The authorities hope to dismantle 57 established mining companies and another 7 that are under development.

According to some public reports, two of the provinces with the highest volume of bitcoin mining in China, this is, Yunnan, and Sichuan, have begun to make efforts to dismantle more than 57 mining companies that operate in their territories.

Reports from the local media Wu Blockchain, the government entities of the aforementioned provinces have decided to dismantle the companies that mine cryptocurrencies in their region. In particular, the Yunnan province decides to dismantle these companies. This province, through the Dehong Dai and Jingpo Autonomous Prefecture, convened a meeting, last May, to determine the necessary methodology to conduct the cleaning in the sector.

The results of the meeting determined that it is necessary to dismantle up to 57 companies that were in charge of conducting data mining, as well as 7 other projects that were in the process of being assembled.

Although the authorities evaluated the positive factors of these companies, such as using residual energy from hydroelectric plants, the truth is that these companies, according to Yunnan, also represent a significant security risk that could affect the region’s power plant. Furthermore, local authorities also emphasized that these companies, called “big data” projects, abuse the concessions granted to operate, especially in actions to evade taxes.

Sichuan is one of the provinces with the highest volume of bitcoin mining in the world. But currently, Yunnan, the neighboring city, has an energy consumption that reached half of Sichuan. Although Yunnan was much more backward than its neighbor, bitcoin mining has thrived on increased energy production thanks to investment in the sector. This, as well as the favorable climate and low population, has made Yunnan an ideal city for setting up mining companies.

According to some economic experts, the use of mining in Yunnan could help boost other sectors of the economy that were paralyzed in growth. Just as Sichuan established some years ago, where these companies took advantage of the energy that the power plants produced.

Although the local authorities can regulate these companies in a better way, the Yunnan State Network published a report, last April, where it asks that all these cryptocurrency mining projects should be dismantled. Besides, the Yunnan State Network indicated that they must take into consideration the amount of energy consumed illegally.

Yunnan and Sichuan Do Not Ban Mining but Increase Controls

The Sichuan and Yunnan provinces are particularly beneficial for the development of cryptocurrency mining by the establishment of hydroelectric power plants. These local energy sources compete directly with other sectors of national energy production, which makes the use of these energies cheaper and more consumption.

Although the use of these energies in mining is beneficial for both the data company and the local hydroelectric power station, it could directly affect the national energy generators. It is also uncomfortable for the heads of government, who, although they can obtain an economic benefit from this activity, are undecided about allowing mining or not.

By María Rodríguez

The program is to support SMEs in Spain, Germany, and the United Kingdom through blockchain solutions.

The multinational telecommunications company Telefónica announced the activation of its blockchain adoption program for technology companies, which seeks to include new forms of management in the processes of different companies.

According to the statement that the company published on May 27^th, the initiative hopes to boost the development of proposals related to blockchain technology, Artificial Intelligence (AI), and the Internet of Things (IoT). To improve the performance of companies in Europe, Telefónica explained that companies established in the United Kingdom, Germany, and Spain can participate.

The statement detailed that the “Telefonica Activation Program” will be aimed mainly at those small and medium-sized companies (SMEs) that seek to improve their management processes with blockchain solutions and other new technologies. Among the main tasks that Telefónica hopes to promote, the creation of new business models that are already in different stages of development stands out.

The synopsis of the program explains that Telefónica will select the companies that will participate in the first instance. Those companies included in the initiative will have access to all Telefónica’s technological solutions for free and for 6 months.

Financing

It is worth mentioning that there is the possibility of receiving express financing from Telefónica. The companies that will be part of the program are going to be able to develop, together with Telefónica, a pilot project related to blockchain technology solutions.

The Connected Open Innovation Director at Telefonica, Irene Gómez, confirmed the access of the selected companies to the full technological potential of Telefónica. She commented that it is vitally important to support SMEs. “Collaboration is more important than ever, that’s why at Connected Open Innovation we want to help scale startups by giving them access to our technology platforms by consuming APIs, for free, quickly, and easily.”

Companies interested in participating in the selection process for the Telefónica boost program will be able to register on the website dedicated to the project until next June 22^nd.

On the other hand, the announcement emphasized the level of preparation that participating companies will receive within the program, naming from tutorials to online events and instructional workshops. Telefónica employees will provide this course to the companies selected. Then, participants will be able to provide personalized support for their companies.

Using Blockchain Technology

Regarding blockchain technology, those companies interested in implementing this technology will have use credentials on TrustOS. The system based on Hyperledger Fabric allows Telefónica to create applications for business use. This system presents a fairly simple and practical method of use, so it would be the most ideal system for those who are not familiar with blockchain technology.

On the operation of this system, company spokespersons detailed its main characteristics. “TrustOS is made up of a series of modules that are independent and interoperable with each other. Each one includes a logical engine in the form of a smart contract, deployed on different blockchain networks, and with an abstraction layer in the form of an API to be able to interact with them easily. This modular architecture allows us to add both new APIs and new smart contracts to expand the functionalities, as new use cases require it.”

It is not the first time that Telefónica makes this type of effort to promote the technological development of other companies. According to local media, last October, the telecommunications company announced the creation of a blockchain network that more than 8,000 companies in Spain will use in their internal processes. In this way, the adoption of blockchain technology in Europe continues.

By María Rodríguez