Blockchain, original idea of the founder of the world's first cryptocurrency, Bitcoin, Satoshi Nakamoto, is often referred to as the "backbone of the new Internet". Initially conceptualized in 2008 for Bitcoin, the blockchain has found its use in several other areas.
WHAT IS BLOCKCHAIN?
Blockchain is a large open and distributed book that can record transactions between two parties in a verifiable and permanent way. Once saved, the transaction data can not be changed retroactively without changing all subsequent blocks. It also allows users to check and audit transactions without too much expense.
The Blockchain is an ever-growing list of cryptographically linked, secure records (secret codes that prevent third parties or the public from reading transaction data), each block containing a timestamp and transaction data, managed by a point in time. point, P2P network (user to user).
Person A requests a transaction involving crypto-currency, records, contracts, or other information → The requested transaction is forwarded to a P2P network of computers called Nodes → The node network validates the transaction and status of the user. , using known algorithms → The verified transaction is combined with other transactions to create a new block or data for the ledger → The new block is then added to the existing blockchain, permanently and unalterable → The transaction is complete.
It should be remembered here that transaction data has no physical form, only exists on the network and has no intrinsic value for third parties.
Quite simply, blockchain is a large digital book that is managed autonomously and regularly, which can record not only financial transactions, but also anything of value. The Blockchain allows the exchange of value without any centralized intermediation by referees of money and information. This is a kind of self-auditing big book that reconciles every 10 minutes.
ADVANTAGE OF CENTRALIZED DATABASES:
Centralized data is controllable and is therefore subject to manipulation and theft. On the other hand, in a blockchain, there are no centralized vulnerability points for information to be hacked and corrupted. Due to the storage of identical blocks of information on the blockchain's network, it can not be controlled by a single entity, has no single point of failure, and can not be retroactively modified. . Everything that happens on a blockchain is a function of the network as a whole.
In addition, blockchain reduces the TAT of processes and, because of its distribution, makes the data transparent to everyone involved. Blockchain technology can help make traditional processes faster, more accurate and more secure, while dramatically reducing database management costs.
The only problems reported in blockchain technology have been caused by human errors and bad intentions, not by defects in technology.
BLOCKCHAIN APPLICATIONS IN INDIA:
The distributed nature of the blockchain makes everything that comes out of it more profitable, efficient and secure. It can be used to upgrade many economic and social systems, such as:
Most, if not all, banking systems are built around centralized databases. The costs, the manpower, the deadlines and the risks of fraud related to the reconciliation and processing of billions of transactions represent a challenge that the banking sector has not yet been able to solve, even after many improvements. The global success of Bitcoins and other crypto currencies has shown the banking system how blockchain technology can be beneficial in reducing online banking frauds.
Blockchain can provide the ultimate solution to the costs of KYC verification, due diligence and underwriting, by allowing KYC's independent audit, due diligence reports and credit history. particular or from a company carried out by any other organization. This can also be used to combat money laundering.
The Blockchain can also make clearing and settlement operations faster, cheaper and even safer than they already are.
Many banks have already invested heavily in research related to the migration of their banking systems to the Blockchain network.
ii. Record keeping at the property registration office:
Real estate fraud and the use of black money for the sale-purchase of properties can be significantly reduced if the existing system is upgraded to blockchain technology or similar technology. The government of Andhra Pradesh has teamed up with a young Swedish company, Chromaway, to set up a blockchain-based land ownership system to eliminate property fraud and corruption.
iii. Data Management in the Public Sector:
There has been a great deal of debate over the security of Aadhaar databases and fears of surveillance. Blockhain can eliminate these risks and also be used to store information on birth, death, voter registration, issuance of the PAN card and driver's license, ownership of vehicles, actions in justice, complaints against the police, etc. belongs to them.
iv. Stock exchange:
The blockchain can reduce the risk of fraud and operational errors in trading. Not to mention that the transactions would become almost instantaneous. The NASDAQ and the Australian Securities Exchange are already exploring the blockchain to reduce costs and improve efficiency.
v. Cloud storage:
Blockchain provides additional security for data that is not lost or corrupted.
vi. Supply Chain:
Blockchain establishes a shared and secure record of information flows for the supply chain network. It enables faster, authorized and auditable B2B interactions between buyers, sellers and logistics service providers. The shared version of events improves supply chain efficiency, multi-stakeholder collaboration, and simplified conflict resolution.
vii. Health care:
Blockchain can help fight counterfeit drug problems by mapping each transaction between drug manufacturers, wholesalers, pharmacists and patients. It can also be used to improve and authenticate health records based on a sharing, for better treatment.
viii. Intellectual property:
Blockchain can be used to catalog and store intellectual property in a numerically secure manner. It has the potential to solve the problem of property authentication for intellectual properties and to allow homeowners to see who uses their work.
ix. Music distribution:
Similar to IP, musicians can catalog and store their music in a digitally secure manner and be paid as the music is purchased / read. In addition to this, collaborations and licenses will also become more effective. He will work on the concept of peer-to-peer music sharing, where the intellectual property rights of musicians are protected and paid for their hard work.
X. Social Network:
The blockchain can make social networks more private and profitable for users. It can help users of websites and social networking applications to choose what data to make available to others, to view and use, and to be paid for that data. Would not it be fun? This is not a dream, but a reality with Obsidian Messenger.
xi. Carpooling in real time:
Imagine a self-managed real-time ride sharing app, as an alternative to Ola and Uber, where drivers are rewarded for offering a shared ride. The Zooz, a start-up based in Israel, is in the testing phase and should become a cheaper alternative to Uber in the world.
The understanding of the blockchain among people is limited, to a very large extent, to bitcoins. However, at a time when India is witnessing innovative solutions using technology to solve structural problems, blockchain has opened the door for start-ups and small businesses to design and adopt solutions based on blocks. If you are experiencing systemic or structural problems in your business, it would be wise to see if a solution based on the blockchain is feasible. After all, necessity is the mother of all invention!
Debt (commercial loan) and private equity options are readily available to new businesses working on Blockchain concepts.