In a report by McKinsey Global Institute on how India’s adoption of digital technology is transforming our connected nation – the key takeaway is that “ India’s digital surge is well underway on the consumer side, even as its businesses show uneven adoption and a gap opens between digital leaders and other firms.”

Buoyed by its growth in the number of its Internet user citizens – India is one of the largest and fastest-growing markets for digital consumers. While public and private sectors are both riding the digital wave with India’s biometric identity program called ‘Adhaar’ as well as the inclusion of businesses on the common platform for goods and services tax, its adoption across the private sector is patchy – often with more nimble firms adopting digital basics quicker – in operations, marketing, customer care over larger ones.

With the proliferation of digital applications across the economy – core digital sectors are expected to double their GDP from “….$355 billion to $435 billion. Use of technology in sectors such as agriculture, education, energy, financial services, healthcare, logistics, and retail, as well as government services and labour markets, could each create $10 billion to $150 billion of incremental economic value by the year 2025, as digital applications in these sectors help raise output, save costs and time, reduce fraud and improve matching of demand and supply.”

One such technology that is gaining immense traction and transforming India is Blockchain. Amongst the industries adopting Blockchain in India – Banking and Finance leads the way and is followed by Healthcare, Logistics, Retail. The Reserve Bank of India (RBI) has also formed a unit that will research and possibly draft rules and supervise new emerging technologies such as blockchain and cryptocurrency. Nearly half of India’s states are involved with Blockchain Projects.

‘Block’ here refers to the digital information stored in the public database referred to as ‘chain.’ In a Blockchain, every transaction made gets recorded on the block, in the form of a universal ledger that is accessible and authenticated by all. In addition to this, these blocks are protected by the best cryptographic algorithm available, which makes them nearly impossible to hack into.

Blockchain has a number of advantages:

• Smart contracts
• No third-party involvement
• Hard to hack
• Automated
• Accessible to all
• Secure
• Transparency helps in reducing fraudulent transactions

Nowhere however has the impact of Blockchain been greater as it has been in the Fintech space – triggered by the use of KYC procedures to facilitate remittances based on Blockchain. A number of banks are also implementing Blockchain for their trade finance operations. The use of the principle of a “Distributed Ledger “ which is the foundation of Blockchain – enables anti-money laundering software.

Blockchain is also enabling authentication of land records and asset inventory audits. Since the Indian real estate industry is susceptible to incorrect valuation and fraud due to challenges in maintaining, searching and verifying property title deeds. This creates problems and delays in confirming property ownership, especially during transfer and an over-reliance on stakeholders such as brokers, banks, registration officers, etc.

Blockchain solves the problem by digitizing land titles, ensuring that each piece of owned land has a digital address stored on the Blockchain system – with details of occupancy, ownership records, finance, specifications of the property and associated legal disputes if any.

Hence, the decentralized nature of the technology eliminates the dependence on middlemen and ensures the instant transfer of property, as Blockchain-based smart contracts take care of repetitive transactions or contracts. It is interesting to know that Andhra Pradesh is the first state in India that has started registering land on the Blockchain.

The business of insurance claims is slowly getting rid of the problem of inefficiencies and its losses – by using Blockchain to create a secure data-sharing platform for their processing.

According to a news report, Tata Consultancy Services (TCS), … “ has collaborated with Microsoft and R3 (an enterprise blockchain software firm), to advocate the adoption of blockchain across industries. It is further building five Blockchain platforms that include track and trace, digital identity, asset monetization, assets in common, and tokenization.”

A Blockchain project called IndiaChain is set to revolutionize public administration by using blockchain for efficient and transparent distribution of government subsidies, streamlined record-keeping, systematic tax monitoring, and regulated supply chain management.

Blockchain is also all set to enter the education sector to curb fraudulent degrees and certifications, and seamlessly manage massive amounts of data in the pharmaceuticals and healthcare industry.

It is interesting to note that Reliance Jio is setting up one of India’s largest Blockchain networks– tapping into the security, trust, and automation which Blockchain offers, in order to control the volume and quality of data being generated ensuring its use and implementation in stays within India itself.

So while blockchain comes across as something mysterious yet powerful and highly aspirational – due to its association with cryptocurrencies, it is important to realize that this is but a manifestation of the underpinning Blockchain technology, which also has immense potential to be used for the greater good.

Globally – different countries are taking different approaches toward Blockchain. In Europe, due to the implementation of GDPR regulations – which ensures citizens have control over their data – Blockchain companies have to ensure that all regulations and protocols are met by their systems – even though it may affect the decentralized technology principle.

Other countries in the Far East – initially allowed Blockchain companies to operate minus any restrictions – but then brought in regulations and scrutiny.

In the US – the government is focusing on regulation to restrict the applications of blockchain programs utilizing cryptocurrency.

Despite its potential – Blockchain faces more than a few challenges in India. The Indian government is yet to define and implement Blockchain regulations on Blockchain. The RBI has since banned the acquisition and use of private cryptocurrencies after an inter-ministerial committee (IMC) suggested outlawing private cryptocurrencies, like Bitcoin.

The report lays down that all private cryptocurrencies except the one’s issue by the state be banned in India and endorses the stand taken by the RBI to eliminate the interface of institutions regulated by the central bank from cryptocurrencies.

This, in turn, is affecting Blockchain start-ups and their development work that could otherwise benefit the larger ecosystem.

Another challenge is that many organizations are lack awareness and trust in Blockchain and hence, are resisting its adoption. I believe an extensive and focused program of awareness creation needs to be undertaken by the Government, by trade and regulatory bodies in order to accelerate Blockchain adoption.

Blockchain is all set to be the next big thing in business since it solves the problem of trust and enables disintermediation– by enabling transactions between two parties without the intermediation of a third party.

Thus – it is making slow but steady inroads into our lives without even most of realizing that it is there. Even though there is enough and more disagreement between regulatory bodies, Blockchain companies, current and potential users about how this space can develop – it is only a matter of time.

Once Blockchain becomes the global standard and essential technology for doing business – it’s speedy adoption and implementation will change our world for good.