The ‘thematic report’ argues blockchains focused on meeting users’ needs
According to the new report of EU, the permissible platforms which are focused on particular use cases or also user bases will lead the “first wave” of blockchain adoption.
The EU Blockchain Observatory and Forum, published the “thematic report” during the last week, produced on its behalf by ConsenSys AG, as well as titled “Scalability Interoperability and Sustainability of Blockchains.”
This document actually argues that blockchains which are focused on meeting some particular needs of the users provide a great deal of flexibility, in comparison to the public blockchains. The builders of some private platforms are also freer to design for security and performance.
Hence, the EU organization concluded that just a small number of global blockchain networks are going to emerge as the backbone of a Web of Value.
But, it continues stating that three key challenges are still there: scalability, which is actually the ability to make large transaction volumes at high speed; interoperability, which is having the ability to exchange data all over blockchains; and also sustainability, which is environmentally responsible platforms with some long-term viability.
Europe is supportive of the blockchain space, but still needs to be done
The group also stated that it looks clear to them that a multiverse of independent blockchains which cannot interoperate is going to be severely limited. The users of blockchain platforms are going to find it really beneficial to have the ability to exchange data, as well as make transactions between chains: a healthcare chain connection to insurance chain, while a real-estate chain connecting to construction materials or also manufacturing chain, etc.
If the blockchain platforms come to be successful, they need to have the ability to scale to meet the requirements of the target audience, according to the document. The EU forum even expects blockchain tech to become less energy-intensive over time.
As for what is going to create successful large-scale blockchain projects, the report even said that teams are going to need an explicit version of what they actually want to accomplish, an apparent reason for utilizing blockchain over traditional technologies, storing the governance structures, as well as sharing off expertise and effort among the diverse stakeholders.
While Europe was very supportive in the blockchain space, according to the authors, there is still much to be developed and discovered. Hence, the organization also believes that a light-touch approach permitting for experimentation will be the best way forward right now.
China and the U.S. expressed their strong support for blockchain research
The authors wrote that both China and the United States expressed some strong support for the blockchain research, with the U.S. even going so far as to include it as a part of the USD 700 billion defense budget.
Hence, they recommend that the EU continue its strong support, also targeting basic research and supporting the implementation of projects related to infrastructure in particular, and even research into non-technical topics like governance of blockchain projects.
The EU Blockchain Observatory and Forum has been launched by the European Commission earlier in 2018, with the purpose to identify critical initiatives, monitor developments, as well as promote common action in the blockchain technology area.
The group also expects to publish another blockchain report which will be focused on the problems of confidentiality and privacy in the second half of this year.