BlocksInform
Blockchain startup conflux received a research grant of more than 5 million dollars from the Shanghai Scientific and Technological Committee and the Xuhui District Government, which is part of the city's municipal government.
The company based in Beijing boasted that it has become the only public, blockchain project without authorization supported by the Chinese government, according to the statement of the company shared with coindesk. The project was included in the list of 57 high technology projects, of which 5g and aerospace technologies, by the Shanghai government, according to a Nov. 25 an official Technical Committee document.
The funding will go towards developing research for the public channel. The project will also support a proposed aerospace supply chain to be built on the conflux grid, according to the company.
Conflux’s project has been included in the latest Five-Year Plan by the Shanghai government according to the firm. It is a set of social and economic initiatives that shape the country's future economy and societal development..
China has been mostly focused on developing permissioned blockchain while being cautious about public decentralized chains, since such projects have launched initial coin offerings (ICO) to raise capital and distribute their tokens as an alternative to fiat currencies.
"whereas the amount awarded is significant, this is the signal from the government to support a chain of public permissions like Conflux that means the most to us," explains Conflux Coindesk's long-time fan co-founder.
The People’s Bank of China, the country’s central bank, has banned ICOs and clamped down on fiat-to-crypto trading since 2017. Conflux will not initiate an ico or will not be involved in any form of centralised token sales, depending on the length.
Established in 2018, Conflux raised $35 million through the sale of private chips from leading investors in China, including the private equity company sequoia china, the huobi group, shunwei capital and rong360. His team includes developers who have attended the best engineering schools in China and studied abroad for their higher education diplomas.
The Shanghai government agreed to help Conflux open a research institute and incubation center with an undisclosed amount of research funding, CoinDesk reported in December 2019.
