Can 2020 Unlock the Potential of Cryptocurrency and Blockchain in Italy?

The year 2020 is most likely the period that will allow us to truly understand the potential of blockchain and its prospects in this world, which depend very much on the ability to overcome the logic that have led so many actors to believe in the potential of the cryptocurrency and blockchain, but to invest and create a new platform every time.

Hence, the proliferation in the number of "distributed ledger technologies (DLTs)" and the proliferation of cryptocurrency. There are exchanges that get to deal with over 2400 of them and maybe the market doesn't really need that much "offer".

Blockchain is not just a Technology and it is not a Product

Hence the problem of blockchain in 2019: to be considered as a technology. On the contrary, a technology that can in its own ability to solve problems that centralized technology could not cope with. It's not like that. DLT is much more than a technology and 2020 is the year to prove it.

Meanwhile, the blockchain world does not need to pulverize, the risks linked to the continuous development of new platforms hinder interoperability, increase the complexity in the definition of common standards, create interconnection problems.

Moreover, the signals coming from the big platforms are encouraging: they are working to improve performance and certainly also feel the effect and attention of the big web and digital companies that during 2019 have chosen to start projects on the blockchain: Facebook, Amazon, Alibaba and many others.

The Market Has Doubled but is Still "Small"

In Italy, projects range from 15 to 30 million euros, in the world the number of projects reaches 488. For a total of 1045 projects in 4 years. Considering the design complexity of the DLT are not few. However, there are still many proof of concepts (PoCs) and announcements.

The prudence of companies is anchored in two major themes: the lack of a regulatory framework adequate to manage the completely new perspectives that open up with blockchain and the lack of skills. On these areas, 2019 has given clear answers with Italy's accession to the European Blockchain Partnership (EBP) where it is playing an active and proactive role, with the establishment at the ministry of economic development (MiSE) of the table of experts dedicated to DLT and artificial intelligence (AI) to define a national strategy on blockchain, with a series of new rules.

European Blockchain Services Infrastructure (EBSI)

Among the most important initiatives that bode well for 2020, is the work of EBP aimed at the development of an EBSI, a European infrastructure that starting from the consideration that " Either the DLT is global or is not blockchain" you have given the goal of developing and spreading capabilities that allow to ensure openness, interconnection, interoperability.

Exactly what businesses need to choose to invest in blockchain. Very significant that on these issues there is a strong commitment of Italy. And among the most important projects both symbolically and for the value "infrastructure" and enabling is that of SSI. If you solve the issue of identity in a shared, secure and reliable way, you accelerate many other processes of innovation.

What Weaves for 2020

Digital Payments, Industry 4.0 and Blockchain: 2020 development is in sign of an ever closer relationship. Here are some key points on which an important development is likely to be expected in 2020:

1. IoT Payment: 2019 has seen a lot of progress both from a technological point of view and as "governance" of these mechanisms. Items that can pay for themselves are a reality that is entering production

2. The In Things Purchase integrates smart products, identity management systems for objects and payment systems

3. Smart connected products in their evolution are enriched with a transactional capacity to meet the needs of new business models.

4. The links between digital payments and blockchain are numerous but the strongest one is represented by Libra coin the cryptocurrency of Facebook. A possible affirmation of this project represents a radical turning point for the world of payment sand to address the great issue of unbanked.

5. Among the new business models enabled by connected products, with big data and data analytics and with the logic 4.0 there is certainly the development during 2019 of service 2019 and it is reasonable to think that the transition from product to service can find in blockchain and smart contracts in particular the tools to safely automate the mechanisms of control and remuneration

6. Industry 4.0 is being confronted with cryptocurrency / tokenization and how transactions rely on DLT networks are handled.

7. Made in Italy needs to ensure the authenticity of the products and protect it all over the world. Blockchain can't just be the preserve of platform and retail providers, the industry can benefit enormously