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.
