By
Chimamanda U. Martha
October 10th, 2023
Together with Geely Digital Technology, Concordium announced it has developed several applications, including the BaaS platform, blockchain traceability, and decentralized apps.
Volvo’s parent company, Geely Holding, has announced a joint blockchain venture with Concordium. The plans for the venture has been forthcoming since it was first announced over a year ago. To facilitate the deal, the automotive company created a Digital Technology Sector (DTS) subsidiary to invest in cutting-edge technologies.
The joint blockchain venture aims to develop blockchain technology and espouses initiatives targeting the automotive industry among others. Daniel Donghui Li, CEO of Geely Holding Group noted that the partnership will fast-track the development of the blockchain industry in Wuxi. He also noted that the policies of the Wuxi Economic Development District will fast-track the development of Geely Holding’s blockchain technology.
Accordingly, Lars Seier Christensen, chairman of the Concordium Foundation stated:
“We will do our utmost to contribute with our blockchain technology to benefit enterprises and start-up companies throughout China.”
China, Permissionless Blockchain and Cryptocurrencies
China has previously shown its preference for permissioned blockchains. In 2021, it rolled out a permissioned version of Cosmos. the government also designed a blockchain-based service network. Asides from this, China banned all cryptocurrencies in 2021.
However, Concordium is a permissionless blockchain and one with a native currency too. The platform’s native currency, known as CCD, is used to cover transaction fees, staking, the reward for node operators and collateral or settlement for its decentralized finance protocols.
Nevertheless, Concordium has a built-in identity system that enables regulators to unmask identities potentially. The protocol-level ID associates each wallet address with a verified real-world identity. Verification is done through a third-party ID provider. It remains to be seen how this will weigh in on acceptance by the Chinese government.
How the Blockchain Venture by Geely Will Work
Already, extensive work has started between the two brands. Together with Geely Digital Technology, Concordium announced it has developed several applications. These include the blockchain as a Service (BaaS) platform, blockchain traceability, decentralized apps, and digital asset management.
Geely has many brands including Volvo, Polestar, and Lotus. It also has the largest number of shares in Daimler. Through these subsidiaries, Geely has been involved in other blockchain ventures. For example, Volvo has been involved in a blockchain initiative to trace ethically sourced minerals.
Also, Daimler has previously partnered with Boerse Stuttgart, exploring the use of public tokens to fund industrial machinery.