The possibility to seize the opportunities provided by blockchain technology originates from an understanding of its structure and operation. Last year saw the interest of several firms, businesses and institutions in the distributed ledger technology (DLT) grow and develop staggeringly in Italy. The benefits of blockchain and cryptos are now known by many Italian citizens and other several countries in the world at large.
The knowledge which must be made in the blockchain technology approach is to realize that it is a new method of controlling information exchange and transactions and also that decentralization of several functions is an advantage, according to a report by Agenda Digitale.
While launching blockchain technology in companies inside the country, it is necessary to intensify its different uses, including the need in the financial sector to better know how to exploit its maximum potential and appraise the most desirable use for it and be more reactive to its requirements.
Consequently, the first essential step is to understand how to use a simple idea, how both private and public blockchain tech is structured based on the functionality of each one, and select the most suitable option.
When the individual characteristics are identified and the more appropriate blockchain tech has been selected, then it will be essential to assess how it could be effectively applied to business processes and what could be innovated and improved.
Unlike other databases, DLT has the potential to integrate perfectly consistent and coherently with other major technologies such as smart contracts, artificial intelligence, the internet of things, sensors and more, with which DLT reinvents the method to manage a ledger and record transactions, information and its registration, and the exchange of data required for business operations, all with the assurance of high accuracy, effective control, solid security and contiguous sharing.
For instance, in the financial sector, one can make order with cash, international transactions, contiguous reconciliation of information, financial trade; in the corporate field, then again, always applying the same rationales it is very easy to trace the supply chain in real time, the firm assets, the supply chain, manage logistics, offer guarantees on commodities, verify different compliance, recording all and sharing in real time the information of any activity.
However, currently in Italy, the combined development of the technologies aforementioned is still in its earliest stages, but at the same time, it is indispensable that firms infer what is the requirement to approach DLT.
Blockchain technology is useful when: there is a need to share data between various parties; various firms share a common goal but within a single sector; there is a need to update in real time registers common to various firms; there is a demand to track the supply chain to ensure the authenticity of the commodity; there is a demand for contiguous transfer of resources or payments or the demand to simplify the commercial finance; and there are several parties that need to access, develop and maintain information for a very long time.
Recently, Andrea Bracciali, Assistant Professor of Computer Science at the University of Stirling, United Kingdom highlighted the properties of DLT and the reasons why its large-scale adoption is low, as Coinidol reported.
Also, as Coinidol reported, the event dubbed “the Federal Council report on framework conditions for blockchain technology” indicated that DLT will largely overturn the market infrastructures of Italy, and a lot of value exchanges will be managed via blockchain to provide investors with direct access.