The next generation blockchain technology can help in reducing cost of transactions in various government schemes, a joint report by industry chamber FICCI and consultant firm PwC stated. “By removing the need for third parties to manage transactions and keep records, blockchain technology can massively reduce transaction costs. Leveraging blockchain technology for social benefit schemes will support the governments wider policy objectives of sustainability, thus reducing poverty and generating value for money in public expenditure,” the report said.
Blockchain is a digital, decentralized (distributed) ledger that keeps a record of all transactions that take place across a peer-to-peer network. In the blockchain technology, the data can be captured at various location or blocks and all the information captured at various block can be connected with help of a common link or signature in one set of information.
“Additionally, each block is uniquely connected to the previous blocks via a digital signature which means that making a change to a record without disturbing the previous records in the chain is not possible, thus rendering the information tamper-proof,” the report said.
The report cited example of land record management, smart cities, air pollution, agriculture etc where many of the issues can be resolved using blockchain technology. It is estimated that approximately 1.3 per cent of the GDP is lost due to unclear land titles and the litigation cost associated with competing claims only serves to exacerbate the problem further, as per the report.
“Putting land records on a blockchain would make them immutable and tamper-proof, thus securitizing them and building a firm pillar of trust in the system. All land deeds and their associated records would be immutable and irrefutable, thus saving a lot of money on land-related litigation,” the report said.
The report said that use of blockchain technology has the potential to make the agri-supply chain more secure, transparent and efficient. “Blockchain solutions, if implemented, may lead to the elimination of intermediaries or middlemen, thereby leading to improved pricing, decreased transaction fees, thus eliminate issues of hoarding,” the report added.