WEBVTT

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So, I'm Kelly, I'm a fellow at the European decentralization institute, which is an independent

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think tank for the decentralized economy.

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And this talk is about a layer of digital infrastructure that rarely appears in European

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digital policy.

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I know that sovereignty, digital sovereignty, is a hot topic today and for a good reason,

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that's a good thing, but especially on the EU level, the focus usually stays on things

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like cloud, AI, semiconductors, big US tech platforms and software, because these are the

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things that institutions already know how to deal with, right?

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They fit into existing legal categories and they map clearly onto procurement frameworks.

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But what tends to be invisible is the protocol layer that runs beneath everything.

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And yet this is the layer that determines how systems communicate, how they remain

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inoperative and how they evolve over time.

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It's the coordination infrastructure that makes everything else function.

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Public institutions increasingly depend on open protocols, sometimes at very large scale,

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which we'll see in a minute, while the governance of these protocols remains largely absent

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from strategy, procurement and long-term planning.

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The dependencies already exist, but the understanding of protocol governance, how the

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protocol evolves, often does not.

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And this talk is about exactly that blind spot.

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But before I continue, let me be very explicit what I will not argue for.

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I'm not here, of course, to advocate for regulating protocols.

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I'm not here, even, to argue that governments should enter protocol governance in all cases.

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The goal is much more basic and much more necessary.

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It is to make the protocol layer legible, so that institutions and technical communities

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share an understanding of what it means to be dependent on the systems over time.

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So I think it's helpful to first start with how European digital policy tends to look at

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technology.

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First, of course, there is the infrastructure, the chip, status, and the networks, cloud

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regions, the underlying hardware and functions that can be owned geographically located

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and audited.

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Second, of course, something we're very familiar with in Brussels, regulation, the legal

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instruments that govern digital infrastructure and services, and most of the aforementioned

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infrastructure items they are already regulated through data protection rules, the AI Act,

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platform obligations, cybersecurity frameworks, and so on.

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And of course, the institutions, the formal authorities, the agencies, funding programs,

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and governance bodies, with budget mandates and formal authority to implement policy.

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Now, open protocols, by contrast, are, of course, they're borderless, they're non-onable,

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and they're maintained by loose global communities.

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They determine how systems inoperative it, inoperate, but they do so without ownership, without

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jurisdiction, and without institutional control.

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And that's a good thing, of course, but as a result, they sit outside the field of

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vision of most policy frameworks.

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In practice, this means that protocols are often treated as technical background conditions,

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something that is almost assumed to be stable, neutral, and external to governance.

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That assumption, of course, as most of you here will know, is wrong.

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Protocols are not static.

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They are continuously modified through governance processes, proposal mechanism, consensus

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norms, backwards compatibility decisions, and informal power that accrues over time.

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These processes determine what the protocol allows, what it forbids, and what kinds of

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behavior are allowed to build on top of it.

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In other words, protocols make rules.

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They just do so without being recognized as rule-making systems by law or policy.

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And this creates a structural blind spots.

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Digital policy already routinely produces dependencies on open protocols, but without

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identifying them explicitly, without funding the work that keeps them scalable, without

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assessing how their evolution might react with regulatory goals.

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And I think the distinction becomes even more obvious when you look at the procurement processes.

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Now, when an institution adopts the software, it, of course, does so through a contract.

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There is a vendor, a liability regime, a defined update path.

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Governance is externalized.

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On the contrast, when an institution adopts an open protocol, even though they might not

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be fully aware of it, none of that exists.

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The institution enters an existing coordination system whose evolution is shaped by participation,

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not authority.

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There is no counterparty to contract with and no mechanism to align change with public objectives.

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Protocol governance is simply how those coordination systems change over time, who can

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propose changes, how do proposals gain adoption, and what constraints a well-funded actor

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from steering the system when there's no formal video, no regulator, or no enforceable obligation.

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From within the protocol communities, this is all super obvious, right?

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But from a legal and policy perspective, it is not what is visible is the repository,

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the documentation, and so on.

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What is not visible is decision thresholds, the power dynamics, and the coordination costs

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that shape future behavior.

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That opacity makes it quite difficult for institutions to assess in what ways they are dependent

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on open protocols.

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Institutions are not only relying on how a protocol behaves today, but also how it might

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change in the future.

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And it is really a big mismatch with existing policy and procurement frameworks, because

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policy tools and procurement frameworks usually assume at least one of three things.

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First, a regulatory move, subject a contractual counterparty or an accountable entity, but

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Ethereum has no central governance body, matrix has no vendor relationship.

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They have moved through distributed coordination proposals, discussions, and voluntary

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adoption.

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None of the usual levers apply, and that makes it very complicated for policy makers.

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But I would argue that in network systems, sovereignty does not come from formal ownership

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or formal control.

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It comes from understanding how rule changes occur, who participates in them, and where

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influence actually sits.

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Open protocols already structure behavior at scale.

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Policy simply doesn't see that yet, and this, I would argue, is a massive gap that we

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should address.

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But what exactly is the issue here?

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Why does it matter that protocol governance is a blind spot in digital policy?

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The problem is, of course, not that open protocols lack governance, most of them are

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governed carefully and completely.

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The problem is that digital policy increasingly, whether they're aware not to create dependencies

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on protocols without accounting for their governance.

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Through standard references, interoperability mandates, and funding programs, and long-term

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compliance requirements, policy choices, already determined which protocols institutions

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come to rely on.

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But the governance of these protocols remain largely outside institutional awareness,

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though there are, of course, some examples.

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When governance is invisible, dependencies do not disappear.

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They simply move downstream into procurement decisions, operational risk, and incident

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responses.

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When their institutions are left managing the consequences, they did not anticipate and cannot

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easily influence, and this creates three structural risks.

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First of all, interoperability becomes fragile, thought about the deployments assume long-term

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capability, but of course, protocols evolve.

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Specifications change, methods get depreciated.

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The decisions make today can surface later as breakage, and are far away from the original

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discussion.

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There is no contract enforcing compatibility.

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Governments are users of the protocol, not parties to its governments, usually.

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Unlike traditional interoperability mandates, which assume bilateral or multilateral

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agreements between accountable parties.

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So when a breaking change happens, and an institution relies on open protocols, they have

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to absorb the risk.

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Seconds, and I think this is an important one, exit options become costly.

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When protocol evolution diverges from institutional constraints, the options become very

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narrow, because working a protocol at the deployed at scale is very expensive.

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It's operationally risky, and politically difficult.

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You inherit the full main in spurdon, and slowly lose alignment with the wider ecosystem,

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which gives you network benefits.

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Abandoning the protocol also often means falling back to vendor-centric alternatives,

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recreating the very dependencies that sovereignty strategies are meant to avoid.

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There's no one to negotiate with when you are adopting an open protocol.

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Governance is distributed by design.

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You either participate in shaping it, or you accept what the community decides.

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And finally, change arrives at an operational surprise.

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So yeah, when a protocol changes through open coordination, if institutions do not track

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these processes, governance decisions, surface-as-urgent incidents, instead of predictable

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lifecycle maintenance work.

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So security fixes, specification protocols, protocol upgrades.

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Of course, these are not failures of a protocol.

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They are completely normal, but usually there is no institutional capacity to track these.

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So what does that look like in practice?

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I want to use matrix protocol as an example, because matrix is already used for governance

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communications at a very large scale.

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France teach-up serves hundreds of thousands of civil servants on a daily basis.

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And in Germany, you have PMV messenger, which serves over a hundred thousand users, and is

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used in the Bundeswehr and parts of public administration.

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And TI messenger, the German healthcare sector, is a user, and over a hundred and fifty

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thousand healthcare organizations, large and small reliance.

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So these deployments stay work very well, right?

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They scale.

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An adoption of the matrix protocol is increasing, accelerating.

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I know Sweden, the Netherlands, and the European Commission, they all have matrix deployments

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in process.

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And this is mainly driven by the EU's push for digital security, but also new interoperability

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mandates.

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But here is where the dependency looks like operationally.

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In matrix addresses a security vulnerability through a coordinated release, server operators

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must decide whether they to upgrade immediately or run a version with a known issue.

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Of course, the decision is not made in a vacuum.

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The timing scope and mitigation are shaped upstream through matrix governance, through the

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MCSC sorry discussions, embargo coordination and release planning.

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But if your institution is not tracking these, you do not learn about them when decisions

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are being debated.

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You learn when the security advisory becomes public.

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And at that point, the choice is no longer strategic.

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It's reactive.

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You have to respond almost immediately, and you have to choose between operational risk

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or compatibility risk.

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The same dynamic applies, of course, to room version upgrades.

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matrix has introduced multiple room versions to improve security and federation behavior.

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If a critical coordination room upgrades and your deployment will not update clients,

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users can lose access.

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And decisions about when a room version are introduced, backwards compatibility is handled,

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and what migration pad exists are all made through the official governance process of matrix.

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So it's very important to track this.

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And this is not something hypothetical, because since France has adopted matrix, for example,

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there was the authenticated media that was rolled out across the matrix network in 2024, and

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every client and bridge had to adapt.

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So governance decisions in the protocol directly translated into operational work for

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institutional deployments.

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Now, here's the fragility.

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These deployments, they succeed because a small number of individuals understood the protocol

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governance and the institutional deployments.

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So people inside DINAM, for example, in France, in engineers at GMATIC in Germany.

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These people are very capable of following the governance.

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And I think in the case of matrix, since October, they have actually, in the case of T-CAP,

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they have actually joined the matrix foundation in October, so quite recently.

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So matrix is, France is doing quite well there.

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But the knowledge is highly concentrated in a few people.

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Does not scale automatically.

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And when those individuals move on, there is a risk that the institutional understanding disappears

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with them.

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So I think Europe does definitely not lack the technical capacity to rely on open protocols.

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But they do lack a systematic institutional capacity, and that is a risk.

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So they need the capacity to monitor governance process processes and security advisories.

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The capacity to plan upgrades as part of regular life cycle management, not as an incident

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response.

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And the capacity to understand how specification changes affect operational continuity before

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they become breakage or big failures.

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Without that capacity, institutions depend on protocol governance that they do not track,

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and discover the consequences only when it's almost too late.

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And of course matrix is not an exception here.

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This goes for any open protocol used in life deployments that scale by institutions

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from identity to messaging, from payments to data exchange, right?

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They can all create the same dependence on protocol governance indirectly.

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Once institutions adopt something that uses that open protocol at scale.

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Now there is some very good news.

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There is an opportunity to address the challenges I just mentioned.

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As we speak, the European Commission is preparing its open source digital ecosystems strategy.

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In fact, the public consultation is closing this Tuesday.

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So if you want to get your comments in, there's still some time.

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And the ambition of the European Commission is very well placed.

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It is to support the full open source life cycle, right?

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From deployment to market update, mainly across cloud AI and digital commons.

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And the European Commission also has directly identified

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that a significant share of value created by European open source

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flows outside Europe.

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Of course, this is an important diagnosis.

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And I'm sure the Commission will look at all the public consultation inputs.

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But I, in my view, it remains incomplete unless the strategy also addresses what happens once

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open technologies are deployed at scale.

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If the open digital ecosystem strategy only focuses on supply site measures.

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For example, funding projects encouraging adoption and building markets.

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It will continue to underestimate a central source of digital dependency.

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Many public deployments rely on protocols whose evolution Europe does not yet track resource or plan for.

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And to address this gap, I argue that there should be four pillars in this new strategy.

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First, require protocol governance assessment in public procurement.

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Second, recognize protocol stewardship as a critical to digital infrastructure.

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And of course, funding accordingly and sustainably.

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Third, build institutional capacity to track and plan for protocol evolution and

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force a line for procurement incentives with upstream contribution.

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Now go through them quickly.

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So as I said, first, the strategy should require protocol governance assessment in public procurement.

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And I think this is one of the biggest blind spots we have right now.

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Because today, institutions routinely make strategic procurement decisions based on the

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assumption that protocols are technically stable, but in reality, of course, they are not.

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And this is a huge issue because public tenders specify the use of open protocol sometimes.

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But they do not include the needs to assess the protocol itself only the supplier.

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So I think when you look at public procurement, it should include an understanding of where

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protocol decisions are made, how changes proposed and adopted and how backwards compatibility

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is managed and how breaking changes can surface.

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The objective is not to influence governance outcomes of course, but to make protocol risk visible.

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Second, the strategy should recognize protocols towards ship as digital infrastructure and fundates.

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Because of course, protocols require often invisible work maintaining specifications,

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reviewing proposed changes and so on.

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But this work is rarely funded through market mechanisms and is systematically missed by project-based funding.

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And when it is under resource fragility becomes, yeah, accumulates.

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I think here the great example is the German sovereign tech funds,

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which demonstrates that it's problem can be addressed without exercising control.

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Since 2020, it's invested more than 23 million in over 60 open source components.

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And I think the open digital ecosystem strategy should apply this logic as at European level.

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Third, the strategy should build institutional capacity to track and plan for protocol evolution.

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Public agencies need practical literacy and how protocol changes happens,

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knowing where the discussion stake place, which forums and repositories carry authority,

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how timelines are set, etc. Without this capacity, institutions will remain only reactive

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and repeatedly surprise by upstream governance decisions.

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And I think this is already quite visible and at risk in regulated deployments.

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For example, under the EID does two member states are required to roll out digital identity.

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wallets at population scale by late 2026. And these wallets depend on internationally developed

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identity and credential specifications that continue to evolve.

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And if European wallets implementations do not actively track and plan for this evolution,

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cross-border interoperability might feel because member states will be implementing different

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assumptions based on the same underlying standards. And finally, the strategies should

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align procurement incentives with upstream contribution.

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For now, public procurement rewards systems integrators who resell or deploy protocol-based

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systems, while the maintainers usually do not benefit from this procurement value.

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This is risky because vendors that actively contribute to protocol specifications.

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And so, on their far better position to anticipate change and fix issues quickly,

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while keeping deployments aligned with upstream evolution. The strategy should therefore support

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procurement models that recognize contribution as a sort of resilience signal.

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And I think proposals from initiatives such as euro stack are already points in this direction

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to make contribution and explicit procurement criterion points.

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This is not only just about a ideological preference for open source, but also about

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sound risk management. And taken together, this would really help

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taking the strategy from a real framework to supporting open protocols.

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So, of course, the first responsibility lies with institutions to track an account for

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protocol governance. But then there is a natural question. Is there anything that

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protocol communities can do to help the dependencies easier to understand?

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Not to change how government works, of course, but to reduce misunderstanding.

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Now, I know some of you are thinking, you know, ready documents your governance.

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Why is it my problem that institutions don't know how open source works?

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And I think it's a fair question, but it matters because when institutions don't

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understand your governance and something breaks, they tend to not absorb the risk quietly.

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They write regulations. And they could, uh,

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really, and change your even the developers of the open protocol we've seen that before.

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So, matrix documented governance very early and clearly. So, when governments like France

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and Germany adopted it at scale, it helped them understand what they were depending on.

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So, here are some practical tips you could do. Make sure that government's

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documentation is easy to understand because usually it's written for

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contributors, of course, and not for dependence. If the ministry official asks,

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how does the protocol decision make, how does the protocol make decisions? Is there

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one's documents or a repository that is very clear that you could point them to or do the kind

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of have to reverse engineer everything? If you're inclined to formalize something like this,

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you should think about covering decision venues, propose a life cycle, participation norms,

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safeguards, and upgrade expectations. For example, it could be just even a single

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realm written page that could provide significant defensive value. I think you can look here at

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a posh Linux foundation product foundation project and matrix as a good example. And seconds

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be clear about the on-ramps for participation without, of course, promising influence. So,

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means being explicit about which calls are open and relevant, what participation looks like

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without disturbing governance. And importantly, and this is something that

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protocol communities are often not explicit about, what does participation not confirm? So,

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being very explicit that participation does not mean the ability to influence or guarantee

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response to feedback. But when governance is legible to institutions,

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institutions make better procurement decisions, unrealistic expectations are avoided,

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and communities are also less likely to be pulled into very bad regulatory or legal dynamics.

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So, it allows institutions to depend on you responsibly without you having to constantly explain

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or mediates. So, finally, in conclusion, protocols already underpin many of Europe's digital

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infrastructure. Digital sovereignty does not mean controlling open protocols, but it means

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accounting for their governance, through stewardship, through clarity, and through institutional

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literacy. For policy makers and institutional adopters, this means naming protocol dependencies,

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planning for their evolution, and funding the work that keeps them reliable over time.

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For developers, it means making your stewardship legible not to invite control, but to prevent

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misunderstanding and backlash. And I think if we can get this right, then Europe does not need to

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choose between sovereignty and openness. Because, of course, I think many in this room here

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will say that sovereignty depends on open technologies, but if we can strengthen the

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institutional understanding of the protocol layer, that can strengthen the layer where the

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sovereignty actually begins. Thank you.

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We have time for one short question. So, we can have one short question, and then we have to go

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on to the next talk. So, just go ahead and then please repeat the question. Can you speak

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loudly or do you need microphone?

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Can you repeat the question?

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I was referring mainly to open source protocols. I'm sorry if that wasn't clear, but of course,

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I think the problems usually do not occur at the technical level where institutions participate

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in standardization meetings, but higher up when the commissioner for digital decides

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something she also needs some basic awareness of what her decisions might imply, and so I think

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yeah, it's more like at the higher political level that these things are not well understood.

