The COVID-19 pandemic has left the global economy and markets in shambles. While countries are rushing into devising plans and strategies to contain and fight back this pandemic while trying to stay afloat.
Needless to say, the cryptocurrency market is also affected due to this situation. While the cryptocurrency market may seem to be low at the point, many experts are predicting that this can be a turning point and come back strongly dominating the market. This claim is backed up by these arguments :
Cryptocurrency may give answers for the issues related to the traditional financial framework;
Cryptocurrencies are not physical, in this manner - no chance of spreading the infection further.
To overcome the spread of the virus Chinese government banned and quarantined used banknotes from the public. This made the citizens of China inclined towards the digital mode of payments. Euromoney reported that major central banks have started to look into creating their own form of digital currency and exchanges to overcome such situations. This further adds value to cryptocurrencies, Crypto exchanges, and Crypto wallet related assets.
How COVID-19 is changing the use case scenario of Cryptocurrencies?
There are few countries who have been issuing a warning against the use of bank-issued notes and are favoring online modes of payments. That being said, the World Health Organization's spokesperson said, after being asked whether banknotes can be potentially spreading coronavirus:
"Yes it's possible and it's a good question. We know that money changes hands frequently and can pick up all sorts of bacteria and viruses and things like that. We would advise people to wash their hands after handling banknotes, and avoid touching their face. ... When possible it's a good idea to use contactless payments."
Looking at this a lot of people have now switched to using Cards and other forms of digital payments.
There are various cryptocurrencies, crypto wallets and crypto exchanges existing at present and all of them can become handy in such a pandemic situation. Here are a few useful use cases
1.Digital Cash
For instance, Tether, or USDT, portrays itself as "a blockchain-enabled platform intended to facilitate the use of fiat monetary forms in a digital manner." In other words, Tether is digital cash that can be exceptionally useful in occasions where you have to make some contactless payments and save on transaction charges. This cryptocurrency enables users to use a blockchain system to transact in fiat monetary standards and limit the negative factors associated with digital monetary standards.
2.Supply chain improvement
The effective operation of a supply chain is one of the main segments of an easily running business. Improving and facilitating the supply chain via utilizing the blockchain innovation is a great idea during the crazy occasions of the pandemic when people are panic-purchasing and sweeping all racks clean.
Thanks to the blockchain innovation, stores can monitor and enhance the operation of the supply chain from the earliest starting point as far as possible of the procedure. For instance, Walmart uses the blockchain innovation to enable its representatives to scan goods in the store's app and then track the good from the snapshot of creation to the minute it makes it to the racks.
Additionally, one of the greatest delivery companies in the world, Maersk, is already using the blockchain innovation to track its cargo ships.
3.Smart Contracts Utilization
Probably the greatest application of blockchain innovation is smart contracts, which are self-executing contracts. These contracts automatically confirm, check and procedure the transaction in case all the principles of the contract are satisfied. This allows parties to reduce risk and expenses and increase profitability.
This application of blockchain innovation can also prove to be useful in the midst of the pandemic. A good example of this use case is in maintaining accurate health records. Much the same as that, if health records are stored in a smart contract, the data would be available to all the parties - meaning any hospital or a research foundation can have immediate access to the important data without a moment's delay. All the data is also tamper-proof and transparent.
4. Digitization Is the Way to Go?
Nevertheless, should a crisis come and people should restrain from utilizing any type of physical payment, cryptocurrency proprietors are unquestionably in a good place. Thanks to a ton of useful features of several current cryptocurrencies, the need of each sector is met with a tailored arrangement.
While cryptocurrencies can be exclusively used as a means of payment, a portion of the remarkable tokens are aimed at comprehending the issues of a particular sector and are created to play a certain job inside the system.
For instance, Digibyte, one of the cryptocurrency extensions that has been on the crypto stage since 2014, can be named the Paypal of the blockchain business. It allows users to carry out snappy transactions in a protected manner with minimal charges.
Following on this, Tokoin aims to help developing companies digitize their organizations. By spending $TOKO, MSMEs are able to interact with each other on a blockchain without the need to carry out any physical transactions - everything is handled inside the system.
Another venture that may help people in these battling times is MediBloc, a blockchain venture that aims to move the medical data approach to a patient-focused one. The company has created a medical information ecosystem with customers at its middle.
Conclusion
As we progress towards a more digitized future, many of the cryptocurrency ventures are demonstrating to have real value. However, probably the most brilliant example of why we need digitization is taking place at the present time - with the spread of the deadly infection across the globe, carrying out business on the web and not having to touch cash is one of the main reasons for increased use of cryptocurrencies.
The author of this article holds an experience of 10+ years as a solutions architect and is currently heading a custom blockchain and cryptocurrency development company in La Mesa, CA. He has worked and implemented a range of different solutions using different technologies and in varied domains.
Cryptocurrency may give answers for the issues related to the traditional financial framework;
Cryptocurrencies are not physical, in this manner - no chance of spreading the infection further.
To overcome the spread of the virus Chinese government banned and quarantined used banknotes from the public. This made the citizens of China inclined towards the digital mode of payments. Euromoney reported that major central banks have started to look into creating their own form of digital currency and exchanges to overcome such situations. This further adds value to cryptocurrencies, Crypto exchanges, and Crypto wallet related assets.
How COVID-19 is changing the use case scenario of Cryptocurrencies?
There are few countries who have been issuing a warning against the use of bank-issued notes and are favoring online modes of payments. That being said, the World Health Organization's spokesperson said, after being asked whether banknotes can be potentially spreading coronavirus:
"Yes it's possible and it's a good question. We know that money changes hands frequently and can pick up all sorts of bacteria and viruses and things like that. We would advise people to wash their hands after handling banknotes, and avoid touching their face. ... When possible it's a good idea to use contactless payments."
Looking at this a lot of people have now switched to using Cards and other forms of digital payments.
There are various cryptocurrencies, crypto wallets and crypto exchanges existing at present and all of them can become handy in such a pandemic situation. Here are a few useful use cases
1.Digital Cash
For instance, Tether, or USDT, portrays itself as "a blockchain-enabled platform intended to facilitate the use of fiat monetary forms in a digital manner." In other words, Tether is digital cash that can be exceptionally useful in occasions where you have to make some contactless payments and save on transaction charges. This cryptocurrency enables users to use a blockchain system to transact in fiat monetary standards and limit the negative factors associated with digital monetary standards.
2.Supply chain improvement
The effective operation of a supply chain is one of the main segments of an easily running business. Improving and facilitating the supply chain via utilizing the blockchain innovation is a great idea during the crazy occasions of the pandemic when people are panic-purchasing and sweeping all racks clean.
Thanks to the blockchain innovation, stores can monitor and enhance the operation of the supply chain from the earliest starting point as far as possible of the procedure. For instance, Walmart uses the blockchain innovation to enable its representatives to scan goods in the store's app and then track the good from the snapshot of creation to the minute it makes it to the racks.
Additionally, one of the greatest delivery companies in the world, Maersk, is already using the blockchain innovation to track its cargo ships.
3.Smart Contracts Utilization
Probably the greatest application of blockchain innovation is smart contracts, which are self-executing contracts. These contracts automatically confirm, check and procedure the transaction in case all the principles of the contract are satisfied. This allows parties to reduce risk and expenses and increase profitability.
This application of blockchain innovation can also prove to be useful in the midst of the pandemic. A good example of this use case is in maintaining accurate health records. Much the same as that, if health records are stored in a smart contract, the data would be available to all the parties - meaning any hospital or a research foundation can have immediate access to the important data without a moment's delay. All the data is also tamper-proof and transparent.
4. Digitization Is the Way to Go?
Nevertheless, should a crisis come and people should restrain from utilizing any type of physical payment, cryptocurrency proprietors are unquestionably in a good place. Thanks to a ton of useful features of several current cryptocurrencies, the need of each sector is met with a tailored arrangement.
While cryptocurrencies can be exclusively used as a means of payment, a portion of the remarkable tokens are aimed at comprehending the issues of a particular sector and are created to play a certain job inside the system.
For instance, Digibyte, one of the cryptocurrency extensions that has been on the crypto stage since 2014, can be named the Paypal of the blockchain business. It allows users to carry out snappy transactions in a protected manner with minimal charges.
Following on this, Tokoin aims to help developing companies digitize their organizations. By spending $TOKO, MSMEs are able to interact with each other on a blockchain without the need to carry out any physical transactions - everything is handled inside the system.
Another venture that may help people in these battling times is MediBloc, a blockchain venture that aims to move the medical data approach to a patient-focused one. The company has created a medical information ecosystem with customers at its middle.
Conclusion
As we progress towards a more digitized future, many of the cryptocurrency ventures are demonstrating to have real value. However, probably the most brilliant example of why we need digitization is taking place at the present time - with the spread of the deadly infection across the globe, carrying out business on the web and not having to touch cash is one of the main reasons for increased use of cryptocurrencies.
The author of this article holds an experience of 10+ years as a solutions architect and is currently heading a custom blockchain and cryptocurrency development company in La Mesa, CA. He has worked and implemented a range of different solutions using different technologies and in varied domains.