The successful use of Blockchain in various aspects of data security needs no introduction. In simple terms, we can think of Blockchain as a peer review process where different and unconnected networks have to validate the entry to be added to the network. Apart from serving as the basis for cryptocurrencies, Blockchain has been used in supply chain management, maintenance of land records, banking transactions, copyrights, and more. In India, Blockchain remains a late starter, given the gradual evolution of the regulatory framework. Nevertheless, at first, various state governments have been proactive in promoting Blockchain through the application of policies or pilot projects for property registration and taxation, issuance of caste certificates, and even trading. solar power P2P.
Given the volatile nature of global geopolitics, government and the private sector could explore synergies to enhance financial and logistical security through traceable supply chains, financial flows, and even building their own 5G network based on the Blockchain. Our National Blockchain Strategy is an ambitious document in this regard, which strives to include security beyond the privacy aspects alone. The strategy only mentions efforts to establish a “multi-stakeholder model in the evolution of the national blockchain infrastructure,” leaving significant leeway to craft it. The strategy also lists over 40 different Blockchain applications that, if developed, could potentially revolutionize our communications and national security infrastructure.
We need to discuss these issues, especially when the prevailing international situation demands complete control and indigenization of critical infrastructure. The war between Ukraine and Russia is the latest reminder of the need for an indigenous communication network that is immune to external destabilizing forces. As Russian missiles targeted Ukraine’s communications infrastructure, distressed Ukrainians turned to SpaceX’s internet services. In such potentials, Blockchain-based 5G network offers a promising solution. It is an opportune time for India to explore a decentralized network modeled on the Helium 5G network. Helium’s pioneering efforts in developing a P2P wireless network, connecting IoT devices to the internet through hotspot hosts to provide coverage could lead the Indian government’s efforts to facilitate its own version of 5G on these lines. An IoT network, as we know, could facilitate the connection of devices in a cost-effective way. Above all, it saves large-scale investments in the physical infrastructure which remains the classic way of building communication infrastructures.
Next, India could consider building its own supply chain network modeled after Vechain. In simple terms, we can think of Vehicle chain as a “Blockchain-based supply chain solution”. Already, big brands like BMW and Walmart have switched to using Vechain to eliminate the gaps. Tracking orders from origin to destination using blockchain technology will ensure that any potential leaks are checked. This raises the question of its usefulness especially when you have RFID and QR codes to perform the same function. The difference is that Vechain integrates the same technology with the Internet of Things, in which the different devices are interconnected at different points in the supply chain and all this data becomes part of the Blockchain, thus becoming unalterable. More importantly, a Vechain-based solution could help detect counterfeit goods, which thrive in India on a massive scale.
Again, the war between Ukraine and Russia offers lessons, even when it comes to financial security. Following its exclusion from the international financial system, Russia has reportedly explored the use of large-scale cryptocurrencies as an alternative to continue its trade. This would naturally require large private crypto exchanges to facilitate fiat conversions. This is an opportune time for India to consider building its own decentralized exchange to escape reliance on private exchanges. India could also consider creating its own blockchain-based exchange. Above all, it will eliminate brokerage entanglements and, above all, contribute to the transparency of transactions, which will become traceable to the source. Based on the needs of the Indian market, examples of centralized and decentralized exchanges could be analyzed.
Although the Indian government is working on establishing a level playing field for cryptocurrencies, it could still think of a medium-term plan to fight financial fraud by building its own crypto wallet, backing it with collateral. sovereign. This could become the biggest source of stability for investors, potentially adding to the predictable crypto trends in India.
These suggestions are not new as they are being implemented by different governments and large-scale private actors abroad. Thus, India should not miss the bus.
About the authors
Siddharth Acharya is an Advocate to the Supreme Court of India and co-founder of the Center for Blockchain Policy and Research (CBPR). A researcher on the tech-security interface, he is an attorney with Brahmos Aerospace, public sector banks and PSUs.
Prateek Joshi is a Dphil candidate at Oxford University and co-founder of CBPR.