.
BCA explained that tens of thousands of firms are registered in China claiming that they are related to the blockchain. However, the question is whether they are actually legally working in this industry or just hiding behind the buzzword “blockchain” for the purpose of SEO promotion or to attract the attention of investors. Current industry standards do not allow to distinguish between firms that are focused on the technology of the distributed registry of organizations creating codes of poor quality.
The Chinese authorities are aware of this problem and are trying to find an effective solution for it. So, in April, the Chinese government created a technical Committee of 15 organizations to develop state standards for blockchain and distributed Ledger technology (DLT). Participants of the Committee were the people’s Bank of China (PBOC), MIIT, Tencent, Zhejiang University and Baidu. In addition, this month, the NBK introduced standards that financial applications based on blockchain should meet.