Malta: From Blockchain Island to AI Nation

2018 was the year Malta cemented itself as The Blockchain Island with the implementation of three laws; the Malta Digital Innovation Authority Act, the Innovative Technology Arrangements and Services Act and Virtual Financial Assets Act.

The MDIA Act deals with the setting up of the Malta Innova- tion Digital Authority, the ITAS Act deals with the technology arrangements and services such as that of a systems auditor and technical administrator and the VFA Act deals with virtual financial assets. These three acts were approved by Parliament last year, and are the world’s first ever Distributed Ledger Technology legislations.

The Blockchain Acts have formed a regulatory framework, which provides legal certainty to entrepreneurs, in such a way as to not hinder the development of the industry. The role of the Authority is to harmonise practices, promote the use of innovative technology, promote transparency and auditability and promote legal certainty.

Malta has regularised DLT through its legal framework. Cryptocurrency and Blockchain technology are completely separate from one another.

Blockchain is the plat-form that brings cryptocurrencies into play; however, licenses are issued to Virtual Financial Assets operators through the MFSA. MDIA supports the MFSA by providing certification of the actual software or through an audit/review by a Systems Auditor accredited with MDIA.

2018 was the blockchain year, what is the next step for Malta?

Since the success Malta has been experiencing ever since it established itself as the Blockchain Island, the next step is to explore Artificial Intelligence (AI) as a new economic niche.

The Maltese Government intends to follow the same steps it did when passing the DLT laws, which has allowed Malta to lead the blockchain revolution. A task force has been set up to steer its strategy on Artificial Intelligence and devise a holistic approach towards the industry and further bring about economic growth within the field of digital innovation in Malta. The digital aspect is like a chain, you cannot explore one aspect while leaving oth- ers behind. What the MDIA started is a snowball effect, leading to an ever-evolving process.

Malta is one of the 1st blockchain islands. What are the future challenges?

Being a leader in the uptake of new emerging technologies is by merit of the talented brains and visionaries that Malta fostered over the years. Malta took a proactive approach by understand- ing the benefits of utlising such technologies and creating a hol- listic legal framework to allow these technologies and businesses to flourish.

Investing and sustaining human resources across the industries is of utmost importance and that is what Malta intends to keep doing. This will be achieved by investing in scholarships and indoctrinating different areas and sectors.

Our ICT infrastructure is resilient, and thanks to our thriving economy and a strong ecosystem, Malta is a hub for digital tech- nological innovation, which will provide different challenges in terms of finding the skills and the talent required to uphold with the current technological advancements.

Many companies that have already expressed their interest are now residing in Malta and are willing to share their expertise and expert teams. Facing a learning curve and all the future challenges that this industry will bring, will not only push Malta to become more economically stable but also keep it at the forefront of the industry.

Meet the Blockchain company set to revolutionize the role of the 12th man

The role of football fans worldwide is set to change with the onset of a Blockchain-based app that will bring supporters closer than they’ve ever been to big clubs

Housed in the new 2,000 sqm Blockchain campus in Gzira, Socios is an avant-garde Blockchain-based venture set to revolutionise the role of football fans worldwide.

We spoke with Alexandre Dreyfus CEO of Chiliz and Socios.com, who elaborated on the inner workings of the app.

“Socios.com is a new app dedicated to football fans, where you acquire voting rights to influence the clubs you love.”

The parent company, Chiliz, has already managed to strike partnership deals with top-flight football clubs such as Juventus, Paris Saint-Germain, and West Ham United, with

another big football club set to be expected in the coming months.

“We are offering football clubs a solution to bring fans closer to the club irrelevant of your location,” Dreyfus said.

Asked as to how voting rights would be acquired and subsequently spent, the CEO pointed out that users of Socios will earn utility tokens under the virtual native currency of the platform, Chiliz or $CHZ.

“Football clubs that join socios.com generate a supply of fan tokens which are blockchain-secured digital assets,” he said. Fan tokens earn users the right to vote on club matters and the more tokens you own the more influence you have.”

Dreyfus explained that these fan tokens can be later spent on club-run polls such as those asking the fans about next year’s jersey colour or which marquee signing they should secure next.

Quizzed on how users can obtain these fan tokens, he said that this will be announced at a later date, possibly in the summer months.

Dreyfus said he moved the company to Malta because the island provided a solid foundation for the blockchain industry by being one of the first countries globally to provide legislation for this emerging technology.

Last years’ hype about Malta becoming ‘the blockchain island’ also helped attract a huge talent pool to the island, he said.

Words by Liam Carter