Proceedings of The 5th International Academic Conference on Humanities and Social Sciences
How Has the COVID-19 Pandemic Affected the blockchain Industry: A Comparative Analysis of Pre- and Post-COVID Communication Strategies at Blockchain Companies
In a largely connected and globalised world, a single coronavirus molecule multiplied all over the globe wreaking havoc in a matter of days and paralysed the entire global economy. This in itself is a testament to the complex connectivity that runs the global trade. The world had always relied on globalization in order to sustain its complex supply chains, and sourcing and communications strategies used by companies had to be refined in order to adjust for the bottlenecks and halted product development during the pandemic. Where coronavirus hindered the movement of goods and people in all manners of traditional industries, it also had a major effect on the advancement of blockchain technology. A downturn was observed in the blockchain industry with delays in project development leading to investments drying out. Blockchain companies found it difficult to market their products as major blockchain and cryptocurrency events—catalysts for these companies’ communication strategies—began to be postponed or cancelled due to nation-wide lockdowns.
The blockchain industry runs on trust and effective external communication to attract consumers, deliver products, and generate loyalty and trust. In a time where COVID-19 reigns supreme, wreaking havoc on the economy at a global scale, how has the pandemic affected the advancement of blockchain technology? Using comparative analyses, this study will look into how blockchain companies are modifying their existing communication strategies to adapt to a changing post-COVID world. This study will derive important overall strategies from anecdotal evidence to present a formal framework for dealing with global phenomena like the current pandemic.
The concept of blockchain is built upon trust and transparency is paramount when it comes to the solutions provided by the blockchain industry. The industry is so opaque that it is considered extremely transparent by any number of current standards and yet not much is reported on how the recent coronavirus pandemic affected these businesses. However, because more and more people were locked down in their homes, the usage of blockchain as the preferred digital currency for online purchases saw a dramatic increase. In the last quarter of 2020, the blockchain-based cryptocurrency, Bitcoin, saw a remarkable increase in its value and trading volume, largely because consumers were led to cryptocurrency as an alternative to volatile speculation surrounding fiat currency. There had been other advancement in this sphere particularly with regards to contact-tracing applications that utilised the power of blockchain to add value to their offerings.
Keywords: blockchain, economy, cryptocurrency, communications, strategy, trust.