India has the potential to transform Indian financial system the only step the country needs to take is to link Aadhar with Blockchain.
“As the hype around blockchain grows, India has the potential to lead the world in the application of the technology and should put Aadhaar on the blockchain,” said expert Don Tapscott, who founded the Toronto-based think-tank Blockchain Research Institute.
“Yes, that should all be on the blockchain. You don’t want to centralize identity, that’s Big Brother. It is a very dangerous thing, it can be hacked as well. We want a distributed identity that citizens own their own data that’s in a black box and the virtual you can take all your health, education, transaction information and is controlled by you. You can use it to plan your life, you can monetize it if you want, you can protect your privacy,” he added.
Aadhaar, India’s identity system which stores citizens’ biometric data such as fingerprints and iris scans, according to the government, is stored on a central database, which is secured by best in class cryptography and strict rules around who can access citizens data.
There are several concerns that have been raised around this system, one of them is its central database getting hacked, putting the identity information and privacy of over a billion Indians at risk.
But, it can be reduced when placed blockchain in the system because then it would be a distributed database, and not a single, central one. Also, the way blockchain works are that for any transaction to take place on the ledger, it would have to be approved by a majority of the points on the ledger. Because of its strong cryptographic protection, the data cannot be hacked until at least 51 percent of the “nodes” or points in the system are compromised.
Tapscott, who was in India last week for National Association of Software and Services Companies’ annual India Leadership Forum in Hyderabad, Tapscott spoke about the how blockchain was the “second era of the Internet,” and signed a partnership with Nasscom to promote blockchain in India.
“It will be the operating system of our economy for the next few decades and India is a bit behind and could lead the world. Canada right now is the leader and we want to share all this knowledge that we have with companies in India,” Tapscott said.
He also said that governments should not be scared of cryptocurrencies and they will not replace existing currencies.