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The European Commission is encouraged to lead the integration of blockchain and artificial intelligence
The EU has been urged to take the lead in finding harmony between blockchain and artificial intelligence.
This advice was provided to national regulators by the European Blockchain Observatory and Forum (EUBOF), an EU-commissioned body that monitors and reviews blockchain developments across Europe. In his final report published May 24the EUBOF team highlighted the potential of blockchain to integrate with other technologies to drive innovation.
The publication of the report follows the EU’s approval of the Markets in Crypto-Assets (MiCA) regulations, which aim to regulate the turbulent cryptocurrency space. EUBOF recommended that policymakers start exploring use cases for blockchain in various sectors, as the MiCA regulations have established harmonized standards for crypto-assets, service providers and issuers, thus prioritizing consumer protection, transparency and to the integrity of the market.
Thanks to these cost-saving technologies, organizations in every industry can now implement secure and energy-efficient solutions using blockchain networks. Artificial intelligence, even without blockchain, can apply smart contracts, which share inherent similarities with blockchain technology. Therefore, their convergence can only enrich and extend decentralized ecosystems.
The report also states that traditional money will soon be complemented by various forms of central bank digital currencies (CBDCs), which will be implemented using blockchain technology. Central banks issue CBDCs that ensure faster transaction speeds, transparency in transaction history, and better cross-border fund transfer capabilities.
EUBOF has identified a strong trend related to the ongoing convergence between blockchain and AI. Sensitive AI datasets can be securely stored on the blockchain, which can be useful in healthcare and financial sectors where data security is paramount. Combining these technologies can also pave the way for decentralized AI networks, which can reduce potential data monopolies and foster an environment that enables the collaborative development of AI. Furthermore, AI can improve the functionality of smart contracts, applicable in various industries.
Furthermore, the report highlighted the continued development of the decentralized finance (DeFi) ecosystem and previewed the further implementation of new protocols and use cases. Finally, EUBOF provides that the essential characteristics of blockchain technology—interoperability, sustainability and scalability of transactions—will be the main reasons for its continued adoption.
At the same time, on May 24, the EU announced its intention to change the regulations governing the European Joint Undertaking for High Performance Computing (EuroHPC), which oversees the use of supercomputers for the development of intelligence artificial. The new AI factories proposed by the amendment will further this mission, with host entities eligible to receive up to 50% of the acquisition and operational costs of AI supercomputers from the EU. Ownership of these machines can be transferred to host entities five years after acceptance testing.
Perhaps what makes this development most noteworthy is that, in any case, it represents a subtle but significant evolution in the regulatory environments and ecosystems surrounding blockchain, often overlooked by mainstream headlines. Thanks in large part to these developments, positive externalities, and the agile regulatory climate of the most agile countries, blockchain innovation continues to drive cutting-edge advances. This is evident in larger jurisdictions, which are incorporating blockchain frameworks into their existing regulatory environments.
See also: EU launches office to implement AI law and promote innovation
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