The 2018 A-Share Market's First Big Trend: Exploring Blockchain Technology

·

The beginning of 2018 marked a pivotal moment for China’s A-share market, as blockchain technology emerged as the year’s first major investment theme. During the second week of January, the Tonghuashun Blockchain Index (885757) surged by 16.62%, reflecting intense investor interest. This momentum was fueled by the global rise of cryptocurrencies like Bitcoin, whose price skyrocketed from around $970 at the start of 2017 to nearly $20,000 by December that year. While digital currencies grabbed headlines, the real story lay beneath — in the transformative potential of blockchain technology itself.

Blockchain first appeared in 2009 as an open-source project running on a decentralized network of independent computers. It enables two parties anywhere in the world to transact directly without relying on intermediaries such as banks or governments. Trust is maintained not through institutions, but through cryptographic verification and distributed consensus. By 2017, this borderless financial innovation had drawn a broader base of cash-rich investors beyond early adopters. Bitcoin’s surge was mirrored by other cryptocurrencies — Ethereum’s Ether, for instance, rose nearly 5,000%, climbing from $8 to close to $400 within a single year.

Despite regulatory crackdowns starting in late 2017 — with countries like China and South Korea banning cryptocurrency trading to protect investors — the underlying blockchain technology continued gaining traction. In fact, it was precisely this separation between speculative digital assets and foundational tech that allowed blockchain to enter the mainstream investment spotlight. A wave of blockchain-related stocks in the A-share market saw consecutive涨停 (trading limits), drawing attention from analysts and institutional investors alike.

According to a January 13 report by Securities Daily, at least 37 listed companies in China had officially entered the blockchain application space. This rapid adoption raises important questions: What core problems does blockchain solve? And how close are we to seeing its widespread integration into everyday life?

What Problem Does Blockchain Actually Solve?

👉 Discover how blockchain is reshaping trust in digital economies today.

At its essence, if the internet solved the problem of communication, blockchain solves the problem of trust — specifically, enabling two strangers who don’t know or trust each other to conduct secure, verifiable transactions without a middleman.

A simple example often cited on platforms like Zhihu illustrates this perfectly: imagine two people, A and B, betting $40 on an NBA finals game — $20 each, with A betting on the Cavaliers and B on the Warriors. Using blockchain, they can create a smart contract:

match_result = NBA_Official_API.get("Finals")
if Cavaliers win:
    pay $40 to A
else:
    pay $40 to B

Both parties deposit their $20 into the smart contract's wallet. Once the game ends, the contract automatically retrieves the official result and disburses the full amount to the winner. No human intervention is needed. The code executes itself — transparently, immutably, and without bias.

This concept scales far beyond casual bets. It applies to any scenario requiring verification, transparency, and automated execution — from financial settlements to supply chain tracking.

How Close Is Blockchain to Everyday Use?

While enthusiasm runs high, practical adoption still faces hurdles. According to a January 10, 2018 report by Credit Suisse, blockchain technology won’t reach full maturity until around 2025. The report outlines seven stages of development:

  1. Idea Formation
  2. Concept Validation
  3. Prototype Development
  4. Testing Phase
  5. Parallel Production
  6. Full Production
  7. Mainstream Adoption

We were likely in the "testing" or early "production" phase back in 2018. True societal integration — where blockchain underpins significant portions of global economic activity — was still years away.

Yet major tech players weren’t waiting. BAT (Baidu, Alibaba, Tencent) had already begun strategic investments. Tencent, in its blockchain white paper, quoted Klaus Schwab, founder of the World Economic Forum, stating that blockchain is a key outcome of the Fourth Industrial Revolution. The prediction? By 2025, 10% of global GDP could be stored on blockchain platforms.

Core Keywords and Applications

Key focus areas for blockchain adoption include:

These keywords reflect both technical capabilities and market expectations driving investor behavior in 2018.

The Rise of Blockchain-Related Stocks

As of January 13, 2018, 37 A-share companies were identified as active in blockchain development. Among them, eight stood out due to heightened market activity and strategic pivots.

Software firms serving finance and supply chains naturally led the charge — their existing infrastructure made integration easier. But more surprising were traditional businesses repositioning themselves:

Even non-tech firms took notice. Xunlei, a cloud services provider, launched "LinkToken" — a tradable digital asset that incentivizes users to share idle computing bandwidth, effectively boosting network capacity through blockchain mechanics. Other companies like Renren and Baofeng Technology followed suit.

Meanwhile, prominent figures added credibility to the trend. Xu Xiaoping, renowned angel investor and co-founder of ZhenFund and New Oriental Education, publicly declared: “The blockchain revolution has arrived — it’s an unstoppable technological wave where those who embrace it thrive, and those who resist perish.”

👉 See how forward-thinking investors are positioning themselves in this new era.

Frequently Asked Questions

Q: Is blockchain just another name for Bitcoin?

A: No. Bitcoin is a cryptocurrency that runs on blockchain technology. Blockchain is the underlying system — a decentralized ledger that records transactions securely and transparently. Think of it like the internet (blockchain) versus email (Bitcoin).

Q: Can blockchain really replace banks?

A: Not entirely — at least not soon. However, it can disrupt specific banking functions such as cross-border payments, clearing, and settlement by reducing costs and increasing speed through automation via smart contracts.

Q: Are all “blockchain概念股” (blockchain概念股) legitimate?

A: Not necessarily. Some companies rebranded or made minor announcements solely to ride the hype wave. Investors should scrutinize actual R&D investment, technical partnerships, and product development before making decisions.

Q: What industries benefit most from blockchain?

A: Finance, supply chain management, healthcare data security, intellectual property rights (e.g., music, patents), voting systems, and identity verification are among the top candidates due to their need for audit trails and trustless verification.

Q: Is blockchain secure?

A: Yes — when properly implemented. Its security comes from cryptographic hashing and distributed consensus mechanisms. Tampering would require controlling over 51% of the network simultaneously — extremely difficult and costly in large networks.

Q: Why did governments ban cryptocurrencies but support blockchain?

A: Cryptocurrencies pose monetary policy and financial stability risks. Governments aim to prevent speculation and capital flight. However, they recognize blockchain’s value in improving efficiency, transparency, and security in public and private sectors.

Final Thoughts: A Technological Inflection Point

Blockchain represents more than just a financial tool — it’s a paradigm shift toward decentralized trust. Just as the internet dismantled gatekeepers in media and communications, blockchain has the potential to reshape institutions built on centralized verification: banks, insurers, notaries, even certain government functions.

While full-scale adoption may take until 2025 or beyond, early movers in tech and finance are already building the infrastructure for what could become a new digital foundation for global commerce.

👉 Start exploring blockchain opportunities with tools trusted by innovators worldwide.

For investors and businesses alike, the message in 2018 was clear: understand blockchain not as a passing fad, but as a foundational technology worth watching — and preparing for — now.