Blockchain, the distributed ledger technology behind the cryptocurrencies like Bitcoin, is back in talks. Even our Finance Minister Arun Jaitely mentioned it positively in the Union Budget2018 Speech. Blockchain is revolutionary in many ways but its commercial implementation has always been debated. 9 years since its inception, not many are keen on implementing the technology as an enterprise solution just yet.
This could however change in 2018. India’s Yes Bank made the first commercial deployment of an enterprise blockchain solution in India on January 31, 2018. It is also only the second in the world. Something we Indians should be proud of.
Yes Bank uses IBM’s Hyperledger DLT (Distributed Ledger technology) to deploy the R&D project for Bajaj Electricals. The implementation has been done on a blockchain-based smart contract written by fintech start-up Cateina Technologies. They now plan to add 35 vendors of Bajaj Electricals onto this platform to transact on both sides—dealer finance and vendor finance, reports The-Ken.
Enterprises around the world are experimenting with blockchain and such moves from experimentation to production will only encourage more adoption of Blockchain as a technology.
We however cannot discount the fact that for Blockchain based solution to be truly secure, they need to be distributed heavily. It means that current deployment by Yes bank, that includes only 3 entities, Bajaj Electricals, their vendors and Yes Bank, is not fully secure as a distributed ledger system. Once there are more partners into the system, the network will be distributed further, enhacing the securty and be truly decentralized.
Such blockchain implementations are Tokenless. There will be no Initial coin offerings in cases on enterprises deploying blockchain based solutions. The deployment of such solutions will ensure the survival of Blockchain as a technology that can be used by any or all industries.
Blockchain Good. Bitcoin Bad?
This remains the mantra with many policy makers around the world. Even the government of India wishes to discourage people from trading cryptocurrencies until they set up regulations around it. We can hope for some regulations soon on cryptocurrency in India as well as around the world soon enough. It is widely expected that Bitcoin and cryptocurrencies will be discussed at the G20 Summit in Argentina this year in March.
Much has happened over the past few weeks as Banks arm twisted Payment gateways to stop supporting exchanges, Government sent notices to Crypto traders, Mainstream media’s incorrect reporting about Banning Bitcoin, and so on. Bitcoin has a tough road ahead.
Interestingly though, the CEO of Yes Bank Mr. Rana Kapoor is bullish about Bitcoin:
Soon after #FinanceMinister @arunjaitley speech, #Bitcoin's value saw a drop in value. Now, the question is whether #Bitcoin is here to stay? Watch https://t.co/4o6XatkfMd's video where #RanaKapoor, CEO, #YesBank talks about #cryptocurrencies and its future. #Budget2018 pic.twitter.com/xktoa13fOz
— Business Today (@BT_India) February 2, 2018