Research Report on the Impact of COVID-19 on the Blockchain Industry and Development Trends

Abstract

The COVID-19 pandemic has mainly caused short-term negative impacts on Blockchain companies, with limited medium to long-term effects. Most companies believe that the negative impacts of the pandemic are primarily concentrated in areas such as delays in work progress, high fixed cost expenditures, and obstacles in business development with partner organizations. The main ways Blockchain companies are responding to the pandemic include: implementing "distributed office work", changing marketing and service models, and developing new products to launch anti-pandemic applications.

The scale of blockchain applications in epidemic prevention is not yet prominent, accounting for only 9% of information technology applications in epidemic prevention. Reasons include the early stage of industry development, the need for improved technological maturity, and incomplete conditions for application implementation. More than 60% of enterprises have adjusted their short-term development strategies, and approximately 22% of enterprises have adjusted their long-term strategies.

Under the pandemic, new opportunities in the Blockchain industry have emerged, with significant potential in areas such as public warning systems, material traceability, public opinion monitoring, and identity information registration. Future trends in the development of the Blockchain industry include: accelerating the empowerment of industrial digital transformation, deep integration with other emerging technologies, and the gradual improvement of regulatory laws to promote the normalization of the industry.

I. Research Background and Definition of Research Objects

The COVID-19 pandemic has impacted various industries. Blockchain companies, characterized by online and internet-based operations, have been less affected compared to offline industries, but some business segments are inevitably impacted. At the same time, the pandemic has also provided an opportunity for the application of blockchain technology in the public sector.

This report mainly focuses on enterprises engaged in the research and development of Blockchain technology and application services. It collects information from more than 30 enterprises through online questionnaires and interviews, analyzing the impact of the pandemic on the Blockchain industry and development trends.

2. What is the impact of the pandemic on Blockchain companies?

( has a negative impact in the short term, while the medium to long-term impact is limited.

Nearly 70% of companies stated that their business development has been somewhat affected, but they have taken countermeasures; over 20% of companies reported no impact; 8.7% of companies suffered significant negative impacts.

The impact of the pandemic on blockchain companies is mainly concentrated in the short term, with limited medium to long-term effects. The main reasons are:

1. Core business is less affected. Blockchain companies primarily operate online, and core businesses such as technology research and development can function normally.

2. The pandemic has stimulated more application scenarios. The advantages of Blockchain in reducing costs, enhancing privacy protection, and improving efficiency are becoming more prominent, which will bring more application opportunities.

3. Long-term positive policy dividends. The development of the Blockchain industry has received high attention, and relevant policies continue to be introduced.

![])https://img-cdn.gateio.im/webp-social/moments-91deb624f316f9405f1272292cbfe41b.webp(

) ### two ( The impact is concentrated on aspects such as delays in work progress and higher fixed cost expenditures.

More than 80% of enterprises believe that the negative impacts of the pandemic are mainly concentrated on:

• Work progress is delayed
• Fixed cost expenditure is relatively high
• Business with partner institutions is obstructed.

The pandemic has hindered offline business communication and project advancement, leading to reduced communication efficiency. There is increased pressure from fixed cost expenditures. The decrease in demand from traditional enterprise clients has also affected the business of Blockchain companies.

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3. In the face of the pandemic, how can blockchain enterprises turn "crisis" into "opportunity"?

) ### One ( carry out "distributed office" "cloud resumption of work", ensure business progress

Companies maintain efficient communication through video conferences, telephone conferences, etc., striving to maintain normal operations. However, online work still faces issues such as low collaboration efficiency and difficulty in supervision, resulting in a decrease in overall work efficiency.

) ### two ( change the marketing model and service provision method

Provide services through online channels, focus on mature products and key customers, and improve the order conversion rate.

) ### three ( Research and develop new products, launch anti-epidemic applications.

Blockchain enterprises have launched anti-epidemic applications in fields such as epidemic data monitoring, finance, charity, and healthcare. However, compared to technologies like artificial intelligence, the performance of blockchain in epidemic prevention and control is not particularly prominent, with the proportion of applications only accounting for 9%.

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66.67% of the epidemic prevention applications are based on the transformation of existing businesses, 25% are temporarily developed, and only 8.33% are based on existing businesses. The application effectiveness and implementation scale are limited, with reasons including:

• The blockchain industry is still in its early stages.
• The technology itself is not yet mature.
• The implementation of applications requires the cooperation of multiple parties, and the information infrastructure is insufficient.
• Lack of application development support for risk prevention.
• The cost of application implementation is high, and there is a lack of buyers.

![])https://img-cdn.gateio.im/webp-social/moments-e83ac836fe185e179cf8c1e436d2ed9f.webp(

4. What new opportunities are brewing in the blockchain industry under the pandemic?

) ### One ( Blockchain industry business opportunities

More than 80% of enterprises believe that the opportunities brought by the pandemic for Blockchain mainly lie in:

1. Public Warning System )86.96%(
2. Material Traceability ) 65.22% (
3. Public Opinion Monitoring )65.22%(
4. Identity Information Registration ) 52.17% (
5. Financial Services)39.13%(

These applications are mainly based on the data on the Blockchain and the characteristics of trusted endorsement.

![])https://img-cdn.gateio.im/webp-social/moments-71ec3386c3661cb461e3f8f2208cce2c.webp(

) ### two ( Blockchain companies are in action

65% of enterprises have adjusted their short-term strategies, mainly to launch applications in response to epidemic prevention and follow up on new business opportunities.

22% of companies have adjusted their long-term development strategy.

13% of companies have not made strategic adjustments, but will pay attention to new opportunities and be well prepared.

![])https://img-cdn.gateio.im/webp-social/moments-8ef7b80d4eef737320a14da332bcda83.webp(

5. After the baptism of the pandemic, how will the Blockchain industry develop?

) ### One ( The pandemic accelerates the process of digital transformation in society, Blockchain empowers industries to accelerate.

The pandemic has prompted governments and enterprises to more proactively embrace digital transformation, and new technologies such as Blockchain will receive greater attention. In 2020, Blockchain is expected to be scaled and implemented in fields such as finance, supply chain, and government affairs.

) ### two ( Blockchain deeply integrates with cutting-edge technologies such as the Internet of Things, artificial intelligence, and 5G.

The integration of different technologies can complement each other's shortcomings and exert greater utility. The combination of the Internet of Things and Blockchain can reduce operational costs, strengthen privacy protection, and promote cross-entity collaboration.

) ### the gradual improvement of regulatory laws promotes the further standardization of the industry

Blockchain support policies are being intensively introduced, and regulatory laws will gradually improve, pushing the industry towards normalization.