What started as a communicable disease has now turned into the worst financial and health crisis of the 21st century. As we head through the Covid-19 pandemic, the world’s economy is crashing to the levels worse than that of the 2008 global financial crisis (GPC). According to an IMF report from April, major equity markets across the globe had experienced a decline of more than 30%.
Businesses worldwide are struggling for revenue. Supply chains remain clogged due to the pandemic, and an Intracen report predicted the imports of manufacturing inputs will drop by $147 billion in the European Union alone.
Amid all this, applications built on blockchain technology provide highly effective solutions to help companies regain economical strength post-COVID-19. Here’s how:
Applications built on blockchain technology have the ability to streamline workflow processes across industries such as medical and healthcare, food and agriculture, e-commerce and so on. This is because such applications allow every participant involved in the process to have a realtime update on the data related to the workflow.
Businesses can optimise their cost of operation by bringing each participant on the blockchain for better coordination and smoother workflow.
Some of the world’s largest ports and supply chain logistics companies are already implementing blockchain solutions to unclog their supply chains in a bid to reinstate business normalcy.
By the use of applications built on blockchain, these companies are able to replace manual paperwork by digitised and automated documentation process. In the time of this pandemic, when companies are unable to bring their manual workforce to conduct the necessary documentation, blockchain applications and smart contracts can do it without much human intervention.
Not only will this save many industries from coming at a standstill due to lack of supply but also cut costs for them and keep the economy healthier.
With easy access to internet and information, customers today are vigilant about the companies they trust and buy from. It is thus mandatory for organisations to work in a transparent manner to win customers’ trust. And they spend huge sums to ensure that their customers and investors can have a fair share of insight into their business.
Blockchain, by default, incorporates transparency in the business process of companies. This will discard the need for any additional spending on proving an organisation’s transparency and will also bring more customers due to increased trust.
The worldwide counterfeit market is currently worth hundreds of billions of dollars. There are illegal organisations manufacturing everything from luxury goods to pharmaceutical products. And it is the customers that end up paying for fake products.
Provenance is a feature that can be achieved through blockchain applications, such that each product comes with a publicly available digital footprint. Customers buying those products can view the details of the product on the blockchain and trace it back to its origin.
As the counterfeit market is huge, the ability to trace and bust fake products through blockchain applications will drive more business toward legitimate companies and help add to the business economy.
Blockchain is already having a huge impact on maintaining business workflow as human contact has been limited. Even after the pandemic, companies are highly likely to work on blockchain applications due to their effectiveness over traditional systems. And Alacrity Network will pioneer this change by allowing developers to create innovative blockchain solutions with high-end software development kits.