Blockchain technology needs to be regulated, if it has to grow in an organized manner. Policymakers often lack the clarity that is needed, in coming up with new policies, because the technology is completely unique and novel.
Which is why, the Information Technology & Innovation Foundation (ITIF) has come up with recommendations for policymakers on how to regulate blockchain technology. To that end, they have released a document on April 30.
This guide details out how to navigate the previously murky road of policymaking, when it comes to blockchain technology. ITIF is an independent nonprofit institute that assists policymakers with information, analysis and recommendations for handling new technology.
The guide helps single out the various applications of blockchain, such as cryptocurrencies, shared data services, smart contracts, decentralized marketplaces, authenticity tracking, and digital identity applications. Issues like technology neutrality and public-sector adoption have also been taking into consideration while formulating this guide.
In terms of assuaging the threat of storing illicit data on a blockchain, the guide makes it clear that “current versions of public blockchains are not optimal solutions to storing or sharing illicit or pirated content.” Blockchain is a transparent technology and any data that has been uploaded cannot be edited in retrospect.
The guide also points out how data-use regulations can hamper the growth of the technology. Citing some of E.U.’s provisions as example, the guide indicates how they are not consistent with the tamper-proof nature of blockchain transactions.
Previously we had reported India is considering a blanket ban on cryptocurrencies, and such impulsive decisions can hamper the growth of the technology.
ITIF has been known for encouraging governments to offer their full support to blockchain innovation and adoption, by adopting lenient regulations.