Context: National Informatics Centre (NIC) has set up the Centre of Excellence (CoE) in Blockchain Technology in Bengaluru, Karnataka.
Analysis
About Blockchain technology
- A blockchain is a specific type of data structure which can be used to transact across nodes or participants.
- The ownership rights are recorded in cryptographically stored and linked blocks which contain records of ownership of assets among the participants that can remain anonymous.
- Blockchains are open, distributed ledger that can chronologically record transactions between two or more parties efficiently in near real time.
- The prerequisite for each subsequent transaction to be added to the ledger is the respective consensus of the network participants (called nodes), thereby creating a continuous mechanism of control regarding manipulation, errors, and data quality.
- The blockchain technology generally has key characteristics of decentralization, persistency, anonymity and auditability. With these traits, blockchain can greatly save the cost and improve the efficiency.
- It has various applications like in field of banking, capital markets, cybers security, healthcare, agriculture, telecom, governance etc.
- The NITI Aayog is exploring the use of blockchain and AI technologies in diverse areas such as education, healthcare, agriculture, electricity distribution and land records, among others.
- In this direction, the Think-Tank is reportedly building a platform called ‘IndiaChain’ — a shared, India-specific blockchain infrastructure that would leverage the trinity of Jan-Dhan-Yojana, Aadhaar and the mobile trinity.
- When implemented, this one-of-its-kind initiative will likely be the world’s largest blockchain implementation programme in governance.
