BRUSSELS, Feb. 1 (Xinhua) -- The European Commission launched an initiative on Thursday to aid the development of -- and seize opportunities from -- blockchain technology.

Blockchain, which stores blocks of information that are distributed across the network, are seen as a major breakthrough to bring about high levels of traceability and security in economic transactions online, the Commission said in a statement.

The EU Blockchain Observatory and Forum is tasked with gathering information, monitoring and analyzing trends, addressing challenges and exploring blockchains' socioeconomic potential.

The Observatory and Forum will highlight key developments of the blockchain technology, promote European actors and reinforce European engagement with multiple stakeholders involved in blockchain activities, according to the statement.

Andrus Ansip, European Commission Vice-President for the Digital Single Market, said the EU wants to become a leading world region that will develop and invest in the rollout of blockchain.

Valdis Dombrovskis, another European Commission Vice-President, said: "Among the many technologies that are driving digital innovation, blockchain has the potential to be truly transformative for financial services and markets."

The European Commission has been funding blockchain projects since 2013. Up to 2020, it will fund projects that could draw on blockchain technologies for up to 340 million euros (424 million U.S. dollars).