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China’s Largest Phone Retailer Enters Blockchain Sector, Invests in U.S. Startup Monsoon Blockchain

Saad Ullah

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Dixintong Technology Group, a subsidiary of the largest mobile retailer in China, D.Phone, has signed a purchase agreement with a United States based startup called Monsoon Blockchain.

Minority Stake, Major Money

Dixintong and Monsoon Blockchain, both have confirmed that the Chinese mobile retailer has invested in a minority stake in the blockchain startup, but have so far kept the actual details under wraps. It is rumored, however, that the deal was in the billion dollar range. For many, the move by Dixintong and D.Phone has come as a surprise. The retail seller however, has expanded its wings over the years.

D.Phone started as a mobile phone retailer in early 90s and floated its stock in 2014. At that time, the four largest telecom industries of the country, Lenovo Group, Qihoo 360, TCL and Chine Telecom were its major backers. Dixintong Technology Group, which comes under the umbrella of D.Phone, is also invested in by JD.com, the largest rival of the e-commerce giant Alibaba. With the stake in Monsoon Blockchain, D.Phone and Dixintong intend to explore the potential and usability of the decentralized technology in practical use case scenarios, along with other emerging technologies such as Internet of Things (IoT) and 5G.

Cloud Computing Client Management

The pricing of cloud based services are at a pivotal point where they will shift from being stagnant and slab based to dynamic and reactive to changes in the location, capacity and other factors of the data centers. This becomes increasingly difficult for the industry to match the prices against the services and creates a point of confusion for clients on which and what services to use.

Monsoon Blockchain us a U.S. based decentralized startup that uses Ethereum blockchain based smart contracts to give faster access and increased efficiency to cloud based service providers and their customers. The firm collects prices and other information from registered cloud service data centers and uploads it to its blockchain ecosystem. Clients submit their requirements and their range of finances for the said services on their end. The blockchain uses smart contracts to match the services offered with the ones required by clients, making it easier for both parties to conduct business.

The partnership could see Dixintong and D.Phone, Monsoon Blockchain now has access to one of the largest mobile phone markets in the world. The mobile owners could leverage the data by Monsoon Blockchain and enjoy lower data rates through its optimized cloud services. In return, the mobile phone users will be able to join any future IoT and 5G services, allowing for a wealth of data that no other platform will be able to achieve.

Although the Chinese government has strict rules against cryptocurrencies and has gone as far as to order blockchain companies to get their names into a national registry so their operations can be closely monitored, it still has very encouraging policies towards the adoption and use of the ground-breaking technology. The sheer population size and technology users of the country makes it the biggest market for blockchain and other disruptive technologies and the Chinese government has often revealed its intent to lead in this.

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