Blockchain Technology: Opportunities and Challenges in India

Blockchain Technology: Opportunities and Challenges in India

16 Sep. 19
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Blockchain Technology: Opportunities and Challenges in India

While blockchain continues to generate widespread enthusiasm among public bodies, enterprises, and organizations, more mainstream industries are choosing to adopt this new-age and disruptive technology. This had led to fresh initiatives for blockchain app development across all sectors including public banks, governments, and private companies. It is safe to say that blockchain has caught the world’s attention, including India’s, who is now trying to find opportunities to use this technology within its fast-growing economy.

Understanding What Blockchain Technology Is

Implemented in 2009 and created by Satoshi Nakamoto, blockchain can be regarded as a public ledger, in which committed transactions are stored in a chain of blocks. As new blocks are applied to the chain, the chain continuously grows. The blockchain is characterized by anonymity, decentralization, auditability, and persistency. The fact that the blockchain can work in a decentralized environment is what made it so controversial when it was first announced to the world, as it requires core technologies like cryptographic hash and digital signatures.

The most famous application of blockchain is Bitcoin, a decentralized digital cryptocurrency, which can be used to pay for services and goods. While Bitcoin is the most famous blockchain application known, it is not the only application that blockchain can be applied too. Blockchain technology can also be applied to financial services like digital assets, online payments, internet interaction systems like smart contracts, the internet of things, reputation systems, security services, and public services.

What Are the Key Advantages of Blockchain?

Blockchain technology has a few key advantages over our current system, which include the fact that it is first and foremost, decentralized, meaning that there is no governing body over it. It is also completely transparent and can be very easy to audit or trace, plus it is free from data alteration or tampering. In addition to this, the blockchain’s data is encrypted, making it very hard to hack into.

How Is India Moving Forward with Blockchain Adoption?

The policy think tank of the Government of India, NITI Aayog hosted an International Blockchain Congress in 2018 alongside the state governments of Telangana and Goa, bringing in ideas about blockchain adoption to India.

India ranks 6th in the world for blockchain patent approvals, clearly indicating that there is strong interest here.

According to Dappros, a London-based consulting firm, India has the second largest amount of blockchain developers in the world, coming in behind the United States with 19,627 developers.

What Opportunities Are Available for India and Blockchain Tech?

India has the potential to become a leader in blockchain technology, as new opportunities are opening as more research and collaboration moves into the country.
Back in 2018, the Reserve Bank of India set up a unit of individuals to research and supervise new technologies around blockchain app development. The focus of this was to specifically investigate creating a cashless and decentralized banking system.

In February 2019, the Finance Minister Arun Jaitley stated that the government was exploring the use of the blockchain for ushering in a digital economy.

The NITI Aayog is looking into using blockchain technology for the fertilizer and drug industries.

Many Indian states, including Karnataka, Telangana, Kerala, & Maharashtra, are looking into using blockchain aggressively for security and digital land records.

A major opportunity is in the voting sector with regards to ushering in transparency and secure voting measures.

What Challenges Does India Face With Blockchain Tech Adoption?

While the future of blockchain looks to be bright and promising, it is still considered to be in its infancy stage, with too many unanswered questions about how vulnerable blockchain apps and blockchain app development can be. Despite this, India is still moving forward with its adoption and currently have the following persistent challenges with it.

  • The Indian government does not have any defined regulation on distributed ledger technology or any regulation relating to blockchain technology. This lack of regulation means that there is a lack of compliance, making adoption slow.
  • For there to be a successful proof of concept on a large scale, blockchain experts must be hired. Not only is this expensive but current testing on blockchain apps are restricted to cryptocurrency only.
  • For public-based blockchain apps, the cost of the network maintenance and the validation of the transactions is not defined to any specific individual, company, or organization.
  • Due to the technology still being considered new and the fact that there is a lack of awareness about it, means that many potential vendors are not at the adoption point yet. More digitization about blockchain technology needs to happen first.
  • Initial Coin Offerings haven’t painted a favorable opinion in the eyes of authorities, stalling blockchain projects from being executed.

If there is to be an accelerated adoption of blockchain apps and the technology in general, there needs to be more awareness spread and clearly defined regulations put in place.

Wrapping It Up: Blockchain Adoption Can Solve Major Problems in India

If blockchain technology were to be adopted in India, whether it be in the financial sector, in the security sector, or even across the healthcare system, it is poised to be revolutionary. Unfortunately, India’s economy suffers from some severe problems like data breaches, financial ledger tampering, and corruption, all of which could potentially be mitigated to some extent with larger and scalable blockchain app development. With the almost 20,000 blockchain developers situated in India, the country can become a leader where the blockchain is concerned.

Being one of the finest Blockchain App Development Company, we provide various Blockchain App Development based services and Solutions such as Blockchain wallet development, Bitcoin mining software development, Bitcoin ATM Software Development, and more. Hire blockchain developers to help you enhance your business by blending best available technology.

To know more about Blockchain App Development Opportunities and Challenges in India, get in touch with us.


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