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Baidu: Building on Blockchain | EMQQ

Chinese internet search giant Baidu (BIDU) has launched a blockchain operating system to support the creation and development of decentralized applications – or dApps, according to AsiaTimes.[1]

What Are dApps?

dApps, or decentralized applications, is a computer application that runs on a distributed computing system.  DApps have been mostly popularized by distributed ledger technologies such as the Ethereum Blockchain where the dApps are often referred to as smart contracts.

Baidu Blockchain Engine

The Baidu Blockchain Engine (BBE) is essentially an operating system for dApp development and is part of the company’s cloud computing unit, Baidu Cloud.  BBE is an open source platform to simplify dApp development.  It provides developers with services such as multi-chain and multi-tier frameworks, smart contract, and dApp templates.  It also comes with enhanced data security and privacy protection and will be compatible with Baidu’s existing cloud services.

According to AsiaTimes, Blockchain networks need user traffic to prosper.  Baidu’s long-term goal will be to see an expanding portfolio of independently-created applications running on its blockchain system that will pull in increasing numbers of users to make their network successful.

Easy as ABC

BBE has been built on the basis of Baidu’s “ABC” technology strategy.  The acronym stands for artificial intelligence, big data and cloud computing, and has the aim of making third-party dApp development faster and simpler, according to AsiaTimes.  The platform aims to make dApp development as simple as creating a mobile app.

Following Others

Baidu is not alone in launching a Blockchain-As-A-Service platform, according to Coin Journal.[2]  China’s Tencent (TCEHY) launched its own suite of blockchain services in November 2017, according to the article, which also notes that Alibaba has also spent a lot of effort on blockchain technology.

China vs. US

A LinkedIn article notes that China is likely to lead blockchain innovation in the 2020s.[3]  The assessment is based on current U.S. regulation and the SEC’s “stifling how blockchain startups can fundraise and operate.”  

While the Chinese government has basically prohibited cryptocurrencies, it is actively engaged in the development of Blockchain technology, according to the Abacus China Internet Report.[4]  Shanghai, Henan, Guangzhou, Guiyang, and Hangzhou have all issued policies to encourage blockchain development.  Shenzhen established a 500 million yuan focused on blockchain investment while Hangzhou announced that it planned to invest 10 billion yuan in a blockchain fund, according to Abacus.  The report noted that the master plan for the Xiongan New Area economic zone, under direct order from the Chinese central government, highlights the use of blockchain technologies to create a smart city.  The report also noted that 41% of startups that received funding in the first quarter of 2017 were blockchain-related.

Summary

Baidu is embarking on a strategy of offering a Blockchain-As-A-Service (BaaS) platform.  This will help the company offer a full suite of internet-related products and compete with other Chinese online giants.

Find out more about the Emerging Markets Internet & Ecommerce UCITS ETF (EMQQ)

As of 7th June 2019, the Emerging Markets Internet & Ecommerce UCITS ETF (EMQQ) held 3.65% of its weight in Baidu Inc. 

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