India proposes to build a National Level Blockchain Framework (NLBF) to tap the maximum of the potential of the evolving technology. The Ministry of Electronics and Information Technology has placed a draft of the National Strategy on Blockchain for wider consultation.
What is Blockchain Technology and what are its usages; the draft paper has highlighted. The following excerpts from the draft report of the Ministry highlight the salient features of the Blockchain.
” Blockchain is an innovative distributed ledger Technology which was first introduced in the design and development of cryptocurrency, Bitcoin in 2009 by Satoshi Nakamoto.
Blockchain is an amalgamation of various inventions, with a clear business value. It enables a shared ledger between the various parties involved in business transactions, which is going to act as a single source of truth. Blockchain eliminates the need for central entity to validate the transactions. As it is based on peer-to-peer networks, all nodes would involve in validating the transactions rather than depending
on a central entity. The data structure used in Blockchain Technology helps to maintain unchangeable record of transactions in a time sequenced manner.
So, Blockchain Technology improves transparency, immutability and efficiency aspects, which make it unique and potential to use in various application domains ”.
”Blockchain uses a unique data structure where verification data related to the transactional records is cryptographically secured against tampering and stored in blocks. Each block contains details of transactions, hash of the previous block, timestamp etc
Blocks are linked with each other, leading to a Blockchain. Linkage across Blocks is also cryptographically secured and this is stored at every node in the network. This makes it a unique solution to the problem of trust in the digital world, leading towards decentralized trust. Anything of value can be tracked and traded on a Blockchain network, reducing risk and cutting costs for all involved. Contracts can be automated through Smart Contracts, according to the excerpts of the draft ministry report.