More than 100 companies won bids for a 280 million government blockchain project, with the most projects located in Beijing

This article was published by Zero One Finance.

Recently, 01 Blockchain released the "Government Blockchain Project Bidding Survey Report (2020)." Riding on the momentum of the "1024 Meeting" in 2019, both the government and enterprises placed great emphasis on the research and development of blockchain technology and the promotion of blockchain industry applications in 2020. In April 2020, blockchain was officially included in the category of new infrastructure, further accelerating the implementation of the blockchain industry.

To this end, 01 Blockchain conducted a series of surveys. At the government level, various levels of government issued more than 600 blockchain-related policies in 2020, and four blockchain industrial parks were newly established under government leadership. At the enterprise level, as of December 2020, there were a total of 64,062 companies nationwide that included the term "blockchain" in their business registration information, such as company name, former name, business scope, or product information. Among them, approximately 1,300 blockchain companies were genuinely engaged in business, covering the entire blockchain technology industry chain. Additionally, in 2020, there were 27 disclosed financing rounds in the Chinese blockchain sector, totaling 1.112 billion yuan. Overall, the blockchain industry made significant progress in 2020.

Government bidding is an important way to build blockchain public service facilities, and the activity level of the bidding market is closely related to the development of the industry. With a more favorable blockchain policy environment, improved standards, more active investment and financing, higher enterprise development levels, and a more complete industrial chain, the bidding market also saw considerable growth in 2020. 01 Blockchain conducted an in-depth investigation into government bidding projects and formed the "Government Blockchain Project Bidding Survey Report (2020)." Click to read the original report

Since the first government blockchain-related bidding projects appeared in 2016, by December 31, 2020, a total of 86 government departments and research institutions had released 113 blockchain-related projects. The bidding units covered 18 provinces (municipalities and autonomous regions), with 102 projects announcing a total of 116 winning results. A total of 101 enterprises and research institutions/social organizations from 17 provinces (municipalities and autonomous regions) won bids, with a total winning amount exceeding 280 million yuan. In 2020, 56 government departments and research institutions released 72 blockchain-related projects, covering 18 provinces (municipalities and autonomous regions). A total of 65 projects announced 73 winning results, with 66 enterprises and research institutions/social organizations from 16 provinces winning bids, with a total winning amount exceeding 200 million yuan, accounting for 64% and 72% of the total number of bids and total winning amount, respectively.

Figure 1 Changes in the number of government blockchain project bids over the years

Figure 2 Proportion of government blockchain project bids (left) and winning amounts (right) in 2020

Further research reveals that, from the perspective of the regions where the bidding units are located, areas such as Beijing, Guangdong, Fujian, and Shanghai have a higher number of bidding projects, reflecting that the local governments place greater importance on the development of the blockchain industry and that there are more enterprises engaged in blockchain business in these areas. This also somewhat reflects the overall strength of blockchain enterprises in these regions, which have the capability to stand out among numerous bidding companies.

Figure 3 Distribution of bidding units by region and number of projects

Figure 4 Distribution of bidding units by region and number of projects in 2020

In terms of winning amounts, the winning amounts for blockchain projects from 2016 to 2018 were generally low, with most being within 500,000 yuan, indicating a preliminary development stage focused on single-function system construction. In 2019, projects in the range of 500,000 to 3 million yuan gradually increased, while projects under 500,000 yuan decreased compared to 2016-2018, as the government began to plan some comprehensive projects. In 2020, the number of various projects increased, and several projects worth tens of millions emerged, ranging from the construction of small business blockchain systems to the establishment of large-scale blockchain underlying infrastructure, expanding comprehensively and blooming in multiple areas.

Figure 5 Distribution of winning amounts by year

From the perspective of specific units, various information departments at all levels, including the Office of the Central Cybersecurity and Informatization Commission, the Information Center of the Ministry of Natural Resources, and the National Customs Information Center, are important bidding entities, having released 22 bidding projects, accounting for 19.5% of all projects. The Shenzhen Taxation Bureau of the State Administration of Taxation, the Fuzhou Big Data Development Management Committee, and the Economic and Information Bureau of the Guangzhou Development Zone are among 17 units that released more than one bidding project. Eleven units, including the China Academy of Information and Communications Technology, won more than one project, of which nine are enterprises, and six are small and micro enterprises.

Table 1 Units with a high number of released bidding projects

Table 2 Units with a high number of winning bids

In our research, we also noted that small and micro enterprises are the main force in winning government blockchain projects. A total of 54 small and micro enterprises won 60 projects, with a total amount exceeding 150 million yuan. The number of winning bids and the winning amount accounted for more than 50% of the total number of winning bids and total winning amount, and 62% and 65% of the winning bids and amounts by enterprises, respectively.

Figure 6 Proportion of winning bids by small and micro enterprises (left) and proportion of winning amounts (right)

In terms of bidding methods, open bidding is the primary method for government blockchain project bidding, accounting for about 60% of the total number of bids. Competitive negotiations and competitive discussions have also been widely applied, with their proportions gradually increasing; the single-source method appeared for the first time in 2020. Therefore, 01 Blockchain has summarized the key assessment areas for government blockchain project bidding during competitive negotiation announcements, categorizing them into four parts: qualification review, business review, technical review, and price review. Another noteworthy characteristic of government blockchain project bidding in 2020 is the increase in the number of bidding projects related to blockchain laboratories in universities. In 2020, there were nine laboratory-related projects, showing a significant increase compared to previous years. The increase in university blockchain teaching project bidding helps promote the construction of blockchain laboratories in universities, making it easier to combine theory with practice in blockchain education and facilitating the training of blockchain talent.

Table 3 2020 Research Institution Laboratory Blockchain-Related Projects

Looking ahead, we believe that the number of blockchain bids will further increase, with more diverse types. The regional distribution of bidding projects will stabilize, but opportunities can still be explored in various locations. At the same time, there is enormous potential for the development of university project bidding, which will further promote industry-university cooperation. Currently, the industrial chain of the blockchain industry has basically formed, and aspects such as policies and talent cultivation are gradually improving. The next few years will be a golden period for the development of the blockchain industry, a critical period for transforming blockchain from a theoretical information infrastructure into a practical value internet platform, and a key period for the government to accelerate the implementation of blockchain applications and promote infrastructure construction. Relevant bidding activities will continue to advance steadily, becoming richer and more diverse, ultimately contributing to the establishment of a healthy competitive ecosystem for the blockchain industry.