Blockchain improves trustworthiness globally

BLOG: Blockchain can solve some of the fundamental problems that developing countries in particular deal with. The technology also welcomes new business opportunities in established industries. However, to take advantage and capitalize on blockchain, more agile regulations and smoother blending between existing systems is necessary. This is stated by Victoria Gago, Co-founder of the European Blockchain Convention, which recently represented the first big, international blockchain conference in Denmark.

Nearly a year ago, European Blockchain Convention was still just an idea written on a piece of paper. Two weeks ago, my Partner Daniel Salmeron and I took great pleasure and pride in opening the doors for what would be our second international blockchain conference – this time with Copenhagen as the host city.

The event was composed of a tightly packed program from morning to late afternoon. Several expert panels opened up for interesting topics, including discussions about the potential of blockchain within shipping, central banks, governance and the pharma industry.

All panels took a standpoint with an intense focus on blockchain and its future role as a result of its decentralized infrastructure. This feature is most notably known for enabling and allowing individuals to maintain full ownership over their own personal data.

The presentation “Going Cashless: Central Banks and Digital Currencies” proposed numerous judicious arguments to why a 100% decentralized blockchain-structure makes sense. Many countries struggle with challenges such as unstable central banks or a very separated geography, consisting of e.g. lots of islands.

A blockchain based platform can realize (digital) transactions across national borders with fees that are almost nonexistent. Hence, a fully decentralized blockchain-platform in a developing country has potential to solve fundamental problems that so far haven’t been approached very effectively with existing technology.

A blockchain based platform can realize (digital) transactions across national borders with fees that are almost nonexistent.

However, effective legislation is absolutely necessary in order for blockchain to add the most value and integrate it into the everyday life. It is not enough to merely impose laws and regulations for supporting and encouraging integration of blockchain within companies and public institutions.

Laws and legislations should also work as an agile tool to actually push development forward rather than stifling integration and usage in areas where the outcomes remain uncertain.

Apart from the many insightful discussion panels, “Blockchain Startup Competition” was also part of the agenda. 3 well-established startups competed against each other in pitching their newly founded business in front of a group of investors.

The first place went to “Muving” – a company with a new ride-sharing initiative taking place in the form of electrical motorbikes. The whole rental and payment system of the app is based on the blockchain technology.

The conference was rounded up with an in-depth discussion about the future of blockchain and its expected impact within the next 5 years. People largely seemed to agree that the primary value-adding aspect would be the increased trustworthiness the technology can create as a result of its decentralized infrastructure.

Nevertheless, one should still withhold critically and thoroughly consider, whether blockchain at all is relevant for the given objective in scope.

Many existing systems are already contributing in many ways where blockchain not necessarily would be a superior replacement. Thus, it is important to keep in mind when considering blockchain as a tool that it shouldn’t replace systems but rather support and underpin existing ones currently in use. This would increase overall compatibility while not having to reinvent the wheel completely and build a new (digital) infrastructure from scratch.