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14:28, 18-May-2018
China's first official blockchain rankings receive mixed reaction
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China unveiled the world’s first government-backed blockchain rankings on Thursday, with Ethereum coming out on top and well ahead of Bitcoin.
Operating under the Ministry of Information and Technology, the Global Public Chain Assessment Index was compiled by the China Center for Industry Information Development (CCIID), and will be published every month.
Featuring 28 different blockchain-based cryptocurrencies scored on fundamental technology, applications and innovation, the rankings left many in the virtual coin community confused over their purpose, after China closed domestic coin exchanges last year, and banned initial coin offerings.
The CCIID announced that it would publish the rankings last month, with the aim of providing an independent analysis of virtual coins and blockchain technology that could be used by governments and organizations worldwide.
CGTN Graphic, data from China Center for Industry Information Development.
CGTN Graphic, data from China Center for Industry Information Development.
China was the biggest source of blockchain patents in 2017, with central authorities keen to support research and innovation in the sector, despite efforts to clamp down on the financial risks associated with cryptocurrencies and initial coin offerings.
Many social media users were surprised to see Bitcoin ranked in 13th place, despite receiving the highest score for innovation, while several members of the cryptocurrency community questioned the purpose of the rankings.
Talking to the South China Morning Post, president of the Blockchain Association of Hong Kong Leonhard Weese said “blockchains are highly diverse in what they are trying to accomplish, and many try to quite creatively distinguish themselves from each other. Even relatively objective metrics… are relatively meaningless to seasoned observers.”
Quartz spoke to blockchain blogger and engineer at the Chinese Academy of Sciences Eric Zhao, who said he wouldn’t take the rankings too seriously, but saw them as “a sign that the officials are starting to treat crypto projects more like a neutral endeavour towards better technology and innovations, rather than just challenging the power and authority of banks and government. ”
On Twitter, many users echoed the sentiments of @apathetic_NY, who said “China bans [crypto] mining, shuts down exchanges, and pretty much wants to kill cryptocurrency....Now they’re publishing ratings??”
Meanwhile several Weibo users chose to question the legitimacy of the rankings, with @比特币是什么玩意儿 (a name that means “what is this Bitcoin thing?”) saying “this organization has no authority,” and one other commenting “the country wants the chain, not the coin…”