The current coronavirus pandemic has significantly affected aspects of the blockchain and cryptocurrency industry. Industry events such as crypto conferences have been cancelled and postponed due to the outbreak, resulting in less movement and investments in the industry itself. Mining manufacturing in China has also been halted because of ripple effects across the entire economy. However, other companies have gained from the outbreak and have been able to master new opportunities in the current climate. They have taken on board digitizing their business processes and moving employees online for improved working from home conditions. For this reason, blockchain technology is being re-shaped to fit the current hurdles.
As with many different industries, the blockchain industry will be affected in quite the same way. It may not be as evident as other industries like retail, but there will be a long-lasting drag that the blockchain and crypto market will have to recover from. For the most part, however, major cryptocurrency exchanges seem to have remained unaffected during the pandemic such as OKEx, Gemini and Bitstamp.
On the contrary, they have reported a surge in interest in the form of increased sign-ups and higher trading volumes. However, for many blockchain companies, they have been forced to take extreme measures and have cut their workforce. Blockchain firm Elliptic and many others are planning to cut their entire workforce budget. Cutting workforce will most definitely affect how blockchain technology can be supported and used, which will bring on a new way of working and supporting the system. A keen eye on spending in the current situation and helping blockchain projects keep their processes largely unaffected. However, a new venture for blockchain technologies and its companies could be to look at how the technology could help tackle the spread of the virus.
Blockchain technology could help tackle Coronavirus
The possibility of using any tech that could help alleviate the effects of coronavirus should be implemented, especially if there are positive signs. Academics at Hong Kong University have claimed that blockchain technology combined with AI-driven strategies should be applied to help tackle and better control the response to the pandemic and can be done via blockchain smartphones. Blockchain technology typically contains information about transactions that are done via cryptocurrency.
The nature of blockchain means each transaction is held on the chain in blocks. A blockchain can be spread over many computers, but no access to changing or altering the information on it. This makes it secure and transparent to work with. Combining this technology with AI technology, which combines a large amount of data and can automatically learn from patterns and features by the use of intelligent algorithms, more can be done to help ease the outbreak.
Combining the two technologies means funding can be tracked and transparent, and the government and authorities can see where the money is being spent, without it being misused by charities, hospitals and foundations. Using this type of technology can help get care straight to the people and places who need it the most, especially in a time of difficulty and uncertainty.
Blockchain technology could also be used to make coronavirus relief more effective for those who have suffered from it the most. Monetary transfers to individuals will make the economy roll on a bit faster, consumers will gain more confidence in continuing to spend money through the use of blockchain technology. Through commitment relief payments, the government will build confidence and simultaneously reduce the vast size of the looming recession that will be a byproduct of Covid-19. Instead, they will be able to see a speedy recovery with things resuming back to some normality sooner rather than later.
As countries begin to ease their restriction on lockdown and social distancing becomes the new normal, the economy will start to pick up slowly with a re-shape. As we have explored above, new ways of working with blockchain will be implemented as companies have laid off staff. As many people may have lost their jobs, investment will also be slow. However, blockchain technology shows positive signs in helping the economy to recover by using it with AI to help make processes and transactions along with relief much more transparent.