A lot has already been discussed about the ability of blockchain technology to increase privacy of users, enhance trust and restricts the hackers by removing friction within a business. Blockchain makes it clear who puts the data onto the ledger and when. The special things are that once the data has been added in this ledger or block, it is not possible to change the data by any node in the network. The main thing is that once the data has been added, one can trace the data and the entire history of that record. Blockchain technology uses complex algorithms which cannot be hacked and is the safest option on the planet.
Some states have already started coming up with the tender notices for blockchain based land records especially for farmers. Andhra Pradesh was the first state to implement this technology. Tech Mahindra along with other technological giants Microsoft and IBM has implemented a DLT solution which shall be used to register and track customer complaints about the UCC. In India all the telecom companies and TRAI are sharing the data of the preferences recorded & Violations as per complaints by the customers. Trade finance and letter of credit applications have stared growing APCRDA is implementing DLT for recording land registration. This s being implemented by ZEBI, a Hyderabad based company Zebi is implementing blockchain based certificate management for 35 universities/ colleges in Karnataka & Andhra Pradesh Telangana is Government is exploring blockchain for Motor Vehicle Department applications to track the vehicle lifecycle from manufacturing to end of warranty period & is evaluating.
Bitcoin arrived in 2009 and is regarded as the ‘biggest disruptive force’ after the World Wide Web and Internet. In the initial stage, Bitcoin was the first pathbreaking innovation which was built on blockchain technology to create digital money which can store and transfer value just like any other fiat currency. Current technology giants such as Google, IBM, Microsoft, Amazon and Facebook are looking forward to use this technology but the adoption of this technology has not been adopted on a large scale by the government services applications. It is important to note that blockchain technology is built on the top of the internet technology. The internet technologies such as e-commerce and other related business took almost more than 3 decades before them became successful. Even a new technology which comes into picture has to go through the trial and error phase where enterprises and government come together and address implementation challenges. The technical scalability is also one of the issues associated with the blockchain networks. There are no standards that allow different networks to talk to each other. Moreover, the speed at which blockchain works has cost complications which impacts the usefulness and effectiveness of these systems.
RBI hasn’t really supported the idea of cryptocurrency in India. If we carefully look at the Information Technology Act, 2000 provides that, “nothing in the act apply to transactions involving immovable property, wills, and negotiable instruments. Privacy under section 43A of the IT Act, 2000 currently do not provide adequate safeguards for blockchain. Blockchain automatically stores the data across all nodes on a network, the technology may hit with localization requirements. The Draft Personal Data Protection Bill 2008 allows the citizens of the country to modify and amend their personal data. This will serve as a point of friction with this technology that doesn’t allow to change the data once uploaded. Blockchain is currently in its infancy, as a result of which community needs time and resources to fully adopt this technology. World Economic Forum in 2017 released a paper which showed that bitcoin’s network energy consumption was similar to the nearly 700 average American homes. That’s mor Ethan 4.409 billion kilowatt- hours. This is one of the major challenges in a country like India.
Currently there is a need for greater vision and leadership which is needed regarding the adoption of this new technology to make India a global leader in the world economy. There is a greater need regarding the development of technology for a digital blockchain economy. The government needs to closely collaborate with all levels of management and clearly communicate the hidden potential of this technology. Industries needs to come up and demonstrate real production examples of blockchain technology deployment across various segments of the economy. More recently need to be allocated towards this blockchain technology, much in the way US government funded research into the internet in the 1970s and 1980s. The support from the government is crucial.
Blockchain is an innovative distributed ledger technology that was first introduced in the design and development of cryptocurrency, Bitcoin in 2009 by Satoshi Nakamoto This technology eliminates the requirement of a central entity / third party to validate the transactions over the peer-to-peer network Blockchain uses a unique data structure where verification data related to the transactional records is cryptographically secured against tampering and stored in blocks Blockchain Technology is going to revolutionize the functionality of B2B, G2C, G2G, B2G services corresponding to various application domains.
The National Level Blockchain Framework can aid in scaling deployments for developed applications, emerge shared infrastructure and also enable cross-domain application development. The image given below displays the National Level Blockchain Framework as suggested by the Ministry of Electronics and Information Technology:
Globally many countries have launched platforms and services using Blockchain technology: Blockchain-based Service Network (BSN) initiative of China aims at helping companies and individuals deploy Blockchain applications faster and cheaper The United Arab Emirates has “Smart Dubai” initiative, which aims to become “the first city fully powered by Blockchain In the US, Food and Drug inspection is using Blockchain to address the problem of lack of transparency and security in the health data processing Ethereum is used by various countries for various reasons: In Brazil government announced to move applications and popular voting onto Ethereum Chile uses Ethereum to track the data and finances from the energy grid to resist corruption and exploitation Digital IDs in Switzerland are offered and registered on Ethereum Samsung Blockchain Wallet powered by COSMOCHAIN Blockchain has developed CosmeeDApp for purchasing of contents using cryptocurrency