July 21, 2024
LayerZero Explores Expansion in China Through Partnership with Conflux and China Telecom
Latest Cryptocurrency News

LayerZero Explores Expansion in China Through Partnership with Conflux and China Telecom

The interoperability standard LayerZero, which just signed a contract with Google Cloud, is considering growth in China.

A partnership between Conflux and LayerZero on the future blockchain-based SIM card (BSIM), jointly created by Conflux and China Telecom, was announced today. By employing LayerZero, users of this BSIM will be able to move assets and messages between chains.

Conflux is a public blockchain that is registered in Singapore and has a unique presence in China. In February, BSIM and China Telecom jointly launched Layer 1. At the time, they stated that the idea would first be trialled in Hong Kong before being implemented across China. Users are supposed to be able to safely store private keys on their phones thanks to SIM cards.

Conflux’s usership has been flagging while BSIM cards wait for the start of their trial program; according to statistics provided by ConfluxScan, the number of daily transactions has been hovering around 20,000 since April after mostly exceeding 40,000 in the first quarter of 2023.

Conflux wants to eventually enable BSIM customers to transfer assets held on the blockchain-enabled SIM cards from Conflux to other chains by collaborating with LayerZero.

A cross-chain messaging mechanism called LayerZero reduces the number of middlemen required to transfer assets or information between chains. The two most popular LayerZero nodes are Arbitrum and Optimism for the Ethereum layer-2 protocols.

The CEO of LayerZero Labs, Bryan Pellegrino, confirmed that LayerZero will expand into the Asia Pacific area with the Conflux integration since the region “has historically been a first mover in Web3.”

Pellegrino said that BSIM wants to reach some of China Telecom’s 390 million subscribers.

In the past, China has clamped down on cryptocurrency trading and mining, but Hong Kong’s recent decision to let limited retail crypto trading—and China’s quiet on the issue—have led some to question if China is also softening on cryptocurrency.

“The apparent tacit approval of Hong Kong’s new crypto initiatives could signal that the Chinese government’s stance on cryptocurrency is evolving,” a Chainalysis report released on Monday stated.

Image: Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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