Blockchain Technology

                                          pic credit- Bitcoin Magazine

What is Blockchain

      A blockchain is a continously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a cryptographic hash of the previous bloc, a timestest  and transaction data. By design a blockchain is inherently resistant to modification of the data. It is  "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way". For use as a distributed ledger a peer to peer network collectively adhering to a protocol for validating new blocks. Once recorded the data in any given block can not be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority. 

      Blockchains are secure by design and exemplify a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been achieved with blockchain. This makes blockchains potentially suitable for the recording of events, medical records, and other records management activities, such as identity management, transaction processing, documenting provenance, food traceability or voting. 

      Blockchain was invented by Satoshi Nakamoto in 2008 for use in the cryptocurrency bitcoin, as its public transaction ledger. The invention of blockchain for bitcoin made it the first digital currency to solve the double double transaction ledger. The invention of blockchain for spending problem without the need of a trusted authority or central server. The bitcoin design has been the inspiration for other applications.

Government of India's Stand on Blockchain Technology 

      In order to examine the existing framework, Department of Economic Affairs, Ministry of Finance has constituted an Inter- Disciplinary Committee chaired by Special Secretary (Economic Affairs) and representatives from Department of Economic Affairs, Department of Financial Services, Department of Revenue (CBDT), Ministry of Home Affairs, Ministry of Electronics and Information Technology , Reserve Bank of India ,NITI Aayog and State Bank of India. The Committee will (i) take stock of the present status of Virtual Currencies both in India and globally; (ii) examine the existing global regulatory and legal structures governing Virtual Currencies; (iii) suggest measures for dealing with such Virtual Currencies including issues relating to consumer protection, money laundering , etc; and (iv) examine any other matter related to Virtual Currencies which may be relevant.  

      




Sources: PIB, Wikipedia, Investopedia