Blockchain Integration is a potent technology that generates an immutable record of transactions and may be used to improve security, streamline business operations, and uphold stakeholder confidence, it cuts out the intermediaries and guarantees that transactions are completed rapidly and precisely, lowering expenses.
Today’s increasing reliance and dependency on technology and the internet has given rise to new business models and revenue streams for businesses. Still, it has also created new vulnerabilities and openings for cyber attackers to take advantage of and these attacks are aiming to steal essential data, including financial information, health records, intellectual property, and personally identifiable information; for example, a significant Distributed Denial of Service attack in 2016, against one of the largest Domain Name Services providers. As a result, numerous heavy-traffic websites, including Twitter, Spotify, and Netflix, experienced service interruptions.
A potential development in blockchain might assist businesses in addressing immutable Cyber Risk issues like protecting data integrity and managing digital identities that can protect, fraudulent activities and detect data tampering, transparency, data encryption, and operational resilience, and blockchains may assist in strengthening cyber security.
POSITION IN INDIA
When Satoshi Nakamoto introduced Bitcoin to the world in 2009, blockchain became more well-known, and since then, blockchain has advanced significantly. It is apparent that the absence of legislation and policies surrounding blockchain and virtual currencies in India is the biggest barrier to the adoption of blockchain as the Indian crypto community awaits the passage of the Cryptocurrency and Regulation of Official Digital Currency Bill. A 2019 NASSCOM survey found that a significant fraction of mid- and large-service providers have less than 5% blockchain initiatives within India, which is much less than their projects in nations in North America and Europe.[1]
However, the recent rise in blockchain adoption across industries in India indicates that the country’s blockchain environment is improving. As per the data released by KuCoin, a global cryptocurrency exchange, an estimated 115 million people in India are crypto traders. According to 56% of investors, the future of finance is cryptocurrency.[2]
The main driver of this improvement is blockchain’s unprecedented level of transparency. In terms of global acceptance of cryptocurrencies, India is already ranked second to Vietnam among all countries, surpassing powerful countries like the US, the UK, and China. Blockchain is being used in India as a technology that will reinvent the existing business models.[3]
India has also adopted blockchain technology in many sectors and is planning to adopt this technology in other sectors too for example all the Telecom companies are instructed by the TRAI to begin incorporating blockchain technology. The telecom industry will benefit from the adoption of blockchain technology in combating the issue of spam calls and locating unregistered telemarketing businesses. The Tea Board of India also intends to use blockchain technology to improve supply chain traceability. SEBI too has instructed all depositories to make use of blockchain technology to maintain records and to bring in more transparency.
Many Indian businesses have also adopted blockchain technology because of its transparency, and the number of new start-ups using blockchain technology from the beginning is also on the rise. Blockchain has found applications in India’s insurance, banking, and financial industry. In addition, the public sector employs blockchain in a wide range of applications, including agricultural insurance, land title registry, and vehicle lifecycle management.
POSITION IN THE USA
While rivals actively work to integrate blockchain, data, and the information environment now, the U.S. government sees blockchain as a “technology of the future.” In terms of blockchain policy, innovation, and societal adoption, China is well ahead of the U.S. The USA needs a well-thought-out, coordinated blockchain strategy together with a supportive policy in order to compete across all spheres of national power.[4]
In the ever-expanding blockchain ecosystem, the global epidemic brought huge prospects as well as possible hazards. The USA looks to be approaching a period of even more economic instability as the globe struggles to fend off COVID-19, in part because of global inflation, extreme political polarization, and supply chain breakdowns. Despite this background, the following three new trends and developments are anticipated to continue influencing the blockchain and digital asset ecosystems during the coming year:[5]
- intensifying NFT enforcement;
- maintaining the focus on sanctions enforcement, particularly with regard to Russia; and
- maintaining interagency turf wars notwithstanding increased efforts to coordinate US government policy.
POSITION IN CHINA:
China sees blockchain technology as being just as important as other cutting-edge technologies for the country’s industrial and economic growth. It is becoming increasingly important in China and is transforming the way that the global factors resources are organized. The number of blockchain-related patents filed by China demonstrates its efforts to control this field: China submitted approximately 33,000 patents between 2015-2021. China is speeding up the use of blockchain technology in order to establish a sustainable first-mover advantage. China has so far focused its blockchain efforts in mainly six areas. First, it created the digital yuan, a central bank digital currency based on blockchain as a more secure payment option. Secondly, Shanghai’s smart infrastructure is made possible by blockchain. Third, blockchain is used in investigations by the Chinese police. Fourth, to disseminate accurate public health information on COVID-19 to its citizens and minimize the risk of misinformation, China employs blockchain platforms. Fifth, to handle personnel and pay records, to decrease corruption, and to “improve performance,” the People’s Liberation Army is studying blockchain. Lastly, blockchain technology is also been used to monitor and control the population of China.[6]
POSITION IN ENGLAND:
The following were stated in a press release from the Big Innovation Centre, Deep Knowledge Analytics, and Greengage:[7]
- The UK’s Blockchain innovation and investment ecosystem are attracting investment capital, and investor trust in UK- and London-based blockchain start-ups is high and expanding.
- London, as Europe’s financial hub, is now also developing a new financial ecosystem and adopting cutting-edge blockchain technology.
- The UK offers a fully integrated blockchain innovation ecosystem with talent from a variety of fields, including a technological foundation, a science base, and an entrepreneurial tradition. These platforms for business, money, and talent are combined with a network of Blockchain think tanks and event organizers to make the UK a global leader in the field.
- Applications for blockchain technology are now being used for both private and public purposes.
WAY FORWARD:
India is keen to establish a national blockchain framework that will aid in the future transformation of numerous industries, including education, pharmaceuticals, farming, energy, e-governance, and others.[8] The government is prepared to make it easier for this new technology to be incorporated and used in India. Blockchain technology is certain to change the game for India in the near future. It will aid in redesigning and eradicating all of the significant issues in the majority of the crucial government services. Therefore, in the future, India’s embrace of blockchain technology is poised to take it to a completely new level and help it move up the rankings among other nations dramatically.
[1]‘Blockchain: Powering India’s Technological transformation’ by Strategic Investment Research Unit (SIRU).
[2] KuCoin Into the Cryptoverse India Report Reveals Optimistic Prospects for Market Growth dated 2022/08/23.
[3] The Hindu: India ranks second in Chainalysis’s 2021 Global Crypto Adoption Index, dated August 23, 2021.
[4] The United States is behind the curve on Blockchain commentary by Mike Knapp dated August 30, 2022.
[5]United States: Blockchain Trends and Developments in The USA 10 November 2022 by Alan Cohn, Jason Weinstein, and Shawn P. Davisson.
[6]Supra Note 4
[7]Blockchain Industry in the UK Landscape Overview: Companies, Investors, Influencers and Trends, Press Release (3 Nov. 2021). Download the press release here: https://bit.ly/3CFtev7_press
[8] Business Today: The adoption of blockchain technology in India and its future.
Author: Ms. Amisha Sah, Intern, CyberPeace Foundation
