Italy Unleashing the Full Potential of Blockchain in 2020

Jan 26, 2020 at 09:17 // News
Coin Idol
What does it take for blockchain to express its full value?

What does it take for the blockchain and distributed ledger technology to express its full value? There are many factors that contribute to the growth of blockchain phenomenon, with four of the contributions and analyses that are the most effective.

  • The urgent need for a shift from a focus on platforms, i.e. from a "proliferation of new blockchains" to a focus on applications, to existing and consolidated DLT-based solutions

  • The entry, in the field, with all their weight in terms of the capacity of innovation and amplification of the phenomenon of big digital actors such as Facebook, Amazon, Alibaba and others

  • A regulatory framework and work on standardization that has made progress and allows businesses and organizations to design and invest on blockchain more clearly, knowing that it can count on interconnection and interoperability

  • The availability of key performance indicator (KPI), data and scenarios that allow you to better assess the benefits, risks and with what resources to prepare

Synthesizing in four points the value of the research and discussion of the Blockchain & Distributed Ledger Observatory is certainly a forcing but it can perhaps help to frame the prospects of the DLT for 2020.

The Internet of Value Reaches 488 Projects

The research makes the numbers speak and these tell us that during 2019 blockchain initiatives around the world have reached 488 for a total of 1045 in 4 years. Approaching the lens, to see what design types we are talking about, and only 158 are in production and less than 50 are in full operational effects. Thus, DLT remains a phenomenon characterized by a significant number of Proof of Concept (PoC) and announcements that testify to the attention and at the same time the prudence with which companies and organizations are moving.

And at least some of the causes of this prudence could be solved by two of the key factors we indicated at the beginning: more attention to applications and less propensity to create new blockchains and greater regulatory clarity as factors that bring "certainties".

Blockchain in Italy Doubles

Staying on the numbers, Italy counts on 16 projects and doubles in terms of business volume reaching a market of 30 million euros compared to 15 in 2018. Finance, insurance, PA among the most active sectors but it is Agrifood the sector that seems to show a dynamic of attention and more intense growth. The distribution of the 488 projects at the world level confirms the leading role of finance with 67 developments, of the PA with 25 and also confirms the attention of the agrifood supply chains that reach 15 developments.

The Internet of Value, from Payments to Document Management

But what is blockchain used for? payments and document management are the processes that set these projects in motion and the other big area in which you look for solutions with DLT is represented by supply chains.

And again the lens with which we observe the research data allows us to see that "The tendency of companies and organizations has been to create new platforms so much that in 65% of these projects it has chosen not to use existing platforms". The model? "I make an app, but at the same time I create a new platform" with a commitment that takes months before it becomes operational. And only 35% use apps on existing platforms. The latter approach would have the indirect advantage of contributing to the strengthening and improvement of existing platforms.

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