The financial switch to permissioned blockchains
According to a few new reports coming from Europe, it is expected that the “First Wave” of Blockchain adoption on the continent will be led by permissioned blockchains.
These permissioned blockchains will be focused on specific use cases and user databases. The EU Blockchain Observatory and Forum, published a thematic report last week which was made on the behalf of ConsenSys AG titled: “The Scalability, Interoperability and Sustainability of Blockchains”.
According to the document, Permissioned Blockchains are focused on meeting the specific needs of users, while providing a great deal of flexibility in comparison to the Public Blockchains. The authors think that the builders of private blockchain platforms will also have more freedom to design performance and security to users.
This has led the EU organisations to therefore conclude that there will be a smaller amount of global blockchain networks that will emerge and become the backbone of this new ‘Internet of Value’.
The organisations also think that there are still a few key challenges or issues needed to be solved such as scalability, which is the ability to make large volumes of transactions at high-speeds.
Also interoperability, which falls in-line with being able to exchange data across all blockchains and the last issue being sustainability, as the organisations think it needs to be environmentally responsible, with some great blockchain platforms and long term viability.
In a statement made by the EU group:
“It seems clear to us that a multiverse of independent blockchains that cannot interoperate would be severely limited. Users of Blockchain platforms will find it beneficial to be able to exchange data and make transactions between chains to a healthcare chain. Connecting to an insurance chain, a real-estate chain connecting to a construction material or manufacturing chain, and so on.”
Blockchain technology platforms
The organisations are expecting a success blockchain execution in Europe. However, if it should be successful, it needs to be able to scale in order to meet the needs of targeted audience.
On the topic of blockchain, specifically cryptocurrencies, they are expected to become less energy-intensive overtime.
As for what will create a successful large scale Blockchain project, the teams will need to develop a clear vision of what they want to achieve, a clear reason for using blockchain technology over traditional technologies, along with a strong governance structure while sharing efforts and expertise among diverse stakeholders.
While Europe has been very supportive of this leap forward with the Blockchain technology, the authors have stated that there is much that still needs to be discovered and developed along the way. This has lead the organisation to believe that a light touch approach is required which will allow for experimentation and is the best way forward.
According to statements from the Authors:
“Both the US and China have expressed strong support for Blockchain research, with the former even going so far as to include it as part of its USD 700 billion defence budget. We therefore recommend that the EU continue its strong support, targeting both basic research as well as supporting implementation of infrastructure-related projects in particular, as well as research into non-technical topics such as governance of blockchain projects.”
This EU Blockchain Observatory and Forum was launched by the European Commission earlier last year with the aim of identifying key initiatives, the monitoring, development and promotion of common actions in the area of Blockchain Technology. The group will be publishing another Blockchain report which will be focused on the issuance of privacy and confidentiality in the second half of 2019.
What are your thoughts on the direction of the EU continent with the permissioned blockchains and their implementations? Please feel free to leave a comment down below.