Important Points Related to 'Blockchain' Technology 


What is Blockchain?

  • Blockchain is a technology that operates a currency called bitcoins. In simple words, it is a digital 'public ledger', in which every transaction or transaction is recorded.
  • Once a transaction is recorded in the blockchain, it can neither be deleted nor modified.
  • Be aware that due to the blockchain, transactions do not require a trusted third party such as a bank. At present, transactions are done in banks by directly connecting with customers and suppliers.
  • Under this, the details of each transaction are recorded in the ledger account after it is verified by network-connected devices (mainly chains of computers, called nodes). Indeed, blockchain can also be compared to the state of the Internet in the year 1990.
  • It is worth noting that in the last two decades 'Internet of Information' has changed our society. At the same time, we are now entering an era where blockchain will also be able to do the same thing through the 'Internet of Trust' and 'Internet of Value'.

How did it originate?

  • Nothing is explicitly stated regarding the origin of this technology, but it is believed that a group of people created by the pseudonym Satoshi Nakamoto, the inventor of bitcoin, created the cryptocurrency. invented this technology to support the

importance of technology

  • Bitcoin is just one application of this technology, the use of which is being investigated in many industries. There is a lot of attraction towards it in the banking and insurance sector of India. In fact, many people in these areas are forming associations to make the world aware of the benefits of blockchain technology at the industry level.
  • For example, in India there is a consortium called 'BanChain' which includes about 27 banks in India (including State Bank of India and ICICI) and Middle East nations as its members. This consortium is widely disseminating the benefits of blockchain technology to make businesses safer and faster.
  • The Institute for Development and Research in Banking Technology, a branch of the Reserve Bank of India, is developing a state-of-the-art platform for blockchain technology.

What are its benefits?

  • The benefits of using blockchain will vary for all transactions. According to Deloitte and Assocham, blockchain will prove to be more beneficial when the data is more and they have to be shared among many people and there is no sense of trust among those people.
  • In fact, financial investors will benefit the most from this technology.
  • According to a study conducted by the World Economic Forum, more than 90 central banks around the world are involved in the blockchain discussion. In addition, 2,500 patents have been filed for this in the last three years.
  •  80% banks have also predicted the launch of blockchain by the end of 2017. This new technology will emerge as a ray of hope in the field of financial services.
  • Even people in the non-banking sectors (such as retail, travel, healthcare, telecommunications and public sector industries) are paying attention to the opportunities that blockchain provides. It is worth noting that this technology will only be applicable to industries that focus on decentralized data storage, data immutability, and the distributed ownership features of blockchain.

India's position

  • A high-level committee comprising officials from the Ministries of Finance, Home and Information Technology as well as SEBI, Reserve Bank of India, State Bank of India and NITI Aayog is deliberating on whether cryptocurrency should be banned in India or No.
  • However, the deliberations so far have confirmed that this committee has expressed its intention to promote the use of blockchain technology.

Conclusion

It is expected that Blockchain technology will improve the efficiency of any type of transaction by removing middlemen and this will also reduce the cost of all transactions. This will also increase transparency and get rid of bogus transactions, as every transaction will be recorded and allocated in a public ledger.