Blockchain startup Conflux has obtained a $5 million research grant from the Shanghai Science and Technology Committee and Changning District government, which is part of the Shanghai’s municipal government.
According to the company’s statement shared with CoinDesk, the Beijing-based organization claimed that it has become the only public, permissionless blockchain project supported by the Chinese government. The project has been included in the list of 57 high tech projects, including aerospace technologies and 5G, by the Shanghai administration. This is according to a Nov. 25 official document from its tech board.
The company stated that the grant would be utilized to develop the public chain’s research as well as support an aerospace supply chain suggested to be built on Conflux Network. Conflux’s project has been listed in the latest Five-Year Plan by the Shanghai administration as claimed by the organization. The plan is a sequence of economic and social initiatives that demarcate the nation’s future societal and economic development.
China has consistently aimed at developing a permissioned blockchain while being careful about public decentralized chains.
This is because such projects have launched initial coin offerings (ICO) to raise funds and issue their tokens as a substitute to fiat currencies.
Conflux co-founder, Fan Long told CoinDesk, “While the amount of money granted is important, it is the government’s signal to support a public permissionless chain like Conflux that matters the most for us.”
The nation’s central bank, The People’s Bank of China has prohibited ICOs and suppressed fiat-to-crypto trading from 2017. Conflux will not establish an ICO or be tangled in any form of centralized token sales, according to the Conflux co-founder.
Established in 2018, Conflux has amassed $35 million through a private token sale from well-known investors in China such as private equity company Sequoia China, Shunwei Capital, Rong360 and Huobi Group. Its team comprises of developers who attended top engineering schools in China and have graduate degrees from abroad.
CoinDesk reported in December 2019 that the Shanghai administration agreed to assist Conflux in opening a research institute and incubation center with a confidential amount of research funding.