We usually associate blockchains with crypto currency. COVID-19 has changed this and is highlighting the prominence of blockchain technology as an important platform to maintain continuity during the disruptions. This discussion attempts to provide an insight into the applications of blockchain solutions in the emerging scenario.
Blockchain comprises of a series of transactional records or blocks that are connected using independent computers which have no central authority. The connected network is called a chain and the blocks form a secure bonding using cryptographic principles. We increasingly use blockchain platforms in the digital world because of its high levels of data security.
With COVID-19, the unprecedented disruption in business processes suggests the need for secure and rapid data exchange in our supply chains. The near-total halt of businesses has brought into the spotlight the need for blockchain services to improve the integration of networks by incorporating transparency and interoperability in the supply chains. Blockchains can play a major role in accelerating the digital transformation of business and aid in recovery from the crisis. The demand for blockchain services is on the rise and the market is expected to touch $23.3 billion by 2023.
How blockchain solutions can help during and after COVID-19
The changes due to COVID-19 would continue for quite some time. We need solutions that can build trust in the virtual supply chains. The entire transaction cycles are now happening over digital platforms and concerns of data security are looming large. The trend of digitalization and online transactions might continue even post COVID-19. Blockchain technology is the answer for building resilient and agile supply chains to help the stakeholders conduct business safely over the internet.
Let’s see how blockchain technology can support the business during pandemic situations.
- The decentralized database of blockchain platforms along with smart contract capability facilitates the authentication and tracing of supply chain events across various vendors.
- Each participant in the supply chain can record all the transactions that would be visible to all the stakeholders. The transparency enables trust among the participants.
- Blockchain services streamline the supply chains and there is a higher consistency of data and reduction of intermediate transactions.
- It maintains data security through permissioned ledgers and nodes that record the transactions.
- Blockchain provides visibility in healthcare. The patients can know the complete details about the origin of the drugs, the pharmacy, and its distribution. It can also prevent fake drugs that carry duplicate holograms. Using blockchain technology, the records of the patients are maintained safely in electronic format with access only on authentication.
- Banks can use blockchain services and enable transactions without requiring any online or offline confirmation from customers. Smart contracts ensure that loans are automatically executed and EMIs are debited with no further interventions.
- The insurance industry can use blockchain technology to simplify their process. The insurance process is renowned for its cumbersome applications and approvals. Blockchain models remove the third-party intermediaries and speed up the processing time. It also facilitates the rapid settlement of claims.
COVID-19 has exposed the gaps in our business processes that should be addressed for agile and resilient business models. Blockchain platforms can emerge as the trusted solution to improve the efficiency of the processes and inculcate trust, transparency, efficiency, and agility. It simplifies the digital transformation of business providing solutions to automate the redundant processes and allow secure data processing.
SBL is a leading knowledge organization involved in continuous research and development of blockchain solutions. We provide blockchain development platforms across a wide range of industries. Talk to an expert from our technology division to know more about the blockchain solutions that can help your organization survive a crisis like COVID-19.