The EBSI is a decentralised network aimed at enhancing cross-border public services within the EU. Each Member State hosts one or more nodes, creating a robust infrastructure that ensures data integrity through blockchain technology. The strategic importance of the EBSI lies in its ability to potentially transform the delivery of public services. By promoting a secure and transparent environment for data sharing, EBSI can streamline administrative processes and enhance citizen engagement.

The EBSI relies on the Hyperledger Besu which is an open-source Ethereum client tailored for enterprise blockchain networks. The Malta EBSI Node is hosted on the MITA Azure Cloud infrastructure, utilising distinct virtual machines for the pilot, pre-production, and production environments. Each environment is configured with specific technical specifications to meet the unique requirements of its respective network segment. The EBSI operates on a mesh network topology, allowing multiple nodes to connect directly and dynamically with as many other nodes as possible.

To validate transactions and create new blocks, the European Blockchain Services Infrastructure (EBSI) employs a ‘Proof of Authority (PoA)’ consensus mechanism. This approach relies on the identity and reputation of a select group of validators, rather than on computational power or stake. The organizations hosting the EBSI nodes from Member States are vetted by the European Commission, fostering trust among participants. While this model does carry a risk of centralization, it offers significant advantages, particularly in terms of scalability, efficiency, and reduced energy consumption.

For its security, the EBSI is a closed network and any applications proposed by service providers must first go through a rigorous quality assurance prior to gaining access to the network. There are already many diverse services available on EBSI and one of the most interesting and transformative is the European Self-Sovereign Identity Framework (ESSIF), which promotes the concept of self-sovereign identity, empowering individuals to manage their own digital identities. It will be interesting for us to see if any of the supporting technology could have an application in any of our future initiatives.

Recent reports suggest that while interest in blockchain has experienced fluctuations, it continues to evolve, with Web3 technologies driving new innovations. Applications such as smart contracts and blockchain interoperability are anticipated to gain traction in the coming years. The new eIDAS Regulation could potentially facilitate this. Article 45k(2) states that ‘data records contained in a qualified electronic ledger shall enjoy the presumption of their unique and accurate sequential chronological ordering and of their integrity’, and Article 45l goes on to specify the requirements for qualified electronic ledgers. We look forward to the forthcoming Implementing Acts and technical specifications for this new type of trust service, as well as the potential areas for application.

For us, this project for the implementation of an EBSI Node in Malta has provided an excellent opportunity to implement a unique type of infrastructure and develop a wide range of new skills and knowledge. We will continue to follow and support the evolution of the EBSI, ensuring that our country remains at the forefront of this Digital Enabling Service.