The term “Blockchain Technology” has attracted massive attention over the past few years since the father of bitcoin, Satoshi Nakamoto, penned down the existence of a digital currency that would allow secure, peer-to-peer transactions, without the presence of any third person or organization as a middle man. Since its first mention, cryptocurrency technology began to grow leaps and bounds coming up with new innovations and better use cases, every step of the way.
How is India Getting Impacted by Cryptocurrency Technology?
Surveys demonstrate India has been adapting to blockchain technology pretty well and going ahead with exploring this technology in their daily business practices. The private sectors of India which use this technology to a great extent comprise of banking, financial services, and the insurance industry. However, the public sectors are also taking up this technology and are using it in cases such as land registry, vehicle lifecycle management, farm insurance, and electronic health record management. As per the numbers of the 2021 Global Crypto Adoption Index, India ranks second after Vietnam and stands ahead of countries such as the US, UK, and China. Therefore, this makes it pretty evident that India is getting well acquainted with this technology and is adapting to it more and more.
However, the main question arising here is whether India as a nation will be able to grab a position for itself as the largest technology hub in this blockchain technology.
Factors Driving India Towards Blockchain Adoption:
In the last ten years, India has established quite a foundational digital infrastructure. This digitisation has already laid the foundation to experiment and adopt this technology in both private and public sectors.
Given the population scale, diversity, and complexities of processes running in the public sector of India, the government here faces numerous challenges. The blockchain technology therefore provides unique solutions to issues relating to improving governance. For instance, by offering ‘self-regulation’ in businesses, India is forging ahead and improving the ‘Ease of Doing Business’ by allowing different bodies and organizations to interact via a trusted medium, while reducing the dependency on massive regulatory oversight and compliance. Seeing all of this development taking place, it is quite clear that blockchain technology will eventually empower citizens and improve their ease of living as well owing to the transparency, decentralization, and accountability this technology involves.
How Will It Affect India’s Economy?
Experts are of the view that, gradually adopting blockchain technology, India’s economy will be benefited in several ways such as contract management and procurement, greater accountability, quality control across supply chains and most importantly decentralization of authority in the decision making process.
For instance, blockchain technology can bring about great transformation in the agricultural sector of India as it will remove the mistrust between the farmers and the intermediaries. This technology will also be capable of exploring certification of provenance of organic produce resulting in increased interaction between foreign markets.
There’s no ounce of doubt that blockchain technology has a vast range of practical applications which will help them to deal with problems with improved efficiency. Several businesses are taking on this technology and the way India as a nation wishes to make its space here, the trend is surely going to stay.