Learn: Will Chinese-Made Crypto Soar Higher?
The price of Conflux (CFX) is flying high after the network announced that it is joining forces with China Telecom to roll out Blockchain SIM (BSIM) cards.
Conflux confirmed on January 24 that it had incorporated Little Red Book, the Chinese equivalent of photo and video sharing app Instagram. Since then, the relationship has been extremely beneficial for the Chinese cryptocurrency’s robust bullish ascension.
Less than a week after the announcement, CFX trading volume on all exchanges exploded by 373% to approximately $58 million, data from CoinMarketCap shows.
According to a press release, the collaboration would enable Little Red Book’s 200 million users to show non-fungible tokens (NFT) produced on Conflux on their personal page.
Conflux Network originates in the Tsinghua University research lab of Turing Award winner Dr. Andrew Yao.
Conflux was founded by the brightest minds from Tsinghua University and the University of Toronto. Its purpose is to promote cross-border interaction by building decentralized open source technology.
This innovative study offers a consensus mechanism that optimizes security, scalability, and decentralization as a solution to the “blockchain trilemma” issue.
China’s position on cryptocurrencies has fluctuated and changed over time. In principle, the Chinese government has demonstrated a readiness to utilize blockchain technology, while being wary of the use of cryptocurrencies and their expected implications on the nation’s economic security.
The government cited financial hazards, energy usage, and criminal activity as the reasons for the prohibition.
Generally, China’s approach on cryptocurrencies is cautious and governmental, with an emphasis on developing blockchain technology while avoiding possible threats to financial stability and social order.
China Telecom, meanwhile, plans to begin the BSIM’s first test program with Conflux in Hong Kong later this year. This will likely be followed by experimental programs in a number of Chinese regions, including Shanghai.
As the first public blockchain in China that complies with regulatory standards, Conflux provides a distinct edge for projects growing throughout Asia.
Conflux has engaged on blockchain and metaverse efforts with multinational businesses and government agencies in the region, including the city of Shanghai, McDonald’s China, Oreo and other major companies.