The European Union (EU) is founded on fundamental rights, democracy, and the rule of law, as outlined in Article 2 of the Treaty on European Union. These values include respect for human dignity, freedom, democracy, equality, and human rights, and they foster societies characterized by pluralism, non-discrimination, tolerance, justice, solidarity, and gender equality. The EU has reinforced these values through the European Convention on Human Rights, its Charter of Fundamental Rights, and declarations like the European Declaration on Digital Rights and Principles for the Digital Decade and the Declaration for the Future of the Internet.

Ethical Challenges of Emerging Technologies

The evolution of ethical standards in Europe aims to protect humans and set norms for behavior. However, rapid technological advancements such as the Internet, artificial intelligence (AI), and blockchain systems have (and will) challenge this. These technologies offer new ways to interact and understand the world but also test our ethical frameworks.

To govern these technologies effectively, it is crucial to understand their ethical impact. The guidelines from the European Blockchain Partnership (EBP) aim to ensure that blockchain systems align with European values, building trust and leveraging their potential to address significant challenges.

Ethical Guidelines for Blockchain Systems

Blockchain technology, or distributed ledger technology (DLT), allows for collective agreement and permanent record-keeping without a third-party authority, creating unprecedented trust in data. This has significant implications across various sectors, including logistics, finance, law, and sustainability.

The EU aspires to lead in blockchain technology, fostering innovation and supporting new applications and companies. The European blockchain strategy includes building a pan-European public services blockchain infrastructure, increasing funding for research and development, and promoting solutions for sustainability and climate change.

To ensure blockchain systems respect European principles, the EBP established the Expert Group on Blockchain Ethics (EGBE) in 2021. The EGBE's mandate is to create ethical guidelines embedding European values into blockchain technology’s legal frameworks, code, incentive mechanisms, and governance structures. The group has developed guidelines across five domains: fairness, economic accountability, privacy, security, and social responsibility.

European Blockchain Partnership and Ethical Considerations

The EBP, founded in 2018 (when 21 EU Member States and Norway signed a joint declaration), aims to support digital sovereignty and provide cross-border digital public services within the EU. To ensure blockchain systems respect European principles, the EBP established the Expert Group on Blockchain Ethics (EGBE) in 2021. The EGBE's mandate is to create ethical guidelines embedding European values into blockchain technology’s legal frameworks, code, incentive mechanisms, and governance structures.

The EBP tasked the EGBE with developing ethical guidelines to ensure blockchain systems reflect European values and norms. The EU’s blockchain strategy, considered a 'gold standard,' focuses on five key areas:

1. Environmental Sustainability: Blockchain systems should be sustainable and energy-efficient, contributing to the EU's climate neutrality goal by 2025.
2. Data Protection: Systems should comply with GDPR and enhance data protection and privacy.
3. Digital Identity: Blockchain-based identities should support the new European digital identity framework and e-signature regulations.
4. Cybersecurity: Systems must ensure robustness and trustworthiness.
5. Interoperability: Blockchain systems should be compatible with other blockchain and legacy systems.

The EU is using blockchain technology for digital sovereignty and climate action, incentivising carbon footprint reduction, establishing networks between suppliers and consumers, and financing climate action through blockchain systems.

The EGBE’s ethical guidelines provide a foundation for responsible use of blockchain technology, inspiring ongoing debate and further development of ethical standards. By embedding these guidelines into blockchain systems, the EU aims to create a trustworthy and value-aligned technological infrastructure, ensuring compliance with European legislation while also allowing innovation to flourish.

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Source: The Expert Group on Blockchain Ethics (EGBE), “Ethical Guidelines for Blockchain Systems”

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