With the acceptance of blockchain technology increasing by the day, the European Commission is looking at joining the bandwagon with a funding of €250,000 to test whether the blockchain infrastructure can be used in the European Union. This step by the European Commission is sure to raise some eyebrows all over the world as it would open the way for other regulatory authorities as well to look into blockchain as a medium for making the businesses as well as bureaucratic environment more transparent and credible.
The European Commission is trying to ascertain whether the blockchain infrastructure can be used to conduct transactions in the European Union as well as to create a transparent business atmosphere. The European Commission is further looking into the legality of using blockchain technology in order to provide a quick and credible method of conducting transactions. The European Commission has sought to conduct this research in order to ensure that it provides a competitive advantage to the businesses operating in the EU.
This research would help the European Commission in taking the decision on implementing blockchain-based infrastructure. With Smart contracts becoming more common, that is another area where the use of blockchain can increase further. While many of the private financial regulators are still skeptical of blockchain technology, authorities all over the world are realizing the importance of using blockchain technology in day-to-day transactions. The funding by the European Commission is a step in this regard. In case, blockchain technology is deemed feasible, it would open up new doors for secure applications in order to conduct business transactions.
The tenders for the same are open until January 19, 2018. After the tenders are submitted, the European Commission would select the company which would conduct the research and report the findings. Authorities all over the world will be taking a keen interest in the results of this study. Even if cryptocurrencies do not go mainstream, blockchain technology would surely be widely accepted which would make it easier for patrons to conduct their business and to provide secure digital transactions with complete transparency. However, the adoption of blockchain technology as well has been currently pretty slow. It remains to be seen whether this step by the European Commission changes anything.
Mahesh Sashital is cofounder of Smartereum.
He was previously Vice President at J.P. Morgan. He has over 15 years of experience in software engineering at various Fortune 20 companies. He has a Bachelor's in Engineering from the University of Mumbai and an MBA from the University of Texas-Austin.
