IOTA to Support EU Blockchain Initiative EBSI

IOTA has become one of seven firms contracted to support the early stages of the European Blockchain Service Infrastructure (EBSI), a network of blockchain nodes that is helping to digitize public services across Europe.

As one of the few selected companies, IOTA is expected to help the European blockchain initiative achieve its aims to develop a network of nodes across Europe that will support cross-border services between governments, enterprises, and citizens.

Per the announcement, the idea is to improve the efficiency and trust of the EU, enhance the mobility of citizens, enterprises, and goods, minimize environmental impact, in a way that respects compliance with EU regulations and encourages the growth of tech hubs and projects.

A well-thought plan has been set in motion to enhance the speed, scalability, high-velocity, high-volume cross-border blockchain services. The DLT-based solution was obtained as a result of the thorough pre-commercial procurement process that involved both IOTA and its subcontractor Software AG in November 2020.

The pre-commercial procurement awards contract will allow competing parties to develop specific innovations and adapt them when needed to meet the requirements set up by the EU. This part of the project has been going on for close to two years. After this phase, the PCP procurement process will select the solutions that offer the best value for money and best meet the project requirements. The pre-commercial procurement award had more than 30 companies competing but only seven were selected.

EBSI sees IOTA as the ideal ideal technology to build upon its massive infrastructure and the blockchain supposedly has the needed features to achieve EBSI’s stated goals of being scalable, open, decentralized, and interoperable.

One of the features the EU sought after is the green credentials which IOTA possesses as it has no miners working on Proof of Work, which means less energy consumption compared to other blockchains. This feature is another driver of scalability, and can help the European Green Deal; the EU’s aim of making Europe climate neutral in 2050.