Development opportunities after Brexit: UK and EU should step up blockchain technology development

As Britain and the world are busy trying to get rid of the negative impact of the Brexit referendum, a new technology is quietly bringing a glimmer of hope to Britain and even Europe as a whole.

We are not talking about social networks, cloud computing or artificial intelligence; we are talking about blockchain technology, the underlying technology of cryptocurrencies such as Bitcoin. This technology is as important as the second generation of the Internet, and it also brings important opportunities for Europe. If people use it correctly, it can provide a stable foundation for European prosperity; it is also the hope of realizing the noble vision of Brexit supporters to make Europe more global and dynamic.

Blockchain is a global distributed ledger, or a large database running simultaneously on millions of devices, a third of the entire Europe. It allows everyone to store, transfer and manage anything of value - currency, deeds, patents, clinical trials, degrees, votes, with unprecedented security, privacy and inclusiveness. Trust not only relies on strong intermediaries such as banks and governments, but also comes from code and extensive cooperation. Information networks have existed in Europe for more than 40 years. Now Europe can seize the opportunity of value networks to make social and economic networks stronger.

There are three major opportunities for the EU and the UK now. First, it will bring innovation opportunities to the European economy. Blockchain will not only disrupt all industries, but also significantly reduce the barriers to corporate innovation. Anyone can bring value to the global economy. Second, challenge government mechanisms and increase transparency and reliability. The EU should further reduce costs and give member states more autonomy. Third, create the prerequisites for success for everyone. We do not need to redistribute wealth, but pre-distribute wealth to make the way citizens create value more democratic.

We can replace the centralized model of enterprise with an open network of enterprises, taking advantage of peer-to-peer payment mechanisms, reputation systems, global blockchain IPOs and smart contracts. The democratization of value creation (through entrepreneurship) and value participation (through ownership distribution) will open up Europe's development path. London has been very bold in this regard; the Bank of England, the largest bank in London, and many entrepreneurs have become pioneers in global blockchain development. Now they need to innovate to consolidate London's position as a global financial center. Corporate executives should also pay attention to how London has been progressing. But anyone can seize the opportunity to become a leader.

Together, let’s reshape government for a new legal age. First, elected officials must regain public trust in government institutions. Blockchain gives voters full visibility into who voted in elections. Second, everyone should have the right to participate in government. Blockchain gives every citizen the opportunity to ensure that government actions are preserved in a public, immutable, searchable record, and then use this data to ensure participation in government. Third, everyone should have equal protection under the law, including refugees fleeing persecution and violence. Finally, blockchain systems can provide all citizens with fair access to public services and social security in a highly cost-effective manner. The United Nations Declaration of Human Rights contains these four principles. Blockchain provides the tools to achieve these goals. Now is the critical moment to determine the survival of the United Kingdom and the future of the European Union.

What better time to fix the monetary system than during a currency crisis? The Bank of Canada, the Federal Reserve, and the Bank of England have all begun blockchain trials. The benefits are many: Eliminating cash can reduce crime and improve regulation because digital currencies are more traceable and less likely to be counterfeited. Central bankers can manage monetary policy and monitor risks in the financial system. Imagine international trade with less fraud and friction. It's time to stop trying to fix the old ways and start real change. It's time to issue digital pounds and digital euros.

All Europeans should have equal opportunities for development. But how can this be achieved? First, European leaders must understand that economic prosperity requires inclusiveness in the financial sector. One in three Romanians do not have a bank account. 1.5 million Britons do not have access to banking services. Incomplete land use rights management reduces people's confidence and hinders their motivation to move forward. Blockchain technology can realize property registration and allow people to access basic financial services. Second, Europe should lead the world in reshaping digital property management systems to ensure that content creators receive timely and fair returns. Singer Imogen Heap's music platform Mycelia in London is a great example. Artists publish music containing smart contracts on the blockchain, and then the software protects their ownership and collects fees, ensuring that everyone is fairly rewarded and value can be transferred accurately and directly. Finally, Europe should take the lead in supporting individuals to collect, control and obtain the benefits of personal data on the blockchain.

None of this is easy, and the EU urgently needs to reach a new social contract with its member states, and the UK with its citizens. Only in this way can they forge a new economic development path in the digital age. After changing major sectors, blockchain will distinguish winners from losers. But if we use it correctly, we can achieve a more inclusive, peaceful and prosperous Europe and world.