Covid-19, the once-in-a-century fitness crisis, has led to the worst economic crisis the world has faced in recent years. Bangladesh is no exception, with an expected 3. 0% decline in GDP expansion in fiscal 2020, which may lead to a deficit of 7. 7% of GDP.
As the virus devastated the livelihoods of the country’s poor, the recovery of the economy was imperative for the Bangladeshi government. Now the question is how to rebuild the economy and save lives.
Technology can play a central role in managing the fitness crisis while accelerating economic recovery. Blockchain is one of those technologies. Its ability to deliver secure transactions globally, whether in the services and production sectors, highlights the opportunities for Bangladesh’s government and businesses to put blockchain generation into effect to bring the economy to life.
Before reading imaginable application spaces in the context of Bangladesh’s economy, it is mandatory to explain the generation of blockchain itself.
Blockchain is a disruptive generation that has the prospect of revolutionizing the way transactions are recorded and stored in a decentralized network cryptographic tokens. Because data is stored in multiple locations without anyone owning the property, all parties within the network have access to a transaction and related data.
The use of cryptographic tokens eliminates the intermediate central government that reduces the prices of related transactions and prevents anyone from converting the stored data. even when they don’t know each other well.
Since the advent of blockchain generation in 2009, it has gone from generation to generation bitcoin with many applications. In Bangladesh, blockchain generation can be implemented in several commercial sectors that have the prospect of rejuvenating the economy and playing a role in achieving average income. state of the country.
Bangladesh’s largest export source with more than $36. 67 billion in exports in fiscal 2018. During the pandemic, clothing factories experienced a 45. 8% drop in orders in the first quarter of 2020, with a hiring rate of 81% through one hundred cents in April alone.
As consumers around the world become more aware of the pandemic from a social and environmental point of view, in the post-covid era there will be increased demand from stores such as Nike, Inditex and Next to obtain products from suppliers that adopt sustainable progression practices. Being transparent about ecological practices, protection and compliance and providing this data through clothing brands will be imperative for a successful recovery in the industry.
In this context, blockchain generation can be used to monitor the protection of factories in their global source chains. You can get an interface between foreign buyers and the factory through a self-declaration infrastructure.
This means that the formula provides the ability to record and publish your reports, giving them a genuine voice. As this formula will record employee reports on a timestamped blockchain, the effects can never be tampered with.
In 2019, remittances accounted for 5. 8% of Bangladesh’s GDP, and Bangladeshi expats sent $18. 3 billion. Legal channels such as banks and cash transfer organizations and illegal non-public relations channels are the two tactics in which expats transport cash to Bangladesh.
The use of currency exchange organizations such as Western Union, PayPal, Skrill, etc. and banks involve high transaction costs, while the form of change is difficult due to lack of acceptance among members interested in the exchange rate.
Meanwhile, occasional currency exchange also generates a loss of profits for him and poses demanding situations to track remittances. For example, it has been reported that in 2018, the Bangladeshi government lost $4. 7 billion in profits due to occasional remittances.
Blockchain generation can intermediaries and their related prices in the source chain of remittances. Promoting the use of featured virtual currency through blockchain generation will carry the dangers associated with currency fluctuations.
By establishing rules on virtual currency and the use of blockchain for cash transfers, a government-facilitated remittance procedure would track transfers, resolving broader disorders similar to the tax aversion of expats in Bangladesh and Bangladesh’s capital flight.
Counterfeit drugs are a major fear for the $3 billion pharmaceutical markets in Bangladesh. Over the more than five years, licenses from several pharmaceutical corporations have been canceled due to accusations of production of counterfeit drugs of inferior quality. All distribution channels, from pharmacies to hospitals such as Evercare and United, are accused of promoting inferior medicines In the first 6 months of 2019, a total of 370 drug cases were recorded.
This scenario worsened the pandemic, as there is increased demand for medicines while the source is restricted. To restrict the flow of counterfeit medicines to Bangladesh, drug control services will be essential. However, existing services can only control 5% of the total product. Because it is expensive and highly unlikely to check each and every drug circulating on the market, the pharmaceutical industry is looking for other cutting-edge alternatives.
One of those projects that has attracted a lot of attention is the use of blockchain generation in pharmaceutical chains of origin, a blockchain-based platform that tracks prescription drugs, the chain of origin from the point of origin of raw materials/ingredients to production sites, and then to larger healthcare ecosystems, ensures that only the original products succeed in the consumer.
Creating immutable traceability records makes it less difficult to respond to product recalls, standvias and new releases on the market. Ultimately, by getting rid of counterfeit drugs and streamlining the opposite chain of origin through the use of blockchain technology, network fitness will also be a key driving force for Bangladesh’s pharmaceutical industry to achieve the goal of capturing 10% of the global generic market.
The global halal products market valued at $2. 7 trillion in 2015 and is expected to grow to $10. 51 trillion by 2024. The popularity of halal food is expanding even among the international non-Muslim population, as it is considered hygienic.
To capture some of the global halal market share, Bangladeshi marketers in this sector are helping the government develop policy guidelines, adding the status quo of foreign halal certification and creating a special economic zone for the manufacture of halal products.
To ensure the integrity of halal-certified products and build public trust, blockchain en application will be invaluable. Features inherited from blockchain generation are accepted as true through the transparency of the “paddock to the plate” in the source strings.
In particular, smart blockchain generation contracts can digitally prescribe processes and needs according to a halal standard, determine halal compliance and functionality of halal font chains.
In addition to those industries, blockchain generation has the ability to be implemented in a variety of applications, industries and use cases, the more advanced the application, the more effort will be required for all users to perceive the disruptions that the blockchain solves.
Whatever the use of, the implementation of blockchain generation comes with demanding situations ranging from generation to generation, the external environment and the source chain that an organization will have to overcome.
Blockchain generation is a new box. However, it is approaching at an immediate pace, creating a shortage of professionals in the box in relation to demand. The widening gap between source and demand has become a major challenge in attracting and retaining blockchain experts. It is not easy to attract technical experts to Bangladesh because experts are sometimes unwilling to move to emerging countries.
The current progress of the blockchain cannot handle all the purposes of an organization, so it will have to be compatible with existing legacy systems. Compatibility will not only be limited to existing systems, but also to existing business practices and interoperability with existing software. However, as blockchain generation is constantly evolving, it is not easy to analyze compatibility requirements.
Complexity is the extent to which an innovation is perceived as difficult to perceive and use. Blockchain is a new way to process and move data between members of the source chain that require specialized skills. Because there is no transparent protocol on blockchain adoption, it adds complexity to the procedure. The use of complex cryptographic algorithms to validate and record transactions in blocks describes blockchain generation as a complex idea.
Blockchain-as-a-Service enables companies to use cloud-based responses to create, host, and use their own blockchain applications, smart contracts, and features in the provider-provided blockchain infrastructure. Since the advent of this service, software progression prices have decreased or However, the effectiveness of blockchain generation is based on automated knowledge capture hardware devices that require massive investment In addition, there are prices related to integrating the blockchain formula with existing legacy formulas.
Blockchain generation is a state-of-the-art technique for recording and storing data in decentralized distributed networks that would possibly require a new control technique to align with formula specifications. In addition, prices related to the implementation and lack of professional labour may demotivate control to put the generation into force.
Information exchange regulations that protect companies and their stakeholders inspire corporations to put blockchain-based traceability systems into effect. On the other hand, strict regulatory needs can deter corporations from imposing them. adverse effects on the implementation of blockchain in the chains of origin. Currently, as there is no government regulation available, there is a strong argument that blockchain programs adhere to existing industry practices.
Given the role of blockchain generation in boosting the economy and Bangladesh as a style of expansion and progression for the world, it is imperative to address demanding situations and facilitate blockchain implementation. and generation expanders, it is necessary to expand the appropriate methods for the deployment of blockchain generation in Bangladesh.
Shams Rahman is a professor and Dr. Aswini Yadlapalli is a professor in the Department of Supply Chain and Logistics at RMIT University, Melbourne, Australia.