Blockchain Technology is it still a Myth in India
Technology is nothing. What's important is that you have a faith in people, that they're basically good and smart, and if you give them tools, they'll do wonderful things with them. - Steve Jobs
Blockchain is the technology or the structure of data used to create a Shared, decentralized and distributed ledger with Cryptographic validation of the transactions that goes into the ledger.
Blockchain does not allow copying of the digital information but allows it to be distributed. The Key value of Blockchain is to reduce Technical and Business Friction and further it is not tied to an individual enterprise or individual application, it deals with the connection across these in a dynamic way resulting in high integrity of “Digital Ledgers”
The blocks are formed for the list of records and they are connected as a link using cryptography. Each block has a Cryptographic Hash of the previous block a timestamp, and transaction data.
As published by the Blockchain Council, the honourable Prime Minister of India Mr. Narendra Modi has stated that Blockchain and Artificial Intelligence will Increase Employment.
Mr. Narendra Modi claims that these technologies would not eliminate the need for human employment but would change the nature of the work done.
Mr. Narendra Modi during his key note address in Singapore FinTech Festival in 2018 had said that
Mr. Narendra Modi during his key note address in Singapore FinTech Festival has said that
“I have heard of an advice going around in start-up circles.
To increase your venture capital or VC funding by 10%, tell the investors you run a “platform,” not a regular business.
If you want to increase your VC funding by 20%, tell the investors that you are operating in the “fintech space.”
But, if you really want the investors to empty their pockets, tell them that you are using “blockchain.””
Today the Blockchain recognition as the Underlying distributed ledger technology is getting accepted and the Government organizations are focusing and investing in the Blockchain Technology and has major investments planned across the country.
According to the Government of India report on blockchain, the objective of the investment is in terms of reducing administration and transaction costs, obviating duplication and improving the accuracy of data, improving the speed and efficiency of transactions and detecting fraud.
There are use cases for blockchain which include Know-Your-Customer (KYC), payment systems, Digital authentication of Certificates, Proof of ownership for digital content, storage and delivery, land registries, loan issuance & tracking, e-stamping, trade financing, Decentralized patient records of management, post-trade reporting, securities and commodities, and internal systems of financial service providers.
Apart from the Government organizations and the above verticals some examples of the Sub-Sectors where the Blockchain Technology can be used:
Chit Funds :The 1982 Act regulates chit funds, and prohibits a fund from being created without the prior sanction of the state government. The Chit Funds (Amendment) Bill, 2019 was passed on passed on November 20 2019. The Act specifies the maximum amount of chit funds which may be collected and conducted by firms. In my opinion Blockchain Technology can be used in this Industry to regulate the Chit fund business and this will create a sense of trust among the investors to look into the investment options.
Cooperative Banks: As we all understand, Co-operative banks are small-sized units organized in the co-operative sector which operate both in urban and non-urban centres. These banks are traditionally Centered around communities, localities and work place groups and they essentially lend to small borrowers and businesses.While the Blockchain technology can be adopted to both Urban Co-Operative Banks and Rural Co-Operative Banks, I would like to emphasize here that regulation of Rural Co-Operative Banks especially in the Short-Term Structure like Primary Agricultural Credit Co-Operative societies can be very adoptable for Regulation which would add immense value to the Credit systems.
Non-Banking Financial Company (NBFC): As we all understand, NBFC are responsible for providing financial services but are not regulated by a national or international governing body and do not hold a full-fledged license for conducting operations. The use of Blockchain technology will be of greater importance for regulation requirements. This will add immense value of the Trust to invest in this industry.
Non-Profit Associations /Organizations: As we all understand, the key aspects of non-profits are accountability, trustworthiness, honesty, and openness to every person who has invested time, money, and faith into the organization. It’s important that the funds are used appropriately for a charitable Cause. The use of Blockchain technology will be of greater importance for regulation requirements. This will add immense value of the Trust to invest in this industry.
The industries mentioned above are looking for Trust Building and it’s worth implementing transparency solutions sooner rather than later.
India stands sixth on the list of patents and trends in the blockchain space and Blockchain has been experimented in Indian Fintech ecosystem.
What needs to be seen is in the coming years are the following:
- “The Blockchain adoption in India”
- “The Blockchain Platform availability”
- “Cost economical for SME adoption”
- “The Blockchain Developer Skill availability”
- “The Blockchain University”
- “The Blockchain Business Use cases success”
- “Return on Investment Versus Value of Trust enablement”
- “Shift from POC centric to business-case-centric adoption”
The above are some of the areas which can Boost BLOCKCHAIN TECHNOLOGY in India. Also there are many opportunities for Blockchain for the factory requirements to enable and enhance the factory of the future.
BLOCKCHAIN TECHNOLOGY IS NOT A MYTH IN INDIA.
Don’t hesitate to reach out if you have any questions.
The Views and Content provided in this blog by the author is for information purpose only and some of the content is written as referred to some of the published content. The purpose of the blog is written to create awareness and spread knowledge among the readers on Blockchain adoption. The views expressed by the author is his personal views and does not warrant, endorse, guarantee or assume responsibility for the accuracy or reliability of any information provided in this blog.