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It is looking at applying the technology across its businesses, which are as varied as financial services and pharmaceuticals, Da said. It confirmed the latest investment closed last month and said the amount was in the tens of millions of yuan. It declined to elaborate.

Blockchain involves creating permanent, public ledgers of transactions. Its ability to secure and validate any exchange of data has brought it attention from many industries. In finance, for instance, it promises to simplify cross-border version bitcoin and settlement which currently involves multiple parties.

In China, the government is encouraging the development of blockchain to increase transparency and reduce fraud. Shanghai Distributed Technologies has about 40 employees.

The most well-known, bitcoin, has risen percent in value this year, prompting concern of a market bubble at risk of collapse. Da, who version bitcoin no formal technical training and ran an education consultancy before becoming involved in digital currencies intold Reuters that the potential of blockchain validates the hype.

Perhaps 95 to 99 percent of projects are rubbish.

I think the money going into blockchain is worth it.