What is Blockchain Technology?
Blockchain Technology is a new type of network infrastructure that creates ‘trust’ in networks by introducing distributed verifiability, auditability, and consensus.
In simple words, it is a system of recording information, so that it makes it almost impossible to change, hack or cheat the system.
Every user can add data to the Blockchain. All data in it assures complete security through a cryptography method. This protects information and communications through codes for those it is intended for. Every other network member is responsible for verifying that the data in the Blockchain is accurate. It creates this by private, public, and the receiver’s key that allows members to check the accuracy of the data while also confirming who it comes from.
How does Blockchain work?
Blockchain can perform user transactions without involving third-party intermediaries. To complete transactions, all a person needs is to his wallet. A BlockChain wallet is a program that allows one to spend cryptocurrencies like BTC, ETH, etc. The public and private keys secure such wallets to manage and have full control over their transactions.
When there is a transaction over a Blockchain network, a block is created, acknowledging the creation of the transaction. Once a block is created, this transaction is then transmitted over the peer-to-peer network, consisting of computers. This network is known as Nodes, which later authenticate the transaction.
A verified transaction can consist of cryptocurrency, contracts, records, etc.
Once verification of a transaction is over, it then integrates with other blocks to create a new block of data for the ledger.
Each new transaction creates a secure block that binds each other by using cryptographic principles. Whenever a new block is made, it is added to the existing Blockchain network confirming that it is guaranteed and unchangeable.
Low-Key Growth of the Blockchain Technology in India
Blockchain technology is still in its initial stage in India.
As per the 2019 Nasscom report, most of the mid-and large-service providers have less than 5 percent of blockchain projects in India. This is low when compared to their projects in other geographies. Even among blockchain start-ups, while venture capital investments worldwide were as high as $5.6 billion, India could attract only 0.2 percent of them. Furthermore, India accounted only for about 2 percent of all the blockchain start-ups globally. The following describes some of the blockchain initiatives taken up by few states and tech giants in India-
- Technological giants like Tech Mahindra, Microsoft, and IBM have implemented a Distributed Ledgers Technology, which will use it to register and track customer complaints about the UCC.
- In India, all the telecom companies and the Telecom Regulatory Authority of India share data of the preferences recorded & violations as per complaints by the customers.
- APCRDA is implementing DLT for recording land registration. ZEBI, a Hyderabad-based company, is implementing this. Zebi is implementing blockchain-based certificate management for 35 universities/ colleges in Karnataka & Andhra Pradesh.
- Telangana Government utilizes this technology for Motor Vehicle Department applications to track vehicle lifecycle from manufacturing to the end of the warranty period.
- The Assam government collaborates with Nucleus Vision to develop blockchain applications for governance and other citizen-friendly applications.
- The Rajasthan government has partnered with Auxesis Group to implement a blockchain solution in electronic health records maintenance and land registration.
Future Scope
After the coronavirus pandemic, all countries in the world are focusing on strengthening their healthcare systems. India can use Blockchain technology to improve the healthcare system. And achieve the United Nations Sustainable Development Goal by 2030.
Implementing this technology will make data easily accessible to practitioners for consultation and introduce accountability in the healthcare system. It will help patients access data, decrease fraud incidents in insurance payouts, drug piracy, bring transparency and accountability to the system.
Moreover, blockchain technology has immense potential in the healthcare sector apart from the financial and various government sectors.
Critical challenges in adoption and growth of BlockChain Technology in India
There is a massive scope of Blockchain Technology for its implementation and adoption in India. However, some challenges continue, which slows down the blockchain growth in India.
- There is a need for the Indian government to implement a precise regulation on Blockchain and Distributed Ledger Technology (DLT) to see quicker adoption. Currently, India lacks clear guidelines and compliance procedures.
- The adoption of blockchain applications is finite to cryptocurrency only. For successful execution, banks need to hire blockchain experts. However, hiring them is prohibitive, which is hampering the adoption of the technology on a large scale.
- In many public blockchain applications, there is a lack of clarity as to which party will incur the cost of network maintenance and validation of transactions.
- The Indian tax authorities and Reserve Bank of India don’t have a favorable opinion about cryptocurrencies and ICOs (Initial Coin Offerings). Unless this situation doesn’t change,
- India cannot have an efficient startup-initiated blockchain project execution.
- There are issues relating to usability, and there is a need to develop a more developer-friendly API for blockchain.
- Many vendors are not ready to adopt the new technology due to a lack of knowledge about blockchain technology. To accelerate the adoption of the technology in India, there is a need to create more awareness of the technology.
The Bottomline
Many people are connecting to the Internet every day, and technology is upgrading quickly; incidents of hackers attempting to steal data are on the rise. In such circumstances, versatile blockchain technology can be beneficial for the future of the Internet. As it will allow users to secure their data better.
Further, the concerned authorities must take adequate steps to implement blockchain technology and eradicate the challenges. Since it has an incredible capacity to ease activities in different sectors of the economy.
If you have any further queries regarding the technology or have plans to launch blockchain applications, you can contact us at Arsaviva Technologies.