Fact in Focus : Blockchain
A lot has been discussed and debated on the viability of digital technology in improving the digital banking potential on the sidelines of the G-20 summit. One key term which featured repeatedly during the reports was block chain.
What is block chain?
- A blockchain is an ever increasing growing list of records, called blocks that are linked together using cryptography.
- Each block contains information (primarily transaction data) a cryptographic hash of the previous block and a timestamp.
- A blockchain is designed to be resistant to the modification/tampering of data as once recorded the data is not possible to be changed.
- Block chains are primarily used in transaction of cryptocurrencies like Bitcoin & Ethereum.
- It can also have applications in financial services, for smart contracts and for the maintenance of an improved supply chain.
Blockchains in India
The Reserve Bank of India (RBI) is developing a blockchain platform for banking in its R&D branch. The platform is being designed to serve banks and for the blockchain applications for the government in banking.
The Indian blockchain industry is still in its nascent age and a majority of the industry players are major startups which are facing problems at many fronts and requires the support of the government to attract various funding for their work.
