How Blockchain can help these three industries amidst the current COVID19
At the time of writing, it marks the 4th week of Movement Control Order (MCO) for all Malaysians. Many of us are looking forward to resuming our normal lives but we must face the fact that these are trying times and we need to heed the call by our government to flatten the curve. History has proven that pandemics in the past from the Antonine Plague to the current COVID-19 have resulted in high mortality rates. (refer to chart above).
In 2019, the US Department of Health and Human Services carried out a pandemic exercise named “Crimson Contagion”, that imagined a flu pandemic starting in China and spreading around the world. The simulation predicted that 586,000 people would die in the US alone. At present, there are 1.9 million cases reported, approximately 127,000 deaths and nearly half a million recoveries with the US currently reporting the highest mortality rate thus far (Source: worldometer)
Now just by these statistics alone, many questions arise. How long will this deadly pandemic last? Will there be a vaccine soon? Can something be done to curb this virus? Surely, these are some thoughts that have lingered in our minds. Records from past pandemics that have occurred as early as 540 BC, beginning from the Justinian Plague to the Small Pox in 1520, Spanish Flu in 1918 and the most recent COVID-19, experts suggest that for the right vaccine to be developed, it would take between 12 and 18 months. So what should we do in the meantime? Based on historical pandemics, shutting down public places and limiting movement of citizens, while practicing social distancing have tremendously helped in flattening the curve. Reports from China, that has about 2–3 months head start in tackling the virus than most economies, showed a tremendous decline in new cases through social distancing and lockdown measures.
As economies grind to a halt, and heads of states scramble to find ways to stimulate growth, the following are some ways blockchain can help these three industries amid the current COVID-19 crisis.
1) Healthcare:
Although many would think that healthcare means meeting doctors face-to-face, but in the current situation, certain processes could be undertaken using blockchain. As healthcare systems race against time to receive more ventilators, beds and cope with the increasing number of cases, one of the ways blockchain could be beneficial is by developing a verification system that is linked to a back-end platform used by hospitals to state the patient’s details, temperature reading, the potential of symptoms and history of visits to countries or public places or interaction with COVID-19 patients. As blockchain is immutable and secured, patients would need not worry about the security of their details as this information will only be shared with the hospitals and the health ministry. Once data is received by the hospitals, patients recording high temperatures with symptoms should avail themselves for a COVID-19 test. This significantly reduces the number of patients walking-in to hospitals and contributing to overcrowding when temperature and other types of screening of symptoms can be done without having to physically come to a hospital. With participation from app users, health authorities will have the ability to know who are healthy, in recovery or ill, and those who had contact with COVID-19 patients. Blockchain could track test samples taken from patients at each hospital and test centres. Once the results are out, this information is then recorded on the blockchain and if there are any positives, health officials can immediately contact family members or the infected patients themselves. As these records are securely stored, it facilitates health officials to process information and retrace previous positive individuals and track other reported cases within a certain district or zone.
2) Retail- Supply Chain
Due to this pandemic, global supply chains have been adversely affected. Purchasing Managers Index (PMI) is a tool used to measure production levels based on five major areas: new orders, inventory levels, production, supplier deliveries, and employment. A recent report carried by the tabloid NST on 1st April suggested that the PMI is currently below the 50-point mark. How can blockchain help? As an example: Production of masks. Mask production in recent times has shown that there are many who are inflating prices. Most masks are produced in China and are known to be sold through the black market. The Malaysian government has imposed a ceiling price of RM1.50 per mask, so how do we control price escalations? The government will have to work with a list of accredited suppliers that are producing masks. Information of these suppliers is then recorded on the blockchain. Upon production of masks in China the process will be tracked as soon as they leave the factory to its delivery hub and finally to the logistics provider. These masks will then be placed in QR coded carton boxes. Upon completion of each step of the supply chain process these boxes are scanned and information is simultaneously recorded on the blockchain. This creates an enhanced transparency in the supply chain as customers and authorities can now trace the origins of the product and monitor the price because this data is recorded with the blockchain track and trace feature.
3) Financial Institutions or Government Bodies:
Financial institutions on the other hand can leverage the security feature of blockchain through online loan applications and identity verifications (e-KYC) to prevent user identity fraud for applications of Bantuan Prihatin Nasional (BPN) and Bantuan Sara Hidup (BSH). KYC is a procedure known as ‘’Know Your Customer’’ to identify and verify a customer’s identity. This process is developed both offline and online (e-KYC). BPN and BSH on the other hand are initiatives by the government to aid eligible Malaysians who are facing financial challenges. Below are some examples:
Scenario 1: Ali is an SME business owner. He wants to borrow RM100k from Bank XYZ. Due to the recent MCO, the bank uses blockchain to help with the process when Ali registers for a loan. At the backend, all information that Ali keys in is stored onto the blockchain. This prevents data tampering and complies with the bank’s Personal Data Protection Act (PDPA), Money Laundering (ML) & Terrorism Financing (TF) Acts. The credit scoring and other relevant details will be evaluated via artificial intelligence in compliance to in-house loan application criteria and set standards. When the loan is approved, an ID (consist of unique number & characters) will be generated. Ali can now login to Bank XYZ’s portal and proceed with e-KYC + some simple questions + insert ID. Upon confirming Ali’s identity and all relevant information given are validated, the loan will be dispersed into an e-wallet or blockchain wallet. The entire process is much faster compared to manual applications. Through this process, business owners who are in urgent need of financial aid would receive them without hassle or having to personally come to the bank. Besides this, the e-KYC results is reusable in the future, either with the same bank or with other financial institutions. The process reduces time and effort for future loan assessment processes while helping SMEs obtain urgent support.
Scenario 2:
Jane falls under the M-40 category and would like to apply for the BPN. This information is linked directly to data tabulated by the Inland Revenue Board (IRB) in order to prevent identity fraud and incorrect classification of groups. The government could look into building an integrated system where users upload their IC details, payslips, EA forms and other relevant details. When these are uploaded, the information is then recorded on the blockchain. Through this means, no one will be able to tamper or key in false salary information or data and if done, would trigger false reporting. The IRB can also use this information to verify the data received for BSH and BPN pay-outs.
Emerging technologies like blockchain represent not only a possibility to help reduce the spread of diseases but also provide some positive energy during an otherwise bleak time. More than ever, it enables trust. As an immutable ledger, blockchain is tamper-proof and is 100% verifiable to those that have authorised access to the data. Chaintope Malaysia is a Japanese blockchain startup that specializes in blockchain technology. It has a wide range of solutions which are market-ready from Energy, Retail and even one for Social Capitalism. The company has recently launched its latest product known as Paradium that is a track and trace solution, offering brand owners enhanced transparency to eradicate counterfeit and product recalls along the supply chain.
