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Blockchain Technology

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Blockchain Technology

Uploaded by

uppali
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© © All Rights Reserved
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Insights Mind maps

General Studies – 3; Topic –Science and Technology- developments and their applications
and effects in everyday life

Blockchain Technology
1) Introduction
 Blockchain is a secure, digitised and distributed ledger to store records.
 Anything recorded on them cannot be deleted, and is instantly uploaded to all users on that
blockchain.
 Blockchain originally developed as an accounting system for the cryptocurrency Bitcoin, is being
researched across the banking and financial services industries.

2) Advantages
 The blockchain ledger has several advantages over traditional databases.
 It is more transparent and secure as any changes to the ledger can be made only with the approval
of all stakeholders.
 The records in the ledger are distributed among the stakeholders and not stored in a centralised
database.
 Blockchain removes the need for using a trusted third party such as a bank to make a transaction by
directly connecting the customers and suppliers.
 Transaction time is reduced.
 Blockchain’s ability to enhance real-time visibility in the functioning of the supply chain will prevent
leakages, and thereby increase efficiency.
 It provides an opportunity for technology start-ups for developing and using the technology for
diverse applications.

3) Applications
 Bitcoin is just one of the applications for the technology, whose use is being tested across
industries.
 Healthcare, banking, education, agriculture, electricity distribution and land records are sectors that
could benefit.
 Blockchain-powered smart contracts, where every piece of information is recorded can enhance
ease of doing business.
 It will augment the credibility, accuracy and efficiency of a contract while reducing the risk of
frauds, substantially.
 Blockchain could play a crucial part in health insurance claims management by reducing the risk of
insurance claim frauds.
 The technology can also be used to prevent the sale of spurious drugs in the country by tracking
every step of the supply chain network.
 Artificial Intelligence and Internet of Things (IoT) can gain immensely from blockchain applications.
 In an IoT world, thousands of devices would need to rapidly and seamlessly transact with each
other in real time.
 The adoption of blockchain by India’s banks could help avert frauds such as the one at Punjab
National Bank as the technology updates information across all users simultaneously.
 It could be used to further strengthen our national institutions, including the judiciary and the
Election Commission.
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Insights Mind maps

 Critical citizen information like land records, census data, birth and death records, business licenses,
criminal records, intellectual property registry, electoral rolls could all be maintained as blockchain-
powered, tamper-proof public ledgers.

4) Government's Efforts
 'IndiaChain' - Niti Aayog's ambitious project to develop a nation-wide blockchain network.
 When implemented it will be the world’s largest blockchain implementation programme in
governance.
 Several State governments including Andhra Pradesh, Telangana, Gujarat, Karnataka and
Maharashtra,are using the technology for their e-governance initiatives.
 The Andhra Pradesh government is leading the way in blockchain adoption in land records and
transport.

5) International Examples
 Globally, blockchain technology has proven to be a change-maker.
 In Russia, blockchain-based systems are being pursued for land registry management as well as for
improving the local voting system.
 The Dubai government is on its way to implement blockchain-based paperless digital systems in
visa applications, licence renewals and bill payments.
 Estonia's eHealth Foundation is using a blockchain-based system to process and store patient
health records.

6) Concerns / Challenges
 Blockchain technology is expensive to initially put it in place.
 The massive usage of energy for the functioning of blockchain.
 Safeguarding the privacy of individuals and companies as blockchains are usually open ledgers for
everyone to see.
 Knowledge of the benefits of distributed ledger technology is still limited.

7) Way Forward
 Blockchain, with all its possibilities, needs a serious look at its vulnerabilities and commerciality.
 Before introducing blockchain into the public sector data-handling system, we need a robust and
informative data repository.
 Linking IndiaChain with Aadhar, thus creating a secure personal identity for all Indians.
 Proper regulations for the use of blockchain technology in the country.
 Identifying and resolving key issues and challenges in implementing this technology, the prime
amongst those being data privacy.
 India should effectively channel its technical human capital surplus to position itself as one of the
pioneers during this upcoming wave of innovation.

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