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A fresh set of relief measures were announced by the RBI Blockchain is a paradigm shift as it does not correct the blockchain methods are implemented. Reaching out to the Blockchain can act as an enabler beyond imaginable limits.
There are instances where we do need a set of regulations for
Governor Shaktikanta Das which majorly focussed on the existing system but changes the underlying system. For few of mass will be easier and effective and an effective solution for better rening of the implementation and the manner in which
following: the industries, it is worthwhile and feasible to invest in the 'corruption' issue. The same is fruitful for the voting process
Blockchain which will reap in numerous benets especially in as well which could lead in immense saving for the authority as it operates. We hope that the rened version will be more
1. Renancing the NBFCs and MFIs by Targeted Long- supply chain management, inventory management, well as contribute heavily to the participation of people in mature and cater to an even wider range of industries and will
Term Repo Operations (TLTRO) of Rs. 50,000 crores transport, healthcare, nance, banking, agriculture, P2P democracy/turnout will increase. be a true business enabler.
platform and asset tokenization. Analyzing the current
2. Reduction of the xed reverse repo rate points under Considering all the challenges Blockchain faces, as a References:
Liquidity Adjustment Facility (LAF) by 25 basis points scenario, it is technically feasible to implement blockchain technology it solves problems like inefcient tracking of 1. Crypto News. “Potentially the Next iTunes | What is Muzika | Artist
with a long-term view since the implementation of this will
from 4% to 3.75%. consignments in Supply Chain, information theft, limiting Share 90% Prots | Music on the Blockchain”. YouTube, 18 Nov
require capital, but it will reap positive benets in terms 2019, https://www.youtube.com/watch?v=lfKcTeOlOII
3. Slashing the Liquidity Coverage Ratio (LCR) of ease, transparency of business and its operation in the the power of regulatory authorities, lack of P2P platform, 2. Karaahmetovic, S. (2019, May 15), Banks Can Save $15-20bn A
requirement for Scheduled Commercial Banks (SCB) to future. There are many startups which are currently working in disrupt monopolistic markets like Energy and many more. Year With Blockchain, New Study Shows. Newconomy Media.
80% from earlier 100%. this new technology with successful implementation which Since blockchain is a decentralized, digital ledger system it R e t r i e v e d A u g u s t 1 8 , 2 0 1 9 f r o m
4. Indication of further increase in the amounts to help proves that it is technologically feasible, but this is not the only removes the requirement of middlemen and intermediaries https://newconomy.media/news/may-08-banks-can-save-15-
removing the inefciency related to time as well as money. It is
renance the NBFCs and the small-scale institutions if factor, it is to be also examined whether the end users are safe and transparent and hence offers secure systems. 20bn-a-year-with-blockchain-new-study-shows/
the need so arises. ready to make such a shift is more important. 3. Tombs, S. (2002) 'Book Review: Understanding Regulation?',
Everyone has independent access to the ledger and there is no
This announcement was a much-needed relief for the NBFCs In terms of Financial feasibility, as mentioned above it is not central ledger copy. This enables blockchain to be way more Social & Legal Studies, 11(1), pp. 113–133. doi:
10.1177/0964663902011001714.
and the SMEs. nancially viable in solving all the problems for now, but in a secure than the traditional medium of exchange. Apart from 4. Frankeld, J. (May 6, 2019), 51% Attack. Investopedia. Retrieved
few sectors and domains it will prove to be the game changer. bitcoin, there have been several applications of blockchain.
However, whether the world economy and specically the As it eliminates the use of servers, hence a lot of server related Initiatives such as 'Follow my vote [5] aims to encourage August 18, 2019 from https://www.investopedia.com/terms/1/51-
Indian Economy will be successful in bouncing back from cost is saved but since this will be a rst time shift it will incur voting online, which in turn ensures more security in this attack.asp
where the crisis is taking us is surely debatable. It would be money to set up the architecture and to bridge the skill gap for modern era of democracy. Platforms such as 'Shocard' [6] are 5. Follow My Vote. The Online Voting Platform Of The Future - Follow
hopeful to have optimistic approach towards the ways of development and maintenance of the portal. Sectors like providing much safer high-value transactions. They don't My Vote. Available at: <https://followmyvote.com/> Accessed 18
reviving the economy. Transportation can have a massive impact of Blockchain on store data or keys, which eliminates the possibility of August 2019.
by Rukhsar Choudhary 6. S h o c a r d . c o m . 2 0 2 0 . S h o c a r d . A v a i l a b l e a t :
their operations and costs. Around $140 Billion every day is compromise of the transaction. Hashed and digitally signed
PGP 2019-21 stuck in transport-related disputes, while processing and nature of data is highly unlikely to be tampered with. Ride <https://shocard.com/how-blockchain-identity-works/> 18
documentation could cost as high as 20% of the total costs. Central, a ride-sharing peer- to-peer service provider, which 7. August 2019.
Propy. “What is Propy? How does Propy Work?”. YouTube, 26 April
Having Blockchain in place could end up saving immensely aims to empower more to the local riders and enriching the 2019, https://youtu.be/UnQr9B-ob1E
by speeding up the approval process and reduction in paper- charity, works on blockchain model and eliminated the middle-
Is Blockchain the new Business based mess and process-time.Insurance providing men between the riders and drivers. It shifts the power from the 8. 8: Marrero, S., 2020. 6 Categories of Blockchain Use Cases.
institution will save money and effort on administrative work of hands of a few to the user. It can be used in Supply chain L i n k e d i n . c o m . R e t r i e v e d A u g u s t 1 8 , 2 0 2 0 f r o m
Enabler maintaining records. Music & Entertainment industry could management to keep track of consignments and eliminate the https://www.linkedin.com/pulse/6-areas-blockchain-innovation-
sergio-marrero/ .
benet from the minimal transaction charges that apply when chances of being misplaced. Since it also offers security
Blockchain is one of the latest waves in the eld of technology transacting via blockchain, which allows the artists to earn the against information theft it can be used by insurance agencies. by Kanchan Krishan
which is turning heads of people. It is a growing list of blocks; major share of their revenues. Music platform like Muzika [1] The Advertising agencies can implement blockchain to protect PGP (2019-21)
each block of data is being secured using Cryptography. plans to return over 90% of the sales to the artist. There are them against bots acting as fake users. Sagar Mukherjee
Each block contains the hash value, timestamp and some numerous examples which explain that implementation of PGP (2019-21)
other data for binding it to the previous block in the chain. It is Blockchain will incur a cost but eventually will prot the
an open, digital, distributed ledger system which is used for business and the end user as well.
recording transaction of information from point A to point B.
The data within the block is very safe and immutable. Each of According to a report by Innoventures [2], a rough estimate of Impact of COVID-19
these blocks is timestamped and the whole blockchain is around $15-$20 Billion could be saved if we switch to
managed by a cluster of computers not belonging to a single transactions via Blockchain rather than the traditional way.
entity. Blockchain does not have any central authority Such implications could lead to a reduction in revenue hen U.S. sneezes the rest of the world catches cold”,
(decentralized), it is a peer to peer network hence a streams of the central government and banking authorities. we know this quote became popular during 'The
decentralized network not requiring any central authority for This will lead to a different relationship between the public and WGreat Depression' 1928. In 2020, this phrase has
normal functioning. its administrative authorities. undergone a change and now it would be used
interchangeably for China due to COVID-19. COVID-19 has
“The blockchain is an incorruptible digital ledger of economic As Blockchain upholds the anonymousness it gives away shaken the demand and supply of the entire world market. It
transactions that can be programmed to record not just scope for concern with respect to what/who is the interacting has disturbed various industries and it's time that we start
nancial transactions but virtually everything of value.” – Don & party on the other side. Issues like money laundering, terror preparing for the further shock that this pandemic can have on
Alex Tapscott, authors Blockchain Revolution (2016). funding etc. do urge to a certain extent that regulation of this Image: Peter Bergstrom the world economy.
blockchain is required. But again, this goes against the core
The growth which the Blockchain has witnessed is idea of the Blockchain where it was designed in the rst place Time and again we observe that security, transparency, ease, However, in these times of crisis, China is still trying to protect
unparalleled and unprecedented, yet there are more than a to eliminate the authorities and excessive regulations during efciency in terms of money and effort remain the major factor the trade relations with USA that it started to re-establish by
few challenges which are in line. The primary question that the transactions. In an article about 'Understanding for the people to prefer blockchain. Moreover, the inclusion of signing the Phase One Trade Deal. China's imports from the
remains is the awareness and acceptance of the new Regulation' by Steve Tombs [3], he describes the 'need of blockchain in the nancial system would revolutionize it US grew by 2.25% in January-February in comparison to the
technology. There needs to be proper pedagogy at different regulations' as something without which only chaos will be inside out, as the entirety of it is based on the core of the same time during the previous year. The time is also difcult
levels to increase its reach throughout different groups of sovereign. So, we need regulations, in some form or the other intermediate charges levied by these institutions. Another for US companies established in China who were hoping for
users. Furthermore, within an organization too, there is a to monitor the activities. There needs to be a ne line between factor that scores is the feature of immutability, where once some relief from the trade barriers with the implementation of
question of adaptability to new upcoming changes in the regulated and the unregulated areas. The regulations on the transaction is completed, can't be ddled with. This could the deal. Under the deal, China was about to purchase $200
technology and how the people within and external to it react. the protection of end users & vulnerable people from criminals be helpful in avoiding the ddling of nancial accounts. billion in US exports, however, the number now looks
Also, blockchain works best when the companies in an and investors from fraud are needed. As with any system of Blockchain has proved itself to be a prominent tool across doubtful. At the same time, while US is trying to control the
industry operate together but currently various organizations the universe, here also balance is the key. In some various sectors of industry. In agriculture, it can effectively pandemic in the country, it lifted the 7.5% excise duty on
of the same industry operate various blockchains of their country regulations for money laundering, taxations etc. identify and eliminate poor processes and redundant middle- certain products, that was imposed on September 1, 2019.
own. Another issue is related to the culture of the market, have been attributed to Blockchain related activities. Entries men. The local goods could be getting a better platform and These products include medical items like face masks,
wherein it expects from the customers to believe and trust in a to the Blockchain also needs to be regulated by initial scrutiny have transparency of its origin. Blockchain Solutions in surgical gowns, medical gloves, etc. that are important for
decentralized mode of transaction and it is known that of the hash id by the ledger community, to ensure that Education sector could be revolutionary. It could help taking precautions against the virus. In addition to this, China
people, in general, are resistive to change. It is up to the unethical and illegal activities can be discontinued. The in better verication processes and reduction in the fraudulent has also implemented tax exemption policy for importing US
institutions to realize how they can make the change more regulations on maximum mining hash rate need to be in place claim of certicates. Real Estate is generally plagued by too goods that it requires from January 2020. Additional tariffs
supportive to the respective parties. Apart from the above, so that instances like the 51% attack [4] could be avoided. much hefty paperwork, lack of transparency and the sluggish have also been waived off for certain period indicating that
around the globe, there are only a handful of countries which process time. These issues could easily be more simplied by both the countries are trying to support each other in such
approve of the cryptocurrency and blockchain. For any rm Functioning governments as of Malta and Switzerland have the blockchain.Platforms like Propy [7] helps ease the distressful times.
operating in a global market wishes to have a homogenous started incorporating blockchain in its functioning. Malta has process of real estate buying with the security of Blockchain
approach towards the transaction mode across countries. introduced new rules to ICO (Initial Coin Offering). and the buyer saves up to 25% on transaction fees.
Government functioning can be revolutionized if the
16 IIM Visakhapatnam IIM(V)IBES - A quarterly newsletter 17
