Will application of Blockchain increase in the financial sector post COVID-19?

India FinTech Forum along with KARM Legal Consultants hosted an online session to discuss ‘Will application of Blockchain increase in the financial sector post COVID-19?’

The esteemed panel members:

Mr.Jitan S Chandanani, Partner-Blockchain Leader at IBM

Ms.Kokila Alagh, Founder at KARM Legal Consultants

Mr.Kunal Nandwani, Co-Founder and CEO at uTrade Solutions

Mr.Prasanna Lohar, Head of Digital, Innovation and Architecture at DCB Bank

Mr.Sathvik Vishwanath, CEO and Co-Founder at Unocoin

Let us go forward with an example. You have entered a bank and you want to carry out a particular transaction. Your entire transaction is recorded in a system called as the ledger containing primarily Debit and Credit accounts. Similarly, blockchain is a chain of blocks connected to one another where each block is a ledger account. Any change in a single block will result in a subsequent change in all the blocks. Blockchain is slowly becoming a trusted mechanism for data storage and record keeping.

Introducing Blockchain 2.0! The latest version of the Blockchain phase does not only focus on Cryptocurrency but also on various other uses such as in Healthcare systems, ordering food, etc. The Indian government is now being slightly open to the idea of Blockchain. They have issued guidelines which undoubtedly provide a framework for Blockchain companies to function and perform. Blockchain can be an asset to banks as well where they can optimise cumbersome processes such as reconciliation, settlement etc.

The next step of Blockchain is Tokenisation. Still in a theoretical phase, the government/any private or public firm can issue tokens which are backed by some security such as gold, equity, etc. These tokens will be easily transferable from one person to another. They will also be assets which can be traded on other platforms.

To conclude, Blockchain is an upcoming technology which is going to rise in popularity over next few years. For example, IBM has a food tracking technology in place where a customer can see where the vegetables that they buy are procured from. Imagine the feeling you will have when you see that the material of the t-shirt that you just spent Rs.2000 on has been hand woven by one of the finest artists in the world. That is what blockchain aims to do. Integrate the world and currency into one!