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Understanding Basic Bitcoin Terminology and Concepts

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Over the last couple of years, the popularity of blockchain technology has increased considerably, thanks to its numerous advantages over traditional systems. For a while, governments, private companies, digital currency projects, financial institutions and numerous other entities have actively researched the opportunities associated with blockchain. At this point in time, the technology is ready for usage, and we are already seeing implementations, both from private and public entities.

With this in mind, recent reports indicate that India is now working on developing an all-inclusive blockchain strategy, meant to ensure that the country is ready for the future’s blockchain-based technological infrastructure. In a recent Q&A, the Indian Minister for Electronics and IT, Sanjay Dhotre stated: “Considering the potential of Blockchain Technology and the need for shared infrastructure for different use cases, an approach paper on National Level Blockchain Framework is being prepared.” Currently, it seems that the technology will be used at a national level for a series of niches, including cybersecurity, public administration, banking, education and governance.

According to the minister, the Indian Ministry for Electronics and IT will soon begin working with the Indian Institute for Research & Development in Banking Technology, alongside several other departments and organizations, in order to facilitate the development of the blockchain strategy, and its implementation later down the road.

For instance, the blockchain strategy will facilitate the development of Proof-of-Existence blockchain technology, which will be used at a state-wide level to help authenticate and verify numerous types of documents, such as academic certificates, property documents and more. This development will help reduce forgeries and fraud, while also making it easier for Indian employers and other authorities to verify the authenticity of the documents that they are presented with. The ministry representative offered several other examples of potential blockchain implementations, including initiatives concerning finance trading or cloud security.

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So far, it is believed that India’s upcoming blockchain strategy will feature several guidelines that blockchain-based companies must follow for the sake of ensuring consumer security and protection against fraudulent practices. Additionally, the strategy will also feature in-depth policies explaining how government-backed blockchain projects will replace existing governance, financial and administrative systems, thus offering users a cheaper, faster and more intuitive experience.

At this point in time, several other countries are investing in the research and development of blockchain technology. For instance, China has also launched its blockchain strategy. It features several guidelines that must be respected by blockchain-related entities, while also showcasing China’s plans to implement such systems at a nation-wide level, in order to improve digitalization, while also disrupting existing industries and improving their overall performance.

Despite everything that has been outlined so far, India has been fairly critical of cryptocurrencies. Thus, we can observe a trend in several countries (including China and India), where blockchain technology is promoted and incentivised, whereas the development and use of standalone decentralized digital currencies are discouraged.

 

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