Block chain can Transform India
The first thing that comes to our mind when we hear of block chain is crypto currency. But, it is just one example of thousands of possibilities emerging from Block Chain.
One easy way to explain Block Chain is comparing it with ledger. The ledger keeps records of all assets and money that you own. There is individual entry in the ledger against each item that you own. Now, consider you want to send money to a friend from USA to India. Money will not definitely fly from USA to India. This activity will result two entry: one in your ledger and another in yours friend’s ledger. But, between this two ledger entries, there will be hundreds of other entry. Now, this multiple ledger entry has to be maintained and reconciled. This results time delay and cost. That is why the $100 sent by you reaches your friend may be 4-5 days later and may be only $95. Now, consider there is a single universal ledger that is accessible to all interested parties. So, there will be single entry for each transaction and same needs to be authorized by all approving parties. This single universal ledger is the heart of block chain. Whenever a transaction happens it adds a block to already existing chain of blocks (set of transaction). Also this block chain is protected by best available cryptography algorithms which is difficult to hack. Another salient feature is every block added is immutably linked to other block. So, 1st block is connected to last block. So if hackers comes in and want to change a block, he has to change the chain of blocks.
Another salient of block chain is as it is a, chain of blocks, we can actually trace back to the old events. This ensured tractability of an event or document.
Also there are logic built in each block. So, even ever an event happens it generates another event. This fosters smart contract.
Finally who owns the chain? No one. So how to maintain it. To maintain a chain you need computing resources, time, money, electricity. How to get all these things? When, S. Nakemoto invented Block chain, he invented one currency with it i.e. crypto currency. Whoever maintains the ledger mines the currency as an incentive and that is why whoever maintains the universal ledger, are called miners.
Now how block chain can transform our lives in India. Here are some examples:
- Agriculture: Agriculture consists of 16% of India’s GDP. India has second highest agricultural land in the world. So, anything that transforms agriculture transforms India. One of the major challenge that the farmers face today is lack of agricultural equipment’s. Block chain can resolve this issue by introducing fractional ownership, which means now multiple farmer can own a single tractor. All complexities arising out of fractional ownership can be easily handled by block chain.
Another issue is ownership of land. Government is already digitizing land records. It can tell who is owner of this land at present, but it cannot tell who the earlier owners were. Block chain can resolve this because of tractability feature.
The major change that block chain can introduce is large scale harvesting including multiple farmers. Smart contracts can easily track and divide the share of profit among all the farmers in a transparent and trusted way.
- Energy: For us power is a centralized concept. Power gets distributed from power plant to all end users. This is economically viable for cities but not for rural areas because of less consumption. Power needs to be consumed in the vicinity of where it is being produced. And it is possible as we have solar energy, wind energy etc. With the help of block chain and IOT we can create micro small grids. Where power can traded between houses. House with excess solar power can transfer power to deficit power and in return take money or crypto currency.
- Peer to Peer Economy: Block chain with its non- hackable and trust worthy network, can create an awesome peer to peer economy. There will be no intermediator, automatically loan rates will be less.
Internet is great boon to today’s society. It solved problems like availability of information, communication, distribution etc. But, there are two problems which it supposed to solve but couldn’t
a) Trust: How much we believe on the news that is available on internet. Fake news etc.
b) Intermediation: Internet was supposed to equal opportunities to all. But, there came big intermediator like Google, Amazon, and Uber etc. Think of Uber for example, it was supposed to rider to driver economy. But now it has become rider- Uber- driver.
Above two problems can be solved by block chain through its trust worthy network, non- hack ability and providing an equal opportunity to all.