Company - - Jan 27,2017
Blockchain infrastructure provider, BitFury Group, announced a deal with Hong Kong-listed firm Credit China Fintech Holdings with an aim to promote technology in China.
This joint venture will involve Credit China Fintech to invest $30 million in BitFury shares. It would eventually be used to sell BitFury's bitcoin mining equipment.
Blockchain basically refers to the technology underlying the bitcoin crypto-currency and works like a big, decentralized ledger which records every transaction carried over the chain. The information is preserved on a global network to prevent intrusion. Applications for the blockchain include facilitating bank loans, using it to secure information and enable trading in an efficient and cheap manner.
BitFury Group provides software and hardware around blockchain technology and this will be the first prominent venture in China.
Phang Yew Kiat, vice chairman and CEO of Credit China Fintech, mentioned in an email that the company was exploring the exact usage of blockchain through some of its fintech platforms, such as payments services and peer-to-peer lending.
With time, blockchain has evolved from being a new technology with plenty of potential to companies, financial institutions and governments looking into a number of applications for it.
According to an analyst with Forrester, Ng Zhi Ying, the blockchain is in its growing stage with industry players still testing with proof-of-concepts on its various uses.
Last year, the Monetary Authority of Singapore declared that it was teaming up with blockchain technology company R3 and a conglomerate of banks as well as the Singapore Exchange on a proof-of-concept project which would allow inter-bank payments through the blockchain technology.
Moreover, the CEO of Alibaba's payment affiliate Ant Financial revealed that his company was also considering the use of blockchain for its immensely popular Alipay system.