The national cryptocurrency of China will be tens of thousands of times faster than Bitcoin

cryptocurrency of China

cryptocurrency of China

New rumors have appeared around China’s upcoming national cryptocurrency (DCEP) – it seems that it will really be completely centralized. Local news outlets disseminate information that the bandwidth of DCEP will be 220 thousand transactions per second, that is, tens of thousands of times more than Bitcoin with its 7 transactions per second.

Decentralized blockchains are designed in such a way that the confirmation of a single transaction by the network nodes takes a lot of time. Sacrificing the speed of processing translations, you can achieve the independence of each node of the system. But the Chinese, it seems, will use a single centralized node, which gives such a huge bandwidth.

What will the Chinese blockchain be like?

Young Wang, a senior fellow at the China People’s University’s fintech institute, claims that blockchain speed is a good sign.

In terms of technology, China’s digital currency shows absolute superiority in terms of both safety and speed. It will surpass competitors in the quality of user experience.

In July , DCEP set a new pace amid news from the Libra project . It was reported that the throughput of centralized cryptocurrency from Facebook was supposed to reach thousands of transactions per second . The Chinese have exceeded this number hundreds of times.

However, the head of the research department of the Central Bank of China Mu Changchun recently tried to reassure the public and promised that the government “will satisfy the demands of people for the anonymity of their transactions.” DCEP is being promoted as a tool to combat those who launder money, evade taxes or finance the activities of criminal groups.

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Binance analysts conducted a study of centralized cryptocurrency back in late August. The exchange report noted that DCEP will indeed collect important information from user to user.

Unlike private coins, the central node of the system will be able to collect information. In the end, user identities will be tied to the respective individual wallets, which makes DCEP completely non-anonymous, unlike Bitcoin.

The conclusion is obvious: it is incorrect to compare the national cryptocurrency of China with Bitcoin or other real coins. Rather, it can be called a more modern version of fiat currencies, which people use today in everyday life. And since the national digital coin will depend on a single governing body, its users will not be able to be sure of the constant availability of the service. Most likely, sanctions will be applied to certain individuals.

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