MyEG partners with China’s Bubi to set up blockchain supernodes

MY E.G. Services Bhd (MyEG) announced that it has entered into an equity joint venture with China’s Bubi Technologies Co. Ltd. (Bubi) to build supernodes based on a blockchain system.

In a statement, MyEG said the company will hold 51% of the Malaysian-incorporated joint venture (JV) that will cover the development of supernodes outside of China including in Malaysia, Indonesia and the Philippines, among others, for an initial 3-year period.

“These supernodes will be based on a high-performance and highly compatible blockchain system that is developed by Bubi and being used by China’s recently launched national blockchain infrastructure.

“These supernodes will offer both a public blockchain network, which is permissionless and open to anyone to participate, as well as a private blockchain network, where participation will be restricted to permissioned entities typically required for B2B use cases,” said the statement.

The statement added that Beijing-based Bubi is one of China’s leading blockchain technology providers and its blockchain platform boasts a developer network of more than 30,000 developers building a variety of decentralised applications. It is actively involved in the ongoing development of China’s national blockchain infrastructure by deploying its widely-used protocol for the network.

“The MyEG and Bubi JV’s blockchain supernodes will be fully compatible and interoperable with China’s national blockchain supernodes, enabling seamless integration and exchange of data blocks. The platform will, thus, lend itself well to the provision of solutions that have been long and much sought-after in global trade: end-to-end product traceability and financing along the entire supply chain, which, in this case, relates to the two-way flow of goods between China and the rest of the world.

“The partnership represents a particularly timely development in view of the impending commencement of the Regional Comprehensive Economic Partnership (RCEP), a free-trade agreement comprising 15-member countries, including China, that collectively account for 30% of global output. Verification of product origin and supply chain traceability are among RCEP’s key objectives,” it said.

According to the statement, the private blockchain will be well-positioned to bring positive transformation to regional supply chain financing.

“Its application in product traceability and verifiability along with the immutability of records would generate greater levels of trust, accountability and transparency, and enabling faster, cheaper and more efficient supply chain financing.”

The statement added that the roll-out of innovations on the blockchain platforms will be carried out progressively, with the maiden commercial applications targeted to be launched by the end of 2021.