Chinanet Online Holdings Inc (NASDAQ:CNET) recently announced that it has entered into a joint venture for developing Blockchain technology. The integrated online advertising, precision marketing and data-analysis and management services platform announced that it has entered into an agreement with Wuxi Jingtum Network Technology and Ford Tree Beijing Blockchain Technology Co., Ltd.
According to the Agreement, the joint venture has been initiated to develop and research blockchain technology and its applications for the blockchain technical and business units of CNET. The Chinese company will act as the controlling shareholder and will lead all the aspects of the project. The companies have decided to register the new JV in the People’s Republic of China territory. It will be established in the first half of February 2018.
As per the Agreement, the Chief Technology Officer of Jingtum, as well as other leading experts, will be involved in the new JV establishment. The new JV’s R&D team will help CNET design the underlying foundation of unique layered blockchain architecture, realize the circulation of specific assets between different chains, develop the cross-chain functionality between subordinate and the principal chains, complete the cloud service model, design intelligent contract mechanisms for supporting complex logic and other important underlying technology.
The online beta test for the platform’s framework will be run in February this year.
Ford Tree To Create And Review Blockchain Applications Model
Reports indicate that Ford Tree will take the responsibility of creating and reviewing the operating model for blockchain applications. The company has proven itself in developing and operating blockchain applications, especially in the digital assets area. According to the CEO of ChinaNet, Mr. Handong Cheng, this new JV establishment is a significant and important step for his company to extend and develop its blockchain technical strategy.
Handong stated that the company will now have to come up with a clear timetable for developing and implementing blockchain technology. Elsewhere, ChinaNet Online Holdings announced its entry into a securities purchase agreement with three institutional investors for a registered direct placement of around $11 million of shares of common stock with the company price of $5.15/share.