EU Report Highlights Future Trends in Blockchain and AI Convergence

The European Union (EU) is being advised to prepare for the integration of blockchain technology and artificial intelligence (AI). The European Blockchain Observatory and Forum (EUBOF), an initiative by the European Commission, has released a report analyzing blockchain trends across Europe.

Authored by the Directorate-General for Communications Networks, Content and Technology, the report emphasizes the potential for blockchain to drive innovation when combined with other technologies. Key findings include the secure storage of sensitive AI datasets on blockchain, particularly beneficial in sectors like healthcare and finance where data security is critical.

The report notes that this convergence can lead to the development of decentralized AI networks, reducing the risk of data monopolies and fostering collaborative AI advancements. Additionally, AI can enhance smart contract functionality, applicable across various industries.

EUBOF also highlighted the growth of the decentralized finance (DeFi) ecosystem, predicting the emergence of new protocols and applications. The inherent interoperability, sustainability, and energy efficiency of blockchain technology are expected to be major drivers of its continued adoption.

The report made several recommendations, including establishing a global knowledge hub for blockchain, enhancing Europe's engagement with stakeholders, and addressing challenges from new innovations.

In a related development, the EU announced plans on May 24 to amend the regulation governing the European High Performing Computer Joint Undertaking (EuroHPC). This amendment aims to use supercomputers for AI development. EuroHPC, managing nine supercomputers across Europe, will see its mission expanded with new AI factories.

Willy Borsus, Vice-President of Wallonia and Minister for Economy, Research and Innovation, remarked, "Unity is the strength of Europe, and together we have achieved great goals. We have seen this with the development of our world-class supercomputers, and now we want to boost the outcomes of these powerful machines through trustworthy AI."

Under the new regulation, hosting entities can receive up to 50% of the acquisition and operational costs for AI supercomputers from the EU, with ownership transferable to the hosting entities five years after acceptance testing.