Tree Graph (Conflux) public chain: A unique practitioner of compliance token issuance and trading in mainland China.
In the global wave of blockchain technology development, China has always maintained a cautious attitude towards the regulation of cryptocurrencies and public chains. Most public chain platforms are unable to achieve token issuance and trading in mainland China due to difficulties in meeting policy requirements. However, Conflux public chain has become an exception, primarily due to the synergistic effects of four pillars: policy compliance, technological autonomy, precise strategic positioning, and ecological controllability, which have enabled it to carve out a unique development path within the compliance framework.
1. Policy Compliance: The only officially registered "regular army"
Compliance with policies is the primary prerequisite for Conflux to establish itself in mainland China, and its compliance advantages are reflected in the dual guarantees of regulatory endorsement and token attributes definition.
1. National-level regulatory recognition
Conflux is the only public blockchain in China that has been filed with the National Internet Information Office, led by the core team of Tsinghua University’s "Yao Class," and has received explicit support from the Shanghai municipal government. This "national team" background distinguishes it from other public chains— for example, TRON was forced to exit the Chinese market due to non-compliance with regulatory requirements, whereas Conflux, with its filing qualifications, can legally carry out technological research and ecological construction without worrying about compliance red lines.
2. Precise avoidance of Token attributes
- Non-financial positioning: CFX Token is strictly defined as "public chain network fuel," used only for paying transaction fees (Gas fees), and not as a security or financing tool, fundamentally avoiding China's regulatory ban on the financial attributes of cryptocurrencies.
- Proactively adapting to regulatory requirements: Conflux actively cooperates with regulatory rules, such as removing high-leverage features in decentralized finance (DeFi) scenarios and establishing a real-time compliance screening mechanism. All transactions must undergo three layers of verification (taking 26 seconds), ensuring compliance with anti-money laundering, anti-terrorist financing, and other regulatory requirements.
2. Technical Architecture: Independently controllable high-performance underlying support
Technical autonomy is the confidence behind Conflux's compliance development. Its innovative underlying architecture not only achieves performance breakthroughs but also meets the national technology security requirements of "self-controllable".
1. The Tree Graph Consensus Algorithm Breaks Through Performance Bottlenecks
Conflux's self-developed tree graph structure consensus algorithm elevates public chain performance to new heights: achieving 15,000 TPS (Transactions Per Second), which is 75 times that of Ethereum (approximately 200 TPS), with a transaction confirmation time of only 26 seconds. This performance advantage makes it a benchmark project for the country's "digital new infrastructure," capable of supporting large-scale commercial applications and governmental scenario implementations.
2. Dual design of security and controllability
- Supports hardware-level security solutions, such as the BSIM card developed in collaboration with Dongxin HePing, which ensures the security of user assets through the "private key does not leave the card" mechanism, achieving financial-grade security standards;
- Native support for artificial intelligence (AI) on-chain calls and batch settlement of real-world assets (RWA), with a technical direction closely aligned with the policy orientation of "blockchain empowering the real economy," avoiding a disconnect between technology and actual demand.
3. Strategic Positioning: Anchoring the Core Value of National Strategy
The compliance of Conflux is not a passive adaptation, but an active integration of its development into national strategy, forming a unique advantage of "strategic synergy."
1. Promote the internationalization of the Renminbi
Conflux partners with the Hong Kong institution AnchorX to issue an offshore Chinese Yuan stablecoin (CNHC), focusing on serving cross-border trade settlements under the "Belt and Road" initiative. In scenarios such as energy trade in Central Asia, the settlement fee for CNHC is only 1/10 of that of the traditional SWIFT system, significantly reducing cross-border transaction costs and directly providing technical support for the internationalization of the Chinese Yuan.
2. Hardware entry builds a compliance closed loop
Jointly launched by China Telecom, Dongxin, and Ping An, the BSIM blockchain SIM card can be directly embedded into ordinary mobile phones, covering 800 million mobile users in the country. As a compliance hardware entry point, the BSIM card binds user identity to on-chain behavior, incorporating it into the regulatory framework, completely avoiding the anonymity risks of pure software wallets and addressing the core pain point of "regulatory difficulties" in blockchain.
4. Key differences with other public chains: Comprehensive leadership in compliance dimensions.
The uniqueness of Conflux can be clearly illustrated through a comparison with other public chains (such as Tron, AntChain, etc.), where its differences lie not only in the technical aspect but also in the essence of compliance logic and strategic positioning.
Table: Comparison of Compliance Differences between Conflux and Other Public Chains in the Chinese Market
Comparison dimension Conflux other public chains (Tron, AntChain, etc.)
Regulatory filing The only public chain that has been filed with the Cyberspace Administration. Not filed, or limited to non-coin alliance chains (such as Ant Chain)
Token attributes defined as Gas fuel, with no financial financing attributes, often recognized as securities attributes or financing instruments.
Technical Architecture Self-controlled Tree Graph Consensus Algorithm Relies on foreign technology (such as Tron) or private chain architecture
Strategic positioning serves the national strategies such as the "Belt and Road Initiative" and the internationalization of the Renminbi, lacking synergy with national strategies.
Performance: 15000 TPS, 26 seconds transaction confirmation. Most are below 1000 TPS, with longer confirmation times.
1. The essential division of token issuance
- Ant Chain, JD Chain and other consortium chains: Positioned for enterprise-level services, they do not issue any tokens and are only used for closed scenarios such as supply chain traceability and government evidence storage. By adopting a "token-free" approach, they completely avoid financial risks, but they also lose the openness and ecological vitality of public chains.
- Tron and other overseas public chains: Token has strong financial attributes, and they have not actively adapted to China's regulatory rules, ultimately being forced to withdraw from the mainland market due to compliance risks, unable to conduct business domestically.
2. Risk isolation mechanism for ecological development
Conflux achieves risk isolation through a layered governance structure: it restricts high-risk financial applications such as DeFi to overseas ecosystems, while the domestic ecosystem focuses on compliance scenarios such as cross-border payments, government services on the blockchain, and digital identity, forming a clear separation of "domestic technical infrastructure + overseas financial applications", which ensures domestic compliance while not giving up opportunities in overseas markets.
V. Future Challenges: Uncertainty under Compliance Advantages
Although Conflux currently enjoys a compliance advantage, its future development still faces multiple challenges against the backdrop of ongoing high-pressure blockchain regulation in mainland China.
1. Uncertainty of regulatory policies
China's ban on cryptocurrency trading has yet to loosen; if the CFX Token experiences excessive speculation in the secondary market, it may trigger further intervention from regulatory authorities, and even affect its "non-financial" attribute positioning.
2. Dual Bottlenecks of Technology and Ecology
- Technical aspects: The originally planned sharding solution has been delayed, which may result in the inability to fully meet the performance commitment of 15000 TPS, affecting the implementation of commercial applications.
- Ecological aspect: Currently, 35%-40% of the total locked value (TVL) in the ecosystem relies on official liquidity subsidies, indicating insufficient spontaneous activity in the ecosystem, making it difficult to sustain in the long term.
Summary: The core logic of Compliance - "exceptions" rather than "universality"
The reason Conflux can achieve token issuance and trading in mainland China lies in its construction of a **"national team background + non-financial tokens + national strategic tools"** trinity model. It does not develop by breaking through regulations, but rather empowers national strategic needs through technology, becoming a "special case" within the regulatory framework.
In the future, whether Conflux can maintain its compliance status will depend on its ability to balance three key relationships: the relationship between technological iteration and performance commitments, the relationship between ecological subsidies and spontaneous growth, and the relationship between overseas financial applications and the compliance bottom line within the country. Only by continuously adapting to regulatory requirements in a dynamic balance can its unique compliance advantages truly be transformed into a competitive edge for long-term development.
