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Blockchain is a distributed database that is shared between the nodes of a computer network. The data is stored digitally in electronic form on the blockchain. Blockchain is constantly associated with cryptocurrencies. Despite the connections, blockchain has expanded its use cases.
The blockchain, launched in 2008 to facilitate bitcoin transactions, has seen tremendous growth since then. Blockchain was created for transactions. It has infiltrated different sectors and provided different use cases. This technology is said to be one of the building blocks of the Web3 technology that current Web2 users are looking forward to.
Blockchain has become huge for various reasons, one of which is transparency. The technology is actively used in storing personal information, tracking the origin of a particular product or object, etc.
“Open finance is a major sector where blockchain has started to take off. There are many products that provide much greater transparency. made much more transparent, made more secure because of the many use cases. There are a few barriers as the technology is in its infancy, but open funding will be the basis for a lot of use cases in a few years,” Karan said. Ambavani, India Head of the dYdX Foundation.
Blockchain is actively used in the automotive sector and the banking sector.
“We are working with MG Motors and we have created a vehicle passport using a physical asset such as the vehicle itself. The vehicle passport is a repository of vehicle telematics data and a person may choose to share the vehicle passport with insurance companies who then customize the insurance policy according to people’s driving habits. The car passport is native to the blockchain as the data needs to be valid for insurance companies as there is financial risk,” said Praphool Chandra, founder of KoineArth.
Web3.0 fanatics want to be anonymous, which is what the blockchain provides, since most of the current blockchains do not store personal information. On the other hand, governments have a different view of the same due to concerns about the flow of money across international borders and the flow of digital assets across international borders in the near future. The government intends to regulate, monitor and control blockchain transactions, which it will do in the long term. Internet technologies are scaling faster than most technologies, which has led to technology predating the rules.
“We mix privacy with anonymity. We can be identifiable and therefore non-anonymous without violating our privacy. Ideas such as zero-knowledge proofs, document hashes, can actually be used immediately to create completely private identities. . None of our data is actually online, but if a government or regulator needs to trace the owner of that asset, it is available either from a specific KYC provider or, in a more utopian version, from the community as a decentralized identity,” he said. . Swapnil Pawar, founder of Newrl.
Blockchain, although transparent, preserves the anonymity of the individual. The world is moving at a very fast pace and the Financial Attacks Task Force is fighting money laundering and terrorist financing at different levels. However, anonymity coupled with privacy must be done away with to avoid leaks in the financial world that could lead to a catastrophic event that inadvertently changes the future.
Blockchain, despite being a newer technology, has shown great potential in various sectors. Despite the problems that come with crypto tokens, blockchain technology is constantly finding different fans in different sectors without crypto layers. Blockchain is a transparent tool that can change the way financial institutions operate, making them more secure than they are now.