Several events characterized the year 2020, some of which intensified many social, political, and economic trends and gave rise to new others. The business world was acutely crippled by the COVID-19 pandemic, which resulted in many changes in the blockchain industry. This article discusses the pandemic’s impact on the cryptocurrency industry and what should be expected during this and other years ahead.
The COVID-19 Pandemic Accelerated Crypto Transition
Various projects in the crypto industry has been reoriented or replaced within one year, as predicted by experts. This will occur because many of these projects currently overlook vital features, including decentralized consensus, smart contracts, and tokenization.
The COVID-19 pandemic has resulted in more pragmatic and realistic approaches to crypto initiatives to spur their daily business growth. For this reason, projects with numerous projects in the blockchain industry are likely to experience growth at all levels at increased rates than before. This will be accelerated by the increased number of organizations interested in the networks that address the supply chain concerns raised due to the pandemic.
The Pandemic Has Sparked Uncertainty and Volatility
The pandemic has further intensified the uncertainty and volatility of the crypto market. Consequently, many corporates have withdrawn from various long-term projects, which has also been witnessed in the blockchain industry. Some of these strategic projects require regulatory or market structure changes and are currently working with extended timetables.
Moreover, the projects are literarily isolated from the business, making it harder for them to obtain budgets, which have been significantly slashed. Therefore, many of these and related projects will be halted as corporations adjust to the current volatile trends.
The Pandemic Has Increased the Need for Digital Transformation
The success of businesses in this era is heavily dependent on modern technology. The COVID-19 pandemic has increased the need for corporates to embrace digital transformation.
Since blockchain technology deals in virtual transactions, it is likely to initiate high-level dramatic transformative changes in business and is predicted to be stronger in the coming few years. For this reason, several industries are likely to depend on blockchain to help them become more digital and efficient in their operations.
More Projects Will Be Production-Based
The COVID-19 pandemic has prompted many corporates to consider digitalization and a heavy emphasis on production. In the few years to come, more blockchain-run projects are predicted to venture into production. These projects, which are estimated to be 30% of all the projects globally, reflect realistic approaches, increased technology maturity, and initiation of projects that guarantee benefits in the shortest time possible.
The Blockchain Technology Will Advance
The technology applied in cryptocurrency and blockchain is set to advance to the next level in the coming few years as more regulatory measures are put in place due to the pandemic. This technology will be of great significance in goods authentication, food tracking, and sensitive data storage to ensure objects in the real world are safely tied to their respective tokenized equivalents.
Digital currency transactions through blockchain technology are set to increase as many people stay and work from home. Moreover, several countries, such as Sweden and China, are currently showing interest in blockchain technology to various sovereign currencies. In line with this, many blockchain developers will consolidate because not all startup enterprises were financially prepared for the pandemic.
The Blockchain Industry is the Best Alternative in the new Normal
IBM and Maersk together developed TradeLens in 2019, which is in operation in over 200 ports globally. This blockchain shipping technology is poised to grow rapidly with tangible benefits soon, as more freight forwarders, maritime companies, terminals, and ports and customs authorities are invited onboard to join TradeLens. The result is enhanced transaction settlements, factual shipping data, decreased human error and counterfeit goods, as well as efficient trade policies and food safety.
The new normal created due to the pandemic can only be adjusted to by embracing blockchain technology. This digital technology promotes resilience, transparency, and trust in supplying producers, chains, and consumers. The lockdowns implemented to curb the Coronavirus spread increased the rate of digitalization in many sectors worldwide. Therefore, great strides are likely to be made in the blockchain industry, with benefits spilling to other organizations, economies, and the general population.