What is Blockchain Technology? What is its Future in India?

Posted by Dilkash Shaikh on

What is blockchain technology? What is its future in India?

A blockchain is a system of recording information in a way that is nearly impossible to hack or change the system. Blockchain is a database of transactions that is copied and distributed across the entire network of computer systems on the blockchain. Each block collects data or the number of transactions and every time a new data occurs on the blockchain, a fresh block is made. Once the block is filled with information, it is chained into the previous block, hence it makes a data chain in chronological order. Different types of data can be stored in the blocks, but the most commonly used so far is a ledger for transactions. In bitcoin, blockchain is used in a decentralized way so that no single person or group has control over the block. The decentralized blockchain is irreversible which means that the transactions are permanently recorded and viewable to anyone.


Blockchain in India

Blockchain and Distributed Ledger Technologies (DLT) has disrupted many sectors across the business. The concept of blockchain was first introduced for digital currency Bitcoin, but later it has been used for mainstream applications. The cryptocurrency was banned in India as a string of frauds were reported. But the cryptocurrency exchange filed a case in the Supreme Court of India asking to revoke this ban. Finally, after two years, the ban was lifted in March 2020, bringing cryptocurrency trading back to India. As per the report, there are at least 10 exchanges in India as of 2020 that allow traders to trade cryptocurrency. Proper law and some basic KYC verifications will give away widespread adoption of cryptocurrencies across India. Some of India's bigger technology companies have created a platform to trade cryptocurrencies. Blockchain talent and capabilities are extremely scarce in India and across the globe due to its nascence and a low number of live engagements. As per the NASSCOM report, only one out of every 400 software developers in India can work on blockchain. Hence, the demand for people with Blockchain is huge in India. Indian start-ups have not been able to follow the global investment surge in the blockchain. So, there is an urgent need for a government policy to accelerate the use of Blockchain technology.