A joint report by industry chamber FICCI and consultant firm PwC created a buzz of Blockchain all around by stating that the next generation technology can help in the reduction of transaction costs in various government schemes. FICCI and PwC said on 22 February that ‘the blockchain technology can massively reduce the transaction costs by removing the need for third parties to manage transactions and maintaining records. The blockchain technology has the potential to affirm the social benefit schemes to support government’s policies like sustainability. This ultimately would result in the reduction of poverty and would also help in generating value for money in public expense
According to the report, blockchain is a digital and distributed registry that is capable to keep the records of all the transaction taking place across all the networks. In this technology, the information can be captured at different locations or blocks and later this captured data from different blocks can be collectively connected with the help of some common link or some signature in a single set of information. In addition to this, every block or location is distinctively connected to the previous blocks. This connection is ensured through a digital signature. The unique digital signature does not enable the user to make a change in a record without creating any disturbance in the previous records. This scenario thus renders the information tamper-proof.
The report also pushed few examples like land record management, smart cities, air pollution, agriculture etc. where the maximum of the issues could be solved using the blockchain technology. The report also made an estimation that around 1.3 percent of the total GDP is lost due to the unclear land titles and the litigation cost. If these land records are kept on a blockchain then this would make it rigid and tamper-proof. Thus this would help in building a firm pillar of faith and trust into the system.
Thus, if the solutions of blockchain technology would be implemented, then this may help in the elimination of middlemen. The removal of a middleman would ultimately lead to the improvements of pricing and decrement in the transaction fees.