Evaluate the role of government in regulating and promoting the use of blockchain technology in various industries.
विभिन्न उद्योगों में ब्लॉकचेन प्रौद्योगिकी के उपयोग को विनियमित करने और बढ़ावा देने में सरकार की भूमिका का मूल्यांकन करें।
Approach
Candidates can start the answer by basic definition of block chain and simply write about the regulation and role of government in promoting block chain.
Introduction
A blockchain is a form of public ledger, which is a series (or chain) of blocks on which transaction details are recorded and stored on a public database after suitable authentication and verification by the designated network participants. A public ledger can be viewed but cannot be controlled by any single user.
Body
Government’s role in promoting:
MeitY has prepared a draft framework for the use of blockchain technology in government services and intends to use it in the areas of property record keeping, digital certificates, power distribution, health records as well as supply chain management.
Land records: Land transactions and proof-of-ownership requests can burden government agencies with documentation and administrative work. By promoting blockchain, governments can permanently store asset transactions such as land, property, and vehicles on a public ledger.
Legal contracts: Traditional legal-contract execution is costly to both governments and their citizens. Smart, self-executing contracts, enabled by blockchain, can remove the need for intermediaries and potentially improve contract creation and execution. These contracts will be publicly accessible and secure within the network.
Cyber space: Government systems that provide social benefits, such as unemployment, can be misused and infiltrated by certain individuals and groups, such as cyberattackers. Blockchain can improve record management and provide protection, though issues of privacy must be thoroughly addressed.
Patenting: Since blockchain can permanently time-stamp transactions at any time, companies or individuals can file patents without enduring the cumbersome submission process.
Regulation of blockchain technology:
The current debate in India has, unfortunately, focused too heavily on trading and speculation, looking at cryptocurrencies as an investment tool, rather than understanding the potential of core blockchain technology and the basic role of cryptocurrencies as an incentive mechanism to secure decentralized transactions.
At the present time, blockchain models are partially permitted or are public like Ethereum which is unregulated and relies on intrinsic standards.
Prevailing cyber laws in India touch almost all aspects of transactions and activities involving the internet, www and cyber space (IT Act 2000 and amended in 2008, section 463 of IPC, and section 420). But in today’s techno-savvy environment the world is becoming more and more digitally sophisticated and so are the crimes. India’s cyber laws are lacking in this respect.
There are sufficient global examples of countries that have taken nuanced and cautious steps in regulating the technology, and are focusing on stopping illegal activity without hurting innovation.
Conclusion
Currently, we are witnessing the next phase in a digital revolution led by technologies like blockchain. Channelizing India’s human capital, expertise, and resources supported with the right policies will help India to make the most benefit of it.
