The pandemic of Covid-19 push them companies in Europe to cut spending, including in favor of innovative technologies such as blockchain. IDC thus provides for a 8% drop investments in blockchain projects in 2020. A simple break however.
The Covid-19 and the economic crisis it triggered affects all businesses. In this context, they are already starting to reduce their costs. Technological investments are thus among the centers of savings.
Blockchain projects are not spared. "With the drop in customer demand, the disruption of supply chains and the spread of remote working, many companies are putting innovative projects on hold, including in blockchain, until the future is clearer, "said IDC analyst Carla La Croce.
Crisis and Covid, opportunities also for the blockchain
The investment dynamic in Europe in the blockchain domain will therefore end in 2020, anticipates the firm. Spending by European companies in this sector was expected at $ 1.4 billion this year. The annual growth rate until 2023 was expected to be 58%.
2020 should finally end on an 8% plunge in spending on blockchain solutions. IT services provided as part of blockchain projects will drop 16% this year. As for software spending, IDC forecasts a decline of 12%. Equipment would however be less affected at -8%.
The cabinet nevertheless notes certain positive points. Indeed, some industries are developing the use of blockchain to combat the effects 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 suggests. This is for example the case in logistics.
The blockchain ensures transparency and breaks data silos while ensuring strong security and a unique source of truth, ”said Radoslav Dragov, Blockchain Practice co-Lead for IDC.
A simple "temporary slowdown" in 2020
Another possible use of this technology in a pandemic context is the collection of data relating to 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 distancing while protecting their identity.
IDC also anticipates developments in the political field and more particularly elections. The firm considers that a secure voting application on mobile using the blockchain could guarantee the continuity of the democratic process.
Given the advantages that blockchain can have in terms of supply chain reliability, transparency and tracking of the flow of goods, blockchain investments should only experience a temporary slowdown in 2020 and recover soon after. the slowdown of the pandemic, ”concludes Carla La Croce.
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