From its inception as a Bitcoin platform in 2009 by Satoshi Nakamoto, blockchain has evolved into an all-encompassing, innovative backbone technology that adds value to organizations across sectors far beyond the monetary sphere.
Blockchain development in the entire world
It’s encouraging to see the technology mature in India as well, with the government announcing plans to establish a national blockchain architecture to create a centralized ecosystem that will encompass 44 areas, including e-government.
India will be on par with countries like China, the United Arab Emirates, the United States, Brazil, Chile, Canada, Singapore, and Switzerland to leverage the potential of this emergent technology through a policy framework.
This technology will be a game-changer in the next few years. According to a Gartner estimate, many new inventive companies will use it, and at least one organization formed utilizing this advanced technology will be worth $10 billion by 2022. By 2030, 30% of the worldwide consumer base could be using it as a core technology.
By 2025, the value of blockchain will have increased to approximately $176 billion. By 2030, this figure would have risen to $3.1 trillion. It merely demonstrates the possibility. One of the proposed framework’s features is that the Ministry of Electronics and Information Technology (MeitY) has selected 44 essential areas, including practically every industry, from pharmaceuticals to agriculture to education and energy.
Among them, e-governance will receive a boost, as the government has a large list of potential applications for delivering services to citizens via foolproof technology.
e-notary services, e-sign solutions, duty payments, automated customs enforcement and compliance, agriculture supply chains, e-voting, crypto wallets, health records, cross-border transports, public service delivery, charity donations, smart grid management, and vehicle registrations are just a few of them. The confidence and accountability of e-governance will be preserved since the data in blockchain technology is nearly impossible to mess with.
Apart from the current infrastructure and services, it can also combine existing applications like e-Sign, ePramaan, and DigiLocker.
It implies that the disparate attempts by many ministries to use this technology will now be merged, and we will see a much-needed push for IT reforms, aided by private sector backing and more research.
The objectives are well stated, and the potential is well reflected in the proposed policy proposal. The technology will store data in a distributed environment in a decentralized, watchful, time-stamped, and immutable manner, providing an efficient ledger storage method.
The challenges that blockchain faces
However, we cannot overlook the numerous problems. The main challenge is scalability, as the present transaction processing rate changes based on various circumstances. The performance and scalability of blockchain networks will be a major priority area in the near future. Like other related advancements, security will be a big challenge, while efforts will be made to build new models and solutions to improve security.
Another thorny issue is interoperability, which is still in its infancy in the country, with much work to be done in several crucial areas. Data localization is an issue that requires further attention and investigation. Countries have enacted new legislation to limit data flow and localize data.
The GDPR is a data protection law enacted by the European Union (General Data Protection Regulation).
However, the new endeavor is a good step forward from an international viewpoint, as many countries have marched ahead of us. China has a Blockchain-based Service Network enabling speedier application development. The European Blockchain Partnership is working to establish a trustworthy European Blockchain Services Infrastructure for interoperability, privacy, and security.
India has the potential to become a pioneer in blockchain technology, just as it has in other IT advances.