Following its March 6th BLOCKCHAIN OBSERVATORY AND FORUM, the European Union made series of recommendations in regards to the improvement and development of blockchain technology. During the forum, concepts of Interoperability and scalability standards were introduced.
Through a report developed by ConsenSys for the European forum, insights, and depth concerning the current and potential future conditions of the blockchain were provided.
Additionally, in the report titled “Scalability, Interoperability, And Sustainability of Blockchains”, standards for digital identities and interoperability between blockchain system were recommended. Blockchain platforms should be able to “exchange data with other platforms, including those running different types of blockchains, as well as with the off-chain world.”
A belief that a global network composed of interoperable blockchain platforms is necessary for the development of the blockchain industry was shared among forum’s participants.
we can expect that over time it will become easier and easier for disparate blockchains to work together. This will be to the benefit of the ecosystem as a whole.
Also, a need to support research and implementation of blockchain related projects was discussed:
Currently, Europe is active in supporting blockchain research in a number of ways, from the EU Blockchain Observatory & Forum […] to the allocation of up to EUR 340 million [$382 million] to support blockchain projects through 2020 under the Horizon 2020 programme. While these are laudable, the EU should not rest on its laurels. Both the U.S. and China have expressed strong support for blockchain research, with the former even going so far as to include it as part of its USD 700 billion defence budget.
The document calls for policymakers and entrepreneurs within the industry to work together towards the improvement of blockchain technology and its governance. More importantly, the report urges the European Union to adopt a wait-and-see approach and give projects enough time to experiment and learn, before placing standards or governance-related regulations.
Additionally, the report stresses the need for governments to resolve tensions between General Data Protection Regulation (GDPR), blockchain technology and the legal status of crypto assets and smart contracts.
In general, the authors of the document advises governments to interact with blockchain technology as “identity providers or data oracles”.