Mastering Blockchain
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Analysing the Impact of Blockchain Technology in India’s Digital Economy
– Jeevan John Varghese* Student, G L BAJAJ Institute of Management and Research
[email protected] https://orcid.org/0000-0002-5166-8890
– Devashish Sharma Student, G L BAJAJ Institute of Management and Research
[email protected] https://orcid.org/0000-0001-9354-7766
– Nishant Kumar Singh Assistant Professor, G L BAJAJ Institute of Management and Research
[email protected] https://orcid.org/0000-0002-8636-8417
EDITorIAl BoArD ExcErpT At the initial Time of submission paper had a 4% plagiarism which is an accepted level for publication. He editorial viewpoint is of an observation that article had a successive close watch by the blind reviewer’s which at later stages had rectified and amended by an authors in various phases as and when requisite to do consequently. The reviewers had in a beginning stages mention with minor revision with a following stamen which at a small duration streamlined by authors (Jeevan John, Devashish Sharma, Nishant Kr. Singh). The comments related to this manuscript are tremendously perceptible related to exponential organization both subject wise and research wise by the reviewers during evaluation and further at blind review process too. The authors be commendable of appreciation for writing this paper onimpact of blockchain technology in india’s digital economy. The blockchain technology as highlighted by the authors in section 5. The objective of the paper is clear and discussion are well placed and open up avenues for future studies. All the comments had been shared as a mixtures of dates by the authors in due course of time and same had been incorporated by the author in computation. By and large all the editorial and reviewer’s comments had been incorporated in a paper at the end and further the manuscript had been earmarked and decided under “View point ”category as its highlights and emphasize the work in relation to use blockchain technologyparticularly on India’s digital economy.
paper Nomenclature: View Point (VP)
paper code: V11N1JM2019VP1
originality Test ratio: 4%
Submission online: 8-March-2019
Manuscript Acknowledged: 12-March-2019
originality check: 16-March-2019
peer reviewers comment: 1-April-2019
Blind reviewers remarks: 20-April-2019
Author revert: 21-April-2019
camera-ready-copy: 20-June-2019
Editorial Board citation: 25-June-2019
published online First: 5-July-2019
ArTIclE HISTory
ENTERPRISE INFORMATION SYSTEM
ABSTrAcT
purpose: In the backdrop of Digital India and the National E – Governance mission there has been an exceedingly high reliance on the digital infrastructure which acts as an enabler in the process of decentralizing and scaling the Indian digital economy. This paradigm shift entails a significant account of trust and security of data which is to be provided for the end user. It is in this regard, a study is made so as to understand and analyses the assimilation of Block chain technology into India’s digital infrastructure which is to provide robustness and scalability in the technological contours of growing Indian economy.
Design/Methodology/Approach: The research incorporates the application of exploratory method withstanding the requirements of data, review and analysis.
Findings: Theanalysis comprehensively concurs that Blockchain technology acts as an enabler in bridging the gap between the principles and practices of India’s digital economy. It further approves the hypothesis that a robust technological infrastructure acts as an impetus towards the greater goal of financial inclusion.
originality / Value: The discourse of understanding the significance of digitally enabled financial services is of growing interest. However this paper endeavours to pioneer a link between the social aspects of financial inclusion to that of technological one.
KEyworDS Blockchain | Digital India | Technology | Financial Inclusion | cyber Economic Espionage
www.gjeis.com
*corresponding Author
https://doi.org/10.18311/gjeis/2019 Volume-11 | Issue-1 | Jan-Mar, 2019 | Online ISSN : 0975-1432 | Print ISSN : 0975-153X Frequency : Quarterly, Published Since : 2009
©2019-20 GJEIS Published by Scholastic Seed Inc. and Karam Society, New Delhi, India. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
GJEIS
ISSN (Online) : 0975-1432 ISSN (Print) : 0975-153X DOI: 10.18311/gjeis
Volume 11 | Issue 1 | Jan-Mar 2019
Dr. Subodh Kesharwani Editor-in-Chief
Published by
www.gjeis.com
ENTERPRISE INFORMATION SYSTEM
Since 2009 in Academic & Research
DOI: 10.18311/gjeis/2019 Vol 11 | Issue 1 | Jan-Mar 2019 95
www.gjeis.com View Point
Jeevan John Varghese, Devashish Sharma and Nishant Kumar Singh
Introduction A popular instance for the occurrence of an
event is often described with the help of classical
unities which are described as the unities of time,
place and action. This philosophical narrative can be
viewed as a cornerstone towards the understanding
of blockchain(Bashir, 2018) in Indian digital
economy. The socio-economic paradigm of our
country especially after the wake of liberalization
has been such that it has encountered various
challenges and moreover numerous possibilities.
One of the greatest possibilities which India has
embarked in the due course has been its transient
and high end infrastructural capabilities. Especially
in the wake of a robust infrastructure which would
help in the transition of our “medieval” economic
infrastructure to attain parity with that of developed
countries. It is at this pointof the narrative a modern
and state of the art infrastructure which essentially
provides high end data security was advanced,
known as the blockchain. The principledemand
for the advancement of this infrastructure was
due to the increasing instance of cyber fraud that
occurred between the 1990’s and early 2000(Swan,
2015). However in India with a rapidly increasing
population, the process of enumeration and
inclusion of people into the organized financial
system has been a cumbersome task. And the
accomplishment of such a hefty task cannot be
visualized in vacuum, as it essentially involves a
large amount of man, money and infrastructural
capabilities. It is in this backdrop we need to realize
as to how blockchain as an infrastructure could drive
as a juggernaut wave towards a robust and sound
digital economy providing parity and concurrency
to all the beneficiaries involved in the system.
literature review The most fundamental and critical understanding
of the blockchain as a “distributed ledger”
(Bashir, 2018) has facilitated in understanding
its technological viability. However this nascent
technological tool has been a matter of much
contemplation in the technological circles (Zibin,
Xie, Dai, Chen, & Wang, 2017) such as Institute
of Electrical and Electronics Engineers especially
during its 6th International Congress on Big Data.
However the financial viability of using this tool
as a model of secure digital transaction has been
sought much later (Swan, 2015). Especially in
the backdrop of ambitious developments such as
digital India there exists an expected trillion dollar
economy in hand (Company, 2018)which can seek
benefit from this technological leap. Thus it becomes
an imperative to analyze and understand as to how
the dimensions of secure digital transaction can be
enhanced and developed to provide a stable and
scalable infrastructure(Blockchain Technology
Explained: The Ultimate Beginner’s Guide about
Blockchain Wallet, 2017) meeting the demands of a
developing economy.
objective Based on the understanding developed from the
respective documented records, it has been noted
that there exists a lacuna in terms of contextual
analysis. This void is fundamentally created due to
an unsynchronized evaluation in terms of explaining
the blockchain technology and Indian digital
experience. Therefore it seems to be an imperative at
this juncture to critically evaluate the following:
A prelude towards understanding blockchain 1.
as a key technological instrument in financial
technology.
Recognising the impact of blockchain in India’s 2.
advancing digital economy.
research Methodology The present studyendeavors the adoption of
anexploratory approach as it is principally based
on secondary sources of datacollected from various
reports of government and private organization. This
endeavor has been sought to enhance and develop
understanding so as to make a comprehensive
evaluation of the objective under consideration.
Global Journal of Enterprise Information System
Vol 11 | Issue 1 | Jan-Mar 2019 Online ISSN : 0975-1432 | Print ISSN : 0975-153X96
Analysing the Impact of Blockchain Technology in India’s Digital Economy
Evaluating Blockchain Technology
Contrary to the traditional misconception
blockchain is often misunderstood with that of
Bitcoin. However it is noteworthy to understand
that Bitcoin is essentially a product that uses the
blockchain technology. One of the most cited phrase
for describing the blockchain technology has been
“distributed ledger”(Zibin, Xie, Dai, Chen, & Wang,
2017). However the technological foundation of
blockchain goes far beyond that. Originally the
development of blockchain occurred in 1991 by a
group of scientists who endeavored to timestamp
documents. The timestamp for document was
essentially done so that the documents cannot be
tempered or manipulated in any way. However the
gravity of this technology was only realized when
Satoshi Nakamoto(Swan, 2015) in 2009 developed
a Cryptographic currency known as Bitcoin. The
technical notion of the working of a blockchain can
be understood with the help of thought experiment.
Consider a person holding two Rubik’s Cube in
each of his hand, such that the Rubik’s Cubes are
joined together by a thread. Here each Rubik’s Cube
describes a block and that thread describes the hash
of the particular block. It would be noteworthy to
understand that each block contains a certain data
that is pertinent to a particular block and this data
is not subjected to manipulation or tampering.
And any tampering of data will have an effect on
the subsequent block attached to the tampered
block(Bashir, 2018). The analogy for the hash of a
particular block can be understood with that of the
fingerprint as it provides a unique identity for each
block in a blockchain. Initially when a block is null
a particular hash is calculated or assigned to a block.
However as data is encrypted into a particular block
the value of the hash changes. This triggering of
hash helps in detecting the change or tampering
of data within a block. As it has been mentioned
earlier, each block is attached to a previous block
with the help of the hash and any change within the
data of a particular block not only triggers a change
in the hash of a particular block but also create a
change in the hash of the subsequent blocks. This
degree of robustness of a blockchain provides an
ambient proof of work making it an efficient system
for secure data storage. The security of a blockchain
is derived from its innovative usage (Swan, 2015)of
proof of work and hashing. Moreover the centralized
mechanism of data distribution provides the ease of
scalability and accessibility of data among all the
users using the blockchain. Moreover it provides a
peer-to-peer which allows any of the users to join
a blockchain. Having a preliminary understanding
of the blockchain technology it would be an
imperative to understand and examine the backdrop
of Indian digital economy which would enable a
comprehensive evaluation of the existing digital
infrastructure.
India’s Journey Towards a Digital Economy
Before the introduction of ambitious projects
like digital India and National E – Governance
mission the Government of India with financial
assistance of United Nation in 1975 developed the
National Informatics Center(Technology, 2017).
The primary aim of which was the computerization
of government offices. This initiative was followed
by the development of major insurance repository
of India such as Central Depository Services and
National Securities Depository Limited in 1999
and 1996 respectively. However this development
was abysmally low to cater the demand of a fast
and growing economy. Owing to the development
of digital infrastructure, the Government of India
sought it to be an imperative to introduce further
development in due course of time. One of the
eminent developments in terms of revival of our
digital economy was laid in the (India, 2008). Here
the ambitious project of National E – Governance
Mission was introduced which primarily focused
on enabling digital services for a citizen centered
participation in the governance. This model of
(Company, 2018)National E – Governance Mission
was primarily adopted from the implementation
strategies developed by Singapore. As a forerunner
DOI: 10.18311/gjeis/2019 Vol 11 | Issue 1 | Jan-Mar 2019 97
www.gjeis.com
to these initiatives the Government of India under
the aegis of Ministry of Electronics and Information
Technology and Ministry of Finance introduced
several other schemes such as Digital India.
There exists a wide ranging impact on the social,
political and economic front with respect to the
execution and development of India’s robust digital
infrastructure. However the requirement of an
advanced infrastructure such as Blockchain is only
understood with help of some vital statistics which
has been dealt in the following section.
The requirement of a robust Digital Infrastructure
One might pose a pertinent question as to why
a sophisticated and complex technology such
as Blockchain is required in the Indian context.
However to ascertain such dilemma we need a
factual evaluation of data. For the sake of reducing
parametric abnormality we have ascertained certain
vital statistics which would help in the evaluation and
understanding the need for Blockchain technology
in India.
country Indonesia India Germany Japan China France
percentage 61% 56% 38% 37% 37% 32%
Index Scores 36 29 55 61 42 53
Source: McKinsey Global Institute
Table 1: Growth of Digital Economy for the
financial year 2016-2017
According to the report by the McKinsey Global
Institute for the financial year 2016-2017, India has
seen a rapid growth in terms of digital economy
with a staggering 56% and an index score of 36.
However this index is followed by another data on
the dynamic inclusion (Company, 2018)of Pradhan
Mantri Jan Dhan Yojana which was principally
aimed at financial inclusion has witnessed a 2.4 times
increase i.e. from 105 million in 2014 to 308 million
in 2017. The growth of financial inclusion has a
complimentary nature with that of technological
accessibility as it enhances the efficiency of usage
of resources.
However this aspect of our digital economy
circumvented a new horizon in the post
demonetization years with the meticulous
development of “Digital Wallets” thus enhancing
the operability of cashless transactions. This can be
understood from the following analysis.
year country Number of cash- less transactions
per person
2014 India 1.9
2017 India 8.0
Source: RBI, Euro monitor International
Table 2:Number of cashless transactions per
person (excl. cheques)
This table stipulates that there has been a 321%
increase in the number of cashless transaction from
the financial year of 2014 to 2017. The fundamental
prerogative behind this analysis is based on the
fact that with rise in the demand of digitally
enabled financial services, there exists an equitable
requirement to scale up the digital infrastructure.
This need for scalability is not restricted to the
financial services, but perhaps needs to be viewed as
a holistic concept which encompasses all the services
requiring a robust technological infrastructure.
View Point Jeevan John Varghese, Devashish Sharma and Nishant Kumar Singh
Global Journal of Enterprise Information System
Vol 11 | Issue 1 | Jan-Mar 2019 Online ISSN : 0975-1432 | Print ISSN : 0975-153X98
countering cyber Economic Espionage with Blockchain
Apart from making a utilitarian perspective the
aspect of blockchain as tool to counter act cyber
economic espionage is fundamental to understand
as it involves financial security which in turn
translates to national security. In the modern era
the mechanism of warfare is not merely restricted
to the inhospitable warfront but perhaps involves the
requirement of providing a transient technological
infrastructure which enables in providing reliability,
scalability and accessibility.
According to a report by NITI Ayog in 2017
more than 50 percent of the organizations are
reportedly affected by major cyber disruption. A
detailed account entails that of the total attacks 57%
attacks are caused due to phishing and a whopping
20% of the same by denial of service. Earlier the
acts of cyber economic espionage were considered
essentially as “first world problem”, however with the
increasing reliance on computational infrastructure,
the need for an efficient and robust technology is at
anall-time hike. Perhaps it is this lacuna which needs
to be addressed with the help of efficient technology
such as blockchain.
conclusion On a concluding note it can be observed that
even though the government is skeptical about the
implementation of accepting Bitcoin as a legal
tender. The acceptance of blockchain technology in
the future essentially looms around the practical and
the legal challenges it faces especially in terms of
statutory incorporation and technological upheaval
which has an unsettling impact in the due course.
However the observational understanding dictates
that with more countries adopting and implementing
blockchain infrastructure, it would the imperative of
“digital India” to accept and adopt innovation and
technology into its contours of economy.
references Bashir, I. (2018). • Mastering Blockchain: Distributed Ledger Technology, Decentralization, and Smart Contracts Explained. Birmingham, United Kingdom : Packt Publishing Limited .
Blockchain Technology Explained: The Ultimate • Beginner’s Guide about Blockchain Wallet, M. B. (2017). Alan T. Norman. California : CreateSpace Independent Publishing Platform.
Company, M. a. (2018). • India’s Trillion Dollar Digital. New Delhi: Ministry of Electronics and Information Technology, Government of India.
India, G. o. (2008). • ELEVENTH REPORT. New Delhi: Government of India .
Swan, M. (2015). • Blockchain: Blueprint for a New Economy. (T. McGovern, Ed.) Sebastopol, United States of America (usa) : O’Reilly Media Inc USA.
Technology, M. o. (2017). • Annual Report 2016-2017. New Delhi: Government of India.
Z. Z., Xie, S., Dai, H., Chen, X., & Wang, H. (2017). • An Overview of Blockchain Technology:Architecture, Consensus, and Future Trends. In J. Zhang (Ed.), IEEE 6th International Congress on Big Data (pp. 557- 564). Hawaii: Conference Publishing Services, IEEE Computer Society.
Analysing the Impact of Blockchain Technology in India’s Digital Economy
Blind Reviewers Comment
The topic of the research is very relevant and focus towards societal and financial security issue.•
In the review it is find that the objectives of the research are clearly achieved through analysis.•
Also research design, data collection and sample size were well designed and meeting the ample reliability and • validity in all aspect.
DOI: 10.18311/gjeis/2019 Vol 11 | Issue 1 | Jan-Mar 2019 99
www.gjeis.com View Point
Jeevan John Varghese, Devashish Sharma and Nishant Kumar Singh
GJEIS prevent plagiarism in publication The Editorial Board had used the turnitin plagiarism [http://www.turnitin.com] tool to check the originality and further affixed the similarity index which is 4% in this case (See Annexure-I). Thus the reviewers and editors are of view to find it suitable to publish in this Volume-11, Issue-1, Jan-Mar, 2019
citation Jeevan John Varghese, Devashish Sharma and Nishant Kumar Singh
“Analysing the Impact of Blockchain Technology in India’s Digital Economy” Volume-11, Issue-1, Jan-Mar, 2019. (www.gjeis.com)
https://doi.org/10.18311/gjeis/2019 Volume-11, Issue-1, Jan-Mar, 2019
online ISSN : 0975-1432, print ISSN : 0975-153X Frequency : Quarterly, Published Since : 2009
Google citations: Since 2009 H-Index = 96
i10-Index: 964
Source: https://scholar.google.co.in/citations?user=S47TtNkAAAAJ&hl=en
conflict of Interest: Author of a Paper had no conflict neither financially nor academically.
Annexure 1
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