A blockchain is a type of distributed ledger for maintaining a permanent and tamper-proof record of transactional data. A blockchain works as a decentralized database that is controlled by using computer systems belonging to a peer-to-peer (P2P) network. Each of the computer systems within the dispensed community maintains a replica of the ledger to prevent a single point of failure (SPOF) and all copies are updated and established simultaneously.
“Blocks” on the blockchain are made of virtual pieces of information.
Experts cite several key benefits to using of blockchain. Security is considered one of the significant advantages of this technology. It is nearly impossible to corrupt a blockchain due to the fact information is shared and continually reconciled with the aid of heaps, even thousands and thousands of computer systems, and blockchain has no unmarried factor of failure. On the other hand, professionals say blockchain also has potential drawbacks, risks and challenges. With public blockchains, there are questions about trust and who is responsible should a problem arise. With private blockchains, there are questions about whether organizations are capable or willing to invest in the infrastructure for IT chargeback, an accounting strategy that would apply the costs of IT services, like database transactions, to the business unit in which they are used.
The recent development regarding blockchain in the Indian economy is the news that Vodafone Idea and Jio are deploying blockchain tech to keep spammers at bay. The analysts have a view that, this might be the world’s largest blockchain solution use case in telecom. More than a billion mobile phone users can expect a significant respite from pesky calls and messages, as Vodafone Idea and Reliance Jio Infocomm start to roll out blockchain-based technology through partnerships with Tanla Solutions and Tech Mahindra respectively. Analysts said the ongoing deployment could be the world’s largest use for a blockchain solution in telecom, with nearly a billion subscribers gaining. Telecom operators can in addition leverage blockchain for cellular quantity portability, interconnect settlements, supply chain streamlining and content accomplice settlements amongst others, stated analysts.
With India’s digital footsteps gaining widespread stride in latest years, blockchain generation has caught the imagination of many. Property transactions in India are nonetheless achieved on paper, making them at risk of disputes. Application of blockchain technology would bring revolutionary changes through in-built transparency, traceability and efficiency in the system.
Financial services has been a pioneer in blockchain-based use cases that are driving significant improvements in operations and client experience. For example, Yes Bank is an early adopter of this technology by implementing a blockchain-based multi-nodal system to fully digitize vendor financing for one of its clients. The system these days enables the bank to do timely processing of seller payments without physical documents and guide intervention whilst permitting both events to music the fame of transactions in real time.
Healthcare and prescribed drugs is one of the first-class potential areas where a whole lot of medical statistics is constructed up and exchanged, which, thanks to its sensitive nature, demands a comfy and dependable device. Blockchain should play a essential component in medical health insurance claims management by way of reducing the chance of insurance declare frauds.
The education sector can benefit from a blockchain-powered, time-stamped repository of pass-outs and job records of students so that it becomes easier for employers to verify the credibility of candidates.
In agriculture too, seasonal data related to crop and climatic cycles and soil testing data can be protected and climatic cycles and soil testing data can be protected and used by multi-nodal blockchain application for the benefit of insurance companies, researchers, market agencies and even to predict stock prices.
While the Government of India has eliminated the possibility of considering cryptocurrencies as legal tender, it has endorsed the idea of exploring use of blockchain technology for ushering in India’s digital economy.
The NITI Aayog is exploring the use of blockchain and AI technologies in diverse areas such as education, healthcare, agriculture, electricity distribution and land records, among others. What may also be perfect for the Indian economy, is the version Blockchain 2.0 that allows programmable transactions (changed by a situation or a set of situations), extending its capability from being able to do simple transactions to more complex transactions. Among other states in India, the Andhra Pradesh government is leading the way in blockchain adopting by executing pilot projects in land records and transport.
While baby steps are being taken, it’s also critical to put our collective focus on identifying and resolving key problems and demanding situations in enforcing this era, the top amongst those being data privacy.
A sustainable future for blockchain would also necessitate creation and sustenance of the right kind of ecosystem in the country.
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