Future Potential of Blockchain Technology in India

Dec 22,2022 by Dr. Taniya Sarkar
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There are many inventions that are growing in popularity and one of the most popular ones is blockchain technology. A Blockchain (also known as a distributed ledger or a digital ledger) is a type of electronic ledger that is primarily created with the purpose of recording the details of financial and non-financial transactions. A distributed database is used in order to store all the permanent and absolute data. There is complete transparency throughout the entire record which means that anyone who is linking to the network will be able to see all the transactions that have taken place. There are three main components to Blockchain technology, namely private key cryptography, the P2P network, and the software that implements these components. In the field of information registration and distribution, blockchain technology has proved to be revolutionary, removing the need for an intermediary expert to facilitate the development of digital relationships in the field of registration and distribution of information.

One of the most popular products of blockchain technology is Bitcoin, a cryptocurrency that is a type of digital currency that serves as a public ledger for all the transactions that occur on the network as a whole. As a result of this, there has been a reduction in double spending, and unauthorized spending, therefore increasing security. As a result, there is no need for an intermediary expert to be involved in the transaction. A substantial increase in cyber-attacks has recently led to an increased demand for Blockchain technology.

Future Scope of Blockchain Technology

There is a great deal of potential for blockchain technology in the world today. In the financial field, Blockchain technology has proven to have a wide range of applications that cannot be ignored. As a result of demonetization, the financial institutions were unable to handle the heavy load that arose as a result of the heavy workload and, therefore, brought about the need to have a centralized specialist for handling all the financial transactions. Thus, the RBI is inspiring banks to encourage the digitization of their financial institutions as a result. Additionally, they have released a statement in which they have emphasized the probability that Blockchain will be able to fight fake and that Blockchain will be able to bring about particular modifications in the way financial markets work collateral identification, and the payment system. The incorporation of Blockchain technology into financial transactions yields a lot of benefits, such as the potential to save a great deal of time and money, and also a drastic reduction in the amount of time needed to process and validate transactions, in addition to many other benefits. As blockchain is a distributed database, its operations are smooth, secure, and safe from cyber-attacks because it offers tight security and is protected against cyber-attacks because it uses a distributed database.

The fact that several financial institutions have recognized the benefits of Blockchain Technology has led them to begin spending a significant amount of money in this particular field. As mentioned before, blockchain can also be used to reduce the flow of black money and deal with the extensive money cleaning that is required in the economy because every address that is used for transactions is stored forever on the blockchain, making all the transactions responsible and provable. The government is currently observing the potential of Blockchain as a way to explore a range of options that may be useful in controlling the nation’s economy in a more effective way.

In terms of keeping track of financial properties, Blockchain Technology has proven to be one of the most reliable and consistent technologies on the market. It is not surprising that blockchain technology has attracted many companies who have found that there are unique characteristics of it that can be added to their security structures. Digital currencies and blockchain technology have been the subject of many studies, which has led to the conclusion that both of these technologies will continue to disrupt the world in the future.

Blockchain technology has a bright future not just in the financial industry, but also in several other industries. The following is a list of some of the sectors where Blockchain technology will have huge future potential in the future:

Blockchain in Digital Advertising

Digital advertising at this time faces many challenges such as domain fraud, bot traffic, lack of transparency, and long payment models, due to the fact that incentives are not affiliated with the business model. As a result, the promoters and publishers of the deal feel that they are dropping the deal as a result of this. There has been a revolution in blockchain technology that has provided a solution for bringing transparency to the supply chain, as it constructs trust in a trustless environment. By decreasing the number of bad players in the supply chain, the blockchain allows the right companies to succeed and thus allowing them to be successful. A vast percentage of the total advertisement dollars that arrive in the ecosystem can also be collected by publishers. In spite of the fact that blockchain technology is still in its infancy, it is anticipated that this technology will be around for a long time to come, and all advertisement companies are observing how it can help them to improve their businesses.

Blockchain in Cyber Security

While the blockchain is a public ledger, the data on it is verified and encrypted by the use of innovative cryptography technology, even though it is a public ledger. Therefore, there is less chance that the information or data will be accessed or altered without the permission of the person in charge.

Blockchain will remove the requirement of the third party

Blockchain technology is basically able to impact a wide range of processes and techniques with the help of it, in general. There is no need for the transaction to be handled by a trusted third party in order to complete it. The majority of prominent organizations in the world today are able to serve as trusted third parties in the delivery of financial services, for example, SWIFT, the Depository Trust Cleaning Company, and so on. Companies that have been able to apply Blockchain technology to particular transactions, such as the mortgage industry, have been able to develop a business model that thrives. Due to the nature of the existing mortgages, there was a complex web of title searches, title insurance as well as uncountable minor transaction fees that are required to keep the system running. Due to the traditional nature of land transfers, there has been a considerable amount of trust in the records of the past when it comes to the transfer of land. In the next few years, blockchain technology is going to address all of these concerns, and each property’s ledger will contain a verifiable and validated history of transactions, reducing the need for institutions to provide risk modification and trust services to their clients.

Governments will provide digital currencies 

It is confirmed that paper money has reached the end of its useful life, but it has also been discovered that the authorized currency is facing serious competition from cryptocurrencies in the form of rapidly advancing digital cash. This year, we have seen that the price of Bitcoin has soared in such a way that has never been seen by any other service or money all over the world before. Due to the price of Bitcoin being denied by the basic idea of demand and supply in the market, it is still one of the most appreciated properties available in the market, and the nation took notice, due to the fact that it is one of the most appreciated properties available in the market. Eventually, there will be a need for Bitcoin again, and there will be a fixed limit of twenty-one million units available for purchase. As a result, quite a few governments will get a chance to develop their own digital currencies so as not to lose face to independent and unregulated property and to participate in the market in an open and democratic manner.

Blockchain beyond the world of computing

As of 2017, there has been a vast array of options available in the area of the use of blockchain technology throughout the world. At the moment, most countries are developing their own blockchain strategies in order to prepare themselves for the future. The rest of the advanced European countries may also follow suit by adopting blockchain technology in order to create a constant financial environment that will help the nations on the brink of ruin, like Greece or Spain, by creating a stable financial environment. With regard to the security of finances, there are some specific challenges that need to be addressed, and Blockchain will be used to solve these problems. Additionally, the use of the blockchain will also be used for the creation of medical registries, the management of insurance policies, and for the interruption of the model of useless data storage that currently exists.

Managing World trade with the help of Blockchain Technology

Blockchain technology is extremely valuable to the industry in terms of making it easier for anyone to track the supply chain of everything that is provided to customers using the technology. As a result, monitoring the numbers will become outdated with time, and no company wants to lose a shipment due to human incompetence. When it comes to registering cargo shipments on the Blockchain, there is no issue at all, as this allows all parties involved in the operation to follow the delivery procedure from A to B at all times. In the future, with the advent of Blockchain technology, customs agents will be able to track forbidden products such as fake medicines, altered foods, false clothes reproduction, fake auto parts, electronic equipment, and other piracy agents who are trying to provide low-quality goods in any country without referring to the internal laws of the country.

Supply Chain Management

In order to document the transactions in an everlasting distributed record, it is possible to use the technology of blockchain in order to do so as well as to supervise the transactions more sturdily and transparently than ever before. Using this method also reduces the possibility of human errors as well as time delays. Additionally, it is used as part of a supply chain monitoring tool to monitor the costs, employment, and releases at each step along the way. However, this has a severe effect on our ability to understand and monitor the actual ecological impacts of products as a whole. A decentralized ledger can also be utilized in order to verify whether a product is a legitimate or fair trade by following the path from the point of origin to the point of sale.

The Blockchain in Forecasting

Blockchain technology is poised to revolutionize the entire methodology for research, consulting, analysis, and forecasting in the near future. Online platforms are used to help create global distributed prediction markets that can be accessed worldwide.

Use of Blockchain in the Internet of Things and Networking

In order to create a distributed network of IoT(Internet of Things) devices, different companies, including Samsung and IBM, are utilizing blockchain technology for a new concept known as ADEPT, which will help to create a distributed network of IoT devices. Using blockchain technology, you will be able to remove the requirement for a central location in order to manage communication between devices, as it will function as a public ledger that will be accessible to a wide variety of devices. During the process of upgrading the software, handling errors, and observing energy practices, the devices may communicate with each other to perform the upgrade.

Read More: Blockchain Technology: An intuitive guide you will ever read in 2022

Blockchain in cloud storage

A centralized server holds data that is susceptible to hacking, data loss, or human error, which can cause your data to be compromised. Blockchain technology has made it possible to make cloud storage more secure and more resilient against hacking by making it easier to protect.

Take Away

As it has proven to be capable of successfully developing other kinds of IT innovations before, India has a great deal of potential to emerge as a global leader in blockchain technology as well. 

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