**Issues with Implementing Blockchain**
Implementing blockchain into a company or process is not cut and dry. Linda Mulligan, an advisor for companies and industry consortia, emphasizes that working across corporate boundaries creates a host of issues. When companies or industry consortia seek her guidance in setting up their systems, she first asks if they have consulted with their regulator.
Mulligan’s emphasis on regulatory compliance is essential not because of the technology itself, but rather how it is being used. When competitors come together to create a blockchain solution to exchange data or share transactions, it raises implications related to monopoly or oligopoly laws. As a result, involving industry regulators early on is crucial to avoid accusations of collusion.
*Understanding the Technology*
Addressing concerns about the need for new regulations, Mulligan asserts that the key lies in regulators and each industry understanding the blockchain. It is not about needing blockchain regulation, but rather ensuring that the technology is properly understood and used.
The collision of blockchain with existing laws, particularly those related to data privacy, presents a significant challenge. The General Data Protection Regulation (GDPR) in the EU requires companies to be able to delete or update personal information. However, blockchain’s immutable nature poses a conflict. Despite calls for legislative carve outs or exclusions to circumvent data laws, it may be more sensible to avoid storing private data in structures such as blockchain.
*The Hurdle of Limited Use Case*
Ferdinando Ametrano from Milano-Bicocca University highlights the limitation of blockchain’s use case. While private, permissioned blockchains are touted as a solution for data controls in companies, Ametrano notes that there are no production cases using them, with most examples remaining in the development phase. As a result, regulating in advance may pose a risk that hampers innovation.
In summary, the implementation of blockchain poses significant challenges, particularly in navigating regulatory considerations, understanding the technology, addressing legal implications, and acknowledging the limited use case. These factors necessitate a careful and thorough approach to successfully integrate blockchain into various industries and processes.
I have been featured in numerous publications, both online and offline, and am a regular speaker at industry events. I am also the founder of Crypto University, an online educational platform that helps people learn about cryptocurrencies and blockchain technology. In addition to my writing and teaching career, I am also an active investor in the cryptocurrency space. I have made investments in some of the leading projects in the space, and my portfolio has outperformed the market by a wide margin