Meet Infrachain, a government-supported blockchain-as-a-service a.s.b.l. that achieves compliance
Blockchain’s arrival on the scene was no subtle affair. Many businesses, individuals & innovators alike immediately saw its potential. A secure public ledger that would remove the middlemen meant faster, cheaper, direct interactions between parties.
However, the regulatory and compliance issues raised by blockchain prevent many companies from taking full advantage of its opportunities. In 2016, several businesses in Luxembourg were voicing interest in tapping blockchain’s potential. Public blockchains are tough to regulate and private ones do not have third party distributors.
A compliant blockchain: Infrachain
Luxembourg-based companies looked to their government for an answer, and so Infrachain was born. It was designed to meld the security of a private blockchain with the third party distribution of public ones. As a nonprofit, Infrachain blockchains are not owned by anyone. They are entirely independent and untarnished by profit motives.
Typical public chains do not have methods for knowing counter parties, making them impossible for a private company, especially a financial entity, to utilize from a risk perspective. With Infrachain, the host is verified and service agreements are enacted for all parties involved.
Blockchain may have started with bitcoin, but it certainly will not end there. With hybrid solutions like the one proposed by Luxembourg’s government, private businesses can begin adopting blockchain faster than may have been predicted.
Government driven
Across the EU, countries are in need of similar solutions. Luxembourg is the first to launch one, but it will be interesting to see if other governments follow suit. Infrachain a.s.b.l. was incorporated by eleven blockchain stakeholders who teamed up to bring the idea to life.
Not only does Infrachain help position Luxembourg as a blockchain hub, it aims to build an EU-wide network of host operators. Blockchain-as-a-service is uncharted territory, but perhaps the best way to leapfrog the adoption curve and begin harnessing blockchain’s benefits beyond individuals and cryptocurrencies.
Government-supported, not-for-profit efforts such as these could prove key to building and accelerating an economy around blockchain. For it to become a mainstream tool, communities will have to work together to make it a realistic tool for companies.
The blockchain-regulation gap
By bridging the gap between blockchain and regulatory requirements, Infrachain enables company’s to access its possibilities. They can harness blockchain applications using Infrachain due to its governance and compliance.
This happened in Luxembourg with ministries and blockchain stakeholders listening to the concerns of the business world and then finding a way to accelerate adoption.
If we keep this up, in the near future, blockchain will no longer just be associated with cryptocurrencies, it will become a standard tool for a wide variety of secure transactions across all industries.
Share your goals with us & ask how we can help you get there. Questions about trends, regulations & requirements? Curious about Luxembourg? Fiduciary Tucci & Partners can help answer your queries & find solutions.