The European Parliament has released a new report that focuses on the social impact of blockchain or distributed ledger technology.

The report, “What if blockchain changed social values?”, noted the various benefits offered by blockchain technology, which includes fast, cheap, and secure transactions, tracking of transactions, the authenticity of documents, and many others. However, it also highlighted some impacts that may not be beneficial from the societal point of view.

Firstly, the report brought to the forefront the energy intensity of blockchains, which could become a major problem going forward. “It is often said that Bitcoin blockchain was responsible for electricity consumption comparable to that of Ireland in 2014, and has continued to grow. While more efficient algorithms and hardware can and are being developed, the energy intensity of blockchains (and, indeed, that of all digital processes) may become an increasing problem in the future”, it added.

Next, it discussed the impact on “white collar employment” as the technology would essentially get rid of the intermediaries or middlemen through p2p transactions and smart contracts.

“Many commentators are relaxed about this prospect, drawing parallels with industrial automation to argue that blockchain development would leave more time for the core high-value tasks of providing bespoke services, while new high-quality jobs would be created in the design and maintenance of the necessary systems.”

According to the report, the most profound impact of blockchain development could be through its contribution to subtle changes in the wider social values and structures.

"To say that blockchain's popularity is due to increasing social trends to prioritise transparency over anonymity, to diminishing trust in traditional financial and governance institutions, and to expect greater levels of accountability and responsibility in all aspects of our lives, is only part of the story. Nevertheless, using blockchains instead of traditional ledgers actually invokes these very shifts in society."

The report further outlined few strategies for the authorities to consider when dealing with blockchain technology. This includes actively encouraging blockchain development and innovation by granting legitimacy to the related products, as well as a “reverse” approach that says “discourage the advancement of blockchain technology by refusing to accept the legitimacy of blockchain-based transactions”.