Italy: Blockchain Technology is a Watershed of Trust

Blockchain technology is a watershed of trust in Italy not only from the available data but also from the increasing sensitivity towards the certification of the goods and services, and this has led to the surfacing of robust consumer attention.

As we know that the supply chain is a corporate network that organizes the flow of people, activities, information and resources to transport a good or service from a manufacturer to a final customer, in the most effective, secure and transparent way possible. It has an impact on people, on how they exchange value, but also on businesses and society.

Participants must organize themselves in better ecosystems and explore various business models, that ascend from new means of exchanging information. Therefore, it is very important to adopt rules and systems which enable exchange, viz., collaborative and competitive logics, in which all active participants follow general rules of collaboration in the discerning sharing of their assets, according to their individual detailed business purposes.

Blockchain to Transform Business Processes  

Today, the digital transformation is producing exogenous and extrinsic modifications of business processes. From a technological point of view, the openness of the blockchain systems, is made possible by approaches to open interfaces for the exchange of data and services. The Blockchain and distributed ledger technology will be the basis of a new economic system, where the rules of system governance and transaction regulation can be implemented independently through smart contracts.

The exceedingly innovative nature of these economic models will require to be edged in a new and specific governance model. In order to achieve this, Italy must consider and keep together the concepts of trust, transparency, tracking and new technology. Italian financial authorities including the Ministry of Economic Development and Bank of Italy should level the ground for innovations and fintech to thrive.

Furthermore, the issue of privacy in supply chains is also very big thing to consider, particularly important as the country needs to understand how to handle data on four aspects: the sender, the owner, the recipient and the content.

Watershed of Trust

Sensors must write data on the Blockchain that makes them eternal and, with the addition of a cryptocurrency that represents the managed resource, an automatic payment reconciliation system will also be obtained.

What makes them change is that after putting the physical good in sync, as can be a luxury item, with its digital identifier, it is necessary to tie it to an economic value, easily exchangeable, at high speed, between the subjects.

In this way, whoever owns the cryptocurrency can easily exchange it at the same high speed that digital allows. Removing the manual action and paper transcription, the paperwork giving rise to errors, means removing humans from the process and making it faster, therefore at a lower cost.  

The Blockchain is, therefore, a watershed of trust: before introducing the data, only the human one exists in reality; after having introduced the datum inside, trust is placed in the mathematical proofs that it preserves.