Being a part of the crypto space we are also familiar with blockchain technology but I think many of us are not well aware that how this technology works and how vast it is. Even I used to believe that Bitcoin is bigger than blockchain and it is just a technology that is powering Bitcoin. Blockchain has got some attention because of the crypto and Bitcoin but I was wrong because this is not the case and the reality is just the opposite. Blockchain is a decentralized ledger where we can keep the information/data in blocks. These blocks are validated and connected so if there is any alteration made to the information then it has to be verified first before it is connected to another block. Since blocks are used to store the data and these blocks are connected This is why this is called blockchain technology which follows the chain format to restore and connect the blocks.
Bitcoin is just a part of the blockchain technology and blockchain itself it's so big that has the power to empower not just the crypto but also many other industries and sectors. The reason why this is quite popular these days is that it can manage the data on a scale. Information once stored in blockchain will not be deleted. Technology is built to make our life better and easier but this technology is so vast and comes with huge potential that can empower countries and their economy.
There are certain areas in the country's economy where blockchain can play an important role to empower it and with the blockchain, the country can build robust infrastructure for their citizens as well as manage their governance securely and more smartly. Because this is highly advanced technology and not available for individuals to give a try so I did spend some time on the Internet to learn and understand the better use case of the blockchain and how it can empower the economy. Below are some of the areas where this technology can make things better an overall impact is going to make the economy strong for the country.
Citizens portal and database
Any country needs to have a portal where information is stored for every individual living in the country and with this government plan things accordingly. If I talk about India then there is no centralized system available as of now that is safe, secure, faster, and easily accessible for every individual. There is a project called Aadhar but it's not on the blockchain and even in the past, I have seen many hack news for the database. This is a project where govt claims that duplicate number generation is not possible and even only Indian citizens can get the adhar number. But I have seen some NRIs have adhar and I think this is a loophole of the system. With blockchain, this can be controlled and no need to worry about data safety since its advanced and even duplicate creation will not be possible. So with blockchain technology govt can have a central database and it will help the govt to plan things better for better economical planning.
Banking
Banking is one of the segments where blockchain can make a significant difference and even we have seen it happening in many countries. Banking is a medium through which people get access to payment survives like fund transfers etc and with blockchain, it's even easier. First, it makes the money transfer easy using crypto and reduces the cost and time of transfer. If banks adopt blockchain then their system will be more robust than capable to manage higher transaction workflow. This way more people will be able to be part of the banking system and that is needed to grow the economy. A digital economy is only possible when 100% population of the country can access the banking system and without achieving this we cannot call any economy a digital one.
Governance
government is a mechanism that is controlled by the government in the country and because of the traditional system no government can put enough controls but with blockchain, things can be different. Government transfer money beneficiary scheme for the citizens and with the technology they will be able to make sure that the right person is given the benefit and putting the right control will also reduce the misuse of the schemes and that is how the government is going to save a lot of money. It's not bad to support the people who are needy but at the same time, it is not fair to support the ones who are not eligible this control is possible only through high-end technology and that's where the blockchain can play a vital role.
Above are some of the main areas where this technology can make a bigger difference however if we look at other segments including health and medical, hospitality, aviation, real estate, etc then here also there is a need for this technology. Government is not the only body that supports the growth of technology instead many other sectors that I mentioned above are also contributing to making the economy of the country strong and putting it on the fast track to grow it faster. Without technology, it is very tough and close to impossible to make it smarter but choosing the right technology and making the best possible use of it can make things smarter which is going to result in a strong economy.
Every country wants to have its economy stronger and growing so as of now the solution lies with blockchain and whichever country will adopt it we'll set an example in the coming years for sure.
Thank you so much
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