The Block Chain Technology - Seeker's Thoughts

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Friday, 2 August 2019

The Block Chain Technology

The Blockchain is an undeniably ingenious invention – the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto

But since then, it has evolved into something greater. Satoshi Nakamoto was an inventor of digital currency, and the technology he used was the Blockchain technology in the management of Bitcoin.


What does it do? 

Blockchain solves the problem of manipulation. In the West, people say they trust Google, Facebook, or their banks. But the rest of the world doesn’t trust organizations and corporations that much —for example Africa, India, Eastern Europe, or Russia. It’s not about the places where people are really rich. 

Block chain’s opportunities are the highest in the countries that haven’t reached that level yet. It reduces the problem related to errors which were done by human or machines. As Bitcoin has been performing well since the invention of Blockchain Technology.
So, what is Blockchain and how can it be useful?
The blockchain is a public ledger, an ordered and time-stamped record of transactions.



For example- in Microsoft Word Document 

The traditional way of sharing documents with collaboration is to send a Microsoft Word document to another recipient and ask them to make revisions to it. 

The problem with that scenario is that you need to wait until receiving a return copy before you can see or make other changes because you are locked out of editing it until the other person is done with it. 


That’s how databases work today. Two owners can’t be messing with the same record at once.

The benefit of Blockchain is – With Google Docs (or Google Sheets), both parties have access to the same document at the same time, and the single version of that document is always visible to both of them. It is like a shared ledger, but it is a shared document. 

The distributed part comes into play when sharing involves a number of people.



In Banks- Using Blockchain

That’s how banks maintain money balances and transfers; they briefly lock access (or decrease the balance) while they make a transfer, then update the other side, then re-open access (or update again). 

So, by using Blockchain single thing document can be accessible to various people at the same time. 

In Legal Documents 

Imagine the number of legal documents that should be used that way. Instead of passing them to each other, losing track of versions, and not being in sync with the other version, why can’t *all* business documents become shared instead of transferred back and forth? So many types of legal contracts would be ideal for that kind of workflow. 

You don’t need a Blockchain to share documents, but the shared documents analogy is a powerful one.

This system is used to protect against double spending and modification of previous transaction records where transactions are recorded and confirmed anonymously.
In common words, it’s a record of events that are shared among many parties (nodes).

The Benefit 

More importantly, once information is entered, it cannot be altered. Each full node in the network independently stores a blockchain containing only blocks validated by that node.

When several nodes all have the same blocks in their blockchain, they are considered to be in consensus. The validation rules these nodes follow to maintain consensus is called “consensus rules.”

Blockchain transforms Internet of Information to Internet of Value:

The blockchain is the promise of the completely new Internet, the Internet of Value. Block chain’s economic impact is projected to exceed $3 trillion in the next decade.

The Internet is going to transform from Internet of Information to Internet of Value.

The ownership of digital assets of any type says money, deeds, Government records, financial instruments or art can be securely stored, transacted and tracked.

It is considered revolutionary for its ability to enable the secure movement of assets without intermediaries. The true value lies in creating consensus and trust between the strangers.

That creates trusted transaction networks between entities that do not know or trust each other.

India’s Position in Blockchain Technology

Globally, we are still in an exciting but nascent stage of block chain’s evolution as it moves from the protocol stage to infrastructure, before mass consumer interfaces and application layers.

This is the perfect juncture for a rising power such as India to pay careful attention and capitalize on the enormous opportunities of this new Internet.
Sectors which need Blockchain technologies are financial services, agriculture, healthcare, real estate, etc and utilities have more scope in an emerging economy like India.

Skill Set in Demand- the Blockchain
The blockchain is now the fastest-growing skill set demanded on job sites, with job growth rates at 2,000-6,000% and salaries for Blockchain developers 50-100% higher than regular developer jobs. India has an unemployment problem and the new skill set will help it in gaining more benefits.

Decentralization- As an advantage
The Blockchain technology supports the decentralization that means more distribution of work. India can take advantage of this as skilled people can fetch high paying jobs while being in the country.  So the government should create a strong IT ecosystem.
 India can become a leading Blockchain development hub and a major net beneficiary of global capital inflows.

Eliminating middleman
For delivering services to the beneficiaries India needs middlemen which do lead to corruption. Introducing the Blockchain technology can reduce corruption.
Improvement in Delivering Services
The Service delivery will be faster as due to bribe the files are kept stuck.  
India’s global positioning as a technology powerhouse

Different emerging technologies, such as Blockchain, artificial intelligence, and the internet of things will not work in silos but will converge. That is the space where the next Google’s and Amazons of the world will get created.
The blockchain is a foundational data/transaction layer and missing out on it will hurt India’s overall tech competitiveness.

The pessimistic view of Technological Innovation
The technological innovations have been under the scanner and that is genuine but having a negative view towards new technologies like cryptocurrencies somewhere making Indian market late for the taking advantage of the technologies.
There are sufficient global examples of countries that have taken nuanced and cautious steps in regulating technology and are focusing on stopping illegal activity without hurting innovation.
As core developers/shapers of this technology in India, all citizens should fully cognizant and sympathetic to government concerns of money laundering, tax evasion, investor protection and capital flight.

Conclusion:
Public Blockchains offer tremendous opportunity for India across four dimensions, jobs, capital, and solutions to India’s problems and global strategic positioning. The blockchain is a digital technology for recording and verifying transactions. 

The distributed ledger is a permanent, secure tool that makes it easier to create cost-efficient business networks without requiring a centralized point of control. The application of this emerging technology is showing great promise in the enterprise. 

With the noble intentions of Start-up India and Digital India, Blockchain technology can be an effective way to achieve the goals of the initiatives and ease the business in India. Blockchain technology has been proven and provides all the required security features to implement the solution quickly.

The government has legitimate concerns around money laundering, tax evasion and capital flight using cryptocurrencies. However, regulating the space is not too difficult with a light touch and intelligent policies.