China is integrating blockchain-based privacy computing to enhance credit data security, as announced by the National Development and Reform Commission (NDRC). The initiative aims to safeguard sensitive information while facilitating secure data sharing across financial institutions and regulatory bodies.
Li Chunlin, Deputy Director of the NDRC, stated that privacy computing solutions are being deployed to minimize the risk of data breaches, ensuring that credit data remains protected while still accessible for legitimate financial operations.
The project leverages blockchain technology to encrypt critical credit data, enhancing integrity and flexibility in data management. By utilizing decentralized ledger systems, China aims to reduce reliance on single servers, which are often vulnerable to cyberattacks and data manipulation.
This approach aligns with the country’s broader efforts to integrate emerging technologies into financial security and governance frameworks.
Experts believe that blockchain’s decentralized nature offers a more resilient infrastructure for credit data security. Unlike traditional centralized databases, blockchain ensures that data remains immutable and traceable, reducing the likelihood of unauthorized alterations.
Additionally, privacy computing techniques, such as zero-knowledge proofs and homomorphic encryption, are being explored to allow financial institutions to verify creditworthiness without exposing sensitive personal details.
China’s move reflects a growing global trend of governments adopting blockchain for non-financial applications. While blockchain is often associated with cryptocurrencies, its potential in areas like identity verification, supply chain management, and financial security is increasingly recognized. The NDRC’s initiative positions China as a leader in digital infrastructure, reinforcing its commitment to technological innovation and data protection.
Shogun Lin
