The year 2020 marked the beginning of a new century, according to the Gregorian calendar. The year had been predicted to score a substantial growth in many of the world’s largest economies. However, the much promising start of a new century has been devastatingly woeful since the outbreak of the COVID-19 virus.
Brent crude oil hit an all-time low of -$40 per barrel on the 20th of April. According to a Washington Post report, unemployment rates in the united states plunged to 14.7%, the lowest since the great depression.
Sadly, “the curve has not been flattened in many countries.” However, the projected economic impact cannot be handled by even the biggest of economies. Consequently, the lockdown is gradually being eased in all parts of the world despite the infection rates. Perhaps, one light at the end of this long tunnel is the blockchain technology.
DEFINING BLOCKCHAIN AND CRYPTOCURRENCIES
Blockchain is a secure peer to peer method of confirming transactions that require no third party or the government. The uniqueness of blockchain can be summarised in three words: “Digital,” “Decentralized,” and “Public.”
Cryptocurrencies are a form of digitized currency with ownerships of units stored in a public ledger-the blockchain.
BLOCKCHAIN AND GLOBALIZATION
A secure distributed digital database with large amounts of data is undoubtedly the answer many industries have been pursuing. This is why, unsurprisingly, the size of the blockchain market is expected to grow from the present 3 billion US dollars to 39.7 billion US dollars in 2025.
The uniqueness of blockchain technology is tied to accountability and transparency. Health industries, gaming companies, insurance companies e.t.c are speedily adopting this publicly accessible ledger because of the time and money-saving factor.
In the post-pandemic era, as digitized systems would be increasingly required, blockchain can put an end to many problems faced by storing information on unreliable servers and privately held databases.
CRYPTOCURRENCIES AND GLOBALIZATION
To compensate for the failing economy, many central banks have compensated by printing more money in a futile attempt to recoup losses, provide palliatives, and keep their citizens happy. This creates a never-ending loop of inflation and, consequently, economic recession or, worse, a depression.
Fortunately, cryptocurrencies are digitized and are easily accessible. Adopting cryptocurrencies in different industries for secure payments, storage, and data transfer on the immutable ledger maintains complete transparency. With blockchain technology, every cryptocurrency on the distributed ledger can be accounted for, swift payments can be made, and the growth of economies can be preserved.
Before now, banks and other variants of financial institutions have not made the transfer, storage, and spending of fiat money easy. The clumsy regulations, excessive charges, reserve requirements have continued to invade trust between investors and the bank. Cryptocurrencies, however, are founded on a peer to peer network and are entirely independent of banking policies or central bank regulations. This creates a relaxing atmosphere for investors and the general public. In 2018, a study conducted by blockchain capital revealed that 30% of young investors would rather invest in cryptocurrency than government stocks or bonds.
As various businesses worldwide are jeering up to resume work and restore the economic damage, the inevitability of blockchain technology and cryptocurrencies in transforming the world can not be overemphasized. Any industry that opts to neglect the impact of blockchain would quickly be left struggling in the post-pandemic world.