Ottawa sees potential in blockchain ‘revolution’
An emerging technology has caught the eye of the innovation-obsessed federal government — a platform so packed with potential, many experts believe it could comprise the foundation for the next generation of the Internet.
Blockchain holds a vast amount of promise for transforming business sectors and the lives of ordinary people, although some say it’s too early to say how broad the technology’s reach could be.
Like a giant digital bulletin board, blockchain creates an online ledger or database where records — financial transactions, for instance — can be shared, moved and maintained on a transparent network, all without compromising security. With such activities available to be seen by a blockchain’s many collaborators, the system is inherently secure, making it far less vulnerable to tampering, hacking and corruption than current systems, which depend on information being managed by intermediaries.
Experts say Canada has shown considerable potential in these early days of blockchain — and they believe it’s key for the country to help create conditions to keep the momentum going.
Ottawa has taken notice; widening the path for more blockchain development would fit nicely with the Trudeau government’s stated goal of increasing innovation as a way to help jump-start Canada’s lacklustre economy.
In December, senior government officials, including then international trade minister Chrystia Freeland, met to discuss the concept with executives from companies, big banks, regulators and the tech sector. The attendees at the meeting explored the feasibility of Canada becoming a global hub for the blockchain “revolution,” according to the agenda.
“Basically, blockchain technology represents nothing short of the second generation of the Internet,” said Alex Tapscott, who co-hosted the roundtable.
Tapscott, CEO of blockchain advisory firm Northwest Passage Ventures, believes it represents a potential foundation for an innovation economy in Canada, and could prove instrumental in sparking a new industrial revolution.
Federal departments are in the process of working to understand the concept and are at the early stages of creating policies around it, particularly in areas such as privacy, banking and cybersecurity, said one government source who spoke on condition of anonymity.
Canada is ranked third in the world behind the United States and the United Kingdom when it comes to blockchain startups, said the source, who wasn’t authorized to discuss the matter publicly.
The Bank of Canada has promoted its efforts to study the technology in collaboration with big banks, Payments Canada and the financial innovation company R3 Lab and Research Centre.