The Italian Government Invests 15 Million Euro in Blockchain Project to Protect “Made in Italy” Products

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Italy is among the countries most affected by the economic crisis caused by COVID-19. Like the rest of the world, they are slowly beginning to defrost the economy. Among the programs aimed at improving the situation was the project to fight counterfeits, and its key aspect is the development and implementation of technologies such as blockchain.

Italians want to protect ‘Made in Italy’ products

Counterfeit products “Made in Italy” are sold in markets around the world. The Italian government is now fighting these counterfeits, investing EUR 15 million (almost PLN 68 million) in the development of a solution based on blockchain technology.

According to the new dGen report, the counterfeit label “Made in Italy” caused a loss of EUR 12.4 billion (USD 13.4 billion) in 2016 alone. Such losses directly affect the income as well as the future of too many Italian artisans and entrepreneurs.

In 2018, Forbes revealed a report showing that the fake industry increased from USD 461 billion in 2013 to USD 1.3 trillion.

“Lifebuoy” blockchain technology

Blockchain technology is designed to help authenticate goods and raw materials through the supply chain. Modern supply chain management systems strive to achieve the best transparency and efficiency. The key role at all stages of the chain is played by:

  • liquidity
  • integrity

Due to its structure and nature, the blockchain network offers high resistance to modifications. The data stored in the blockchain cannot be changed or modified, and any attempt to intervene must be accepted by the entire network.

blockchain supply chain - The Italian Government Invests 15 Million Euro in Blockchain Project to Protect "Made in Italy" Products

The mechanism for registering and verifying cryptocurrency transactions can be easily adapted in the system supply chain. Interestingly, the Italians also want to fight “fake news” using blockchain technology.

Examples of benefits:

  • transparency – at any time, each participant in the network can check what is happening with products or raw materials;
  • cost reduction – in order to maintain developed supply chains, companies must carry out hundreds of transactions, the costs of which (especially fees) could fall significantly through the use of blockchain;
  • digital contracts – replacing paperwork with a transparent blockchain database, where each document can confirm its originality;
  • universal database – available to every contractor, from anywhere in the world.

Blockchain adoption by big players is coming because of the features this technology offers like immutable data storage decentralization etc.

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Ethan Hunt

Bitcoin Maximalist and Toxic to our banking and monetary system. Separation of money and state is necessary just like the separation of religion and state in the past. Also, pro-local, pro-global and anti-national.

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