In the beginning of the month of October, we came to know that ICICI Bank was about to introduce Blockchain transaction for the very first time in India. It was the first big step for Bitcoin and Blockchain acceptance in India. Now, the CEO of Monetago talks about the required regulation in this technology. Finance Minutes updated about the various news related to this type of transaction. Let me tell you about all the necessary details regarding this type of transactions.
ICICI Bank Introduced Blockchain Transaction:
The first question that you must ask as a reader is, “Why Blockchain Transaction?” Well, transaction using this technology will simplify the entire process to just a few minutes. Initially, the processes that took two to three days for completion, will now be done within fraction of that time period. ICICI enunciated to use this Blockchain Technology. This technology reduced the processing time.
Importance Of Blockchain Transaction:
This Blockchain Technology was of utmost importance in KYC, finance, LCs issues, collateral management and even in the field of foreign remittances. It is a type of public ledger, as a result of which, it keeps account of all the executions of Bitcoin transactions till the present date. This guarantees data integrity, helps in decentralization of information. It is also very much efficient for digital transaction, since it is very simple, as well as faster.
The most important point is that this type of transaction is a very secure method in the process of verification and tracking of transactions. Hence, Blockchain constantly adds all the newly formed recordings of completed blocks. Hence, these records are in a linear form, and follows chronological order. Each node has automatic download of Blockchain feature. This is done whenever a Bitcoin network is formed.
Possible Inefficiencies In The Current Blockchain Technology:
As is clear from the above explanation, there are several numbers of different participants involved in this entire process. Jesse Chenard, the CEO of Monetago has given this information. Monetago is one of those firms that provide global solution to various issues related to Blockchain. Bitcoin was successful in finding several takers. Most of all, from the field of collateral management, capital market or as well as finance. Consequently, now with the use of this technology, we need to connect more takers. Hence, this technology needs a regulation.
Mr. Chenard said that he consulted IDRBT, so as to search for a Proof of Concept (PoC). IDBRT stands for The Institute for Development and Research in Banking Technology. This PoC deals about the various applications of this Technology to the trade finance sector. Also, the IDRBT had even launched projects that will test the application of this transaction technology on the Indian Banking and Financial Industry.