Bitcoin gave birth to the blockchain technology ten years ago. Blockchain promises to disintermediate interactions between individuals by offering security of exchanges without relying on a central authority of trust. As a result, blockchain has been trialled in various sectors ranging from finance and insurance to energy.
A decade later, Australia is at the forefront of blockchain technology in terms of regulation, research and industry applications. Among many achievements, its standards organisation has been chosen to lead the secretariat of blockchain standards for the ISO; ARC-funded research has produced one of the most scalable blockchain systems; and the World Bank chose an Australian bank to implement the first blockchain-based bond.
Yet, blockchain poses significant challenges that prevent Australia from fully exploiting its promised benefits for our economy and society. This technical white paper identifies some of the predominant challenges for applying blockchain technology in different contexts in Australia and proposes technical directions to overcome these.
The identified challenges are scalability, security, regulation, education and employment. These challenges are of strategic importance, as blockchain promises not only to reshape the Australian economy but also to rethink business interactions within the Australian society.
The directions that this technical white paper explores for solving these challenges include the analysis of use cases; the education of key actors; the exploration of blockchain development, especially surrounding consensus; and further understanding of regulations. They specifically include assessing the requirements for each use case in terms of speed, volume, scalability and security, in order to identify the most appropriate blockchain proposal for a given application. They also include a roadmap to help technical and legal professionals interact on specific topics.