Early last year the EU formed the Blockchain Observatory & Forum to produce deep research on the blockchain technology industry overall. The broad scope of their research has been reigned in for a preliminary 29 page report outlining the state of the technology at this time, some of the common misconceptions about the inner-workings of the technology, and the “likely future state” of the blockchain technology industry.
The group tailored their incite to incorporate a range of important blockchain themes vital to the functioning of the European Commission and based on input from its Working Groups and other stakeholders. Input of a number of different stakeholders and sources included:
‘Blockchain scalability, interoperability and sustainability’ by Arthur Gervais – an
academic research paper prepared by the Lucerne University of Applied Sciences and Arts – an academic partner of the EU Blockchain Observatory & Forum. Available online at www.eublockchainforum.eu/reports
‘Scalability, interoperability and sustainability’ workshop held in Berlin on 2 October 2018
Secretariat of the EU Blockchain Observatory & Forum (which includes members of the DG CONNECT of the European Commission and members of ConsenSys)
Blockchain’s Future State
The research group envisions the first wave of blockchain adoption as a large number of permissioned, purpose-built blockchain platforms geared towards a specific use case or user base. This situation is essentially growth of what is currently happening in the industry. With development of more diverse technology and growth of these networks, they will inevitably begin to work in tandem.
“Just as TCP/IP and the rest of the Internet stack became the open, freely accessible backbone of the Web of Information, we think that a small number of global blockchain networks will also emerge as the backbone of a Web of Value.”
In a progressive look at the new financial technology, the report does not cite security issues as a major problem preventing growth of the industry. They express much of the already available information and incites that were developed following the huge market cap surge of the cryptocurrency market in 2018 in a clear and concise manner. Instead the three main issues highlighted are:
Scalability - handling large volumes of transactions at high speeds
Interoperability: exchanging data with other platforms, including those running different types of blockchains, as well as with the off-chain world
Sustainability: running a large-scale blockchain platform or decentralised application in an environmentally responsible, and regulating projects, platforms and the core technology in such a way that they remain viable over the long term
The report end with suggested goals of public services for blockchain networks and construction including:
Create an environment and a set of foundations conducive to the development
of an innovative, world-class blockchain
ecosystem in the EU.
Make it easier and cheaper for public and
public/private initiatives to design, test and deploy projects based on blockchain technology.
Establish interoperability standards that make it possible for individual projects to communicate with each other easily and securely, with no leakage of sensitive data.
Facilitate knowledge transfer between projects.
By: BGN Editorial Staff