Blockchain technology has the ability to transform essential processes and institutions in society. As with all disruptive technologies, these changes can be for the better or the worse. It is therefore important that reflections are made on the desired outcomes for society
Under the mandate of the European Commission, the EU Expert Group on Blockchain Ethics (EGBE) was established in 2021 to define the first set of EU ethical guidelines for blockchain systems.
The group consists of experts in the fields of blockchain technology, computer ethics, artificial intelligence, and law to ensure a comprehensive approach to mapping and defining ethical issues.
In May 2024, the group completed the ethical guidelines addressing Fairness, Privacy, Security, Accountability, and Social Responsibility (see picture below). Each guidelines have sub-sections addressing specific topics in more detail, such as Nodes or Governance Power.
As many blockchain systems are designed to be immutable without a single data controller, they present unique ethical challenges that are hard to mitigate once the systems have been implemented.
It is, therefore, especially important that ethical reflections are made already in the design phase and that they address all life cycle phases of a blockchain system.
If ethical reflections are not included in the design phase, the very moral values a system is based on might be violated as the blockchain system evolves and unintended use occurs.
In such situations, it can be very difficult or impossible to undo the harm, as the system is immutable and there is no single data controller.
An example is Augur, a peer-to-peer, immutable prediction market platform.
The protocol was created to prevent insider trading and unfair exclusion; however, in 2018, users started betting on the death of famous individuals. This effectively turned the platform into an assassination market, creating an economic incentive for committing murder.
As Agur is deliberately designed to be immutable and to have no single data controller, the bets could not be removed, not even by the developers.
This shows the importance of ethical reflection when developing blockchain based solutions.
However, the topic of blockchain ethics has mostly been overlooked in the public debate and in academic research.
In the last four years (2020-2024), 2.430 academic articles have been published using “AI” and “ethics” in the title or abstract. While, in the same period, only 39 academic articles were published using “blockchain” and “ethics” in the title or abstract.
More research in this area is important not only to prevent ethical risks but also to support the use of blockchain technology to safeguard and strengthen our society’s moral values, such as digital sovereignty, user control, and transparency.
In this way, the ethical guidelines are part of an overarching European strategy.
They support the Blockchain Strategy of the European Commission and help ensure that European blockchain projects are based on European values.
Furthermore, the guidelines support the work done in the European Blockchain Service Infrastructure (EBSI), the first public-sector blockchain infrastructure in Europe, which is a result of the European Blockchain Partnership (EBP).
In May 2024, the EUROPEUM-EDIC was established to continue the work of the EBSI and the EBP to ensure that European blockchain services are based not only on European values but also on European servers.
The work done by the EUROPEUM-EDIC hereby contributes to the Digital Decade Policy Programme 2030, the Single Digital Market Strategy, and the aim of ensuring digital sovereignty for Europe.
The ethical guidelines for blockchain systems are, therefore, a small building block in an overarching EU strategy working to protect European values and to ensure digital sovereignty for EU citizens and Member States.
The EU Expert Group on Blockchain Ethics hopes that the Ethical Guidelines for Blockchain Systems will start a discussion and bring attention to how blockchain technology can uphold European values and benefit EU citizens and Member States.
The picture below shows a quick introduction to the five guidelines. To read the guidelines and the 14 sub-categories in full, please download the guidelines here.
Signe Agerskov is researching blockchain ethics at the European Blockchain Center and is a co-convenor of the EU Expert Group on Blockchain Ethics.
