The European Union has made it clear that its goal is to be a major player in the global tech scene, especially when it comes to Blockchain.
On Friday, the bloc concluded its Blockchain Week. It was held in Slovenia. The week showcased how artificial intelligence (AI), and blockchain can help boost EU's ambitions in its European Green Deal and Digital Transition.
Last week, the EU also announced that it would invest in high-performance computing, data infrastructure, and blockchain as part of its multibillion-euro plan for technology development across its member countries.
The word Bitcoin is often the first thing that comes to mind when you think about blockchain. Blockchain isn't just for trading cryptocurrency.
Blockchain is the shared ledger that records transactions and tracks assets.
This technology can be used by businesses and governments to build trust and transparency. It is a way to verify data. This technology can help build trust between governments and ensure the sustainability of projects.
Europe is placing a lot of faith in this technology and has selected seven companies to develop the European Blockchain Services Infrastructure (EBSI)'s next generation. This project is part of the flagship European Commission project, which aims to use blockchain technology to improve cross-border services for individuals, governments and businesses across the EU.
What will it look like?
The EU's primary goals are to improve scalability and privacy, as well as regulation.
The EBSI is currently upgrading its infrastructure. It will be using blockchain technology to help public administrations protect against fraud, reduce administrative costs for businesses, and give citizens full control over their personal data.
The EU is not the only one who will tackle this enormous project.
One of the seven companies that blockchain will be helping with the job is a British company, which was the only UK company chosen by the European Commission.
The firm, iov42 was chosen over giants like Vodafone, Deloitte, and EY.
By using the technology, you can build up an entire network of attributes that relate to a claim being made. This gives a third party looking in a lot of confidence.
Dominic von Trotha Taylor
This company is different from other ledger technology in that it creates a chain transactional proof. This helps to improve security and traceability.
"Our philosophy is what I call 'Proof of Authority," Dominic von Trotha Taylor, CEO of iov42, told Euronews Next.
He explained that there is a permission blockchain. At each stage of the process we aim to use the abstraction to identify people who own organisations and are approving different stages.
This technology was used to combat illegal timber trade. The company and NGO Preferred by Nature created a new service called Timber Chain in June. This allows stakeholders from all timber supply chains to increase efficiency and transparency using blockchain.
Von Trotha Taylor states that if one of the plantations are in Malaysia, the most common questions are: if it is legal, if the government supports it, and if workers are being paid fairly.
He said that claims can be used to address all of these issues. They can be endorsed by the government, the employer, or the suffocations agencies, and can then be enhanced with satellite imaging to confirm the existence of the trees.
"With the technology you can build up a whole network attributes related to a claim being filed, which gives an enormous confidence to third parties looking in."
The company claims that it has established trust and also created a new concept called "zones", which could prove to be useful for the EU, as they could be industry-related, or geographical.
Von Trotha Taylor stated that the concept requires that all participants follow the same rules.
He explained that it could be a European regulatory zone, with all the rules about how Europe wants to manage its regulations regarding a specific thing. The USA may also have a separate zone, as they might have a different regulation.
The idea is that there are two zones we can create with different rules. He said that you can create a bridge by which there are rules about data transfer.
"I don't think anyone is doing that to recognize the problems between governments.
"Industries are also looking for crisis technology to manage their daily lives."