India’s first Blockchain district in Telangana
What to study?
For Prelims: First blockchain district.
For Mains: Blockchain- features, potential and concerns.
Context: Tech Mahindra and the Telangana government have signed an agreement to establish a Blockchain district in Hyderabad, a first-of-its-kind Centre of Excellence for Blockchain in India.
What is it and how it works?
Initially it would be a virtual cluster, connecting with the stakeholders working in the emerging technology. It would have a physical building at a later phase.
In short, it will be “a cluster of buildings”, which will house start-ups and other stakeholders working on the development of the platform.
Tech Mahindra, as a founding member of the Blockchain district, will provide platform and technology assistance to all the incubators in the district.
On its part, the Telangana government would provide regulatory and policy support to promote the growth of Blockchain.
What is Blockchain technology?
Blockchain is a new-age technology that helps in record-keeping through the use of cryptography, a secure method of writing digital codes. With blockchain, many people can write entries into a record of information, and a community of users can check the records to reduce the scope of fraudulent practices in altering information.
Benefits of blockchain technology:
As a public ledger system, blockchain records and validate each and every transaction made, which makes it secure and reliable.
All the transactions made are authorized by miners, which makes the transactions immutable and prevent it from the threat of hacking.
Blockchain technology discards the need of any third-party or central authority for peer-to-peer transactions.
It allows decentralization of the technology.
How blockchain can be used in public administration?
Blockchain has the potential to optimize the delivery of public services, further India’s fight against corruption, and create considerable value for its citizens.
By maintaining an immutable and chronologically ordered record of all actions and files (“blocks”) linked together (“chain”) in a distributed and decentralized database, Blockchain creates an efficient and cost-effective database that is virtually tamper-proof. By doing so, blockchain promises to create more transparent, accountable, and efficient governments.
In addition to creating a more efficient government, blockchain can also help create a more honest government. A public blockchain, like the one Bitcoin uses, records all information and transactions on the decentralized database permanently, publicly, and most importantly, securely. By allowing governments to track the movement of government funds, blockchain can hold state and local actors accountable for any misappropriations.
Blockchain not only deters corruption through accountability, but it can also do so by bypassing the middleman entirely. Earlier this year, the World Food Programme began testing blockchain-based food and cash transactions in Pakistan’s Sindh province. Refugees in Jordan’s Azraq camp are now using the same technology, in conjunction with biometric registration data for authentication, to pay for food.
