[{"command":"openDialog","selector":"#drupal-modal","settings":null,"data":"\u003Cdiv id=\u0022republish_modal_form\u0022\u003E\u003Cform class=\u0022modal-form-example-modal-form ecl-form\u0022 data-drupal-selector=\u0022modal-form-example-modal-form\u0022 action=\u0022\/en\/article\/modal\/10056\u0022 method=\u0022post\u0022 id=\u0022modal-form-example-modal-form\u0022 accept-charset=\u0022UTF-8\u0022\u003E\u003Cp\u003EHorizon articles can be republished for free under the Creative Commons Attribution 4.0 International (CC BY 4.0) licence.\u003C\/p\u003E\n \u003Cp\u003EYou must give appropriate credit. We ask you to do this by:\u003Cbr \/\u003E\n 1) Using the original journalist\u0027s byline\u003Cbr \/\u003E\n 2) Linking back to our original story\u003Cbr \/\u003E\n 3) Using the following text in the footer: This article was originally published in \u003Ca href=\u0027#\u0027\u003EHorizon, the EU Research and Innovation magazine\u003C\/a\u003E\u003C\/p\u003E\n \u003Cp\u003ESee our full republication guidelines \u003Ca href=\u0027\/horizon-magazine\/republish-our-stories\u0027\u003Ehere\u003C\/a\u003E\u003C\/p\u003E\n \u003Cp\u003EHTML for this article, including the attribution and page view counter, is below:\u003C\/p\u003E\u003Cdiv class=\u0022js-form-item form-item js-form-type-textarea form-item-body-content js-form-item-body-content ecl-form-group ecl-form-group--text-area form-no-label ecl-u-mv-m\u0022\u003E\n \n\u003Cdiv\u003E\n \u003Ctextarea data-drupal-selector=\u0022edit-body-content\u0022 aria-describedby=\u0022edit-body-content--description\u0022 id=\u0022edit-body-content\u0022 name=\u0022body_content\u0022 rows=\u00225\u0022 cols=\u002260\u0022 class=\u0022form-textarea ecl-text-area\u0022\u003E\u003Ch2\u003ECryptocurrency upheaval could be a blessing in disguise for the future of blockchain technology \u003C\/h2\u003E\u003Cp\u003ESam Bankman-Fried was the darling of the cryptocurrency world, then he became its black sheep. In November of this year, the cryptocurrency company he founded, Futures Exchange (known widely as FTX), collapsed in a spectacular way.\u003C\/p\u003E\n\n\u003Cp\u003EThe exchange, a digital platform where users can buy and sell cryptocurrencies, filed for bankruptcy after allegedly mishandling customer funds. Bankman-Fried had previously been well-liked by investors and media, which applauded his generous donations to charity and for calling out unethical practices in the industry. The bankruptcy destroyed that image. The collapse also came on the heels of a massive crash of cryptocurrency prices, and the failure of several big players in the industry.\u003C\/p\u003E\n\n\u003Cp\u003EBehind this crash and claims of fraud, companies remain surprisingly optimistic about the potential of blockchain.\u003C\/p\u003E\n\n\u003Cp\u003EOne of those is Motoblockchain, a small start-up from Malaga, Spain. They created a system where all the relevant information about a motorcycle (its parts, usage and repairs) can be stored on a blockchain. Everyone, from mechanics to riders wanting to buy a second-hand bike, can access the records in this system to verify the origin and history of a motorcycle.\u003C\/p\u003E\n\n\u003Cp\u003E\u2018Having a trustworthy way to show the provenance of a product, or its parts, is really important in a lot of industries,\u2019 said Jo\u00e3o Fernandes, analyst at the Portuguese investment fund Bright Pixel Capital, which supported Motoblockchain through the EU-funded project \u003Ca href=\u0022https:\/\/cordis.europa.eu\/project\/id\/828853\u0022\u003EBlockStart\u003C\/a\u003E. \u0027It\u0027s also something blockchain excels at. It gives an extra layer of credibility to information in an ecosystem.\u2019\u003C\/p\u003E\n\n\u003Cp\u003EThis trust is one of the many advantages that blockchain technology might offer the European economy. It is keeping start-ups like Motoblockchain hopeful about blockchain despite the spectacular boom and bust cycles of crypto. Stimulating their growth, and convincing European companies to use the technology, might be crucial for the long-term success of blockchain.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cblockquote class=\u0022tw-text-center tw-text-blue tw-font-bold tw-text-2xl lg:tw-w-1\/2 tw-border-2 tw-border-blue tw-p-12 tw-my-8 lg:tw-m-12 lg:tw--ml-16 tw-float-left\u0022\u003E\n \u003Cspan class=\u0022tw-text-5xl tw-rotate-180\u0022\u003E\u201c\u003C\/span\u003E\n \u003Cp class=\u0022tw-font-serif tw-italic\u0022\u003EBlockchain shines when there are multiple different stakeholders that need to access the same system and share information in a decentralised way.\r\n\u003C\/p\u003E\n \u003Cfooter\u003E\n \u003Ccite class=\u0022tw-not-italic tw-font-normal tw-text-sm tw-text-black\u0022\u003ERobert Richter\u003C\/cite\u003E\n \u003C\/footer\u003E\n\u003C\/blockquote\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\u2018The impact of blockchain will only be fully fulfilled if we convince SMEs to use it,\u2019 said Fernandes. \u2018Over 90% of the economy is composed of these businesses. And plenty of those companies can really benefit from using blockchain-based technologies.\u2019\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cstrong\u003ENo intermediary\u003C\/strong\u003E\u003C\/p\u003E\n\n\u003Cp\u003EBlockchain allows cryptocurrencies to digitally register transactions without one party controlling the currency. In contrast to regular databases, which are generally controlled by one party, it\u0027s decentralised.\u003C\/p\u003E\n\n\u003Cp\u003EWhat\u2019s most important is that blockchain technology (distributed ledgers) can be used to record anything of value without an intermediary \u2013 not only financial transactions.\u003C\/p\u003E\n\n\u003Cp\u003EThis is a concept with applications far beyond cryptocurrency. For example, it is useful to track the history of a motorcycle, as Motoblockchain does. The motorcycle might pass through dozens of inspections, visits to the mechanic and sales throughout its lifetime. A range of actors, such as users, motorcycle companies and repair shops, need to pass along this information. Which is hard using centralised systems. A motorcycle company might not want to use a centralised tracking system owned by one of its competing motorcycle manufacturers. A decentralised, neutral blockchain offers an alternative here.\u003C\/p\u003E\n\n\u003Cp\u003E\u2018Blockchain shines when there are multiple different stakeholders that need to access the same system and share information in a decentralised way,\u2019 said Robert Richter who coordinated the EU-funded \u003Ca href=\u0022https:\/\/cordis.europa.eu\/project\/id\/828888\u0022\u003EBlockpool\u003C\/a\u003E project at the Frankfurt School of Finance \u0026amp; Management. \u2018It creates a system where you don\u0027t need an intermediary.\u2019\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cblockquote class=\u0022tw-text-center tw-text-blue tw-font-bold tw-text-2xl lg:tw-w-1\/2 tw-border-2 tw-border-blue tw-p-12 tw-my-8 lg:tw-m-12 lg:tw--ml-16 tw-float-left\u0022\u003E\n \u003Cspan class=\u0022tw-text-5xl tw-rotate-180\u0022\u003E\u201c\u003C\/span\u003E\n \u003Cp class=\u0022tw-font-serif tw-italic\u0022\u003EThe blockchain space was too crowded before. Now only the best projects will survive.\r\n\u003C\/p\u003E\n \u003Cfooter\u003E\n \u003Ccite class=\u0022tw-not-italic tw-font-normal tw-text-sm tw-text-black\u0022\u003EJo\u00e3o Fernandes\u003C\/cite\u003E\n \u003C\/footer\u003E\n\u003C\/blockquote\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003EIn this way blockchain might underlie some of the software regular people rely on in the future, without knowing it.\u003Cbr \/\u003E\n\u003Cbr \/\u003E\n\u2018Look at the internet,\u2019 said Richter. \u2018Today everyone uses it without understanding how it works. But in the past, it was something new that had to be developed. The same thing is happening now with blockchain.\u2019\u003C\/p\u003E\n\n\u003Cp\u003EFor that to happen, start-ups will need to develop blockchain applications that make the complex technology accessible for regular companies, like SMEs. A problem that BlockStart and Blockpool worked on for several years. Both projects set up programmes that selected interesting blockchain start-ups, gave them funding and mentoring, and linked them to possible clients. On top of that, they educated existing companies about the potential of blockchain.\u003C\/p\u003E\n\n\u003Cp\u003E\u2018We found that one of the key hindering effects to the success of blockchain is that business executives don\u0027t have enough knowledge about the potential of the technology,\u2019 said Richter. \u2018Which is why educating SMEs, and other companies, is so important.\u2019\u003C\/p\u003E\n\n\u003Cp\u003EBlockStart supported 60 start-ups, linked them up with 67 SMEs, and also gave \u20ac20 000 to the start-up finalists. Blockpool did something similar, 25 start-ups went through their programme, during which they each received up to \u20ac30 000 in equity-free investment.\u003C\/p\u003E\n\n\u003Cp\u003EOne of the SME\u0027s that participated in BlockStart is \u003Ca href=\u0022https:\/\/www.blockstart.eu\/inside-blockstart-programme-a-look-back-from-albicchiere\/\u0022\u003EAlBicchiere\u003C\/a\u003E, an Italian company that offers a \u0022Nespresso for wine\u0022 device to customers. The company wanted to be able to chart the journey of their wine, from the grape grower to the customer, and a blockchain system was built by Datarella, one of BlockStart\u0027s start-ups, for this purpose.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cstrong\u003ECrypto winter\u003C\/strong\u003E\u003C\/p\u003E\n\n\u003Cp\u003ESurviving crypto winter won\u2019t be easy. Most of these start-ups now need to deal with a technology market that is in upheaval. Even regular technology companies are in trouble, with large players such as Meta, Amazon and Spotify announcing mass layoffs. This might put a damper on the growth of the start-ups supported by BlockStart and Blockpool.\u003C\/p\u003E\n\n\u003Cp\u003E\u2018The current crypto winter will, I believe, delay the implementation of blockchain,\u2019 said Fernandes. \u2018Some projects will have a tougher time raising investment, and finding customers.\u2019\u003C\/p\u003E\n\n\u003Cp\u003EBut for the wider blockchain and cryptocurrency space, this crash might be a blessing in disguise, according to Richter and Fernandes. For instance, it could weed out the weaker companies, in favour of the ones with the biggest potential.\u003C\/p\u003E\n\n\u003Cp\u003E\u2018There are some blockchain projects and cryptocurrencies out there that don\u0027t really serve a purpose,\u2019 said Richter. \u2018That\u0027s always the first question I ask: does it have a use-case?\u2019\u003C\/p\u003E\n\n\u003Cp\u003EFernandes agrees. \u2018The blockchain space was too crowded before. Now, only the best projects will survive. The survivors of this winter will be the first movers of the future. In five to 10 years they will become the winners.\u2019\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cem\u003EResearch in this article was funded by the EU. 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