Swiss Government Leads Blockchain Development Revolution

Swiss Government Leading Blockchain Development Revolution

Distributed Leger Technology [DLT]

It is a more general category of solutions that aims to order transactions, although it may not use a linked chain of blocks to accomplish its work.

Some examples of distributed legers include Direct Acyclic Graphs [DAGs] and some approaches that aren't clearly structured as replicated chains of blocks, but implement a shared transaction order. creation of the best framework conditions to make the country establish itself, and evolve as a leading, innovative and sustainable location for both fintech and blockchain companies.

In the report, the aim of the Federal Council is to provide an overview of the appropriate legal framework and to make clear the need for action.

  1. The Federal council based their report on the following principles.
  2. Policy makers should ensure presence of optimal framework that is conducive to innovation, while the technology to prevail be determined by market and society preferences.
  3. Switzerland not to call into question its proven and balanced legal framework, but rather swiftly make appropriate adjustments to fil gaps with regard to DLT/blockchain applications.
  4. Switzerland should pursue a principle-based and technology-neutral legislative approach.
  5. Switzerland to position itself as an attractive location vis-ร -vis DLT/blockchain companies through legal certainty and not tolerate use of innovative technologies for fraudulent and abusive acts or to circumvent the regulatory framework.
  6. Switzerland authorities to position themselves as welcoming towards new technologies and innovations like blockchain and DLT as well as cultivate regular dialogue with the industry.

The report is based on the analyses of the blockchain/CO working group, appointed by the federal Department of Finance [FDF] in January 2018.

In addition, it identifies the course of action.

According to the report, the Federal Council intends to see further improvements on perquisites to enable Switzerland exploit the opportunities offered by digitalization.

This is through

Blockchain development has seen a lot of appraisal lately from innovators and pundits over the last years. There is increased level of interest and investment from technology aficionados, venture capital, and reputable companies, which indicate that DLT is here to stay.

The Swiss government has realized that the distributed ledger space might be the fastest growing area of innovation in the entire technology sector today.

It has the potential to disrupt business and government operations thus presents some challenges. Like many up-coming technologies, innovation, expansion and development will spark collaborations from start-ups and existing companies resulting to development of sustainable models

The legislation, developed as a "blanket framework," suggests repeal of some nine federal acts within civil and financial market legislation, as per the announcement.

Switzerland is known to be crypto and blockchain friendly, and its Zug region is home to a vast number of industry firms.

For instance, Facebook chose to incorporate the Libra Association in Switzerland.

On December 14, 2018, a report issued by the Federal Council stated that it would regulate crypto and blockchain extensively under the prevailing financial legislation.

However, an amendment to securities laws was proposed to fast track the legal certainty of crypto tokens. Within the same period, the financial Market Supervisory Authority brought forward a new fintech license with "relaxed" requirements that could be effected by any cryptocurrency and Blockchain development company.

What is Blockchain

A blockchain is a public ledger of information collected via a network that sits on top of the internet. This way, the information is recorded with robust potential.

Blockchain is neither a company nor an application, but a totally new method of documenting information on the internet. Tis technology can be utilized in the development of blockchain applications, for instance, social networks, messengers, games, currency exchanges, storage platforms, voting systems, prediction markets, online shops and many more.

It is similar to the internet and some refer to it as "The Internet 3.0".

The information stored on a blockchain takes many forms, for instance, transfer of money, ownership, a transaction, an agreement between parties, or someone's identity.

It requires a confirmation from several devices like computers on the network. Once a consensus is reached between the said devices to store the data on a blockchain, it remains there intact, unaltered, and unquestionably there.

It cannot be disputed nor touched without direct intervention of those who put it there, as well as the wider community.

The current announcement has the Federal Council declaring that, the 2018 report had shown that Switzerland's existing legal framework is "well suited" for new technologies like DLT.

Moreover, the European Parliament is requesting that the European Commission and other EU authorities take various steps to maximize the potential of blockchain and DLT in the region.

It also proposed that the approach towards DLT should be innovation-friendly, and be guided by the principles of technology neutrality and business model neutrality. This auger well with Switzerland's policy of neutrality, while still allowing the country to benefit from the region's economic potential.

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However, in spite of the current announcement, the proposal showed that there was room for improvement in some areas.

To alleviate those, the Federal Council opened up several proposed amendments to the existing laws for consultation in March. There emerged some 80 responses which led to further amendments and the council has adopted the proposal.

In conclusion, blockchains was the initial technological structures to solve the double spend problem. Blockchain Development India would ensure the country benefits from the digitalization of the economy as shown in this report.

They rely on a massively replicated ledger that is appended through addition of transactions in blocks. DLT is the more general classification of solutions whose aim is to order transactions, but may not use a linked chains of blocks to arrive to its goals.

Its examples include Directed Acyclic Graphs [DAGs] and some approaches that aren't clearly structured as replicated chains of blocks.


References

  1. ๐Ÿ”— Google scholar
  2. ๐Ÿ”— Wikipedia
  3. ๐Ÿ”— NyTimes