What is Blockchain?

Blockchain is a distributed data storage technology in which records are linked together using cryptographic mechanisms and continuously expanded over time.

Because it is distributed, no single entity can control the entire system. Because the data blocks are linked together, any change leaves a trace within the network. As a result, blockchain ensures security, trust, and transparency in data management.

Blockchain is considered a key technology in the digital transformation process. It has the potential to fundamentally change how data is stored, verified, and shared — not only in finance but also in public administration, education, healthcare, logistics, and digital asset ownership. (Source: Blockchain Application Handbook)

What is BSN?

BSN (Blockchain-based Service Network) is a national-scale blockchain infrastructure network initiated by China, officially launched in April 2020.

The project was co-founded by Red Date Technology, the main technical architect, together with the State Information Center (SIC) — an agency under the National Development and Reform Commission (NDRC), one of China’s most important macro-economic policy planning bodies.

The involvement of the NDRC indicates that BSN is not merely a technology product but a component of China’s broader strategy for digital infrastructure development and national data sovereignty.

According to analysis by the European Union Institute for Security Studies (ISS), BSN forms part of a broader Chinese strategy aimed at shaping and controlling digital technology infrastructure, including blockchain, artificial intelligence, and big data. Blockchain has been identified as a “core technology” in China’s national innovation strategy since 2019.

Unlike Bitcoin or Ethereum, which are public blockchains closely associated with cryptocurrencies, BSN is not a single blockchain. Instead, it is a multi-chain infrastructure network that allows multiple blockchain frameworks to be deployed within a standardized operating environment.

The domestic version of BSN does not support cryptocurrencies, in order to comply with China’s strict financial regulations. According to the European Union Institute for Security Studies, this model reflects a “controlled blockchain” approach, prioritizing governance capabilities, regulatory compliance, and centralized coordination at the state level.

What can China’s BSN do?

1. Standardizing blockchain deployment nationwide

One of BSN’s core objectives is to standardize how blockchain systems are developed and deployed across the country.

Before BSN was introduced, any local government, enterprise, or public institution that wanted to implement blockchain had to build its own infrastructure — including nodes, consensus mechanisms, security frameworks, storage systems, and technical operation teams. This resulted in high costs, fragmented systems, and limited scalability.

BSN addresses this challenge by providing shared blockchain infrastructure (Blockchain Infrastructure as a Service), designed similarly to cloud computing.

Organizations can develop applications at the upper layer while the underlying blockchain infrastructure is already standardized and operated by the network.

According to Red Date Technology, this model significantly reduces development and deployment costs compared with building independent blockchain infrastructures while also shortening the time required to launch applications.

2. Multi-chain support and reducing ecosystem fragmentation

BSN is designed as a multi-chain integration platform, supporting different blockchain frameworks within a unified operating environment.

Instead of being limited to a single technology, organizations can select the most suitable blockchain framework for their specific use cases.

The multi-chain approach helps:

• Increase interoperability between systems

• Reduce fragmentation in domestic blockchain ecosystems

• Provide flexibility for both public and private sector applications

At the national level, this is particularly important. A fragmented blockchain infrastructure can reduce governance efficiency and make cross-sector integration difficult. BSN aims to create a unified blockchain ecosystem where different applications can coexist under a shared governance architecture.

3. Supporting e-government and enterprise applications

BSN is positioned as infrastructure for practical applications in digital governance and the digital economy, rather than focusing on cryptocurrency.

Key application areas include:

• Supply chain traceability: Blockchain can record and verify the lifecycle of products from production to distribution. This is particularly important for food safety, pharmaceuticals, and e-commerce transparency.

• Data authentication and electronic certificates: Documents, licenses, diplomas, and digital records can be verified on blockchain networks to reduce fraud and increase transparency.

• Smart contracts: Smart contracts can automate the execution of agreements in sectors such as finance, logistics, and public services.

• Digital identity: One notable example is the RealDID initiative, where blockchain technology supports digital identity systems within a national regulatory framework.

These applications demonstrate that BSN is designed to integrate directly into government administration systems and economic activities, rather than functioning as an isolated technology platform.

4. Strengthening data sovereignty and digital infrastructure control

BSN China is deployed on domestic cloud infrastructure and operates within China’s national legal framework. This ensures that data storage and processing remain subject to national regulations, reducing reliance on foreign technology platforms.

At a strategic level, this provides three major benefits:

• Control over sensitive data flows

• Compliance with national cybersecurity regulations

• Strengthened technological self-reliance

In the context of intensifying global technological competition, owning and operating domestic blockchain infrastructure like BSN enables China to gain greater autonomy in data governance and digital economy development.

Is BSN a Blockchain Layer-1?

BSN is not a Blockchain Layer-1 in the traditional sense. A Layer-1 blockchain is an independent base-layer blockchain with its own consensus mechanism, validator network, and responsibility for verifying and securing transactions within the network. Examples include public blockchains such as Ethereum, or national blockchain systems designed as a unified core infrastructure.

BSN, however, does not operate a single blockchain with its own consensus mechanism. Instead, it functions as an integration and coordination infrastructure that connects multiple blockchain frameworks.

It provides deployment environments, management tools, and connectivity between different blockchain networks without merging them into a single Layer-1 chain.

In other words, if a Layer-1 blockchain represents the foundational layer of a blockchain ecosystem, BSN can be viewed as a middleware infrastructure layer that enables multiple foundations to operate within a unified governance architecture.

This distinction is strategically significant. A national Layer-1 blockchain typically focuses on building a core chain to ensure data sovereignty and domestic consensus mechanisms, while BSN prioritizes multi-chain integration, standardized deployment, and centralized governance to optimize blockchain adoption within existing policy frameworks.

Therefore, BSN should be understood not as a standalone Layer-1 blockchain but as a national-scale infrastructure for deploying and managing multiple blockchain systems.

BSN and NDAChain: National Blockchain Infrastructure

China’s implementation of BSN illustrates how blockchain has evolved beyond experimental technology into a component of national digital infrastructure. BSN aims to standardize, coordinate, and expand blockchain deployment across the country to support e-government, data authentication, and supply chain governance within the national regulatory framework.

In contrast, NDAChain adopts a Blockchain Layer-1 model, focusing on building a unified core layer with consensus mechanisms and governance structures aligned with Vietnam’s legal requirements and data sovereignty objectives.

Rather than functioning as a multi-chain integration layer like BSN, NDAChain positions itself as the foundational infrastructure for digital trust from the base layer.

Both models reflect a shared understanding: blockchain can serve as a strategic tool for data governance and digital economy development.

The key difference lies in architectural priorities.

BSN emphasizes multi-chain integration and centralized coordination, while NDAChain focuses on building a unified Layer-1 foundation for national digital trust infrastructure.

Despite these differences, both approaches demonstrate a common strategic direction: blockchain is becoming a foundational infrastructure for technological sovereignty and data governance in the digital era.

Controlling Blockchain Infrastructure Means Controlling Data Sovereignty

In the age of data, the nation that controls its data authentication and storage infrastructure holds a long-term strategic advantage.

Blockchain is no longer simply a technological innovation; it is becoming a core component of digital infrastructure, where data integrity is ensured, transactions are verified, and trust is established at a systemic level.

Building domestic blockchain infrastructure is not only about enabling new applications. It is also about securing three critical elements:

• Data sovereignty

• Technological security

• Digital governance capacity

As national digital transformation accelerates, relying entirely on foreign infrastructure for critical data verification layers is no longer a sustainable strategic choice.

NDAChain is positioned as a Layer-1 blockchain infrastructure, serving as a trusted foundation for digital identity, product traceability, data authentication, and digital services across government and enterprise ecosystems.

It is not merely a technological solution but a step toward strengthening Vietnam’s digital trust infrastructure.

👉 If your organization is developing systems for digital identity, traceability, or strategic data infrastructure, connect with NDAChain to design a blockchain architecture aligned with regulatory requirements and national digital development strategies.