Blockchain, primarily known for powering cryptocurrencies like bitcoins, is a form of Distributed Ledger Technology (DLT) that promises to reduce costs and establish trust, but faces challenges like the speed of processing transactions. Its popularity lies in the fact that participants have a copy of the ledger’s data that contains the most recent transactions or changes, thus reducing the need to establish trust using traditional methods.
Blockchain is “pulling us into a new era of openness, decentralization and global inclusion”, states a June 2017 paper by the World Economic Forum (WEF). Large banking, financial services and insurance firms, manufacturing firms and governments across the world are already testing blockchain proofs of concept.
A blockchain network can either be public or private (permissioned), based on who is authorized to participate. One may like it to the difference between an intranet and the internet. Most pilots are being done with private blockchains.
In India, for instance, banks have formed ‘BankChain’—an alliance of banks formed in February 2017 to explore and build blockchain-based solutions. The BankChain community has 37 members, with representations from 28 Indian banks, including State Bank of India, ICICI Bank Ltd, Kotak Mahindra Bank Ltd, HDFC Bank Ltd and Yes Bank Ltd. Two years ago, for instance, the Mahindra Group and IBM announced the development of a cloud-based permissioned blockchain solution in a bid to reinvent supply chain finance across India by enhancing security, transparency and operational processes.
Blockchain technology can also disrupt public health by creating a secure and flexible ecosystem for exchanging electronic health records (EHRs). Student records, faculty records and educational certificates can be maintained with the application of blockchain technology. Other possible applications include the use of blockchain technology to record and manage agricultural land records as well as agriculture insurance. Blockchain technology can also be deployed to create a marketplace for electric power supply.
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