Blockchain technology was evolved in wake of the last global financial crisis in 2008. Satoshi Nakatamo invented virtual currency in the wake of the last global financial crisis in 2008. Blockchain is a peer-to-peer distributed ledger of time-stamped transactions. Blockchain stores information in blocks. It can be used as a digital registry to record, transfer, and verify asset ownership and can also be used to preserve the integrity and authenticity of sensitive documents. New information enters the fresh block. Once a block is filled with data it is chained into a previous block which makes data chained together in chronological order. Decentralised Blockchain is immutable which means data stored once is irreversible. The transaction is permanently recorded and viewable to anyone. Blockchain is recorded keeping technology behind the bitcoin network. The user can edit sections of Blockchain by a private key. Impact on Indian Economy: Banking and The Financial services: The Blockchain and Fintech have simplified the banking process by enforcing identity verification, introduced crypto payments and eradicate middlemen. Pharma Sector: Blockchain has increased diagnosis and also upgrade treatment levels. It also helped in the verification of medicines and streamlined the supply chain process. Retail: Blockchain has removed the intermediaries in form of Blockchain wallets have eased the process of p2p payments. Logistics: This technology has helped companies to record every transaction right from sales, storage and shipments in a decentralised block which helped to lower human errors. For eg: Walmart Agriculture: Blockchain has introduced a decentralised mechanism that made it easier to trace crops and other products which increased the trust between farmers and lenders that helped to enhanced the pace of transactions and cut down the third-party companies. Recent developments in Blockchain technology in India In 2017, SBI formed consortium Bankchain which has 37 members and 22 live projects have been working to set up an integrated corporate KYC platform, a vendor rating system and a blockchain-powered register, which records liens, mortgages and pledges. Several banks such as Axis Bank, ICICI Bank, Kotak Mahindra Bank and YES Bank have been running blockchain experiments to digitise bill collection, letters of credit and invoicing. e-mudra – the certifying authority licensed under the IT Act – has launched a research and development (R&D) centre for the development of technology solutions and products based on blockchain. It is also working on a hybrid model to secure transactions with blockchain to streamline ID while using Aadhaar or other forms of ID by storing ID verification records on a blockchain. On 13 August 2019, the RBI introduced the enabling framework relating to the regulatory sandbox that covers innovative products, services and technologies developed by start-ups, banks, financial institutions and other companies that partner with or provide support to financial services businesses which could be considered for testing, such as applications of blockchain technologies. Ministry of Electronics and Information Technology (MeitY) has identified Blockchain Technology as one of the important research areas having application potential in different domains such as Governance, Banking & Finance, Cyber Security and so on. MeitY has supported a multi-institutional project titled Distributed Centre of Excellence in Blockchain Technology with C-DAC, IDRBT and VJTI as executing agencies. Thank you.
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