Efforts by different governments to grab upper hands in blockchain industry are becoming more active.
Number of R&D programs supported by U.S. Government and British Government to promote blockchain industry has increased. U.S. Department of Homeland Security and Department of Energy invested about $3.78 million into 14 tasks through SBIR (Small Business Innovation Research) and STTR (Small Technology Transfer Research).
It is expected that U.S. Government will use blockchain to establish an open government system. Federal government of the U.S. clearly stated its blockchain-based report system through ‘Fourth National Executive Strategy for Open Government’. State governments such as Vermont (6/2016), Arizona (3/2017), Nevada (6/2017), and Delaware (7/2017) are pushing for a policy that will exempt any taxes during transactions involving blockchain. They are recognizing legal effects of records and signatures from blockchain network and they also put out a plan to allow use of blockchain for lists of stock exchanges.
U.S. General Services Administration is testing blockchain to innovate its procurement system. It is operating a federal blockchain community and a high-tech government service platform called ‘Atlas’. Atlas is a site where people share examples of applying latest IT to government operation and policies. Employees from U.S. Government update Atlas on their own.
The House of Representatives launched ‘Blockchain Caucus’, which provides results from education and research so that policy planners properly regulate issues that are caused by technologies and network based on blockchain. U.S. Securities and Exchange Commission launched ‘Blockchain Working Group’, which is used to when there are issues with regulations on blockchain. U.S. Securities and Exchange Commission is going to have this working group have enough expertise in technologies to prepare for issues with regulations.
With Government Office for Science at the center, Britain has declared introduction of blockchain from an aspect of the country since 2016. Department of Finance is emphasizing promotion of FinTech industry based on blockchain. Government Office for Science put out a report called ‘Distributed Ledger Technology: Beyond Blockchain’ in 2016 and it clearly specified 8 different recommendations and advices regarding blockchain. According to recommendations and advices, a government must plan a roadmap for blockchain. Its research groups must evaluate effectiveness (stability and expandability) of blockchain. British Government is going to push for proof of work by local governments and prepare clear regulations on blockchain. It is going to secure security and integration through cooperation between industries and universities and establish practical security protocols through them. Aside from top-down method, it is going to accumulate its technologies in blockchain through private cooperation.
With Innovation Commission at the center, British Government put out a plan to invest $11.2 million into developing digital medical information solution based on blockchain. It is going to invest up to $21 million into distributed ledger technology through public participations.
Switzerland is the first country in the world to have institutional banks approve transactions involving virtual currency. Its central and local governments are pushing Switzerland to become the hub for virtual currency. “We are planning to promote our country as the hub for virtual currency within a line of not going over current standards of financial markets.” said Johann Schneider-Ammann who is the head of the Department of Economic Affairs. In just Switzerland alone, about $550 million worth of ICOs (Initial Coin Offering) took place last year. Crypto-Valley was formed in Zug, which is a small city located 32km south from Zurich and it has about 20 companies such as Bitcoin Swiss, Monetas, and Ethereum Foundation. Even Bitmain, which is the number one mining company in the world, recently joined this Crypto-Valley.
Estonia is the country that introduced the most blockchain to its government systems. Since 2008, Estonia has been introducing blockchain to government records. In 2012, it established various information involving health, criminal cases, laws, and registration of businesses, as a from of blockchain. In 2014, it started ‘e-Residence’ service that applied blockchain to its resident registration system. This service issues civil rights to anyone who is doing businesses in Estonia. Estonia is planning to become a digital country that is free of borders through e-Residence.
Chinese Government strongly sanctions virtual currency by closing exchanges or preventing ICO. On the other hand, it is supporting blockchain technologies. Ministry of Industry and Informationi Technology announced ‘Chinese Blockchain Technologies and Application and Development White Paper’ in October of 2016. It clearly stated that blockchain along with IoT (Internet of Things), Cloud computing, Big Data, AI (Artificial Intelligence), and bio-genetic engineering will be technologies that Chinese Government will focus on at the 13th Five-Year National Informatization Plan, which was held at State Council of the People’s Republic of China.
Wanxiang Group announced that it will be investing about $31.6 billion to construct Smart City, which will become the world’s biggest blockchain application business base.
Process of applying for patents is also very active. After Grid Logic analyzed family patents that are applied globally from 2007 to 2016, number of patents applied on blockchain technologies jumped from 88 in 2013 to 191 in 2014. Family patent refers to a group of same patents that were applied at the same time by at least two countries. Based on country, U.S. applied the most patents with 408 patents. China and South Korea followed U.S. with 251 and 120 patents respectively. Patents on blockchain applied by South Korean businesses are mostly based on business model. On the other hand, patents from foreign businesses are mostly fundamental technologies related to infrastructures and platforms.
Staff Reporter Kim, Insoon | insoon@etnews.com