Meaning of the Blockchain
A blockchain is a digitised, decentralised, public ledger. It is a continuously growing list of records (each identified as a block). Each block is linked and secured, thereby making this an incorruptible ledger. In a blockchain, there is no single source of truth, no individual entity owning the network and no one can unilaterally modify the data stored. Technologies behind blockchain are- Private key cryptography, P2P network and Blockchain protocol. The three key principles of blockchain technology are transparency, decentralisation and accountability.
Prospects of Blockchain Technology
Originally developed in 2008 by Satoshi Nakamoto, this technology has applications in almost every field. While the first generation of digital revolution brought us the internet of information, the second revolution, with the advent of blockchain technology, will bring forth the internet of value. Some of its applications are – 1. Cryptocurrencies such as bitcoin, etherium, pi etc, 2. Payment processing, 3. Smart contracts, 4. Supply chain management, 5. Asset protection through an indisputable record of ownership, 6. Personal identification data management, 7. Crowdfunding, 8. Improved, integrity-first governance system.
Advantages of Blockchain
• It resolves the problem of manipulation increasing accountability. • Ownership of data will not be vested in a centralised authority. • Data entered is immutable and there is a tamper proof audit trail. • Removal of intermediaries and settlement allows for dramatically increased transaction speeds. • Online identity and reputation will be decentralised.
Challenges of Blockchain
• Huge power is required. • The weakest link in the system, that is the originating computer, can be hacked. • Transaction speed might be reduced.
India and Cryptocurrency
• At the present, the country has around, more than 75,00,000 cryptocurrency investors. • The prices have surged by nearly 900%. • The centre will have a calibrated approach leaving the window open for experiments in blockchains. • Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is a bill pending before the parliament.
