In an undeniable fact, among the countries which have registered the maximum number of COVID-19 cases has been the US taking its economy down to the recession. The increase in the number of cases has crippled not just the healthcare industry but also the economy leading to joblessness and a massive reduction in work. The number of unemployment insurance claims has increase manifold and in a move to better things, it has announced relief packages. The injecting of the funds will provide` temporary relief but in order to recover the economy has to start from scratch.
The worst part of it all is the unending uncertainty which has amounted to a lot of panic in the country. Families are reeling currently unable to take decisions seeing the conditions. Even with the relief packages so announced, there is absolutely no assurance if it will reach the right person at the right time but with distributed ledger technology and its properties, the benefits will be more visible. The DLT or the blockchain technology will go a long way in ascertaining the credibility of such automated payments. With the use of smart contracts, the credible movement of relief payments functioning on an approved ledger will ensure the sanctity of its payments. The smart layer in addition to the beneficial layer of the technology’s distributed consensus mechanism will help achieve the goal of ensuring the payments reach the right person.
Once the legislation regarding the relief payments is announced, and when the economy even shows some resilience on its prime indicators, the transfers can be done on these smart contracts. It lets individuals benefit the receiver to have their own wallet. The entire system of exchange can be run by prime partners like the Bureau of Labor Statistics or the Labor Department in order to provide a realistic perspective of data. Once the macro-level activities are triggered the system of smart contracts is put to work. The data is seen by the individuals and with this macroeconomic data, they can guesstimate the amount they will receive during the crisis.
There is a lot to be benefitted from blockchain technology but the government has to work it out politically as well as ensure that they choose the right technology partners to build this system so that relief measures reach the right time without any disruptions.
Image Source – Hackernoon