India Reserve Bank Pushing Fintech Proof-Of-Concept Solutions
Arriving into the new year, the momentum from the blockchain push is still rising. Blockchain industry analysts believe that 2017 will be a breakout year for blockchain technology (BCT), with the prediction that firms and governments will migrate from the proof of concept to working applications that will disrupt markets worldwide. Asia will remain as one of the leading continents for blockchain research, development, and implementation. So far more proof-of-concepts are coming to fruition.
The Reserve Bank of India and the Institute for Development and Research in Banking Technology (IDRBT) has produced a pioneering white paper entitled “Applications of Blockchain Technology to Banking and Financial Sector in India.” The document is the result of almost two years of intense research into the blockchain infrastructure, its security features, process flows and use cases, and even includes details on the successful deployment of a Proof-of-Concept (PoC).
What’s in the White Paper?
The white paper is broken down into chapters, each highlighting an area of blockchain tech and its possible use cases. In addition to an introductory chapter that presents the primary components of blockchain technology (cryptographic components, the blockchain protocol, and blockchain ledger classification), the paper discusses the benefits of adopting BCT such as cost savings, efficiency, and transparency. The paper also highlights potential use cases using both currency and non-currency approaches for each (trade finance, cross-border payments, FX trading, and a number of other alternatives), and reveals a “prospective roadmap for the adoption of BCT to banking and finance in India.”
The paper lastly introduces a summary of the Proof-of-Concept:
The PoC provided a good overview of the workings of the Blockchain eco-system demonstrating the following key aspects:
- Complete transparency of various events triggered by various counter-parties
- Immutability/Tamper Evidence
- Automated flow triggered by the occurrence of specific events.
The PoC utilized Ubuntu 14.04, Hyperledger Fabric 0.6.1, and application servers – Node JS, React, and Redux with Fabric NodeSDK.
What’s ahead for India and Ethereum?
According to R. Gandhi, Deputy Governor of the Reserve Bank of India:
“Smart-contracts are an advanced application of BCT that can encode complex business workflows for enforcing their conformance, and enhances efficiency through event triggered mechanisms. Several BCT platforms provide the necessary features to encode smart-contracts in a simple and efficient manner.”
Vitalik Buterin, founder, and inventor of Ethereum, recently attended the Blockchain India Summit in New Delhi and outlined the potential of smart contracts. Considering the Reserve Bank of India’s acknowledgment of Ethereum’s blockchain-based advantages, 2017 could be the year that Ethereum gains wider adoption in India and beyond.