In this post, we’ll look at how startups are leveraging blockchain to innovate, reduce costs, and create new business models.
What is blockchain?
Blockchain is a technology that allows you to create secure and decentralized digital ledgers. Instead of having a single central point where data is stored (as is the case, for example, in a bank), blockchain distributes information across a network of computers, making data more secure and transparent.
It can be compared to a large book that records every transaction or information and every page is distributed to many people around the world. Since we all have a copy, every time someone adds a new piece of information, everyone updates their book. So it is almost impossible to change or falsify the information.
What applications can there be in startups?
Blockchain offers startups an innovative tool to manage data securely, reduce operational costs and support the birth of new businesses.
- Finance and Payments: Startups can use blockchain to create payment systems that are secure, fast and cost-effective, especially in international transactions.
- Supply Chain: It can help track products and raw materials, ensuring that they arrive at their destination without tampering and meeting quality standards.
- Smart Contracts: The blockchain can automate digital contracts, which are executed automatically when certain conditions are met, without the need for intermediaries.
- Tokens and NFTs: Startups in the field of digital art or gaming can use the blockchain to create NFTs – Non Fungible Tokens (unique digital tokens) that represent properties or works of art.
This versatility has given rise to a wave of blockchain startups globally, each looking to capitalize on this innovation to disrupt traditional business models and solve problems smarter.
What is a blockchain startup?
A blockchain startup is a company that leverages blockchain technology to develop new products or services. These startups can range from companies building decentralized finance (DeFi) platforms, creating digital identities, implementing smart contracts, or improving cybersecurity. The main goal of these startups is to use the inherent characteristics of blockchain – security, transparency and immutability – to offer innovative solutions that ensure greater efficiency, security and trust.
The blockchain startup landscape
The blockchain startup ecosystem has experienced significant growth over the past decade. Globally, blockchain technology has expanded beyond its initial focus on cryptocurrencies.
A market for decentralized applications, smart contracts, and tokenization has flourished. This term defines the transformation of an asset into a token, a digital object that can be stored, exchanged, given or sold through the distributed ledger of the blockchain.
Key Areas of Innovation in Blockchain Startups
Finance and DeFi (decentralized finance)
The impact of blockchain on the financial sector is perhaps the most profound. Startups in this sector are developing decentralized platforms that provide financial services such as loans, mortgages, trading, and insurance without the need for traditional banks. For example, companies like Compound and Aave have created platforms where users can lend or borrow cryptocurrencies at algorithmically determined interest rates.
Supply Chain Management
The transparency and traceability of Blockchain make it ideal for supply chain applications. Startups like Provenance and VeChain use blockchain to track the path of products from origin to consumer, ensuring authenticity and ethical sourcing. This capability is especially valuable in industries such as food and pharmaceuticals, where traceability is critical to ensuring safety and quality.
Healthcare
Blockchain startups in healthcare focus on securely managing patient data, improving medication traceability, and complying with data privacy regulations. Companies like BurstIQ and Medicalchain are building blockchain-based platforms that allow patients to control their health data while providing access to healthcare providers and researchers in a secure and transparent manner.
Digital identity
In a world that is increasingly attentive to data privacy and security, blockchain offers a solution for digital identity management. Startups like Civic and Veramo are developing decentralized identity platforms that allow users to own and control their identity information, reducing the risk of identity theft and fraud.
Real estate
The real estate sector is at risk of being disrupted due to its reliance on intermediaries and extensive paper documentation. Blockchain startups like Propy and RealT use blockchain to facilitate real estate transactions, making the process faster, more transparent, and more secure. Smart contracts are used to automate the execution of agreements when predefined conditions are met, reducing the need for intermediaries.
What are the challenges for blockchain startups?
Despite the promise of blockchain technology, it’s not all sunshine and roses. Startups interested in Blockchain face several challenges.
Regulatory uncertainty
Blockchain technology operates in a complex regulatory environment. Different countries have different regulations, and startups need to try to find a modus operandi that respects the variants and can still ensure compliance. This uncertainty can lead to difficulties in raising funds and scaling operations.
Scalability issues
Blockchain networks often have scalability issues, as they struggle to process a large number of transactions quickly. Startups need to optimize their platforms to handle a higher load without compromising speed and security.
Security Issues
While blockchain is inherently secure, applications built on top of it can be vulnerable to attack. Startups must implement robust security measures to protect themselves from hacking and fraud.
Lack of awareness and understanding
Many potential users and businesses still lack a basic understanding of blockchain technology. This lack of knowledge can hinder the adoption of blockchain-based solutions.
Success stories: blockchain startups around the world
Ethereum
One of the most successful blockchain startups, Ethereum has become a fundamental element of the ecosystem. It introduced the concept of smart contracts, allowing developers to create decentralized applications (dApps) on its platform. Ethereum’s success has spawned an entire ecosystem of startups leveraging its technology.
Chainalysis
This startup provides blockchain analytics tools that help businesses, government agencies, and financial institutions monitor transactions for compliance and risk management purposes. Chainalysis ‘ tools are crucial for preventing fraud, money laundering, and other illicit activities.
Ripple
By focusing on cross-border payments, Ripple aims to make international money transfers faster, cheaper, and safer. Its blockchain-based platform allows financial institutions to settle transactions in real-time, reducing the need for intermediaries and transaction costs.
Blockchain companies born and raised in Turin
Between 2018 and 2022, the blockchain industry experienced annual growth rates of 40%, driven by venture capital investment and growing interest from industries looking to leverage decentralized technologies.
Europe has become a key player in the blockchain space with increased investment and government initiatives aimed at promoting their development. Even in Italy we are seeing an increase in the number of blockchain startups and Turin is not immune to its charm. There is a desire to disrupt industries such as finance, logistics, and data security.
Young Platform
Young Platform is a fast-growing fintech startup based in Turin. It was founded in 2018, and its goal is to make the world of cryptocurrencies accessible to everyone. Young Platform aims to simplify the process of buying, selling, and managing cryptocurrencies through user-friendly platforms.
Their flagship product is a cryptocurrency exchange platform that allows users to trade a variety of digital currencies easily and securely. In addition to the exchange, Young Platform has developed educational tools such as Young Platform Step, a mobile application that rewards users who learn about cryptocurrencies through quizzes and challenges, making the learning process engaging and profitable.
One of Young Platform’s main strengths is its commitment to making financial education about blockchain and cryptocurrencies accessible to everyone. By providing both a trading platform and an educational hub, the company is bridging the gap between the complex concepts of cryptocurrencies and everyday users.
As a Turin-based startup, Young Platform is part of the city’s emerging fintech and blockchain ecosystem. Thanks to its continuous growth and development, it has become one of the protagonists of the Italian cryptocurrency market and has gained attention for its innovative approach to financial technology.
Anubis Digital
Anubi Digital was founded in Turin, at I3P, in January 2022. It is a platform designed to help anyone who wants to own cryptocurrencies, NFTs, and other digital assets in a safe and beneficial way, using a regulated approach to decentralized finance (CeDeFi).
Anubi Digital is the first Italian platform that offers active management of major cryptocurrencies, such as Bitcoin and Ethereum, allowing users to earn through staking, liquidity mining and lending. In addition, it offers tax, legal, and notary consulting services for crypto owners.
Dorabit
Dorabit is an innovative startup based in Turin that focuses on the development of solutions based on blockchain and artificial intelligence. Their mission is to improve efficiency and security in the areas of data and transaction management through advanced technologies.
Blockchain for Industry
Dorabit develops blockchain applications to optimize and ensure the transparency and security of industrial processes. Their solutions can be used for supply chain management, product traceability, and transaction verification.
Artificial Intelligence Solutions
Integrating AI into their blockchain solutions allows them to analyze and manage large amounts of data more effectively. This can improve risk prediction and management, as well as optimize decision-making processes.
Data security and privacy
Dorabit is also responsible for improving data security through the use of blockchain, ensuring that information is protected from unauthorized access or manipulation.
Turin and the future of Blockchain
Turin is also emerging as a vibrant hub of innovation in the field of blockchain, with startups transforming the city’s technological and financial landscape. These realities not only put the Piedmontese capital on the map of emerging technologies, but also offer new opportunities for entrepreneurs, investors and professionals in the sector.
Turin startups are demonstrating that the future of technology is not only in large metropolises, but also in cities rich in history and talent such as Turin. With the continuous growth and development of these initiatives, the Piedmontese capital is preparing to become an important hub for blockchain and its applications as well.
If you have a startup and would like to let us know about it, join the Turin innovation ecosystem too. Turin is ready to write new chapters in the book of the digital revolution and we at ToTeM are very curious to discover them!
