Blockchain companies continue to develop new technologies and thrive as acceptance of cryptocurrencies and blockchain, in general, is on the rise. Europe is now the unambiguous cryptocurrency capital of the world following the recent departure of most crypto firms from China, and they’re at the forefront of blockchain development. Here are some European blockchain companies that are on the rise today.
What is Blockchain?
Blockchain is a decentralized public ledger of all cryptocurrency transactions. Every transaction sent across the network is first grouped into a “block” and then verified by multiple computers in consensus to be valid (no double-spending). Each block also contains data on who sent or received coins, known as a hash, which cannot be changed once recorded. This allows anyone to access the blockchain, even if they’re not someone in control of it.
Currently, there are about an estimated 700 cryptocurrencies available today with over $600 billion currently invested in them globally. Blockchain technology has proven to be disruptive. Currently, this technology is used in financial services but other applications are being developed including legal documents, identity management, voting systems, and much more. The potential of this technology is still being explored.
History of Blockchain and Crypto
The first blockchain was conceptualized by Satoshi Nakamoto in 2008 and implemented as a core component of the digital currency – Bitcoin – two years later. It has since been used for other cryptocurrencies called altcoins, including Ethereum which introduced smart contracts to the blockchain world, as well as new possibilities such as initial coin offerings (ICO). The success of these digital currencies has proven that blockchain does have value beyond financial transactions. In fact, it can be applied to help solve some of today’s biggest challenges from streamlining business processes, secure identity management and even stopping cyber-attacks.
Why European Blockchain Companies?
Europe is now a major hub for cryptocurrency trading on exchanges like Bitstamp, Kraken, and Coinbase’s GDAX. The continent is also home to the most prominent blockchain companies like Bitfury, which was founded in Amsterdam but has since moved its headquarters to London.
But Europe isn’t just focused on cryptocurrency technology, it is exploring other ways blockchain can revolutionize the world. Through its Luxembourg-based Blockchain fund, BLCB, European tech investors have committed over $100 million for funding blockchain startups. In addition, the UK government announced a plan to invest £ 10 million ($ 13M) into developing blockchain technologies as part of its new industrial strategy. Moreover, the French government recently launched a website dedicated to blockchain news and research. It’s even going so far as setting up a working group to implement policies around this technology.
Switzerland Startup Map has identified over 800 blockchain startups in the country, which is almost double that of any other European country. It also comes as no surprise that Switzerland has emerged as a key player for ICOs like Tezos and Ethereum, despite the Swiss government’s warning about potential risks involved with investing in these assets.
With so many blockchain companies currently operating in Europe, this is only the beginning. Here are some promising blockchain companies across Europe making waves today:
Operating out of Lithuania, Syntropy is establishing technology that adds an additional layer of programmability to existing protocols. Essentially, their innovative solution will allow for more efficient use of blockchain resources by removing the limitations of the current system.
Through this technology, they’ll be able to improve internet connection speeds in a number of applications. They’ve already been noticed by some major players in the field, including pilot projects with Microsoft and AWS.
1inch carries out its operations remotely across Europe, working to provide a better way for crypto enthusiasts to trade tokens of all kinds. The company aggregates exchanges in order to give its users the ability to always find the best available price for any given token.
The company is steadily growing, already having a daily trade volume of over $300 million. This centralized platform has numerous additional features, including a custom wallet. 1inch supports tokens on established blockchains like Ethereum, but also Layer 2 chains as well.
This European blockchain startup is trying to tackle the issue of high-fees when using Ethereum. They’re implementing what they call Zero-Knowledge Rollup in order to reduce the fees that stand in the way of Ethereum’s scalability.
zkSync is using a Layer 2 chain that can offer much faster and reduced-fee transactions in tandem with the primary Ethereum framework. They’re in the early stages of implementing their solution, but they’ve already picked up support in their first round of funding in 2022.
Token Terminal is one of many startups addressing the need for accurate and reliable financial data from blockchains. As cryptocurrencies develop more widespread use, this important information will be an essential part of financial decisions making.
By aggregating financial data from both blockchains and other decentralized applications, Token Terminal will provide a stronger foundation for investors, analysts, and individuals to gain more meaningful insight.
UK startup Ryyup is providing technologies to build a bridge between the worlds of decentralized and centralized finance. As cryptocurrencies continue to grow, their involvement with banks and other aspects of the existing financial systems will grow as well.
Many decentralized assets can become isolated due to their separation from centralized finance. With help from Ryyup, investors will be able to take full advantage of that value and move more freely between decentralized and centralized finance.
When trading coins across separate blockchains, some form of centralized intermediary is required. Alpeh.im is changing that with their cross-chain network. By implementing a decentralized database and identity framework, Aleph.im will allow for more direct cross-chain transfers.
Their efforts extend far beyond that, though, as their cross-chain architecture will eventually allow for decentralized storage and computation. Essentially, Alpeh.im is building a fully-realized decentralized cloud services framework.
Nexus Mutual is a UK co-op that provides decentralized insurance. This insurance is meant to protect users from any future hacks against smart contractors. The complexity of this type of insurance makes it difficult to implement for conventional insurance providers, by Nexus Mutual has the solution.
Their insurance framework relies on tokens on the Ethereum blockchain. By holding tokens, co-op members are able to vote on decisions, making Nexus Mutual a truly decentralized insurance provider.
Radicle is a German blockchain startup that is building a truly open-source network for software developer collaboration. By removing the centralization that current networks rely on, Radicle is making the code developed on their network resistant to censorship and other threats.
Their platform includes numerous essential features, including community governance over projects. It places the power over projects firmly in the hands of developers.
European Blockchain Tech Shows No Signs of Slowing
These companies are already showing amazing results as they continue to develop their new technologies. More startups are emerging every day as Europe continues to cement its role as the world leader in blockchain technology. This trend is constantly on the rise despite the bad reputation which Bitcoin, which is closely associated with Blockchain has gained.
That is due to the massive rise in get-scams and rich-quick schemes that use Bitcoin in order to mislead innocent victims. One such case which has come to our attention is named “Bitcoin Prime”, one of many automated trading services which boast massive returns. Bitcoin Prime was recently exposed on a website named scamcryptorobots.com and also officially labeled as fraud by a few government websites such as the FCA.