Can Blockchain Solve the Irish Border Dilemma? Spoiler: Probably Not

The Dilemma: Brexit and the Irish Border

The UK’s decision to exit the European Union has created a Gordian knot of challenges, especially regarding the border between Northern Ireland and the Republic of Ireland. With over 30,000 people crossing this border daily for work, any solutions that include customs checks stand to create chaos. Enter blockchain technology, propelled into the spotlight by UK Finance Minister Philip Hammond, who mused about its potential to create a ‘frictionless’ border.

Blockchain: The Buzzword Deconstructed

While blockchain has become the go-to term for modern tech enthusiasts and politicians alike, it’s crucial to sift through the jargon to see if it actually functions as a solution. Hammond’s comment stirred up excitement, but many experts are left scratching their heads. “Blockchain means different things to different people,” warns Vili Lehdonvirta from Oxford University. If it’s a Bitcoin-style setup, we might encounter throughput and latency issues that would derail any hopes for smooth sailing across the border.

Scalability: The Achilles’ Heel of Blockchain

Let’s put this into perspective: Bitcoin can handle about seven transactions per second, while Visa manages over 50,000. Given that Northern Ireland’s cross-border trade generates billions, the scaling issue is significant. Can blockchain really handle a crisis? Lehdonvirta is skeptical: “Technological marvels often turn out to be mirages,” he quips. Peer-to-peer blockchains, while cool, aren’t exactly designed for heavy traffic conditions.

Is Permissioned Blockchain a Viable Alternative?

The discussion then shifts to private or permissioned blockchains, which Lehdonvirta likens to shared databases. In other words, if you think a private blockchain will provide unique benefits, think again. Angus de Crespigny from EY added a dose of reality: “There’s no evidence to suggest private blockchains are better than existing systems. It’s like trying to sell ice to an Eskimo.”

The Political Landscape: A Bigger Challenge

Ultimately, the crux of the issue is not technology but politics. Nick Botton of Landmark Public Affairs emphasizes that Irish relations are delicate. No one is thrilled about the idea of a border after decades of free movement. “A border is still a border,” he warns. The mere concept revives painful memories of the Troubles, which serves as a clear indication that simply throwing tech at the issue won’t suffice.

Conclusion: Blockchain’s Limitations and Future Prospects

In conclusion, while blockchain remains a tantalizing prospect touted as a solution for a myriad of issues, the cold hard truth is that it’s not a cure-all for the Irish border dilemma. As experts iterate, it’s all about the data that gets input into these systems. Ensure the original data is valid, and then—and only then—might blockchain have a fighting chance. Until then, we may just have to rely on good old-fashioned diplomacy, and perhaps leave the blockchain dreams for another day.