There is no doubt that the prevailing pandemic is accelerating everything towards automation, and blockchain is leading the way
Whether like it or not, the financial industry is again at a crossroads due to the economic impact brought about by the current coronavirus crisis. The unforgettable economic recession of 2008 exposed many industrial flaws that rendered traditional financial processes antiquated and out of form. The shakedown awoke businesses and consumers to their senses as to how money was reliably handled based on value and trust. That was when the climate of change massively disrupted the entire financial landscape caused by the blockchain technology and the cryptocurrencies. The trust enjoyed or at the least monopolized by the fiat currencies are now gravely threatened and has shifted leverage to blockchains and cryptos. The natural tendency to seek alternative options beyond established legacies are now at breakneck speed.
Blockchain and Cryptocurrencies: Disruptive Force
Since then, blockchain and cryptocurrencies became buzzwords of trending innovative technologies. Bitcoin led the cryptocurrency boom while its underlying blockchain protocol, oozing with DLT (distributed ledger technology) power was found to be of great value even beyond just a backend technology reserved for cryptos. Its main features were outstanding to cries of freedom and liberty from unseen global financial control machinations as displayed by cryptocurrencies.
Blockchain holds transactional digital data through a decentralized public ledger that is open to all participating computers around the world. The participating computers are called nodes chained to one another in that same network, which enables a peer-to-peer system of transaction. Blockchain’s open system makes it public and transparent, and therefore, decentralized, as there is no centralized authority having control over the system.
A block is formed every after a verified transaction has occurred and connected to one another by a hash. It is a unique code tagged to a node that would make it impossible to manipulate a record without bypassing each and every encrypted information on a participating computer’s node and hashes. Transactional data is safe and secure.
The decentralized character of blockchain makes transactional parties directly contact one another without the need for intermediaries. Third parties such as banks and lawyers, make transactions more expensive due to charged service fees added to the transaction process.
Since blockchain is an open system, everyone has a copy of the data contained in the system. Stability is assured because of data accuracy.
Transactions remain anonymous as blockchain uses cryptographic addresses for all users.
Blockchain technology was found to be a necessary tool to change many antiquated systems across diversified markets beyond the financial industry. Blockchain adoption can improve the international food supply chain in its entirety, which, until today, still use galleon-ship systems. Energy, travel, insurance, healthcare, education, politics, and more are sure to benefit from the principles and applications embedded in the blockchain technology.
The Use of Automation
Automation makes use of any technical, economic, and mathematical methods, means, and control systems without full human intervention in the processing cycle for purposes of acquisition, conversion, and transmission. Automation includes robotics and the automation of production machines, artificial intelligence, software algorithms and systems, big data, neural networks, and open systems called blockchains.
Consequences of Automation
The use of automation can mean a drastic decrease in human labor and the loss of jobs, albeit temporarily. Here we can make a comparison between human intervention and automation.
Cashiers – Vending Machines
Lawyers and legal specialists – Smart Contracts
Artists, Designers, Authors – Artificial Intelligence
Healthcare specialists – reduced on-field labor demand
WorkForce – Machines
The problem of automation lies in the field of liability when these autopilots fail to function. It is where legal and institutional intervention is still needed.
Benefits of Automation
Automation speed up the delivery of goods and services and optimizes their quality and quantity as compared to human labor. Time is of the essence when demands are high due to increasing human needs. Stiffer competition requires that faster deliveries should be made. Manual labor consumes valuable time, and rushing is prone to errors. Automation reduces risk, and quality output remains consistent. Workers need not be retrenched but rather be assigned to non-automated projects, thereby improving the company overall output. It is much better to re-skill workers towards automation to survive. Changes into automation can help companies restrategize their targets to minimize overheads, increase revenue, expand customer satisfaction, and strengthen brand loyalty.
Survival of the Fittest
The coronavirus pandemic is bringing companies into serious consideration of automating their businesses and industries over rehiring labor. Matters of social distancing and pandemic control measures have them accelerating their automation plans. Business without automation options sadly has to close down due to the uncertainties of a post-coronavirus scenario. The longer the uncertainties, the slimmer the chances of normal jobs to recover.
Blockchain at the Forefront
The pressure to automate will certainly bring blockchain to the forefront of change in the Great Reset, the world as we would be after the pandemic recession, which is now costing us close to exceeding $4 trillion. The World Economic Forum has included the role of cryptocurrencies and blockchain as world economies are set to reopen. Even the definition of an accredited investor has been changed by the SEC that would include “professional certifications, designations or credentials, or other credentials issued by an accredited educational institution.” It would boost the number of crypto traders into the fold. Whereas, before, the designation required a net worth of a million dollars or a stable income starting at $200,000 per year.
The relevance of blockchain technology cannot be overemphasized. By 2027, 10% of worldwide Gross Domestic Product will be stored through the blockchain via cryptocurrencies, according to World Economic Forum estimates. The call to decentralization and personal financial control may well have arrived, including two aggravating circumstances: the loss of manual jobs and climate change. The economic downturn in the aftermath of the coronavirus crisis will undoubtedly be focused on these two things. But blockchain serving as a backend technology of almost everything we can think of, a new generation of manual set skills might, after all, be needed, and a well-streamlined use of natural resources by a corrective blockchain protocol can ultimately preserve and heal a wounded environment.