How the blockchain technology has progressed to work in the formal and informal sectors

by Wirba Brice Divine Ransinyuy

The blockchain technology is a whole mass of technologies brought together. It is a technology that has the capacity and ability to manifest itself in all sorts of sectors of life giving the best of itself. As a result of the covid-19 pandemic, many governments enforced lockdown in the countries or cities with the aim of slowing down the spread of the virus in the different spheres of their life. This lockdown has impacted seriously private as well as public businesses. Many physical stores have closed their doors, thus having a negative significant impact on their overall economy, causing a high demand for necessity goods in order to keep going during hard and unpredicted times.

Governments have taken decisions in order to support both the private and public companies and organizations by taking supportive measures to prevent negative slope on the country’s economy. Some countries have done so by providing loans and other financial assistance that will prevent businesses from collapsing. In order for these measures to enter into full utilization, they employed the use of the blockchain technology. The role of the blockchain is so determinant as it is being used in the loan and insurance industry to render the process simple by shortening the complicated application process and approval as it is removing third-party intermediaries during the process.  Due to the employment of the blockchain technology in loan and insurance sector, it has led faster processing time, reduced operational risks, lower cost and rapid settlement for all parties involved. The Chinese government is perfect illustration of a country that has adopted this method as they have done over 200 million dollars’ loan distribution to 87 businesses using a cross-border which is a pilot blockchain finance platform.  Henry Ma, CIO at Online lender WeBank said ‘The cross-border, financial blockahin services platform plays a big role as it helps medium and small enterprises to improve efficiency’.

Furthermore, Xiang Hu Bao mutual aid blockchain platform makes a payment to its members infected by the coronavirus. Thanks to the blockchain, documents are being processed quicker as payouts are being made easier than bore with the parties involved having the opportunity to observe the entire process of the transaction.