Great administration is basic for the development of good technology. Both, be that as it may, have a sort of harmonious relationship. The mandate of future-minded policies is to create a world strict compliance laws that do not affect the prosperity of innovation.
It would seem that the blockchain’s practicality was only aligned to finance. However, trends in the application and implementation of blockchain have proved otherwise. Blockchains are driving social transformation and the creation of new governance structures.
The Internet of Things (IoT) and its coin IOTA, is working with national, regional and global level policymakers to create sustainable governance.
Implications of Blockchain and DLT in Policymaking
The biggest challenge the blockchain needs to overcome is regulatory scrutiny. To understand the implications of innovation policy makers and financial regulators are still digging in. The space is still uncertain and it is highly speculative how policymakers will choose to regulate it.
Meanwhile, the social impact sector is also attempting to experiment and adapt blockchain. This has led to the rise of terms such as blockchain charity, decentralized justice, and governance.
IOTA is fascinated to address all these challenges. The internet of things coin is betting on a better world where people with good intentions come together to design and deploy beneficial technology.
In a press release on its website, IOTA announced to incorporate a distributed ledger non-profit foundation in Germany. The foundation will steward fundamental commitments of the European Union in law, governance, constitution, and human prosperity.
Challenges in governance that the foundation wishes to address include administrative costs and unclear regulatory structure. There has been proof that smart contracting can help reduce overhead costs by cutting intermediaries in administration.
IOTA Public Regulatory Affairs and PolicyMaking
IOTA together with its Public Regulatory Affairs teams is providing expert briefs, lawmaking reports, educative workshops and reports to compliance and policymaking bodies across the world. The foundation will work with major advocacy groups and innovators around the IoT and DLT space.
Therefore forging partnerships that are likely to contribute to the deployment of effective, principled and innovation-friendly public policy frameworks that hold public interest at its core. In the release, IOTA promised that it would hold this responsibility seriously.
In 2018, Malta made history as the first government to set a regulatory framework for blockchain, distributed ledger, and cryptocurrencies. The engagement of government in the decentralized universe made the Island one of the most favorable destinations to set a blockchain enterprise.
This shows how significant favorable governance structures can be for the development of blockchain innovation. The structure of the IOTA foundation makes governance an important mission to its mandate.
For instance, the foundation gets the majority of funding from government grants. Donations from various individuals and enterprises make the organization put the interest of good intentions into its heart.
IOTA believes that active engagement with policymakers and regulators will drive the next phase of growth for the distributed ledger.
It is interesting and fascinating to watch the unfolding of this technology, especially the interweaving of Blockchain and the Internet of Things in governance.