{"id":50124,"date":"2019-07-18T19:00:20","date_gmt":"2019-07-18T13:30:20","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?p=50124"},"modified":"2019-07-18T16:12:46","modified_gmt":"2019-07-18T10:42:46","slug":"7-pm-the-benefits-of-blockchain-18th-july-2019","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/7-pm-the-benefits-of-blockchain-18th-july-2019\/","title":{"rendered":"7 PM | The benefits of blockchain | 18th July, 2019"},"content":{"rendered":"\n<p><strong>Context:\n<\/strong>Blockchain\nand its impact on Indian economy.<\/p>\n\n\n\n<p><strong>More\nin News:<\/strong>\n<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The\nBanning of Cryptocurrency and Regulation of Official Digital Currency Bill,\n2019 has proposed stringent penalties, including 10 years of imprisonment, for\nholding, selling or dealing in cryptocurrencies such as Bitcoin.<\/li><li>Recently\nFacebook announced its own cryptocurrency to facilitate payments globally with\nminimal fees and no dependency on a central bank.&nbsp;<\/li><\/ul>\n\n\n\n<p><strong>Cryptocurrency:\n<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Digital:<\/strong> Cryptocurrency\nonly exists on computers. There are no coins and no notes.<\/li><li><strong>Decentralized:<\/strong>\nCryptocurrencies don\u2019t have a central computer or server. They are distributed\nacross a network of (typically) thousands of computers.<\/li><li><strong>Peer-to-Peer: <\/strong>Cryptocurrencies\nare passed from person to person online. Users don\u2019t deal with each other\nthrough banks, PayPal or Facebook. There are no trusted third parties in\ncryptocurrency.<\/li><li><strong>Pseudonymous:<\/strong> This means that\nyou don\u2019t have to give any personal information to own and use cryptocurrency.\nThere are no rules about who can own or use cryptocurrencies.<\/li><li><strong>Trustless:<\/strong> No trusted\nthird party means that users don\u2019t have to trust the system for it to work.\nUsers are in complete control of their money and information at all times.<\/li><li><strong>Encrypted:<\/strong> Each user has\nspecial codes that stop their information from being accessed by other users.\nThis is called cryptography and it\u2019s nearly impossible to hack.<\/li><li><strong>Global:<\/strong> Countries have\ntheir own currencies called fiat currencies. Sending fiat currencies around the\nworld is difficult. Cryptocurrencies can be sent all over the world easily.\nCryptocurrencies are currencies without borders.<\/li><\/ul>\n\n\n\n<p><strong>Blockchain\ntechnology:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"660\" height=\"246\" src=\"https:\/\/i0.wp.com\/blogadmin.forumias.com\/wp-content\/uploads\/2019\/07\/aa.png?resize=660%2C246&#038;ssl=1\" alt=\"\" class=\"wp-image-50125\"\/><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>Blockchain\nwas first introduced as the core technology behind Bitcoin (designed by Satoshi\nNakamoto), the headline-grabbing decentralized digital currency ecosystem\nproposed in 2008. The appeal of blockchain technology lies in its use of\npeer-to-peer network technology combined with cryptography.<\/li><li>A\nblockchain is a database of every transaction that has ever happened using a\nparticular cryptocurrency. Groups of information called&nbsp;\u2018<em>blocks\u2019&nbsp;<\/em>are\nadded to the database one by one and form a very long list. So, a blockchain is\na linear&nbsp;\u2018<em>chain&nbsp;of<\/em><em>&nbsp;blocks\u2019<\/em>.\nOnce information is added to the blockchain, it can\u2019t be deleted or changed. It\nstays on the blockchain forever and everyone can see it.<\/li><\/ul>\n\n\n\n<p><strong>Potential\nof Blockchain Technology:<\/strong> <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Industries\nwhere interest in blockchain technology and its potential transformative\nbenefits has been high, as demonstrated by significant investments from both\nventure capital firms and large enterprises. Facebook, for instance, recently\nannounced its own cryptocurrency to facilitate payments globally with minimal\nfees and no dependency on a central bank. Venture capitalists invested $2.4\nbillion in blockchain and cryptocurrency start-ups in 2018. So far, 2019 is\npoised to exceed this benchmark. <\/li><li>Blockchain\ntechnology has the potential to create new industries and transform existing\nones in ways we cannot imagine. For instance, it has the capacity to facilitate\nnano-payments proportionate to an individual\u2019s contribution and value creation\nin the Internet, making it an ideal wealth redistribution tool for our digital\nage.<\/li><li><strong>Financial\nservices:<\/strong>\nSeveral stock exchanges around the world are piloting a blockchain platform\nthat enables the issuance and transfer of private securities. Additionally,\nmultiple groups of banks are considering use cases for trade finance,\ncross-border payments, and other banking processes. <\/li><li><strong>Consumer and\nindustrial products:<\/strong>\nCompanies in the consumer and industrial industries are exploring the use of\nblockchain to digitize and track the origins and history of transactions in\nvarious commodities. <\/li><li><strong>Life sciences\nand healthcare: <\/strong>Healthcare\norganizations are exploring the use of blockchain to secure the integrity of\nelectronic medical records, medical billing, claims, and other records. <\/li><li><strong>Public sector:<\/strong> Governments are\nexploring blockchain to support asset registries such as land and corporate\nshares. <\/li><li><strong>Energy and\nresources:<\/strong>\nEthereum is being used to establish smart-grid technology that would allow for\nsurplus energy to be used as tradable digital assets among consumers.<\/li><\/ul>\n\n\n\n<p><strong>Concerns:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Nascent\ntechnology:&nbsp;<\/strong>Blockchain\nis still a nascent technology and there are issues such as complex verification\nprocess, data limits etc.<\/li><li><strong>Large energy\nconsumption:&nbsp;<\/strong>Blockchain\ntechnology uses substantial amount of computer power.<\/li><li><strong>Security and\nprivacy:<\/strong>&nbsp;Though\nconsidered highly secure, there are still cyber security concerns that need to\nensured before general public trust Blockchain technology with their personal\ndata<\/li><li><strong>Cost:<\/strong>&nbsp;High\ninitial capital cost is a deterrent.<\/li><li><strong>Role of bad\nactors:<\/strong>\nThe high chances of cryptocurrencies being misused in money laundering.<\/li><li><strong>Highly tech\nsavvy:<\/strong>\nStart-ups have already built thousands of apps on blockchain platforms like\nEthereum. However, these apps aren\u2019t easily available to non-tech savvy consumers\nthrough an app store, and hence their usage remains low. <\/li><li><strong>Technical snags:<\/strong> The apps built\nface technical problems including scalability and slowing down of the network\nwhen many people use these apps simultaneously. New companies such as Algorand\nand CasperLabs are investing millions in research and development and are close\nto solving these issues.<\/li><\/ul>\n\n\n\n<p>Overview of Selected Countries Regulations on\nCryptocurrencies&nbsp; <\/p>\n\n\n\n<p><strong>Overview of Selected Countries Regulations on\nCryptocurrencies:<\/strong><strong><\/strong><\/p>\n\n\n\n<p>As virtual-currency&nbsp; market\nand transactions are sky&nbsp; rocking and\nthese digital monies &nbsp;are&nbsp;\nnon-legal&nbsp; tenders&nbsp;\nwith&nbsp; different&nbsp; standards&nbsp;\nin&nbsp; most&nbsp; of&nbsp;\nthe&nbsp; jurisdictions.&nbsp; Global regulators are divided on how to\nresponses on it.&nbsp; As of now there is no\ninternational regulator to regulate virtual-currency.&nbsp; Following picture shows the regulation in G20\ncountries.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"529\" src=\"https:\/\/i0.wp.com\/blogadmin.forumias.com\/wp-content\/uploads\/2019\/07\/g20.png?resize=750%2C529&#038;ssl=1\" alt=\"\" class=\"wp-image-50126\"\/><\/figure>\n\n\n\n<p><strong>Cryptocurrency\nin India: <\/strong><\/p>\n\n\n\n<p>Recently, \u2018The Banning of Cryptocurrency\nand Regulation of Official Digital Currency Bill, 2019\u2019 has proposed stringent\npenalties, including 10 years of imprisonment, for holding, selling or dealing\nin cryptocurrencies such as Bitcoin. However, a law to ban holding or\ntransacting in cryptocurrency would not only prevent Indians from reaping\neconomic benefits by participating in blockchain networks as validators and\nearning transaction fees, but also stifle any innovation related to this\ndisruptive emerging technology.<\/p>\n\n\n\n<p><strong>What\nIndia can learn from Europe?<\/strong><\/p>\n\n\n\n<p>On June 19th, 2018, the\nfifth EU Anti-Money Laundering Directive (AMLD 5) was published in the official\njournal of the European Union.&nbsp;\nIn particular, the AMLD5:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>extends the scope to virtual\ncurrency platforms and wallet providers, tax related services and traders of\nart<\/li><li>grants access to the general public\nto beneficial ownership information of EU based companies<\/li><li>makes it an obligation to consult\nthe beneficial ownership register when performing AML due diligence<\/li><li>obliges member states to create a\nlist of national public offices and functions that qualify as politically\nexposed (PEP)<\/li><li>introduces strict enhanced due\ndiligence measures for financial flows from high-risk third countries<\/li><li>ends the anonymity of bank and\nsavings accounts, as well as safe deposit boxes and creates central access\nmechanisms to bank account and safe deposit boxes holder information throughout\nthe EU<\/li><li>makes information on real estate\nholders centrally available to public authorities<\/li><li>lowers thresholds for identifying\npurchasers of prepaid cards and for the use of e-money<\/li><li>Further enhances the powers of the\nFIUs and facilitates cooperation and information exchange among authorities.<\/li><\/ul>\n\n\n\n<p>The\nEuropean Union approach seems to be more reasonable. India instead of banning\nit completely can follow the European suit judiciously.<\/p>\n\n\n\n<p><strong>Way forward<\/strong>: As blockchains can be accessed from every corner of the world\nthat has a PC\/cell phone (and a good network coverage), the technology has the\npotential to bring the unbanked on track, expanding the horizon for trade and\ncommerce from remotest parts of the world. If the government and industry work\ntogether to create a proper blockchain ecosystem, blockchain will help to\nrealise a distributed, transparent and truly democratic economy.<\/p>\n\n\n\n<p>Source: <a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/the-benefits-of-blockchain\/article28524785.ece\">https:\/\/www.thehindu.com\/opinion\/op-ed\/the-benefits-of-blockchain\/article28524785.ece<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context: Blockchain and its impact on Indian economy. More in News: The Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019 has proposed stringent penalties, including 10 years of imprisonment, for holding, selling or dealing in cryptocurrencies such as Bitcoin. Recently Facebook announced its own cryptocurrency to facilitate payments globally with minimal fees&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/7-pm-the-benefits-of-blockchain-18th-july-2019\/\">Continue reading <span class=\"screen-reader-text\">7 PM | The benefits of blockchain | 18th July, 2019<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130,9],"tags":[],"class_list":["post-50124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-7-pm","category-public","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2019\/07\/7-PM.png?fit=1000%2C500&ssl=1","views":{"total":0,"cached_at":"","cached_date":1704765062},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/50124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=50124"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/50124\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49370"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=50124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=50124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=50124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}