Capacilon | Blockchain and the Irish Border

Blockchain and the Irish Border

2018-10-11
By J. Anderson

Blockchain and its affiliate technologies have become a household name, especially so in the UK, it would seem. As first reported by Reuters, Philip Hammond, a finance minister in the UK, has suggested Blockchain as a potential solution to the Post-Brexit Irish border (Reuters article). In particular, the Irish border is important because it will be the only land border between the UK and the EU. Currently, the border is practically invisible, allowing for unrestricted access between Ireland and Northern Ireland, but can that remain post-Brexit? With a hard, no-deal Brexit looming in the future, this question has become quite relevant.

So, Blockchain? Could it work? Possibly, though that depends on what one expects the blockchain solution to address. Presumably, it should provide oversight on transactions with regards to tariffs, trade quotas, and other concerns of customs. As was pointed out in a Forbes article, there are a number of solutions already being developed that may be able to accomplish just such a need, for instance the Logistics blockchain in development by IBM and Maersk (Forbes article).

However, there are some critics of a Blockchain border. The Financial Times recently published an article lambasting the idea of using Blockchain (Financial Times article). The article, in its entirety, is an entertaining read, but more than that the authors raise some interesting points. Perhaps their most poignant point is the following: â€œThe thing is, a shared record-keeping system for online payments isn't the same thing as an â€˜infallible tracking systemâ€™ for goodsâ€.

Will Blockchain be savior of the Irish border? At this time, who can say? Some companies would certainly suggest that Blockchain is a feasible solution. While the ingenuity of these Blockchain developers can be lauded as they find new and creative ways to apply Blockchain to the real world, one might hope that they remember: there is a limit to how effective technology is against problems artificially created by human beings.