As the world is moving towards Digitalization and becoming a global village with the help of the internet and other technologies. The Internet, which was introduced in this world back in the 1980s and was commercially accessible to the public in late 90’s promised people to give a secure element of trust and also the main aspect was to dissolve the strong Market Intermediaries.
Yet, the promise holds a strong delusional effect in the element of Trust, as people are not trusting the products and services which are available in an online medium and this “internet” created the strongest intermediary like Facebook, Airbnb, etc. So the promised elements viz-a-viz trust and removal of the intermediaries were not delivered to the general public.
The loopholes which were created by the Internet were full filed by the Blockchain technology. Since the concept of blockchain holds a misconception regarding the sole purpose used in Crypto-currency. But you cannot generalize this concept for e.g. as the internet behind email, the Internet is a whole wide field and email is just a part of it.
The same statement applies for blockchain technology as not the only sole purpose in the accessibility of the Cryptocurrency. I would not dig deeper towards the concept of how cryptocurrency works and whatnot but my main focus is how blockchain can be beneficial for the economy of Pakistan.
So the basic framework of blockchain is to have a decentralized infrastructure. Contrary, we see and experience a centralized structure, where one authority holds all the information in their database.
For example record of your land will be in a concerned government organization, if someone wants to verify he/she needs to go there and check it by themselves or you want to transfer your money to a foreign land you need to go to the western union and then they will transfer it with some fee and the transaction will take a couple of days.
These strong intermediaries take their commission and take a lot of time to do the transaction.
Blockchain helps these long processes to cut short. It is a series of blocks which is created on the bases of a number of transactions going all around the world, you can say it a digital ledger which everyone in the world is maintaining even the intermediaries (Banks, Government, etc.) are also a part of it. These ledgers are converted into blocks and are secured through a strong cryptographic algorithm, so hacking or changing is not even possible because you need to change the whole sequence of the blocks which are linked in a chain.
Blockchain helps these long processes to cut short. It is a series of blocks which is created on the bases of a number of transactions going all around the world, you can say it a digital ledger which everyone in the world is maintaining even the intermediaries (Banks, Government, etc.) are also a part of it. These ledgers are converted into blocks and are secured through a strong cryptographic algorithm, so hacking or changing is not even possible because you need to change the whole sequence of the blocks which are linked in a chain.
The economic usage of the blockchain can be multiple since there is no intermediary so the transaction or the interaction between both peers is direct. For example, people in Pakistan are generating a lot of electricity through solar systems installed in their houses. The excess of the electricity can be transferred to those houses which are deprived of this, and the rate settlement can be adjusted between both parties and a block will be created of the amount of energy produced and sold to the other party.
Same goes with the land structure in Pakistan. One land is sold to many owners and the dispute remains throughout their life. Because the original record of that land might get tempered or the original data might get lost in their centralized database. So if the series of transaction get stored in a series of blocks and is cryptographic, no one can temper these blocks.
So blockchain is the near future, even countries like Mauritius are named as Ethereum Island because they know their information will remain safe throughout their life and it will be easy to transact.
