Just 12 years ago, blockchain technology was first created as an alternative to the centralized financial transaction systems of today. Since then, its global popularity has skyrocketed; its influence can now be found beyond financial sectors alone and into nearly every industry imaginable; some estimate that by 2025 global blockchain revenue revenues may surpass 39 billion dollars.
Australia was among the early nations to recognize and implement blockchain technology into various national sectors, although their government wasn't initially very involved. Now though, as part of their five-year plan, Australia's government is working toward changing this and has announced an ambitious blockchain roadmap which is set to revolutionize every industry within their borders.
What Is Blockchain Technology
Shortened version: Blockchain technology refers to a collection of timestamped digital information held within "blocks," stored on a shared database using cryptographic "chain" principles. Three components make up this data set: transaction information, participant details for transactions conducted via blockchains and unique (hash) ID numbers assigned to every block on this blockchain network.
Blockchain technology is revolutionary. Utilizing it allows network members to build network-specific 'Permissioned Blockchains,' accessible only by members within that particular network. Members can opt-in or out for anonymity when disclosing personal data within that same network; due to cutting out middlemen from transactions using Blockchain can significantly decrease fraud and cybercrime rates.
Blockchain Network Is Decentralized:
An autonomous computer cluster that works collaboratively to store its data within a blockchain is responsible for decentralized storage management of this decentralized data repository. No governing body oversees it directly.
The Blockchain Ledger Is Distributed Across The Particular Network:
Millions of computers distributed throughout the blockchain network verify each new "block" containing transaction-related information before its addition to the "chain".
Blockchain Provides Cryptographic Shield:
Every user on a blockchain network possesses a public key that is visible to other members, although their identity remains concealed behind a digital signature created exclusively for them upon registration that only they and their private key can decipher.
Data Origin Is Accurately Trackable In A Blockchain:
Blockchain digital assets allow their ownership to be updated solely by their owner, unlike traditional distributed database management systems where system administrators maintain full control. As a result, every piece of data stored has traceable sources making it verifiable and reusable.
Data Stored In A Blockchain Ledger Is Both Transparent And Private:
Blockchain networks ensure every node holds onto an exact copy of transactional history and hence eliminate any chances for data loss, as all network members can access all records at any given moment and from any location. Blockchain only supports two functions - create and read. This ensures any changes made to data will reflect throughout all blocks, alerting all members of the network when changes were made and making data virtually indecipherable as no-one can change anything after being registered in blockchains without leaving evidence behind.
Are There Any Legal Or Regulatory Issues ?
Australian financial services laws could potentially apply to initial coin offerings (ICOs) as an alternate source of financing, according to the Australian Securities and Investments Commission (ASIC). An initial coin offering (ICO) must also consider legal liability issues related to licensing, registration and disclosure obligations that might result if its tokens constitute financial products (referring back to question 9).
Initial Coin Offerings (ICOs) and Security Token Offerings will fall under AML/CTF reporting obligations regardless of whether they qualify as financial products. According to Schedule 1 of the NCCPA, entities conducting lending activities within the parameters set out by the National Credit Code - such as lending related to digital asset security - must either possess an Australian Credit License or be exempt. Licensees for credit are additionally required to maintain compliance with additional obligations as specified within their licenses.
Concerns have arisen as digital assets increasingly comprise baskets of fund assets. Adherence to current regulations regarding asset holding--such as maintaining exclusive possession of trust assets for beneficiaries--is at issue here, making compliance challenging. Cold storage, multi-signature access procedures and trade execution procedures have all been proposed as solutions; yet none has provided sufficient relief so high volume trading schemes may execute trades more easily.
Read More: Benefits Of Blockchain In Different Business Environment
Australian Govt's Blockchain Roadmap
Australia has long been one of the leading nations when it comes to blockchain applications development, hosting many groundbreaking apps first made popular there. Australia currently ranks sixth globally for patent filings relating to this technology and their government has financially supported numerous university research related blockchain research through Austrade trade missions, Entrepreneur's Program grants from Australian Research Council grants as well as Business Research Innovation Initiative pilot projects.
The Australian government Department of Industry recently unveiled new national blockchain roadmap steps as part of their 5-year plan in an attempt to advance Australian blockchain endeavors. These are expected to bring regulatory mechanisms, assist more Australians with building blockchain skills and increase opportunities for foreign investments and collaborations.
The 12 national blockchain roadmap steps taken by the Australian government
Australian government authorities assert that their 12 national blockchain roadmap initiatives outlined in this five-year plan will bring Australia one step closer towards "a blockchain enabled future". Below is their outline:
- The National Blockchain Roadmap Steering Committee will oversee future steps of blockchain development as advised by its new name provided by the government. Its duties will include informing governing bodies on potential partnerships enabled by blockchain technology while upholding strong relationships with relevant committees.
- Teams composed of representatives from industry working groups, academia and government agencies will be assembled in order to explore potential applications of blockchain technology in industry settings.
- The government will examine use cases across industries like banking, education and agriculture.
- Government blockchain users will work collaboratively to explore potential new blockchain applications, promote its use throughout government departments and discuss lessons from current use cases.
- Australia will investigate how blockchain is utilized internationally and take notes on how its usage differs there.
- As part of its participation in the Business Research and Innovation Initiative (BRII) program and to discuss any current problems that blockchain technology might help solve, the government will work closely with blockchain service providers.
- Blockchain will be a part of broader policy initiatives aimed at enhancing the management capabilities of emerging digital technologies.
- The industries and academic institutions will be employed by the government to collaborate in the development of common frameworks and curriculum for certification in the blockchain sector.
- In order for Australian blockchain start-ups to be prepared to expand internationally, the government will work with the Trade Commission, or Austrade, to develop a capacity building program. The government will then link the qualified startups to Austrade-funded programs.
- Additionally, they plan to develop an inbound investment program with a blockchain focus thanks to their partnership with Austrade.
- Australia will make use of the bilateral agreements it currently has with other nations to approve pilot projects.
- They will collaborate with relevant government agencies to make it possible for Australian businesses to join the cutting-edge digital trade networks that are currently being created.
How Will This National Blockchain Roadmap Affect The Future?
Prior to Australia's announcement of their national blockchain roadmap steps, numerous central regulations made blockchain implementation challenging in various sectors. If anyone used it criminally and they became victims they couldn't seek justice; thanks to government measures lowering restrictions to a minimum and adapting legal systems accordingly many industries can now freely embrace technology for complete transformation allowing complete transformation from within Australia itself - we have highlighted just two areas this ground-breaking tech will significantly affect.
The Agricultural Supply Chain
Australian agriculture enjoys global renown for producing delicious and premium agricultural products under safe, well-regulated conditions, making the Australian agriculture industry globally popular. Unfortunately, though, its similarities also leave it open to counterfeiting activities; counterfeiters attempt to sell fake items while infringing upon individual intellectual property rights and in some instances incur losses estimated at $40 billion annually due to food fraud.
Australian beef brands, citrus/cherry products (like baby formula and premium wine brand names) which threaten global consumers as well as its global reputation of cleanliness/envampirement/protecting IP rights rights rights in terms of intellectual property rights infringement violations by global companies or individuals involved with counterfeit food fraud activities; these practices threaten both global consumers as well as damage Australia's global reputation for cleanliness/env compliance with environmental policy obligations by being produced without due regulatory oversight.
Every transaction and distribution history associated with a blockchain product are permanently recorded and made accessible to the entire network, while real-time detection pinpoints any indications of coercion, subpar care or servicing. Furthermore, supply chains can be tracked along with authentication of goods to prevent data loss or corruption and track supply chains simultaneously preventing data loss or corruption preventing data loss prevention fraudsters and corrupters compromising sensitive records or corruption; for added protection smart contracts may also be applied to transactions for increased safety.
Credentials And Proof Of Identity
Australia plays an instrumental role in developing and exporting credentials and qualifications, ranking third as an exporter of education worldwide. Australia was projected to benefit $35.2 billion from international education exports. Australian job markets depend heavily on identity verification and valid credentials - this also holds true for admissions into universities - though credential fraud may become increasingly likely as society digitizes further; additionally presenting credentials offline may prove costly and time consuming.
Blockchain-based smart contracts excel here because they present innovative and creative solutions to problems faced both by university admissions offices and labor market recruiting departments. Candidates using this blockchain-powered private forum can safely upload confidential documents and register using portable credentials.
Employers and university admissions committees can then use immutable blockchain sources to easily cross-reference documents against immutable blockchain sources for accurate background checks at much less expense and with greater precision, thus dramatically decreasing nepotism, fraud and corruption related to false educational or professional backgrounds based on falsehood. Employees or students wishing to enroll at Australian universities could then have more confidence in making decisions based on accurate facts rather than assumptions made from false educational or professional backgrounds.
Government Stance On Blockchain Technology
Fintech and innovation generally enjoy widespread support among government and regulators who have made an effort to understand businesses by consulting regularly with them on proposed regulatory changes. Opportunities, risks and challenges presented to customers, regulators and market participants have generated much discussion over recent years. The Government's increasing dedication to clarifying how emerging services fit within Australia's regulatory framework has laid the groundwork for its greater goal of stimulating growth and innovation within Australia's technology industry. These changes include new legislation designed specifically to regulate fintech services; amendments of current legislation that bring them within their purview; and increased fintech-specific regulatory guidance that helps businesses better understand their obligations.
The National Blockchain Roadmap unveiled by the government is structured around four policy areas - investment, skill development, regulation and international competitiveness/collaboration. To facilitate larger cross-border projects and knowledge-sharing programs more quickly and effectively, investments have also been made supporting various alliance-based blockchain alliance initiatives/programs through Austrade - such as increasing enforcement against services related to blockchain technology/digital assets as well as actively monitoring services provided.
How Much Has Blockchain Technology Impacted
Blockchain technology is increasingly being leveraged by government, companies, and non-profit organizations alike to enhance their environmental, social, and governance (ESG) responsibilities. This is especially applicable when establishing, assessing and tracking counterparties' ESG-verifiable data. Through their Blockchain Pilot Grants program, Australia has previously invested A$5.6 Million to develop blockchain-based solutions which reduce regulatory compliance burden for businesses while improving supply chain provenance tracking procedures.
World Wildlife Foundation Australia is working with tuna industry members in the Pacific Islands to use blockchain technology to verify where tuna sold at fish markets originates, in order to guarantee they do not come from unreported, unregulated, or illegal fishing operations.
In August CSIRO initiated a research project aimed at creating a blockchain-based data platform for hydrogen ESG certification and monitoring. Outcomes included developing its capabilities in architecting and building ESG certification platforms for hydrogen supply chains as well as producing Australia's first reference architecture and prototype for verifiable ESG certification platform using blockchain-technology for industry applications. Furthermore, Australia designed and prototyped its inaugural blockchain audit black box that has yet to be deployed into practice by industry participants; an undertaking still ongoing.
Blockchain holds immense promise to be utilized as an efficient means to track carbon credits, manage fuel usage and combat counterfeit pharmaceuticals and medical devices, while improving corporate governance by offering improved data protection from hacking threats while increasing transparency.
An increasing number of individuals in the blockchain and cryptocurrency sectors are responding to criticism regarding sustainability and carbon emissions associated with these industries. Binance Australia announced an attempt at greater transparency regarding sustainability and the carbon footprint of digital asset trading, that they would begin reporting ESG metrics via the Socialsuite ESG Go platform. Proof of Stake (PoS) was adopted as Ethereum's consensus mechanism in September due to its lower energy needs compared with proof of work; research conducted at Cambridge's Centre for Alternative Finance showed this decrease was more than 99%!
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Conclusion
Undoubtedly, blockchain technology can present unique implementation challenges. Furthermore, in order to accommodate it and accommodate for its growth within industries that will need to make radical transformations from within; yet notable Australians have begun accepting its influence by making considerable investments into research associated with it - all which argues in favor of its eventual inclusion as part of everyday economic life and thus altering history.
With government support already at hand and with notable Australians adopting its use as a given, soon blockchain tech in Australia will play an essential part in every corner of economic life change forever as history unfolds before us all.
