China's first blockchain pilot zone has been launched in south China's Hainan Province.

Based in Hainan Resort Software Community (RSC) near the city of Haikou, the zone includes a blockchain research institute, which officially opened on Monday and was jointly established by RSC and the University College Oxford Blockchain Research Centre.

A blockchain institutional innovation center will also be launched by RSC in collaboration with China's Renmin University.

"The pilot zone will commit to attracting blockchain talent around the world and exploring the application of blockchain in areas such as cross-border trade, inclusive finance and credit rating," said Wang Jing, head of Hainan's provincial department of industry and information technology.

She said the pilot zone would deepen cooperation with top research institutions across the globe and key players in the blockchain industry.

The blockchain is a digital ledger system that uses sophisticated cryptographic techniques to create a permanent, unchangeable and transparent record of exchanges to trace transactions.

The technology now has a wide range of applications in China, including in finance, credit reporting, smart manufacturing and supply-chain management, according to China's Ministry of Industry and Information Technology.