What has blockchain brought with itself?

Decoding Crypto currencies

This post is in continuation of our series on crypto currencies.

In the previous post, we discussed about the aspects that influence investor’s opinion on crypto currencies and ended it with the biggest positive outcome from the introduction of crypto currencies i.e. Blockchain. This post covers how Blockchain technology has evolved since its inception, what potential it has going forward, and what value addition can it do for India.

Blockchain has a lot of features that makes it unique. Its benefits make it a long lasting, tech friendly and trustworthy technology to be adopted. Listed below are some advantages that Blockchain offers:

  1. Decentralized: The transactions on Blockchain are not stored at any one location but rather available for public view which can be verified easily
  2. Cyber security: It is impossible to hack as there is no centralized server available to hack the information from and also no chances of any system failures. So, it makes digital world a more secure and smart place to operate.
  3. Ease in raising funds for start-ups: To raise funds quickly, start-ups today use blockchain to launch crypto currencies. The driving force behind any ICO is this technology with its breakthrough features and its ease of use in convenience.
  4. Defend copyright of intellectual property: With extensive use of internet by people today, many individuals have lost authority of their intellectual property which has resulted in a loss of a lot of money. With automating smart contract processes, blockchain can effectively address this issue.
  5. Ledger: With all this, blockchain provides a vast opportunity in keeping a ledger of supply chain transactions for pharmaceuticals products, fashion apparels, food safety, oil and gas supplies and every sector that uses e-commerce as a way of conducting business. A record for every transaction that would stay on the network forever provides companies with the low cost benefits by eliminating a need for maintaining separate database forever. De beers Group, world’s leading diamond company currently use it for recording sale and import dealings.

These exceptional qualities that blockchain offers, explains why it is needed more than ever.

Blockchain has vast potential to lead a better world in fields of finance, supply chain management, governance and much more. However the tech community is still looking for other possible uses of this technology.

 Below are listed some potential uses of blockchain:

  1. Recording health data of patients in a hospital
  2. Monitoring food safety. IBM and Walmart have come together in China to build a blockchain project on this.
  3. Real estate deals could be completed by making payments through crypto currencies on the blockchain platform
  4. Citizen registration database is being preserved through a Blockchain project in Switzerland.
  5. Passenger database on airports could be recorded through this network.
  6. Many banks are exploring blockchain's potential to make payments faster, cheaper and more transparent.
  7. With Internet of things being aimed by the countries worldwide, blockchain can help create and secure new networks while processing humongous amounts of information on a real time basis. It could open new ventures for inter-device cooperation and monetization.

If used properly, it can help reinstate lost values such as privacy, transparency and give back benefits of the internet back to the end users instead of letting them be controlled by powerful companies.

So what value addition does blockchain carries for India?

India, being one of the fastest developing countries with rapidly increasing internet users had 331.77 million users who use internet in India in 2017, a growth rate of 12.3% from 2016 figures.

This tells us that the adoption of blockchain has a lot of scope for expansion in the Indian market. It could be used in a many industries for data storage and management purposes.

The amount of remittances by NRI’s to India are currently stands at at ₹4.6 trillion per annum and the average cost for those remittances is 5.63% of each transaction which is quite high but can be reduced by adopting blockchain for faster, efficient, low cost remittances. These remittances are extremely necessary for our economy as they make a big portion of country’s balance of payment and aid in stimulating the domestic consumption levels.

With India banning crypto currencies exchanges, we have already ruled out the possibility in use of Blockchain in that area.

Hence embracing the innovation that blockchain technology brings with itself for streamlining processes, making payments cheaper in the country should be looked positively instead of ‘disruptive’.

This is the last post in our series of crypto currencies. To read previous posts click here.



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