Blockchain Industry Under the Pandemic: Challenges and Opportunities Coexist

Abstract

The COVID-19 pandemic has had a short-term negative impact on Blockchain companies, while the medium- and long-term effects are limited. Over 80% of companies believe that the main impacts are reflected in delays in work progress, high fixed cost expenditures, and obstacles in business development with partner institutions.

Blockchain enterprises should respond by implementing "distributed office", changing marketing and service models, and developing new products for pandemic applications, among others. Compared to technologies like artificial intelligence, the scale of blockchain pandemic applications is not yet prominent, accounting for only 9%. Reasons include the early stage of industry development and the need for improved technology maturity.

More than 60% of enterprises are adjusting their short-term development strategies, and about 22% are adjusting their long-term strategies. In the context of the pandemic, new opportunities are emerging in areas such as public warning systems, material traceability, public opinion monitoring, and identity information registration.

1. Research Background and Object Definition

The COVID-19 pandemic has had varying degrees of impact on different industries. Blockchain companies, influenced by their online characteristics, have suffered relatively smaller losses, but certain aspects are still affected. At the same time, the value of blockchain technology has been highlighted in epidemic prevention and control, sparking discussions on its application in the public sector.

In order to understand the response of blockchain enterprises and industry opportunities, Zero One Finance has collaborated with multiple institutions to conduct an online survey, with over 30 companies participating. This report analyzes the impact of the pandemic on the blockchain industry and development trends based on the survey results.

2. The Impact of the Pandemic on Blockchain Enterprises

( a ) Short-term negative impacts are significant, while medium to long-term impacts are limited.

Nearly 70% of enterprises reported that their business was affected to some extent but have taken countermeasures, over 20% were not affected, and 8.7% suffered significant negative impacts.

The main reason for the limited medium to long-term impact:

1. The core business operations are less affected. Online operations are the main focus, and technological research and development can proceed as usual.

2. The pandemic has stimulated more application scenarios. Blockchain has great potential in reducing costs and protecting privacy.

3. Long-term favorable policy dividends. The central and local governments attach great importance to this, and relevant regulations are being introduced successively.

( two ) The impact is concentrated on progress delays, fixed costs, and other aspects.

More than 80% of enterprises believe that the main impact is reflected in:

1. Work progress is delayed. Offline communication is hindered, and project advancement is slow.

2. Fixed cost expenditures are relatively high. Early-stage companies have limited cash flow and face significant pressure from rigid expenses.

3. Business operations with partner institutions are hindered. The decrease in demand from traditional enterprises affects the Blockchain industry.

3. How Blockchain Enterprises Should Respond

( to ) develop "distributed office" to ensure business progress

Maintain communication through video conferencing and other forms, but efficiency has still decreased.

( two ) changing marketing and service models

Connect with customers online, focusing on mature products and key clients.

( three ) Research and development of new products, launch of epidemic prevention applications

12 enterprises have launched blockchain applications for epidemic prevention, with 66.67% based on the transformation of original business, and 25% developed temporarily. Only 25% have achieved large-scale applications, and the scaling effect is not obvious.

Reasons include:

1. In the early stages of industry development, application promotion is not yet mature.

2. The technology itself still needs improvement.

3. The fields suitable for large-scale applications are limited.

4. Lack of application development planning for public risk prevention.

5. The cost of application implementation is high, and there is a lack of buyers.

4. New Opportunities in the Blockchain Industry

(one) business opportunities

1. Public Warning System: Improve the efficiency of epidemic information dissemination.

2. Material Traceability: Achieve full-chain tracking.

3. Public Opinion Monitoring: Build a credible public opinion supervision system.

4. Identity Information Registration: Achieve Trusted Identity Management.

( two ) corporate strategic adjustment

65% of enterprises are adjusting short-term strategies, 22% are adjusting long-term strategies, and 13% have not yet adjusted but are paying attention to new opportunities.

5. Blockchain Industry Development Trends

1. The digitalization of society is accelerating, and Blockchain is empowering the industry to speed up.

2. Deep integration with technologies such as the Internet of Things and artificial intelligence.

3. The improvement of regulatory laws promotes the standardized development of the industry.