Blockchain May Face a Drop Due to COVID-19

Colin Baseman

It seems that the previous prognosis needs revision. The market has recently looked into EU enterprise and how much it spent on the development of the blockchain. The data cover the nearest few years and the pandemic that COVID-19 caused may have changed the statistics.

The International Data Corporation fully understands the consequences of the coronavirus and is ready to look through the latest news to see if there are any important factors that may have influenced the change.

Experts feel it is necessary to reconsider their analysis and prognosis. The economic tension of the disease is outrageous and the crypto market cannot ignore this fact. A couple of days ago, the IDC did research and announced they have witnessed a visible slowdown. According to analysts, this phenomenon is temporary. Also, its distribution across sectors is rather uneven.

The firm keeps the U.S. residents informed about the latest trends and changes occurring in the industry and most users find the teams one of the most reliable and trustworthy sources of information.

Before the pandemic attacked the country, the IDC’s forecast was different. Back then the firm predicted that blockchain spending might be as big as 1.4 billion USD this year. Their predictions were optimistic and promised a growth rate of 58% in the nearest three years.

Nowadays the company’s representatives explain that currently, the customer demand is depressed. More than that, supply chains are not as powerful – now they’re relatively disrupted. Another problem is that people are working remotely and institutions cancel or put off their projects. Unfortunately, this includes blockchain as well.

The corporation may expect to see a slight decline in spending. They expect that this year it will slow down by eight percent in the EU market. The forecast illustrates over sixty percent annual growth taking into consideration 1.33 billion USD.

Blockchain Adoption May Increase

There are several sectors, in which the adoption of the blockchain approach may increase. The IDC hopes that the consequences of the coronavirus may stimulate growth and greater adoption of the new technology.

What causes disruptions to most production is the restrictive national lockdown during the pandemic. This affects the world’s trade along with distribution. At present, most of the leading enterprises are willing to adopt new approaches and transform their supply chains. That might become one of the fastest ways to restore supply management. We see how value chains face vain opacity which the innovation can eliminate. The technology guarantees transparency, exceptional security, and, which is also important, a reliable source of true information.

Blockchain is a wonderful option for various applications. It may help with voting systems and the features may be used to manage healthcare data. The system protects all sorts of data. There’re special privacy features and characteristics. Plus, it is resilient to misuse and fraud. It is quite obvious that the public is not yet ready to fully rely on the technology, and analysts see that the number of people using online systems is not that large. They believe that the technology cannot serve as a tool they would use to exercise their freedoms and rights.

Blockchain as a Major Instrument

A month ago, the mass media published a new toolkit, the main function of which is to assist authorities, companies, and institutions all across the planet to build more resilient value chains in the nearest future. The creators of the toolkit are sure that their instrument will help with the COVID-19 crisis. They know that their invention can recover the global economy. All they expect from the public is to allow them to digitize trade.