The Scope of SI-Chain & the First Application Deployment (July 2020)

The growth of government-backed and supported blockchain projects has made leaps and bounds across the globe. As governing bodies understand the potential this technology holds to improve a number of different sectors, support is encouraging. At the end of last year, Slovenia became the first Member State of the EU to establish a blockchain test infrastructure. The infrastructure is similar to China’s national blockchain initiative. SI-Chain was established by the innovative technology company Hashnet in cooperation with Telemach, a telecommunication solutions provider. The technology will initially facilitate transactions and the creation of smart contracts. Hashnet technology is also one of the fastest and most energy-efficient distributed ledger technologies created.

Understanding SI-Chain

SI-Chain’s goal is nothing less than putting the country’s government, corporate, and residential communities on the blockchain. To date, no tech company has been this ambitious on a national level. SI-Chain also has the support of the Slovenian Ministry of Economic Development and Technology.

Tadej Slapnik, managing director of Hashnet Slovenia, expands on the objectives:

“The ambition is to integrate technology into the business models of companies and public services, with the highest possible range, and high-speed transactions.”

4thTech partnership & first application deployment

4thTech joined the Slovenian national blockchain testing infrastructure called SI-Chain at the beginning of 2020, and since then, the team has been productive. It has already launched its first application, 4thTech’s W2W dMail & data exchange protocol. Service allows the secure and reliable W2W E2EE exchange of emails and data files across borders and sectors. Europe enables a similar but centralised service called eDelivery.

Current CEF eDelivery solution

The current eDelivery solution is based on a model, where the Access Points of eDelivery implement an electronic data and documents exchange protocol that ensures secure and reliable data exchange. Trust is established between two public administrations Access Points and the electronic data and documents exchange is activated.

4thTech proposal

4thTech solution enables a blockchain version of an “eDelivery”. The 4thTech protocol is based on a distributed model where the email and data exchange process runs between blockchain wallets, where private and public cryptographic keys are used for transaction authentication. The protocol uses gRPC (i.e. universal RPC framework) to connect to the Si-Chain node. To provide an option for blockchain address ownership verification, on-chain identity verification was created, which can authenticate the connection between a blockchain wallet and a person using X.509 digital identity standard. Furthermore, 4thTech is proposing a dNotary service that leverages the power of blockchain to facilitate source and time confirmation for any data files exchanged within the 4thTech ecosystem. It uses a checksum to check for potential data changes during the dMail and data file exchange. If one byte of the exchanged data changes, the checksum changes and invalidates the transmission. There are several checksums calculated and stored to assure integrity. The checksum stored on the blockchain is validating JSON metadata which includes all the details of the transaction. If the checksum of the JSON metadata is validated then the service is also checking the integrity of the digital file(s) within the transaction. If the validation of the digital file(s) is confirmed then the receiver can download data files with the confidence that no one has manipulated them.

Within the SI-Chain & 4thTech deployment activities, we have prepared the transaction eDelivery performance video test on Ethereum and SI-Chain. Observe the process in action and discover the protocol at work.

SI-Chain use-cases

SI-Chain is designed to be used with smart contracts. While smart contracts have not been widely implemented in our everyday lives, this may soon change for those living in Slovenia. SI-Chain’s use of Hashnet means it is not only faster than Ethereum but more flexible and energy-efficient. While Ethereum transactions can take over a minute, SI-Chain transactions are confirmed in less than 12 seconds. The use cases for a faster, more robust smart contract blockchain are nearly limitless. Anything requiring an official stamp or notary could be verified on SI-Chain using 4thTech dNotary:

• Marriage certificates
• Passports
• ID Cards
• Property Deeds
• Rent/Mortgage Payments
• Official Government Contracts
• Importance of a European Blockchain Services Infrastructure

The EU is a special case in regard to regulations. That is, it is a collective zone that shares many advances between its member states. The continued growth in the blockchain sector has launched the European Blockchain Services Infrastructure whose aim is to “deliver EU-wide cross-border public services using blockchain technology.”

By leveraging its strong development team and municipal connections, the SI-Chain group has a distinct first-mover advantage in a space populated by half-baked ideas and lacklustre competition. We will be keeping a close eye on SI-Chain and delving deeper into how this project is piloting more comprehensive national infrastructure technology.

💡 Slovenian GOV official project announcement

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