How Blockchain Can Help Failing Economies during COVID-19

Blockchain Technology can Tackle Economic Failure Exposed by COVID-19  

The outburst of Coronavirus disease 2019 (COVID-19) has created a worldwide health crisis that has a deep impact on the way we perceive our world and our everyday lives. At the time of scripting this Article, there are over 7.27 M confirmed cases and 413K Death of Coronavirius (COVID-19) across the world.

According to official reports, the most important number of confirmed cases are within US, Brazil, Italy, Russia, Spain, India, Germany, and France . However, even the countries that the new Coronavirius has hit less aggressively are still under considerable strain.

During this pandemic situation, world is facing Economic misbalance which lead towards the  downfall of the countries’ Economy. In the midst of the Coronavirus (COVID-19) pandemic, several countries across the planet resorted to lockdowns to “Flattening the Curve” of the infection. These lockdowns meant confining many citizens to their homes, shutting down businesses and ceasing most economic activity. 

Consistent with the International fund , the worldwide economy is predicted to shrink by over 4 per cent in 2020 – the steepest slowdown since the good Depression of the 1900s.  The pandemic has pushed the worldwide economy into a recession, which suggests the economy starts shrinking and growth stops.

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Therefore, Blockchain Technology are often one among the key to enhance Economy to some extend. the "mysterious" technology behind the cryptocurrency revolution. this is often the drive behind cryptocurrency, because it provides an immutable ledger of all those digital currency transactions.

In the modern trends of evolution Blockchain has received extensive attention recently. within the race of digitalization, the planet is depending on the technology which will fuel financial transaction significantly, Thus Blockchain provide such sorts of facilities. Its development has not gone unnoticed. Of all fields, it's an exceptional influence on the planet of finance, e-commerce and trade, and collectively, it's shifted the paradigms of bankers and economists within the twenty-first century. Banks are around for many years; they need survived countless wars and revolutions; they need caused quite few themselves.

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How Blockchain can Solve Economy Problem During Coronavirus (COVID-19):

1.  A Beneficial Rise in Economic Activities

There is already a whole industry around cryptocurrency and it's organized by institutions dedicated to overseeing all digital coin exchanges happening round the world. The speed at which the cryptocurrency industry is growing is earth-shattering and may be confirmed by early adopters who became prosperous overnight and had opportunities to grow economy during this pandemic situation of Coronavirus(COVID-19). 

Bitcoin, the foremost well-known of those cryptocurrencies, has already allowed many of us and corporations to develop and thrive, while many also believe trading as their source of income. The economy can slowly shifts to adapt to those needs and cryptocurrency features a great potential to satisfy them during this pandemic.

2.  Great Opportunities for Poorly Banked Countries

More than  one 3rd of the world's population doesn't have access to basic banking services which will help them just in case of a private financial crisis - browsing loans, checking accounts and inventory. These people that are already financially disadvantaged in most cases usually resort to questionable and dangerous lending practices, and are the most effected category to hit during Coronavirus (COVID-19). The rate of interest of those practices is anything but fair, leading to greater volatility among people requesting loans.

3. The Investor’s Advantage

Many investors have a drag with the matter of share trading and settlement just because of the efforts in making this method . With the evolution of the Blockchain, each global investor is allowed in to possess a less expensive process in terms of both share trading and settlement reasons.

There is also an agreement in among the investors in terms of creating transactions rather keep the record within the central authority. One advantage of this is often a simple process making investment transactions in banks without the difficulty of keeping a record of the past investments made.

The settling process is extremely important for the investors. In making the proper exchanges there's a guarantee most of the assets of the investor might be taken even by an unknown party. Thus, the making an exchange of the shares would make easy and secure in the least times.

4.  Low Transaction Costs

Because an actual brick-and-mortar building is not required to bring cryptocurrency and Blockchain into existence, the prices related to their transactions are minimal. They will not have  to pay employee salaries, utility bills or rent, so these savings naturally translate into lower transaction fees. This successively encourages more and more people to trust these new financial instruments and initiate transactions, allowing the worldwide economy to intervene more closely. And counting on the broker you select, you'll also trade with minimum deposit requirements - as presented by cryptocurrency, for instance.

5.  Increased Transparency of Transactions

Since all Blockchain and cryptocurrency transactions are automated and digitized, they're all tracked during a distributed ledger. the simplest thing about it's that it can't be manipulated by people or companies, which reduces the danger of fraud and corruption. This suggests that underdeveloped countries also are more likely to enter the sport of monetary transactions and boost their economy and social prospects.

6. Touching the Evolution of Issuing Loans

Distributed ledger also makes an imprint in making things easy for bankers in issuing loans or giving credits.  If  we  consider the long process and therefore the many considered factors, Blockchain doesn’t disappoint banks also as clients thanks to not only making loan issuing easy and fast but it also levels the securing of the wants needed to form the loan.

Faster processes of the issuance of loans would mean convenience for all clients who n1eed the loan directly. Banka, on the opposite hand, would have an accurate process in serving not only an area community but also an outsized scale of clients within the global market.

One great results of this is often the boon within the transaction of loan issuing. during a related approach, the payment of the said loans would take an excellent effect within the present and future processes of 1global banks. Additionally, this might open more opportunities for more clients to possess a quick access and secure way of getting their loans granted.

7.  More Power to Entrepreneurs

There has never been a more prosperous time to do business, within the sense that Blockchain Technology and cryptocurrency can help entrepreneurs receive payments in additional currencies. It aims to assist small and medium businesses everywhere achieve better financial coverage and a free financial reference to the remainder of the planet. Using the digital wallets, entrepreneurs are ready to quickly convert altcoins into fiat currencies that they will later redirect to trade investments, purchases and payments.

The world is changing and it's changing quickly due to this pandemic and economy is falling in a wide ratio. The speed at which cryptocurrency is moving may be a clear indicator that traditional financial institutions can not hold the fort so well and are generating other financial needs and wish to be addressed. Similarly, the planet is facing a growing got to level borders, trying to find an entire social and financial inclusion - this Blockchain technology has everything that must be addressed to such issues.

It will only be a matter of your time until these cryptocurrencies definitely find how in our lives to enhance them, with economic process and inclusiveness in mind. many people will now have the chance to take a position, send money across borders, economize and begin a business for the amazing possibilities that cryptocurrencies bring back the table.

8. Boosting up Economy

The Blockchain may be a system that brings total and complete privacy, security and efficiency to each user simultaneously. While banks have a standard total control of how money is transferred and stored in our lives, the Blockchain is offering better alternatives with incentives that no bank can match.

The Blockchain allows for fast, peer-to-peer transactions at a way more user-friendly cost. What this suggests is that the Blockchain provides services at a private level, while maintaining secrecy and privacy, yet cutting the middleman out of the image.

How-Blockchain-Can-Help-Failing-Economies-during-Coronavirus-COVID-19-@Blockchain Briefings

Conclusion:

So, from the above we can conclude that the disrupted Economy in this pandemic situation of Coronavirus (COVID-19) can be solved with the help of Blockchain Technology in respective fields. This will not only help to uplift the shrinking Economy but may also help in providing Unemployment to some extent because, as an estimated more than (150 million) people lost employment.