Blockchain company Conflux has announced it received funding from the Shanghai government to aid its public chain research. This fund support is a massive boost for the company, as it’s evidence that the Chinese government is strongly behind the company’s permissionless blockchain project.
The Chinese government supports developing a permissioned blockchain, so it’s a surprise to many that the government has now given the node for a permissionless blockchain project.
$5 Million in Funding
The Beijing-based blockchain company revealed that the Shanghai government delivered a $5 million investment fund for the expansive research project.
The project will also include Conflux’s support for a proposed aerospace supply chain, which will also be developed on the blockchain network.
The blockchain-based firm also reiterated that the Shanghai government had added the project to its Five-Year Plan.
Only Permissionless Blockchain Supported by the Government
Conflux has also maintained that it has become the first permissionless blockchain to receive support from the Chinese government.
The Shanghai Science and Technology Committee and Xuhui District Government are also undertaking other high tech projects, including 5G aerospace technologies, which it hopes to complete within 5 years. The tech committee of the 57 high tech projects said the long list of projects would transform Shanghai into a technology hub.
According to the Five-Year Plan reports, the economic and social initiative aims to define the country’s societal and economic development.
Co-founder of ConFlux Fan Long has commented on the development. He said although the government’s support of $5 million is a major contribution, the thing that matters most is the government’s support of a public permissionless blockchain.
People’s Bank of China became strict on fiat-to-crypto trading and banned ICOs in 2017. The ban is still in place, which means ConFlux is not permitted to launch an ICO to raise the chain research funds. So, the grant received from the government is a boost towards realizing the project’s objective.
Massive Funding Received Since Launching
Conflux was launched in 2018. Since its launch, the company has raised $35 million through the private token sale from notable investors in the country. Among the top investors are Rong360, Shunwei Capital, Huobi Group, as well as Sequoia China.
The company’s developers include experienced individuals and top-class engineering graduates from renowned engineering schools both in China and abroad.
The research center will be built on a 10,000-square-meter working site. This grant from the Shanghai government is coming barely a year after the government supports the blockchain firm to launch an incubation center that will include a research institute.
During the announcement, the government did not state any particular figure it’s looking to invest. But at the time, Long said the investment fund could be in millions of dollars.
Apart from its role to find venture capital firms for startups, the incubation center will also develop Dapps for the government.
However, he declined to reveal the partnership's initiator, saying that Conflux has been in serious discussion with the Shanghai government since July last year.
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