Periodic Reporting for period 2 - BLOCKCHERS (BLOCKCHAIN TECHNOLOGIES FOR SMEs)
Período documentado: 2020-02-01 hasta 2021-01-31
BLOCKCHERS was designed as a radical shift to overcome the lack of knowledge on traditional SMEs about how blockchain and, per extension of the concept, DLTs (Distributed Ledger Technologies) could radically change the way businesses are done. DLTs have the potential to redefine the way we conduct transactions, sign contractual agreements and conduct business in the world, among parties that are geographically distant. In particular, it allows the creation of unique tokens, representing digital property, which can be securely exchanged and spent in a system with no governing central authority. The elimination of the double spending problem without a middle man opposes the conventional centralized system where a central authority (e.g. a classical security exchange or a central bank) organizes the asset and assures that market participants comply with the rules.DLTs’ value proposition is reducing simple administrative tasks and bureaucracy with auto-enforceable code, while increasing security on transactions and reliability. DLTs are a technical subproduct of cryptography.
But there are different reasons, addressed in BLOCKCHERS, make the transition to DLTs slow and arduous:
▪ There is a huge community of innovative SMEs with excellent ideas to contribute to the DLT uptake. However, the sectors in which DLTs make sense, besides fintech, could be those in which existing SMEs do not have enough knowledge on how DLTs work nor how they could uptake these technologies (traditional SMEs).
▪ Traditional SMEs need to be sensitized to uptake the technology in their verticals. Lack of knowledge makes them reluctant to technological changes. To make relevant players in the key sectors aware of the DLT advantage is crucial for a major adoption and success of these technologies.
▪ A regulatory framework should foster the uptake and prevent from fraudulent actions such as i.e. those linked to the anonymity of users in transactions. Furthermore, Blockchain SMEs face uncertain regulation that limits their scope of action and imply a risk for their growth.
Said that, BLOCKCHERS main objective was to facilitate the revolution of DLTs across SMEs in Europe thanks to the promotion and support of DLT sub-granted use cases in multiple sectors by SMEs, support on the creation of a regulatory framework for the EU and the development of policy recommendations. The project partners have done this by:
▪ Running two open calls where blockchain based start-ups implemented real world use cases in more traditional SMEs.
▪ Supporting the selected start-ups with a programme to increase their skills, grant them access to technical infrastructure, equity free funding and connections with investors.
▪ Creating a dialogue and elaborate guidance at regulation level around the DLT to support the work of Policy Makers.
But there are different reasons, addressed in BLOCKCHERS, make the transition to DLTs slow and arduous:
▪ There is a huge community of innovative SMEs with excellent ideas to contribute to the DLT uptake. However, the sectors in which DLTs make sense, besides fintech, could be those in which existing SMEs do not have enough knowledge on how DLTs work nor how they could uptake these technologies (traditional SMEs).
▪ Traditional SMEs need to be sensitized to uptake the technology in their verticals. Lack of knowledge makes them reluctant to technological changes. To make relevant players in the key sectors aware of the DLT advantage is crucial for a major adoption and success of these technologies.
▪ A regulatory framework should foster the uptake and prevent from fraudulent actions such as i.e. those linked to the anonymity of users in transactions. Furthermore, Blockchain SMEs face uncertain regulation that limits their scope of action and imply a risk for their growth.
Said that, BLOCKCHERS main objective was to facilitate the revolution of DLTs across SMEs in Europe thanks to the promotion and support of DLT sub-granted use cases in multiple sectors by SMEs, support on the creation of a regulatory framework for the EU and the development of policy recommendations. The project partners have done this by:
▪ Running two open calls where blockchain based start-ups implemented real world use cases in more traditional SMEs.
▪ Supporting the selected start-ups with a programme to increase their skills, grant them access to technical infrastructure, equity free funding and connections with investors.
▪ Creating a dialogue and elaborate guidance at regulation level around the DLT to support the work of Policy Makers.
During the two years of execution of Blockchers programme, we have achieved the following tasks:
▪ Run two open call for startups:
- 1st call figures includes 180 opened proposals, 70 submitted and 12 selected use cases for implementation.
- 2nd call figures includes 220 opened proposals, 111 submitted and 18 selected use cases.
▪ Delivering the acceleration programme for the 30 selected use cases (12 in the first call and 18 in the second one). The acceleration process includes: community events in Budapest, Frankfurt and online, free access to Alastria network, 120.000$ in credits for Amazon Web Services, several trainings on DLTs and investment readiness, access to the official training by Frankfurt Business Blockchain Center and a coaching programme for the teams and disbursing 750.000€ equity free to our teams.
▪ Support the implementation of blockchain solutions to 20 traditional SMEs in a myriad of verticals like legal, logistics, energy, textile or agrifood.
▪ Creation of an online community to discuss items on regulation under a public Slack channel.
▪ Creation of a major network of stakeholders all over Europe which are helping us to market our activities, to select the best applications in our calls or facilitating access to events in all corners of Europe.
▪ Organisation of online events to do the Pitch competition among SMEs and to promote the selected SMEs and use cases.
▪ Organise a political event in collaboration with the European Parliament.
▪ Run two open call for startups:
- 1st call figures includes 180 opened proposals, 70 submitted and 12 selected use cases for implementation.
- 2nd call figures includes 220 opened proposals, 111 submitted and 18 selected use cases.
▪ Delivering the acceleration programme for the 30 selected use cases (12 in the first call and 18 in the second one). The acceleration process includes: community events in Budapest, Frankfurt and online, free access to Alastria network, 120.000$ in credits for Amazon Web Services, several trainings on DLTs and investment readiness, access to the official training by Frankfurt Business Blockchain Center and a coaching programme for the teams and disbursing 750.000€ equity free to our teams.
▪ Support the implementation of blockchain solutions to 20 traditional SMEs in a myriad of verticals like legal, logistics, energy, textile or agrifood.
▪ Creation of an online community to discuss items on regulation under a public Slack channel.
▪ Creation of a major network of stakeholders all over Europe which are helping us to market our activities, to select the best applications in our calls or facilitating access to events in all corners of Europe.
▪ Organisation of online events to do the Pitch competition among SMEs and to promote the selected SMEs and use cases.
▪ Organise a political event in collaboration with the European Parliament.
The project has been running from Febraury 2019 until January 2021 and has end reaching the following target indicators:
▪ Received 181 applications from 28 European countries among both open calls.
▪ Financially support given to 30 use cases of blockchain-startup & traditional SME.
▪ Running two programmes of acceleration related to each Open call.
▪ Major visibility on social media both for the project and for the participant SMEs.
▪ Setting up a final event hosted by the European Parliament to maximise the message at policy level.
▪ Received 181 applications from 28 European countries among both open calls.
▪ Financially support given to 30 use cases of blockchain-startup & traditional SME.
▪ Running two programmes of acceleration related to each Open call.
▪ Major visibility on social media both for the project and for the participant SMEs.
▪ Setting up a final event hosted by the European Parliament to maximise the message at policy level.