Blockchain projects in Europe will experience a hole in 2020
The pandemic of Covid-19 push it Companies in Europe Reduce expenditure, also in favor of innovative technologies such as Blockchain. IDC thus ensures a 8% fall Investments in blockchain projects in 2020. A simple break though.
The Covid-19 and the economic crisis it triggered affect all companies. In this context, these are already beginning reduce their costs. Technological investments are therefore part of the savings centers.
Blockchain projects are not spared. “With the decline in customer demand, the disruption of supply chains and the spread of remote work, many companies are putting innovative projects on hold, including in Blockchainuntil the future is clearer, “said IDC analyst Carla La Croce.
Crisis and covid, opportunities for the blockchain too
The momentum of investment in Europe in the blockchain sector is therefore likely to end in 2020. European companies were expected to spend $ 1.4 billion this year. The annual growth rate until 2023 was expected to be 58%.
2020 should finally end with an 8% drop in blockchain spending. IT services provided as part of blockchain projects will decrease by 16% this year. IDC forecasts a 12% decrease in software spending. However, the equipment would be affected by -8% less.
The cabinet nevertheless notes some positive points. In fact, some industries are developing the use of Blockchain to fight the impact of the pandemic and contribute to the economic recovery.
These innovative use cases can demonstrate the benefits of blockchain to a wider audience, the study said. This is the case, for example, in logistics.
The blockchain ensures transparency and breaks data silos, while ensuring high security and a unique source of truth, ”said Radoslav Dragov, co-lead of blockchain practice at IDC.
A simple “temporary slowdown” in 2020
Another possible use of this technology in the context of a pandemic is to collect data about the spread of the virus in the interests of confidentiality. The Blockchain can be used to efficiently collect and collect patient data and monitor their movements to ensure social distance while protecting their identity.
IDC also anticipates political developments, particularly elections. The company believes that a secure voting request Using blockchain on mobile devices could ensure the continuity of the democratic process.
Given the benefits blockchain can have in terms of supply chain reliability, transparency, and tracking the flow of goods, blockchain investments should only temporarily slow down in 2020 and recover soon after. the slowdown in the pandemic, ”concludes Carla La Croce.