Meenu G | Analytics Insight
9 May, 2021
Last year China launched the Blockchain Service Networks (BSN) in more than 100 cities. This was a step towards enhanced use of blockchain technology and is anticipated to reduce the cost of doing blockchain-based business.
Blockchain technology has gained a lot of attention in recent years. It was initially exclusively associated with cryptocurrencies and their trade. Later, blockchain showed capabilities that could be used by many industries. According to the Markets and Markets report, the global blockchain market size is estimated to reach USD39.7 billion by 2025, growing at a CAGR of 67.3% between 2020 and 2025. This humongous growth can be a result of blockchain being successfully implemented in enhancing business processes, security, and streamlining supply chains by many industries. Blockchain uses distributed ledger technology for digital transactions, in peer-to-peer networks and connected nodes. This disruptive tech is highly accepted for its secure immutable transactional platform.
China and Blockchain
Reports revealed that China has the most number of blockchain patents in the world and there are a lot of giant tech companies and cryptocurrency forms in China that are betting on blockchain technology. The country is successfully leading the race by taking blockchain technology beyond the crypto world and using it to enhance the economy. Although China has effectively banned privately held cryptocurrencies, it widely promotes digital payments, and hence the recent introduction of digital Yuan, a state-owned digital currency.
The Blockchain-based Service Network is initiated by the State Information Center, UnionPay, China Mobile, and Red Date. According to a white paper released by the BSN base, it is a cross-cloud, cross-portal, cross-framework, global infrastructure network used to deploy and operate all types of blockchain applications.
China has established several policies and national standards for blockchain technology. The country identifies blockchain as a significantly disruptive technology that can efficiently drive innovation and industrial transformation. Chinese financial institutions are one of the primary adopters of blockchain by leveraging its capabilities in cross-border payments, asset management, financial supply chain management, etc. Ant Group, the parent company of Alipay, launched a blockchain-powered platform for cross-border trade settlements and has been thriving in blockchain patents in recent years.
China has been using blockchain to make its security networks more efficient and many companies are leveraging it for logistics management. Using blockchain in supply chain and logistics improves traceability and reduces transaction costs.
Where Does India Stand?
Speaking to Gadgets Now, Ashok Kumar Das, Associate Professor in the Centre for Security, Theory and Algorithmic Research, IITH, Hyderabad, said that considering the tech giants betting on blockchain and the Government’s interest in driving innovation, blockchain offers great opportunities for young researchers in India. He further mentions that the research in the blockchain is largely limited to IITs and IIITs in India but might soon reach other institutes considering the wide and potential applications of blockchain.
India recently released a revised bill for the regulation of crypto trade in the country. However, the Finance Minister revealed that the country is not looking forward to completely banning cryptocurrency and the technology associated with it. The government made it clear that blockchain is here to stay considering its wide use cases and capabilities. The Business Standard report quotes Finance Minister Nirmala Sitharaman’s remarks on the blockchain, which goes, “A lot of fintech companies have made a lot of progress on it. We have got several presentations. Much work at the state level is happening. And, we want to take it in a big way in IFSC or Gift City in Gandhinagar.”
India has been dealing with a surge in cyberattacks and security breaches in recent years, especially with the ongoing digital transformation. Blockchain can be efficiently utilized to secure networks and transactions in financial institutions. In fact, this cutting-edge technology has even proved effective in curbing the circulation of fake news.
The distributed technology and transparency guaranteed by blockchain makes it an ideal tool to secure data in various industries like finance, healthcare, the insurance industry, and more. India needs to focus on research and enable innovations to keep up with other countries.