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October 21, 2020

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Blockchain & Cryptocurrency: Impact on the Challenges Created by the Coronavirus Outbreak

Blockchain and cryptocurrency has vast problem-solving abilities, and their potential to help the world is being rediscovered during this unprecedented crisis triggered by the worldwide coronavirus pandemic. Coronavirus was declared a pandemic by the World Health Organization in March 2020, and since then, the world has witnessed millions of deaths, unprecedented suffering and astronomical burden on the global healthcare system.

Experts believe that an overwhelming amount of challenges and burdens created on the economic infrastructure can be reduced with the help of blockchain technology. COVID-19 has created a volatile business ecosystem, and entrepreneurs across the globe are suffering unprecedented issues and challenges that the economic system is unprepared to tackle. Businesses are unable to rapidly extract crucial information and deploy available resources to salvage their profits and revenues.

Blockchain Solutions to the Rescue

Majority of the large corporations and companies are implementation blockchain-based solutions to address informational delays and boost efficiency. Blockchain technology has exhibited a profound ability to improve and innovate adaptability and supply-side resilience, primarily because is highly well-suited when it comes to securely validating and transmitting information.

Experts believe that blockchain technology is the ideal solution to address challenges involving multi-party transactions in order to facilitate cross-border trade and commerce. Reports reveal that during the first two weeks of February 2020, China witnessed the advent of over 20 blockchain-based applications to address the challenges created by the coronavirus outbreak.

These newly designed applications included secure management of patient health records, online COVID-19 screening, and platform to efficiently manage and allocate relief resources to the regions that were badly hit by the outbreak. Multiple countries have designed and deployed blockchain-based solutions to identify, monitor and track the activities of individuals exposed to or infected by the virus. For instance, in Barron’s, blockchain-powered bracelets were designed to implement quarantine protocols for foreigners visiting the region.

Blockchain experts in the United States believe that the national response to the pandemic can be enhanced considerably with the help of blockchain technology, which will also aid in strengthening the economic infrastructure in the long-run. For instance, blockchain-based solutions can enhance the security, validity and transparency of data, and help address challenges related to data inaccuracy and manipulation.

Cryptocurrency & COVID-19 Outbreak

Cryptocurrency can also play an instrumental role in aiding governments and large corporations in addressing the concerns of data collection. Coin shortages and the inefficiency of conventional currency has triggered widespread financial challenges in the United States alone.

People are concerned that the virus is likely to linger on the surfaces of coins and bills, which encourages them to rely on electronic transactions and funds transfers. Cashless transactions have emerged as a powerful trend, and consumers are increasingly frustrated by the delays and fees associated with conventional funds transfers.

The global economy is increasingly being pushed towards the online landscape powered with digital financial transactions. Professionals, investors and financial bigwigs across the world are settling into the work from home routine, with an increased reliance on electronic financial transactions. Governments, banks and organizations are now looking towards centralized digital currencies and stablecoins to address these challenges.

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