What is the issue?
In India high-level committee deliberations are said to be in support of encouraging the use of block chain technology.
What is Blockchain?
- Blockchain is the basis of bitcoins, it is a digital public ledger that records every transaction.
- Once a transaction is entered in the blockchain, it cannot be erased or modified.
- Blockchain removes the need for using a trusted third party such as a bank to make a transaction by directly connecting the customers and suppliers.
- Each transaction is recorded to the ledger after verification by the network participants, mainly a chain of computers, called nodes.
What is the status of blockchain technology in India?
- In India Financial players are the first movers to capitalise on this technology.
- It is witnessing a lot of traction within India, in sectors such as banking and insurance.
- In most of these industries, players are coming together to form a consortium to realise the benefits of blockchain at an industry level.
- The Institute for Development and Research in Banking Technology (IDRBT), an arm of the Reserve Bank of India (RBI), is developing a model platform for this technology.
What are the avenues of block chain?
- Bitcoin is just one of the applications for the technology, whose use is being tested across industries.
- It is an advantage, when there is a lot of data that is shared across multiple parties with no trust mechanism among the participants.
- Non-financial players like retail, travel, health care, telecom and public sector industries are also working on this technology.
Source: The Hindu
