Blockchain Technology in India Opportunities and Challenges: One of the trends that developed in 2018 is Blockchain. Technology has changed the world and opened the door to possibilities.
Not only has it become an essential part of many new applications, but it has also become a field of research that expands its use as part of daily life.
Blockchain attracted the attention of everyone around the world and how India could stay away from it. India, one of the fastest-growing economies, is also trying to enter the Blockchain field in search of its benefits and applicability.
Blockchain has experienced a lot of grip in recent years in India. Many banks and conglomerates have tested this technology in various applications. Blockchain is still in its infancy and needs to be explored in various industries and applications.
Understand Blockchain technology
We should understand Blockchain technology in India opportunities and challenges it faces. But before we go into that depth, we understand Blockchain. This is a digitally distributed book or ledger. Each transaction here is recorded in chronological order.
Every transaction in the Blockchain is time-stamped and each record here is known as a block.
Blockchain makes it easier for people to keep track of transaction history. Thanks to this, Blockchain is an unalterable technology that makes it full-proof.
The best-known blockchain application is Bitcoin, a decentralized digital cryptocurrency that can be used to pay for products and services. Although Bitcoin is the best-known blockchain program, it is not the only application that blockchain can implement.
There are also other fields where Blockchain technology can be applied like financial services such as digital assets, online payments, and online communication systems such as smart contracts, Internet of Things, reputation systems, security services, and public services.
Blockchain key advantages
Over our current system Blockchain technology has several key advantages, including the fact that it is primarily decentralized, which means that it is not controlled by any government, any individual, or any corporation.
It is also completely transparent and can be very easily controlled or monitored. It is also safe from data tampering or data alteration. Besides, the data in the blockchain is encrypted, which makes it’s hacking almost impossible.
In terms of its advantages, Blockchain offers several advantages over our current technology, these advantages include:
The history of a transaction is more transparent with blockchain technology. Since blockchain is a kind of distributed ledger, all online participants have the same copy of documents as opposed to individual copies.
Blockchain is more secure than other documentation systems in several ways. Before recorded a transaction they must be accepted first. When a transaction is accepted, it is encrypted and linked to a previous transaction.
Exchange of good whenever recorded on a Blockchain, you end up in a chain that shows where the goods came from and every stop it made during the journey.
Efficiency and speed
A standard paperwork process for all trades is time-consuming and prone to human error and often requires third-party brokers. By optimizing and automating these processes with blockchain, you can make transactions faster and more efficient.
Reducing costs is a priority for most companies. In the blockchain, you do not need as many third parties or intermediaries to give guarantees because it does not matter if you can trust your business partner. Instead, you only have to rely on blockchain data.
Actually, what the internet was in the 1990s Blockchain is now today. Since the birth of the Internet in the 1990s, it faced similar fears and doubts as Blockchain technology is facing at present.
But over time, Internet technology grew and doubts about this technology have been cleared. So Blockchain technology is also going to rise in the coming time.
As for the skills needed to master the Blockchain technology, you need the following:
- C ++
Credit services, payment processing, and financial service knowledge. One should know big data and data science concepts.
Blockchain technology in India opportunities and challenges
It is known to all that China is trying to use Blockchain technology and find applications in everyday life. Walking similarly, in the footsteps of the neighboring country, India is also trying to find the use of Blockchain.
And also want to know about the Blockchain technology in India opportunities and challenges it is facing.
The country has taken several steps towards digital development; Blockchain technology is another thing India is looking at.
As mentioned above, thanks to decentralization technology, Blockchain technology is becoming a much more affordable technology that can be used in various areas of our daily lives. Blockchain can be a great platform for tracking the origin of a product. It is also great to track financial transactions.
According to reports published in the Business Line, the government in Karnataka has shown a penchant for blockchain technology.
Voting is an area where the use of Blockchain technology can be revolutionary. Although the use of Blockchain technology in the field of voting it is a long-term dream.
The nation has a great need to include a system that can ensure secure and transparent voting.
The nation’s thinking about Blockchain technology can be deduced from the fact that the Reserve Bank of India (RBI) intends to set up a committee to study the applications of Blockchain and create a cashless and decentralized banking system (1).
The Telangana state government has also announced that it will use Blockchain technology to digitize land records and also update other information using Blockchain technology.
Blockchain Technology in India Opportunities and Challenges
Opportunity for blockchain in India
- Following demonetization, India has developed a progressive vision of digital creation and is aware of the benefits of blockchain and its potential for good governance.
- The blockchain initiatives of the Government of India are visible from the exhibition of many PoC (Proofs-of-Concept) ideas displayed in the fields of banking, insurance, and registration of land records.
- IDRBT (The Institute for Development and Research in Banking Technology), the RBI (Reserve Bank of India’s Technology Division), is in front of two PoCs – domestic business and payment information enhancement -involving banks and technology companies such as Infosys and IBM.
- The State of Andhra Pradesh is the first in the country to introduce blockchain technology in property registers and is also establishing the Blockchain Center of Excellence to establish the first blockchain state in India.
Some examples are other states such as Maharashtra, Karnataka, Kerala, and Rajasthan.
Challenges of adopting blockchain in India
Although blockchain adoption and initiative are solely focused on certain technologically intelligent circles, the biggest challenges facing major adoption and implementation are:
There is very limited knowledge about blockchain and shrouded in contempt in the irregular cryptocurrency market. Companies interested in blockchain technology could probably reserve an internal team to understand the technology, its impact, and its scope.
Blockchain is thought to be a perfect technology that replaces existing technology. This misunderstanding is also an obstacle to adopting blockchain. People need to understand that blockchain is a technology that will be integrated into existing systems to allow new approaches and business applications.
A small-scale model of the Blockchain framework is released by a professional service company to display blockchain tangibly and practically.
Financial services based on Blockchain are evolving. Several Indian banks have started implementing blockchain ecosystems in their banking systems. However, the absence of regulations and a special regulatory body to standardize and approve the overall implementation is yet another complication in its adoption.
Integration of data
The incorporation of existing technologies with blockchain and data security in the early stages of development is another complication in adopting this technology.
Besides, there was a ban on cryptocurrencies in India. Indian blockchain companies get their money through Initial Coin Offering (ICO) rather than through a traditional financing process.
The cryptocurrency ban has a negative effect on these companies and they leave India to raise money. Widespread awareness and regulation through specific research into blockchain will be one way forward to abolish these hurdles.
The transition to blockchain technology is not easy for any company or organization. Its main application, cryptocurrency, is without a doubt a better and cheaper way to pay than regular Fiat currency.
And self-executing contracts you make in smart contract applications, for all this may not be true. Although the cryptocurrency has been tested and widely accepted, many other blockchain applications still need to be implemented and run.
For example, the adoption of a blockchain in banks requires not only the implementation of PoC but also the compulsion of banks to hire blockchain experts and operate PoC on a large scale.
Hiring blockchain professionals and data scientists are much more expensive than hiring a software developer this is also a hindrance in Blockchain adoption.
If the blockchain becomes a big hit in India, it will change the rules of the game. Not only will it pave the way for new jobs, but it will make the nation proud around the world.
Many people in the nation may want a lucrative career as a blockchain professional. And if you are looking to build a career in this field or want to strengthen your skills, online blockchain certification can be the perfect first step.
Before proceeding with blockchain online certification, you need to take a broader look and assess the stability of your career in this field. You should try to know the Blockchain technology in India opportunities and challenges faced by it.
So check out the online blockchain courses and find out more about the opportunities and challenges you will face if you follow a career in this field.