Distributed ledger technologies and blockchain : research and technology monitoring report : key findings.
Date: 2020-08-05
Institutions: European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice
Subjects: European Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice, blockchain, computer system, impact of information technology, information technology

Distributed Ledger Technologies and Blockchain 
Research and technology monitoring report  

Key findings                                                                                                                December 2019 

Why blockchain and distributed ledger technologies?  

In  the  past  years,  blockchain  and  distributed  ledger  technologies  (DLTs)  attracted  much  attention  from  different 
industries.  Although  the  successful  use  cases  can  mostly  be  found  in  financial  services,  implementation  of  these 
technologies is being explored in other domains, including the public sector. This research and technology monitoring 
report aims to review the recent developments in blockchain and DLTs, their application across domains, unwrap the 
the  context  of  
the  potential 
functionalities 
large-scale IT systems operated by eu-LISA.  

those  provide  and  explore 

technologies 

these 

for 

in 

Domains of possible application 

Technology outlook for the EU 

eu-LISA  operates  large-scale  IT  systems  with  strict 
requirements  for  the  technical  solutions  in  relation  to 
security,  availability  and  business  continuity,  hence 
application of new technologies at scale requires careful 
evaluation.  Blockchain  and  DLTs  provide  a  range  of 
functionalities  with  potential  relevance  to  eu-LISA.  The 
following  domains  were 
for  potential 
application:  
  Decentralised identity management, including self-
sovereign  identity.  The  shift  towards  decentralised 
identity management will have direct implications to 
the  systems  relying  on  verification  of  government 
issued identity credentials.  

identified 

  Visa  and  travel  authorisations  can  also  be  handled 
electronically. In such cases, a visa or an authorisation 
can be stored in a digital wallet of a traveller with its 
record  stored  on  blockchain.  This  would  allow  for 
tackling visa fraud and visa shopping. 

  Securing  and  sharing  records  with  third  parties, 
such as those related to the ETIAS pre-authorisation 
processes, but also data updates made in the systems. 
The  latter  use  case  could  help  ensure  transparency 
and auditability of changes made to the data stored in 
the systems (e.g. SIS II, VIS, Eurodac). 

  Upgrade  to 

logging  of  system  access,  data 
submission  and  retrieval  instances.  This  use-case 
allows for full transparency and auditability of the use 
of the systems by authorised parties.  

  Last  but  not  least,  the  overall  distributed  nature  of 
blockchain and DLTs allows to eliminate single point 
of  failure  in  centralised  data  storage  systems  and 
addresses  updates  across  nodes  to  avoid  data 
inconsistency.   

Blockchain  and  DLTs  have  entered  the  scene  at  a  time 
when governments in the EU and  around  the world are 
actively  pursuing  digitalisation  strategies.  Although 
blockchain will not ‘cure all maladies’, the rapid diffusion 
of DLTs across domains indicates that these technologies 
may  potentially  have 
transformative  effect  on 
management  of  public  records  and  e-government 
systems  more  generally.  Countries  with  both  more  and 
less  advanced  e-government  systems  can 
leverage 
blockchain-based  solutions  for  trusted  and  secure 
management of public records. Particularly interesting in 
for 
this  regard 
decentralised  identity  management.  Last  but  not  least, 
to  support  the  wider  adoption  of  these  technologies, 
attention  should  be  paid  to  standardisation  as  well  as 
alignment  with 
technology 
frameworks (e.g. eIDAS), legislation and data protection 
rules (e.g. GDPR). 

is  the  application  of  blockchain 

the  already  existing 

Main conclusions  

Development of new approaches specifically suitable to 
public  sector  needs,  such  as  private  permissioned 
blockchains based on proof of authority, will support the 
wider  adoption  of  blockchain-based  solutions.  The 
application  of  blockchain  in  the  public  sector  will  to  a 
significant  extent  also  depend  on  the  development  of 
new consensus algorithms specifically suitable for public 
sector  applications  and  supporting  the  functioning  of 
distributed  platforms.  However,  before  such  new 
technologies are applied at scale, they must demonstrate 
reliability, security, and long-term sustainability.  
eu-LISA  will  be  closely  monitoring  the  development  of 
blockchain  and  distributed 
ledger  technologies  to 
continue assessing the possibility of their application. 

The report is publicly available on eu-LISA website https://eulisa.europa.eu 
Scan the QR code to read the full report! 

* This document is provided purely for information purposes highlighting key findings of the report “Distributed Ledger Technologies and Blockchain”  

© European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA), 2019 

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