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Establishing the second cohort of the European Blockchain Sandbox has been an eventful, thorough, and inspiring process. From an intensive applications period, which saw great interest from across the EU/EEA, to a rigorous selection process and matching of use cases with relevant regulators/authorities, the Project team worked hard to ensure the Sandbox was populated with innovative use cases with a broad range of relevant regulatory topics, able to generate best practices to benefit the broader Blockchain community.

Having the opportunity to witness such wide-ranging innovations in the Blockchain space across the EU/EEA has been extremely encouraging, and we would like to thank all those who took the time to apply for the second cohort of the European Blockchain Sandbox.

We are now delighted to announce the use cases which have been selected for the second cohort of the European Blockchain Sandbox

One use case of the European Blockchain Services Infrastructure has been approved by the EBP for participation in the lot for public entities, and 19 additional use cases were selected in accordance with a carefully curated selection process. The selected use cases span all EU/EEA regions and represent a wide range of industry sectors and regulatory topics. We are pleased to share with you these use cases (where applicable with their consortium partners) below:


  1. PROSPEH, poslovne storitve in digitalne rešitve, d.o.o.
  2. Infineon Technologies AG
  3. NYALA Digital Asset AG
  4. Circularise B.V.
  5. IOTA Stiftung
  6. EastNets Europe S.A.
  7. Stichting 2Tokens
  8. Brickken PFP, S.L.
  9. Axiologic Research
  10. ReLOG3P SRL
  11. PlanDail Ltd, Operating as Trrue Ltd
  12. Doxychain
  13. VERAG Spedition AG
  14. REClosure
  15. Kunveno Teknologos
  16. IoT Nederland BV
  17. HACEN OÜ
  18. DigiShares A/S
  19. Konnecta Systems IKE
  20. EBSI Verifiable Credentials Use Case


Please note that the full list of use-case descriptions can be found in the annex below for your information.

The matching process for this first group of 20 use cases is nearing completion and the confidential regulatory dialogues are about to begin. At the conclusion of these dialogues, a best practices report will be published.

Congratulations to all the selected use cases and welcome to the Sandbox. Please be advised that eligible use cases who have not been selected for the 2024 cohort, or use cases who have not had the opportunity to apply, are welcome to apply for the third cohort, in early 2025.


Use caseDescription

PROSPEH, poslovne storitve in digitalne rešitve, d.o.o.

OriginTrail is an ecosystem building a Verifiable Internet for AI, providing an inclusive framework that tackles the world's challenges in the AI era, such as hallucinations,
bias, and model collapse, by ensuring the provenance and verifiability of data used by AI systems. Having been put to use for a spectrum of solutions, including
deployments by Fortune 500 companies, it tackles misinformation by enabling discoverability, verifiability and ownership of Knowledge Assets with its Decentralized
Knowledge Graph (DKG).

The OriginTrail DKG is an open, permissionless decentralized network of knowledge graph nodes integrated with multiple blockchains, such as Ethereum, Polygon, Gnosis
Chain, and Polkadot. It is a core component of the verifiable internet infrastructure enabling AI solutions to leverage its discoverability, verifiability, and ownership
capability. Its core resources are Knowledge Assets, organized in DKG Paranets together with knowledge services.

Using the Decentralized Retrieval-Augmented Generation (dRAG) framework, OriginTrail enhances AI models with verified information from decentralized sources,
ensuring accurate and reliable AI-generated content. dRAG advances the RAG model by organizing external sources in a Decentralized Knowledge Graph while
introducing incentives to grow a global, crowdsourced network of knowledge made available for AI models to use.

OriginTrail is used by global leaders like the British Standards Institution, Swiss Federal Railways, Supplier Compliance Audit Network (SCAN), representing over 40%
of US imports and several consortia funded by the European Union among others. Advised by Turing award winner Dr. Bob Metcalfe, renowned for his law of network
effects, the Trace Labs team (OriginTrail core developers) plays a crucial role in promoting a more inclusive, transparent, and decentralized AI.


Infineon Technologies AG



Infineon proposes a solution to the blockchain's 'oracle problem' in providing trustworthy data feeds from IoT edge devices, such as sensor nodes.

Problem background

  • While data on a blockchain is 'trustless', any data feed from the outside needs an "oracle service to facilitate the translation and verification of the data from the external storage" (ETSI publication on permissioned distributed ledger).
  • In an ideal world, edge data feeds should be as trustless as the blockchain itself; but for a single and thus centralized hardware (sensor) oracle this is barely achievable.
  • Depending on the specific use case and the required level of assurance, different threat models apply. Adapting security measures in hardware and software is essential to strike the right balance between cost and performance considerations, based on the specific use case and the required level of assurance.

High level approach

  1. Traditional IoT security concepts secure edge devices and their data against attacks by outsiders, e.g. Transport Layer Security (TLS) for data transmission from the edge to net/web/cloud.
  2. To ensure trustlessness, supplementary measures secure edge processing and data transmission from the edge against unauthorized changes by insiders with administrative rights. Additionally smart contract based security and integrity checks can be logged on a permissioned distributed ledger (PDL) and made verifiable to relying parties.
  3. Depending on the level of assurance required for the use case, relying parties may verify the authenticity of edge identities, inspect source code cryptographically linked to the actual deployed edge software and audit the smart contracts and policies for security checks and audit logging.
    Nota bene: relying party is any data consumer including 3rd party auditors and blockchain applications that execute their smart contract logic based on the trustworthy data feed.

Result

Ultimately, relying parties can verify that edge device identities are authentic and that data has not been manipulated during either edge processing or transmission. In addition, relying parties may examine smart-contract based audit policies and source code deployed to edge devices. In result, applications based on new standards such as the digital twin (ISO) and the asset administration shell (IEC), as well as new EU regulations like eIDAS-2 and the digital product passport (ESPR), may consume a data feed that can be verified for its trustworthiness.

 


NYALA Digital Asset AG

 NYALA Digital Asset AG operates a Digital Asset Platform, which serves as an infrastructure layer for the issuance, registration, and custody of tokenized securities. With our regulated subsidiary, a crypto-securities registrar, we have repeatedly issued tokenized financial instruments over the past 18 months and have realized the first tokenized 
shares under the German e-Securities Act. Our solution is built on the public Polygon PoS chain and encompasses the minting and distribution of tokenized securities, as well as maintaining the registry of owners, to connect on-chain and off-chain information. 

As one driver to solve the funding gap in the EU, with a focus on SME financing and renewables projects, we are now shaping our digital asset ecosystems into one holistic 
secondary market under the DLT Pilot Regime. Our Digital Asset Platform will serve as a back-end engine, which connects investment platforms into a trading ecosystem, thus making sub-scale bonds and equities investable for more investors. 

Our vision for the secondary market is to integrate the entire securities value chain within a single unit and to facilitate seamless trading and settlement processes. For this we partner with an existing MTF to conduct trading off-chain and serve as the settlement infrastructure on-chain. To enable DVP and automated dividend payments, we are 
integrating an e-money token for the cash leg.



























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