Boston Consulting Group Conducts Study About Adopting Blockchain In Italy’s Transport Industry

Italy which now has an active framework related to blockchain technology, cryptocurrencies etc. is making major strides to cultivate and make the most of this new technology. The transport and logistics industry in Italy is trying to incorporate blockchain into its operations.

Boston Consulting Group (BCG) has conducted a study titled “Resolving the Blockchain Paradox in Transportation & Logistics” which concludes that in order to achieve this, it is very important for all actors in the industry to collaborate in the formation of the system. The study which was based on a survey of 100 giant firms that deal with transport and logistics indicate that 88% of the total sample is persuaded distributed ledger technology will create breaks in the industry.  74% believe they only lightly study the potential of DLT technology or they have no knowledge about it at all while 60% is lacking coordination amongst the players in the industry and the absence of a cooperative ecosystem in Italy is proving to be the greatest challenge in the way of adoption of this nascent technology.

The study also reveals that a mere 16/100 participants believe they have grasped what blockchain and distributed ledger technologies are and what their use cases are. 20% of the total respondents put them among the BCG’s strategic priorities. BCG in a statement explains,

“By increasing transparency the blockchain can mitigate the mistrust that often exists in multiparty transactions in the sector. Yet this same distrust makes it difficult to bring the various participants in the sector together in a common blockchain ecosystem.”

In case this barrier is trimmed off, blockchain might be able to help with traceability, speed, load security, billing, and payment exercises, would largely help lower costs and improve the strong pressure on margins faced by several players in the industry. This in turn will result in the creation of new business models.