Blockchain: The Remedy To Boost The Indian Economy

Ashish Mehta May 24, 2021

Blockchain is a distributed Ledger Technology. It is a method of keeping records online and in the digital form continuously updated and ironclad with advanced cryptographic processes making the records tamper-proof or immutable.

Now we know that business generates a lot of ledgers and more often than not reconciliation of these ledgers in order to put through a specific action requires a lot of cross-checks, counter-validations, certifications etc. Physical bulky records are difficult to store, search through and often require tedious paperwork involving complex processes of applications and approvals. This often delays the processes in order to make the system secure at the cost of the business efficiency. This process also involves a huge cost in maintenance of records, retrieval of records with processes to validate, verify and reconcile. Often the process is not only time-consuming, but also works out to be extremely costly.

A digital record system, involving a distributed ledger with online records – timestamped and protected with cryptography can achieve a great deal of efficiency in the process without essentially compromising with the security of the system. Monitoring and execution of contracts by using self-executing smart contracts can also usher a settlement process that is dispute-free and parametric to fulfilling of conditions from either parties of the contract. Its like imbibing automation in day-to-day processes without undertaking the daily hassle of going through a repetitive set of actions – without compromising on the security at any point.

Also, Blockchain creates an immutable record – it’s a big plus for the regulators who can then refer to a set of identity records and use them with confidence over and over again – without involving credibility check and identity establishment at every check and balance. So, you will have instant verification of insurance claims and smart contracts can settle them if pre-conditions are met, you can have digital payments monitored and recorded in an immutable transparent ledger which can be cross-checked with a cryptographic has function exchanged between the payer and payee. Healthcare records can be easily referred to for patient’s history and lifesaving interventions can be executed on that basis instantaneously. The entertainment industry can prevent piracy and subsequent opportunity loss through NFTs. Immutable education certificates can be easily verified against immutable identity records and the problem of fake certificates can be dealt with effectively. Government systems and processes can enjoy an increment inefficiency if continuous data updation can keep the information at the disposal of policymakers – the regulators can do away with tons of repetitive paperwork and focus on the execution of regulatory policies in a fast-paced manner. So, we see a multitude of benefits that we can have from such a digital transformation which would add efficiency in every layer of execution and in turn trigger a series of economic benefits aggregated to a huge positive impact in the overall national economy.

The author is Ashish Mehta, Co-founder – DigitX