India, one of the fastest-growing economies, is stepping into the global era of deep technology. The country is on the journey of major economic reforms which comes with its own challenges. However, with its embracing attitude towards technology India can have its one of the dramatic reforms through the mechanism named ‘Blockchain’. Moreover, Prime Minister, Narendra Modi in the WEF (World Economic Forum) Conference stated that India is working on “national strategies” to actively implement Blockchain with the help of WEF, Mumbai.
Blockchain, a ledger keeping mechanism, widely understood under terms like Digital Asset could be a real pivotal moment in 21st century India.
So, let us explore the colossal capabilities of Blockchain and marvels it can perform in India.
Blockchain beyond Digital Asset.
Tremendously accelerating concept in today’s IT industry is Blockchain. It is an empirical and trending mechanism in this particular time frame. But, did you know Blockchain which is generally understood in the boundaries of Digital Asset is much more than tokens and assets?
Blockchain can simply be defined as a ledger-based mechanism. It is widely used and understood in terms of digital asset-based applications. However, Blockchain is far beyond the activity of buying and selling tokens digitally. When we only talk about Blockchain in terms of Digital tokens, we limit the immense potentiality of it.
Though the mechanism gained recognition amongst the public, its functionality concerning Digital assets makes Blockchain a technological advancement, a uniquely digital way to record and store data electronically. It runs on the functionality of building blocks, storing data in these blocks, and connecting them in a chain to ensure trust, transparency, and immutability.
Acceptance of Blockchain over Digital Asset
Blockchain and Digital Assets are generally misunderstood by the masses. As stated above, Blockchain is a mechanism that stores data just like a ledger. Whereas Digital Assets are tokens of monetary value that can be traded on certain applications that run on the Blockchain. Just like the Internet which is a technological advancement, whereas Internet Explorer is an application that uses this technology to function.
Acceptance of Digital Assets has become a critical topic as countries like India and China had banned such applications at one point. However, Japan and Korea still allow trade of Digital Assets.
The criticism behind Digital Asset due to its ciphered nature makes it less safe. Since the transaction is recorded and is only visible by the parties involved, it increases the chance of illegal happenings and issues like tax evasion.
Blockchain in India
NASSCOM’s 2019 Blockchain report says, “Nearly half the states in India have initiated blockchain projects to address different elements of citizen service delivery. While most projects are in the pilot stage, the state governments have taken a progressive approach to ensure start-ups and niche providers have a conducive framework to participate in these initiatives.”
Yet, comparatively, India has a cautious approach towards building the Blockchain system.
Due to this regulatory risk in India around Blockchain, global investors looking forward to investing in Indian start-ups find it difficult, thus limiting the investment opportunities.
India is trying to shape a stable regulatory approach towards the Blockchain mechanism. Although the Indian government has critically viewed Digital Assets, it has taken a step forward in implementing the Blockchain ecosystem.
So, let us find out the sectors and industries that are welcoming Blockchain in India.
Blockchain pivoting Indian Industries
The blockchain mechanism is positively viewed in several industries in India.
According to Avasant NASSCOM analysis, “The BFSI (Banking, Financial Services, and Insurance) sector is leading the blockchain adoption in India. There are more blockchain Solutions required across major banks and insurance companies.”
In 2018, RBI introduced a system to research and study about Blockchain to have a cashless banking system and retrieve the utmost benefits of it.
Industrial manufacturing will amount to 12% emerging growth in the next 3–5 years with the adoption of Blockchain.
There are many types of research conducted in order to test Manufacturing factors like 3D printing with Blockchain technology to generate newer and efficient ways in the manufacturing industry.
Blockchain in Financial Services is immensely increasing. Enterprises are exploring offerings like trade finance, funds processing, securities issuance, identity management, and security record keeping due to Blockchain facilitation.
With 60% of enterprises adopting Blockchain, the BFSI sector has seen the highest adoption, but other industries, including healthcare, retail, and logistics are also accelerating rapidly.
Insurance companies face issues like claim management. This inefficiency affects them in losses that add up to 140 million dollars per year. Cognizant, an American MNC, providing IT services, is joining various Insurance companies in India to build a secure network with the help of Blockchain technology.
Through Blockchain implementation in the Insurance industry, losses can be avoided and efficiency can be enhanced.
TECHNOLOGY, MEDIA, AND TELECOM
Though the majority of the service providers In India have not adopted Blockchain fully, they have started investing in Blockchain solution initiatives. NASSCOM research says, “Service providers in India are also actively collaborating with Blockchain start-ups to jointly develop enterprise solutions using different engagement models such as co-investment and co-innovation.”
Service providers are coming forward and communicating with public sector agencies to develop Blockchain technology in sectors like Media and Telecommunications.
Blockchain technology in Healthcare Industry can solve issues like Insurance and medical loans, elimination of fake drugs, secured health care data sharing, medical record maintenance, and their supply chain.
GOVERNMENT AND NON-PROFIT
The WEF signed a memorandum of understanding (MoU) with the government of Maharashtra to set up the centre in the satellite city of Navi Mumbai. States like Telangana, Andhra Pradesh, and Karnataka have started taking the initiative of adopting Blockchain technology.
PM Modi on the development of Blockchain technology affirmed Blockchain would connect “minimum government” with “maximum governance” which will meet the vision of self-governance. The technology is also capable of “self- certification,” expanding research perspectives, solving government-related issues, increasing transparency, and reducing corruption.
Blockchain can also be useful in voting. It can manage utter transparency because of its immutability. It is cyber secure and smooth with business activities which will help in ease of living for Indian citizens.
India is now open to welcome Blockchain technology. Approximately 50% of the states in India are, either actively or passively, participating in Blockchain-related initiatives, thus encouraging the public sector in adopting blockchain technology.
In addition to the public sector, private enterprises across all key industries in India are also identifying different applications of blockchain. It is expected to increase the growing capacity of banks, manage natural resources, and speed up the process like property registration, contracts, etc.
Considering the growth, Over 70% of the Blockchain projects implementing in 2019 will be expected to provide direct cost savings or achieve process efficiency for enterprises.
With so many advantages and much acceptance, Blockchain, definitely, is a pivotal moment for India and its industries.
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