Blockchain - The Rise in India!

 

Unprecedented technical innovation, particularly in the area of information technology, has occurred in the twenty-first century. Recent conversations about artificial intelligence, machine learning, blockchain, and other technologies that rely on it are clearly influenced by technical innovation. With the introduction of blockchain, the underlying technology that provides transparency and immutability, the "fad" is catching up with the currencies that are emerging from it. According to information that is publicly accessible, Indians have invested more than USD 10 billion in cryptocurrencies alone.In the absence of that, we can also see that the banking and financial industry has embraced the application of the underlying blockchain technology the most. Furthermore, the fact that the Indian government is actively utilizing this for land title registry, vehicle lifecycle management, farm insurance, and electronic health record management speaks volumes about the awareness, willingness, and pace at which blockchain is intended to be ingrained into the social and economic fabric of the nation.

From the perspective of the private sector, a number of businesses are investigating blockchain in an effort to increase efficiency and are attempting to internally review their procedures and workflows in an effort to enhance their service delivery systems. 56 percent of Indian companies are embracing blockchain technology and integrating it into their core operations. A Center of Excellence (CoE) in Blockchain Technology has been formed by the National Informatics Centre. It functions as a coordinated, interoperable blockchain ecosystem across the country. This enables the government to test projects before releasing them for use by the general population.

When NITI AAYOG covered the fundamentals of distributed technology, its potential framework, the difficulties and lessons learned from NITI AAYOG's own Proofs of Concept, its use cases, and recommendations for India's national blockchain strategy in its strategy paper on blockchain, it provided the regulatory boost that was required in a limited way.

According to the top think tank in the nation, localised networks where peer-to-peer transactions may increase socioeconomic value must receive special attention from the individual governments.

The distributed ledger technology (DLT), also known as blockchain technology, was requested by the Securities and Exchange Board of India (SEBI) from depositories in order to record and monitor the formation of assets as well as the covenants of non-convertible securities. The implementation of this system begins on April 1, 2022. It serves as a pioneer in the adoption and application of blockchain technology, much as it has been with the BFSI industry. It is reasonable to suppose that many of the participating parties will want to engage in the same by implementing blockchain technology at some level or another given that the banking and healthcare regulators are prepared to afford regulatory sandboxes.

The Ministry of Electronics and Information Technology ("MeitY") also published a National Strategy on Blockchain (Strategy) in December of last year with the aim of implementing technology in governmental systems, particularly for e-governance objectives, and providing blockchain as a service. The Strategy also calls for the creation of state-specific blockchain applications on a common blockchain infrastructure by the state governments. According to the Strategy, various Government agencies and other interested parties will cooperate to maximize the benefits of blockchain technology in terms of improved security, trust, and its capacity to assure tamper-evident transactions. MeitY has outlined a plan that involves examining the blockchain technology's value proposition, deploying pilot projects and prototypes, assessing them for particular platforms, and eventually adopting them for various uses and fields.Scalability, security, interoperability, data localization, and record disposal are the other five technical weaknesses that MeitY has discovered.

FUTURE

Blockchain technology and Web 3.0 innovations will increase the value of the digital asset economy from $5 billion in 2021 to $262 billion over an 11-year period, according to a report by digital asset exchange Cross Tower and the US-India Strategic Partnership Forum. This will add $1.1 trillion to India's GDP. Such is blockchain technology's influence! Given that the application of blockchain involves software developers, financial specialists, and legal knowledge, which in turn creates employment possibilities, India has a great development potential. The functionality of B2B, G2C, G2G, and B2G services related to diverse application fields will undergo a revolution thanks to blockchain technology. Healthcare, government, cyber security, cars, media, travel, logistics & hospitality, education, law, and energy are just a few industries where it may be seen in action.The development of blockchain technology offers the government the chance to foster openness and accountability while facilitating easy interactions with the public.

While some fear that the use of this technology would undermine legacy systems, its true potential is to function as a catalyst for the reengineering of current procedures by adding efficiency and more value.

The technology will also provide additional value and be able to increase confidence in the ecosystem it thrives in because to its immutability, transparency, and decentralised ways.

By enabling access to the data held on the other nodes across several locations, this also contributes and helps in terms of business continuity and disaster recovery management.