From the looks of it, the COVID-19 pandemic will persist for quite some time. SARS-CoV-2, the virus that causes COVID-19, continues to puzzle the medical community, which has been hard at work developing a vaccine to combat its spread.

While we leave it to the scientific community to find the means to fight the pandemic, it's also important to understand how this current health crisis is affecting how we engage with technology. With social distancing measures in place, people are increasingly relying on new technology to retain a semblance of normalcy in their lives.

The shift towards online classes, e-commerce transactions, and contactless payments will play into the evolution of existing technology, such as blockchain. From before the pandemic started, blockchain is morphing into something disruptive as reliance on digital channels continues to soar.

From cryptocurrencies to healthcare management, here are the ways the COVID-19 pandemic is impacting blockchain technology.

Applications during crisis situations

At the height of the COVID-19 pandemic, governments turned towards existing technology for implementing response measures and monitoring the spread of the virus. At the center of these measures, the real-time exchange of valuable information plays a crucial role.

Through blockchain, healthcare institutions can share relevant data with the government, allowing for the creation of cohesive response plans and contact tracing initiatives. Such applications will lead to blockchain’s potential as a tool for tracking and containing outbreaks.

Cryptocurrencies and e-commerce

The economic effects of the COVID-19 pandemic are becoming more evident as mom-and-pop businesses and small enterprises are forced to migrate online or risk closure. This has led to a rise in e-commerce transactions, indicated by the fact that e-commerce website visits were at 22 billion by the end of June 2020.

The current e-commerce climate, in turn, will also lead consumers towards using digital currencies for safer and faster e-commerce transactions. This will also cause a spike in cryptocurrency investments. As more people buy Bitcoin, the rise in transactions will also cause blockchain capacities to rise in order to keep up with demand.

Surveillance and privacy issues

It’s difficult to ignore blockchain’s good implications, but the technology will also be a controversial subject as governments utilize real-time data. Indeed, privacy issues will be an issue among countries which plan to use blockchain technology beyond the COVID-19 crisis.

For one, blockchain could lead to the development of national ID systems that allow government entities to track online transactions and engagements, resulting in legal and social implications. Fortunately, there are companies that are creating systems that strike a balance. At any rate, there is great potential for applying blockchain in addressing gaps in national security.

Blockchain will change the way we live, similar to how COVID-19 interrupted our lives. Despite the challenges that this current health crisis brings, there’s nothing to keep us from looking towards a future where blockchain can help us prepare for similar crises.