The European Union Advised to Prepare for Blockchain and AI Convergence

The European Union (EU) has been advised to prepare for the merging of blockchain technology and artificial intelligence (AI) as the two technologies continue to converge. The European Blockchain Observatory and Forum (EUBOF), an initiative of the European Commission, recently released a report highlighting the potential of blockchain to integrate with other technologies and drive innovation.

According to the report, there is a strong trend towards the convergence of blockchain and AI, with the potential for sensitive AI data sets to be securely stored on the blockchain. This integration could be particularly beneficial in industries such as healthcare and finance, where data security is crucial. Additionally, the report noted that the convergence of blockchain and AI could lead to decentralized AI networks, reducing the risk of data monopolies and promoting collaborative AI development.

The report also highlighted the potential for AI to enhance smart contract functionality, which could have applications across various industries. The European Commission’s study also recognized the growth of the decentralized finance (DeFi) ecosystem and anticipated the launch of new protocols and emerging applications.

EUBOF made several recommendations in the report, including acting as a global knowledge hub for blockchain, strengthening Europe’s engagement with stakeholders, and addressing issues arising from new innovations. Concurrently, the EU announced plans to amend the regulation governing the European High Performing Computer Joint Undertaking (EuroHPC) to further support AI development using supercomputers.

Under the new regulation, hosting entities can receive up to 50% of the acquisition and operational costs of AI supercomputers from the EU, with ownership potentially transferring to the hosting entities five years post-acceptance testing. This move aims to boost the outcomes of supercomputers through trustworthy AI development.

Overall, the report underscores the potential for blockchain and AI to revolutionize industries and drive innovation in Europe, with the EU taking proactive steps to support and regulate these emerging technologies.