China will create a better environment to promote the healthy development of the rising blockchain industry, the Ministry of Industry and Information Technology said.

The blockchain is a digital ledger system that uses sophisticated cryptographic techniques to create a permanent, unchangeable, and transparent record of exchanges to trace each transaction.

The technology now has a wide range of applications in China including in finance, credit reporting, smart manufacturing, and supply-chain management, the ministry said.

The ministry will speed up pushing innovative applications of blockchain technology, with a focus on enhancing computing power and storage capacity.

A previous report by the ministry showed that by the end of March 2018, there were 456 blockchain technology companies in the country, with an industry ecosystem taking shape.

The industry remains in a nascent stage. While the technology has brought benefits, it could also bring risks such as technical loopholes, and challenges to current systems and norms, the ministry said.

The ministry also said it will work with local authorities to push for healthy and orderly development of the industry.