Blockchain has revolutionized the world of finance, cybersecurity, and many other industries, and continues to evolve and shape our world in increasingly surprising ways. Furthermore, in recent years blockchain technology has developed and innovated more and more, even on the European front.

In fact, the European Commission is moving to introduce a clear and certain regulatory regime in the sectors relating to blockchain-based applications. It is currently developing an innovation-friendly legal framework in the areas of digital assets (tokenization) and smart contracts, which protects consumers and provides legal certainty for businesses. It also recently published a proposal for the regulation of crypto assets, updating cryptocurrency anti-money laundering rules and creating a European regulatory sandbox for innovative blockchain solutions. This was done in order to increase investment and ensure consumer and investor protection.

What is Blockchain?

We can define blockchain as a decentralized and distributed data structure that records transactions in a secure and immutable way. It was originally created as the core infrastructure for the Bitcoin cryptocurrency, but its applications have quickly expanded far beyond digital coins. The key feature of blockchain is its ability to create digital records that are resistant to manipulation and alteration.

Evolutions in Blockchain Technology

In recent years, blockchain has undergone numerous evolutions. Some of the major developments include:

• Smart Contracts: These are computer programs that automatically execute and enforce contractual agreements once certain conditions are met. Ethereum was one of the first blockchains to introduce smart contracts, paving the way for a wide range of automated applications.

• Enterprise Blockchains: Large companies are implementing private or syndicated blockchains to improve the efficiency and security of their operations. These blockchains are not accessible to the public and are used to manage a variety of processes, from supply management to product traceability.

• Interoperability: Efforts to allow different blockchains to communicate with each other are gaining steam. This is an important step towards creating a larger and more connected blockchain ecosystem.

What’s in Europe

The European Union is closely following the development of blockchain and has undertaken some significant initiatives from a regulatory, education and investment perspective.

In particular:

1. Regulation: The EU is working on specific regulation for blockchain. This will provide a clear legal framework for companies and users, helping to promote trust in the technology.

2. European Digital Currency (CBDC) Project: The EU is considering the idea of​​creating a CBDC, a digital currency issued by the central bank. This could have implications for the financial sector and accelerate blockchain adoption.

3. Innovation in the Healthcare Sector: Some European countries are experimenting with the use of blockchain to improve the management of healthcare data and ensure the security and privacy of patient information.

4. Education and Investment: The EU is investing in education and research programs to promote the understanding and development of blockchain technology.

Ultimately, blockchain is a constantly evolving subject that continues to show its potential in different sectors. New developments in Europe, such as regulation and the possible introduction of a CBDC, are contributing to the development of blockchain. It remains to be assessed how these initiatives will influence change and innovation in Italy, but one thing is certain: blockchain will continue to be a key player in the European and global technological landscape.
 

author: Dott. Federico Benedetti