Blockchain’s potential in fostering trust within networks is significant.
The World Bank Group has been actively supporting clients throughout the COVID-19 pandemic. William Zhang, a Lead Information Security Architect and Blockchain Specialist at the World Bank Group, highlighted the severe economic impact of COVID-19, including a US$4 trillion global GDP decline, significant job losses, and numerous business closures.
Zhang, speaking at a webinar titled “Leveraging Blockchain Innovations to Cope with the COVID-19 New Normal,” organized by the 10x1000 Tech for Inclusion Programme, noted that projections indicate a 9% increase in both poverty and extreme poverty. This program was jointly launched in 2018 by the International Financial Corporation (a World Bank Group member) and Ant Financial Services Group, the company behind Alipay.
In response to the pandemic, the World Bank Group has increased funding to those in need, expedited project approvals, and collaborated with the International Monetary Fund (IMF) and developed nations to provide debt relief to the world’s poorest countries. Zhang reported that there are currently 128 active projects across 566 locations in 89 countries, representing a commitment of US$11 billion.
Beyond financial assistance, the group is exploring innovative ways to help countries navigate the crisis. Zhang emphasized the potential of technology, particularly blockchain, in building trust for business interactions with reduced physical contact. He highlighted blockchain’s immutability, consensus-driven model, and transparency as key factors in creating dependable business networks and facilitating faster, more cost-effective payment solutions.
Since every participant possesses a copy of the tamper-proof transaction ledger, they “can independently verify how funds have been utilized and the developmental outcomes achieved,” explained Zhang.
He further pointed out that blockchain enables cheaper and faster cross-border payments, providing both senders and recipients with real-time visibility into the location of funds.
Zhang believes that “(Blockchain will) increase confidence among global donors, encouraging them to entrust the World Bank with their funds for international development.”
He presented several use cases, including a pharmaceutical blockchain token economy where participants are rewarded for desired behaviors with tokens redeemable for goods and services.
EVOKE, an online social networking and gaming platform introduced by the World Bank Group in 2010, employs a similar incentive model now powered by blockchain. Designed to engage youth in problem-solving and innovation for positive social impact, the platform rewards students and teachers with tokens exchangeable for incentives like cellphone minutes and textbooks. Zhang explained that blockchain enables the World Bank Group to demonstrate tangible results to donors.
According to Zhang, blockchain is a particularly relevant technology in the COVID-19 era, where continuous public health monitoring is crucial. He highlighted blockchain’s ability to manage and track health data securely while safeguarding individual privacy.
Zhang noted that there is a consensus that authorities will require tools for tracking individuals’ health status and location in the post-COVID world. He believes that “citizen privacy must be respected, and blockchain-based digital identities are ideal for this purpose.”
He argued that the absence of a central repository of personal data vulnerable to breaches, coupled with increased trust in data management, would drive adoption.
GreenPass, a blockchain solution from Elastos DMA, exemplifies this approach. Launched in mid-March 2020, the app securely stores health and location data on a blockchain, ensuring immutability and traceability. Such systems could also incorporate rewards for responsible behavior.
Looking ahead, Zhang asserted that life will be different in the post-COVID era.
“The benefits of digitalization in meetings, document management, and overall business processes have become clear, accelerating digital transformation,” he stated.
Zhang elaborated that “people will reconsider both personal and business travel, questioning the need to be physically present in an office when much work can be done remotely.”
He advised business leaders to enhance resilience by addressing single points of failure and leveraging the “network effect.” Just as the internet offers multiple routes to a destination, businesses should establish business processes with “multiple paths, routes, and ways to achieve objectives.”