To start, it is important to note that financial services, healthcare and energy are the main industries for the development of Blockchain technology in Europe.
For its part, Ethereum is the base layer for almost a third of new decentralized accounting technology (DLT) startups leaving Europe.
But, if European corporations are increasingly adopting Blockchain technology, the region’s financing figures are still significantly below the figures seen in places like the United States.
Ethereum dominates the start of Blockchain in Europe
Enterprise Blockchain 2020, the European venture capital firm LeadBlock, revealed in its report that Ethereum is the leading network for DLT startups in the region. Furthermore, the report’s figures show that 27% of Blockchain startups in Europe build their solutions on Ethereum.
Also, according to the LeadBlock report, competition between networks, Hyperledger and Corda, is helping to create a stronger DLT technology ecosystem in Europe.
In addition to building solutions based on Blockchain technology, LeadBlock reported that 70% of these crypto startups also combine DLT with at least one complementary technology. For example, Artificial Intelligence (AI), Internet of Things (IoT) and Machine Learning.
A compendium of the report states:
“We see Blockchain technology, as an enabler that becomes particularly powerful when combined with other technologies.”
Similarly they add: “Startups that take advantage of convergence are more likely to create long-term value due to technological complementarity“
Europeans and Americans on DLT investment
At the same time, LeadBlock indicates that European startups are behind their American counterparts. In fact, the United States accounts for half of all global investments in Blockchain technology.
According to the report, the European Blockchain ecosystem requires a greater investment participation of venture capital companies.
Use in the financial services sector
Given that early DLT implementations focused on payments, it’s no surprise that novel technology is finding greater use in the financial services sector.
For this reason, finance represents 28% of new European companies. Furthermore, healthcare, energy and agriculture are the other main points for the development of Blockchain technology in Europe.
Thus, the four industries together account for almost two-thirds of DLT collective adoption by European companies.
European Business Blockchain Adoption
On the one hand, Corda is the leading infrastructure platform for Blockchain-based financial services applications in Europe. On the other hand, Hyperledger represents the majority of activities in the agricultural industry, and most of these projects focus on food traceability.
The focus for European business DLT developers seems to be tokenization. So Ethereum is leading the way in industries like real estate and the arts.
In closing, the LeadBlock report indicates a growing appreciation for the use of enterprise Blockchain technology in Europe. Accordingly, according to the document, the current trend of corporate DLT adoption is replacing the digital asset craze of the early days.