Apart from being completely applicable to cryptocurrencies such as Bitcoin, blockchain and internet of things (IoT) enthusiasts in Italy and the rest of the world see innovative technologies as a fundamental change in information management. Blockchain adoption globally is now over 44%.
Because of its effectiveness, DLT was recently launched in textile and tanning industry to protect Made in Italy finished goods from being counterfeited. Remember, Italy alone owns around 30% of the overall turnover of the textile sector, and it leads in manufacturing leather by 20% globally.
IoT is a network which interconnects all objects. In simple terms, it is a network which extends and further expands on the internet; extends and connects customers to any goods, exchanges info and facilitates communication.
IoT applications & services have made a massive impact - the technology has helped businesses collect real-time info applied in improving the consumer experience to modernising supply chain undertakings. In 2019, innovative technologies including IoT, DLT, machine learning, AI will see a green light.
Currently, the internet of things accounts for more than 5 billion connected devices globally and that is expected to increase to over 29 billion by the year 2022.
More than 10 billion smart devices are confirmed to be connected to the internet and it is also estimated that the number will hit over 45 billion by 2025.
Many countries on this universe including Italy, are shifting their goal posts towards innovative technologies such as machine learning, smart contracts, IoT, DLT, artificial intelligence (AI) and many more. IoT and blockchain are trying to change the way manufacturing is done. In fact, they are game changers.
Bitcoin is only one decade old but it has clearly proved how a distributed network of computers short of a central controller is capable of processing financial transactions in an effective and secure mode.
Basically, Bitcoin is just a financial instrument, the central character of this entire story is the blockchain protocol which enables the use of digital currencies including Ethereum, Ripple, EOS, Litecoin, Stellar, Bitcoin Cash and many more. A blockchain is fundamentally a distributed ledger that is designed to record the transfer of cryptocurrencies.
The blockchain is perhaps the most significant innovation of BTC. It contains a database which includes all the transactions never executed on the Bitcoin network during its full history, a sort of exceptional, distributed, openly available, permanent and alteration-impervious digital register, kept "active" by the joint action of all the bulges of the system.
Getting access to the most recent block, every user can follow the chain backwards to see each bitcoin transaction made before. Although this mechanism, all completed transactions are flawlessly traceable, so the hurdle of distributed double-spending is fixed for the first time.
The main aim of the blockchain technology is to free people from any kind of trust, users are now pushed to give to intermediaries that regulate and manage a big part of people's’ life.
The technology is mainly based on four key concepts: a peer-to-peer network; open and distributed ledger; ledger copies synchronization; and mining. Therefore, it is essential to thwart every node from making a transaction to the chain since the chain has to possess a legal and ordered branch.
Blockchain signifies the missing part of a puzzle to decipher privacy and dependability defects in the Internet of Things (IoT). The basic decentralized, independent, and trustless facets of the technology make it appropriate to be used in a series of scenarios like Smart Grid; Smart Home; Smart Industries; and Smart City. For instance, the Blockchain technology could help keep an immutable account of smart devices.
In addition, it may enable an independent operative of intelligent devices, eliminating the company of centralized authority and human control using smart contracts. Also, DLT can create a safe method for smart devices swapping messages with one another. Blockchain can also be successfully integrated with IoT.
Recently, a digital dossier was applied in the Italian auto industry to enable motorists to certify their vehicles’ life cycle using blockchain-based smartphone App – the app will be available on both iOS and Android App stores. The DLT is also being used to manage digital identity via a smart contract.
According to the World Economic Forum ( WEF), IoT sensors and blockchain, as well as food sensing technology, are underway to resolve the issue of food safety in Italy.
The country is also pushing hard to make Made in Italy project successful. The first pilot project in the textile industry that will use blockchain SMEs was conducted at the Ministry of Economic Development last week. It generally aims at protecting the uniqueness and quality of the made in Italy products.
As we earlier reported, IoT and DLT can largely change the manner things are being carried out, improve transparency and also provide concrete security. The two can be used in tracking products, making contracts, conducting quality certification in fintech, used in shipping documentation to lower supply chain delay risks, and I the settlement automatization.