**Blockchain Integration Requires Careful Consideration and Collaboration**
*Implementing Blockchain Technology*
Integrating blockchain technology into a company or process can be a complex task, requiring careful consideration and collaboration across corporate boundaries. According to industry expert, Mulligan, this can create a variety of issues for companies or industry consortia seeking to set up their systems.
**Have You Checked With Your Regulator?**
Mulligan emphasizes the importance of seeking regulatory approval before implementing blockchain technology. She highlights the need for companies and industry consortia to consult with their regulators before embarking on blockchain integration, in order to avoid potential challenges and obstacles.
**Different Types of Blockchain**
There are different types of blockchains, including private blockchains used within a company to store data. David Gerard, author of “Attack of the 50 Foot Blockchain,” explains that using blockchain within a company is simply a new method of data storage. However, he asserts that the technology itself is not the issue; the key lies in how it is used.
**Collaborative Blockchain Solutions**
Mulligan notes that an increasing number of companies are looking at blockchain as a way to organize entire industries. This involves multiple competitors coming together to create a blockchain solution for exchanging data and sharing transactions. However, this collaborative approach triggers concerns from competition regulators, as it may raise antitrust issues related to monopoly or oligopoly laws.
**Involving Regulators Early**
In view of potential antitrust concerns, Mulligan suggests involving industry regulators early in the process of implementing blockchain technology. This is not necessarily for the purpose of seeking approval, but rather to avoid any accusations of collusion. She emphasizes the need for regulators and industries to gain a better understanding of blockchain technology, rather than advocating for new regulations specifically for blockchain.
**Challenges with Data Privacy**
Data privacy is another area of concern when it comes to blockchain integration. GDPR, the EU data regulation, requires companies to be able to delete or update personal information. However, blockchain’s immutability presents a challenge to this requirement. Gerard suggests that it is not advisable to store private data in a blockchain structure, as it goes against the fundamental principles of GDPR.
**Limited Use Case and Regulatory Considerations**
Blockchain’s use case is currently limited, as noted by Ferdinando Ametrano from Milano-Bicocca University. He asserts that private, permissioned blockchains, often touted as the solution for data controls in companies, are not yet widely used in production cases. Ametrano warns against premature regulatory intervention, stating that regulating a technology that does not yet exist in practical use may stifle innovation.
