Telecom.IT: Potential of blockchain technology remains largely untapped in Romania

   The potential of blockchain technology remains largely untapped in Romania, and companies that choose to invest early in this direction benefit from a unique opportunity to gain a competitive advantage, claims Adrian Grigoras, Technology Consulting Director, EY Romania, in an analysis sent on last Thursday.According to him, blockchain technology is known globally for its role in the field of cryptocurrencies, but this technology is rapidly evolving beyond its financial origins, emerging as a fundamental infrastructure for trust, transparency and decentralization, in both the public and private sectors."Blockchain technology is an advanced database system that allows transparent sharing of information within a network. Data is structured in interconnected blocks in a chain, an architecture that ensures the consistency of information over time, as they cannot be deleted or modified without the consent of the entire network. Therefore, blockchain technology can be used to create a perpetual ledger intended to track orders, payments, accounts and various types of transactions. In addition, the system is provided with protection mechanisms designed to prevent unauthorized data entry and to maintain a unified perspective on all transactions shared between participants. Blockchain technology has many fascinating applications, but what makes it truly captivating is its ability to integrate with other cutting-edge technologies, especially the Internet of Things (IoT) and artificial intelligence (AI)," explained this.Adrian Grigoras emphasizes that blockchain technology has gained more and more ground globally, being actively adopted by both the public and private sectors. Estonia has effectively integrated this technology to increase the security of medical data and to simplify processes in the judicial, legislative, security and commercial registry systems, among others. This proactive approach not only protects sensitive information, but also contributes to increasing transparency and efficiency in various areas.The Swedish Land Authority, Lantmateriet, has successfully completed a pilot project of a blockchain-based land registration system. This innovative system improves the security and efficiency of real estate transactions by establishing a single and trusted source of information. By leveraging blockchain technology, Lantmateriet aims to simplify property transfers and strengthen trust between actors involved in the real estate market.In the private sector, Birra Peroni has implemented blockchain to ensure the traceability of its 100% Italian malt, in collaboration with EY, through EY OpsChain Traceability. Peroni has developed a system that records essential production data on the Ethereum blockchain, making it accessible to consumers through QR codes on bottle labels. This allows consumers to follow the journey of the malt from harvest to glass, increasing consumer trust and engagement."In Romania, however, the potential of blockchain technology remains largely untapped. According to the EY Emerging Technology Investment in Romania report, blockchain ranks last in the ranking of the ten emerging technologies analyzed, with 62.9% of respondents stating that the organizations they work for have not yet implemented this technology. Although a significant percentage is in the investment planning or testing phase of this technology (23.6%), full implementation remains limited to only 4.5%. Given the still low level of adoption of blockchain technology in Romania, companies that choose to invest early in this direction benefit from a unique opportunity to gain a competitive advantage," the specialist warns.The technology can be used both in Romania and beyond its borders. The UN report on blockchain technology and its implications for trade facilitation highlights how this technology can be applied in multiple areas, bringing significant benefits to both governments and the business environment.In terms of trade, blockchain offers numerous concrete applications, including: simplifying cross-border customs procedures, coordination between the parties involved, payment processing and trade financing, managing trade-related risks, transaction reporting, planning trade policies and data, transparency in the supply chain and traceability throughout the value chain.In line with global trends, companies in Romania are starting to explore blockchain technology to strengthen their operations. According to the EY Romania report, organizations interested in this technology mainly aim to improve document traceability (84%), protect confidential information (74%) and accelerate transaction processing (71%).These priorities represent a clear indication that the Romanian business environment recognizes the potential of blockchain to strengthen trust, ensure transparency and create forgery-resistant ledgers, Grigoras claims."This technology can increase productivity, reduce inefficiencies and radically transform the role of data in the economy. Blockchain is an essential element in building a transparent, secure and efficient digital economy. Whether applied to local business processes or in facilitating international trade, blockchain technology offers stakeholders access to reliable data, secure transactions and considerable optimization of operations. Adopting this technology can contribute to streamlining interactions in both the public and private sectors, as well as between the two, thus facilitating Romania's alignment with international best practices," he added.EY is one of the largest professional services firms globally, with 392,995 employees in over 700 offices in 150 countries and revenues of approximately $51.2 billion in the fiscal year ended June 30, 2024.Present in Romania since 1992, EY provides, through its over 1,000 employees in Romania and the Republic of Moldova, integrated audit, tax, legal, strategy and transaction services, and consulting to multinational and local companies. EY Romania has offices in Bucharest, Cluj-Napoca, Timisoara, Iasi and Chisinau.