Blockchain can be an elusive concept. Its abstract nature leaves many wondering if this emerging technology is the global catalyst evangelists claim it to be. But blockchain is more of a tool than a catalyst – not a one-size-fits-all, but a new foundation underpinning our everyday tasks. It offers industries a techno-driven facelift with its ability to increase productivity, ensure transparency, and reduce wasted time and paperwork. Today’s graphic is inspired by a study from McKinsey. Their research combines industry-by-industry analysis, expert interviews, and more than 90 distinct use cases to make informed estimates about the projected business value of the blockchain.
Blockchain Adoption
Blockchain’s core advantages revolve around its lack of central hub. The transparency of a distributed ledger combined with the cryptographic security of an immutable data chain makes this technology the ideal vehicle for businesses to exchange and validate information. It’s not a single system, but a baseline technology which can be configured in different ways to suit different purposes and business models. Blockchain is still immature, and there are kinks to be worked out before the technology can scale effectively. Even so, it brings tremendous short term value to reduce costs and drive operational efficiencies.
Blockchain Business Value
There are a few key areas where blockchain can add business value, even before broadscale adoption:
Cost Reduction
What if your business no longer had to pour profits into logistics, intermediaries, and an administrative paper trail? The blockchain can streamline supply chains, cutting out the middleman and banishing processes that slow efficiency and eat profits.
Revenue Creation
The blockchain breaks down administrative and collaborative barriers, making way for a innovative business strategies which simply weren’t feasible before the advent of distributed ledgers. With this new freedom, blockchain paves the way for new infrastructure and revenue models.
Consumer Impact
New business models provide the opportunity to meet previously overlooked needs of consumers and communities. In the medical field, where remote patient care and record-keeping may have been an issue in the past, blockchain advances provide ways to overcome those barriers using synchronised records and smart care devices on the network.
Blockchain Disruption
Blockchain is already making waves in financial services, government, and healthcare. Let’s take a glimpse at the way it could impact a few other industries:
Agriculture
Blockchain can transform the agricultural supply chain by streamlining the transition from farm to market, and quickly pinpointing sources in the event of food safety outbreaks. By reducing intermediaries, third world and small-scale farmers have an opportunity to join the supply chain.
Automotive
Companies can spread their operations to more effectively take advantage of economies of scale, by using blockchain to streamline the supply chain. Blockchain can also improve ride-sharing platforms, spurring on the transport revolution.
Insurance
Self-executing smart contracts and distributed databases can increase efficiency while reducing costs and risk of fraud.
Blockchain For All
The sheer scope of blockchain’s potential uses means there’s something for almost everyone, from startups to major players. The broad spectrum of use cases across industries might be why blockchain and crypto-related firms have raised almost $3.9 billion in venture capital in so far this year — a 280% rise compared to last year. The rise comes in an increasing number of deals, as well as the burgeoning median value of each. How can your business forge a future in blockchain? on Today’s chart measures the extent to which 41 major economies are reopening, by plotting two metrics for each country: the mobility rate and the COVID-19 recovery rate: Data for the first measure comes from Google’s COVID-19 Community Mobility Reports, which relies on aggregated, anonymous location history data from individuals. Note that China does not show up in the graphic as the government bans Google services. COVID-19 recovery rates rely on values from CoronaTracker, using aggregated information from multiple global and governmental databases such as WHO and CDC.
Reopening Economies, One Step at a Time
In general, the higher the mobility rate, the more economic activity this signifies. In most cases, mobility rate also correlates with a higher rate of recovered people in the population. Here’s how these countries fare based on the above metrics. Mobility data as of May 21, 2020 (Latest available). COVID-19 case data as of May 29, 2020. In the main scatterplot visualization, we’ve taken things a step further, assigning these countries into four distinct quadrants:
1. High Mobility, High Recovery
High recovery rates are resulting in lifted restrictions for countries in this quadrant, and people are steadily returning to work. New Zealand has earned praise for its early and effective pandemic response, allowing it to curtail the total number of cases. This has resulted in a 98% recovery rate, the highest of all countries. After almost 50 days of lockdown, the government is recommending a flexible four-day work week to boost the economy back up.
2. High Mobility, Low Recovery
Despite low COVID-19 related recoveries, mobility rates of countries in this quadrant remain higher than average. Some countries have loosened lockdown measures, while others did not have strict measures in place to begin with. Brazil is an interesting case study to consider here. After deferring lockdown decisions to state and local levels, the country is now averaging the highest number of daily cases out of any country. On May 28th, for example, the country had 24,151 new cases and 1,067 new deaths.
3. Low Mobility, High Recovery
Countries in this quadrant are playing it safe, and holding off on reopening their economies until the population has fully recovered. Italy, the once-epicenter for the crisis in Europe is understandably wary of cases rising back up to critical levels. As a result, it has opted to keep its activity to a minimum to try and boost the 65% recovery rate, even as it slowly emerges from over 10 weeks of lockdown.
4. Low Mobility, Low Recovery
Last but not least, people in these countries are cautiously remaining indoors as their governments continue to work on crisis response. With a low 0.05% recovery rate, the United Kingdom has no immediate plans to reopen. A two-week lag time in reporting discharged patients from NHS services may also be contributing to this low number. Although new cases are leveling off, the country has the highest coronavirus-caused death toll across Europe. The U.S. also sits in this quadrant with over 1.7 million cases and counting. Recently, some states have opted to ease restrictions on social and business activity, which could potentially result in case numbers climbing back up. Over in Sweden, a controversial herd immunity strategy meant that the country continued business as usual amid the rest of Europe’s heightened regulations. Sweden’s COVID-19 recovery rate sits at only 13.9%, and the country’s -93% mobility rate implies that people have been taking their own precautions.
COVID-19’s Impact on the Future
It’s important to note that a “second wave” of new cases could upend plans to reopen economies. As countries reckon with these competing risks of health and economic activity, there is no clear answer around the right path to take. COVID-19 is a catalyst for an entirely different future, but interestingly, it’s one that has been in the works for a while. —Carmen Reinhart, incoming Chief Economist for the World Bank Will there be any chance of returning to “normal” as we know it?
