Since demonetization, a lot of people and industries had suffered; however, there were certain businesses, which benefitted to a great extent. Out of all these, certain businesses that benefitted were e-wallets such as 'Paytm'. Along with the gain in their popularity, the popularity of virtual currency such as Bitcoin, Ethereum and the like, is also gaining momentum, which quite a few people have heard of, but not many understand it much.
Such virtual currencies are based on a technology by the name of Block Chain.
Block Chain technology is basically an electronic ledger in which each and every transaction gets recorded. In short, it's a chain of events that you can get for a particular thing that it has been linked to.
So, how these virtual currencies function is that each and every transaction gets recorded like how it gets recorded for bank transactions. However, the difference lies in the fact that it is almost tamper proof and hack proof and hence, the element of forgery and cheating is completely negated. This technology is currently the most sought after technology in the world as the application for the same is endless.
In Banking and Real Estate
Whoever has ever tried to sell property or tried to get a mortgage will understand how many costs and efforts are required to carry out the same.
All such people take the help of third parties for title verification and to act as an escrow agent, in order to eliminate fraud. However, these involve several formalities and costs, which not everyone is willing to take. Many a times, such transactions have to be completed within a very short period of time, however, due to such factors, this cannot be achieved. But, what block chain technology would do is eliminate the need for such third parties.
Every property would have its unique electronic identity and every person who is desirous to purchase and/ or lend money against such security can very well see every little aspect of such property which would include the chain of ownership, a documented list of repairs and refurbishments etc. and the risks involved could be reduced and the claim of the seller/mortgagor could be easily verified without the need of a third party thus making it a streamlined, safe and easy process.
The Government of Honduras and Bitcoin are one of the first to have collaborated for implementation of such a technology and several other companies and countries are trying to follow the same. It is also heard that the unlikeliest of them all, the Government of India, is also one of them. If it is true, the extent in which this technology could benefit the nation cannot be comprehended.
Of course, there will be several people opposing it and most people will say that it is impossible to have such a thing in India due to the sheer numbers and corruption that India has.
However, there are several factors which support such a possibility such as:
- the manner in which the current Government is implementing new systems and legislations such as demonetization, GST, RERA, etc.
- the amount of efforts being pumped into making India digital (such as AADHAR Cards, biometrics etc.).
- the availability of all property and company related documents online (like the online portal of the sub registrar of assurances and the ministry of corporate affairs. and
- the compulsory registration and disclosure of all real estate projects under the RERA Act.
Therefore, there is definitely a possibility of this technology being introduced and implemented in India, hopefully leading to a corruption free and stress free India.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
