TronWeekly

Crypto World News

You are here: Home / Archives for India

India

Are Blockchain Voting Systems the Solution to Election Fraud?

by

Blockchain has won attention as a means to boost public trust during elections. The Indian Election Commission is considering a blockchain voting system and has partnered with the Indian Institute of Technology to develop a blockchain voting system.

Mr Sunil Arora, Chief Election Commissioner, believes that blockchain will improve voter turnout as more people from different regions choose to vote even when they are away from their hometowns of registration.

Aleksander Essex and Jeremy were the developers who identified the potential of blockchain in the validation of the voters.  During the early stages of budding technology, when bitcoin was a meager $30; Clark and Essex used bitcoin as a form of carbon footprint in digital information that could make electronic voting secure and efficient. 

Several startups have since followed up to build on the Blockchain electronic voting infrastructure. One such startup is FollowMyVote-a Virginia-based company. FollowMyVote is trying to break the idea that voting systems can’t go online. Especially in an era that has infiltrated democracies through the lure of election fraud and third party tampering.

When governments do not accept the concept of democratic voting systems, developed democracies would probably collapse. Blockchain voting platforms will ensure effective voter identification, registration and also streamline the process of counting and validating votes. At a time when almost all aspects of life are conducted online, technology will help bridge political functions. 

In fact, blockchain researchers have successfully run acid tests on how to eliminate vulnerabilities in blockchain voting systems. However, several entities remain skeptical about the implementation of blockchain in voting. For example, the increasing trend of hackers exploiting blockchain applications provides further cause for concern.

 Back in 2017, Homeland Security posited U.S. elections as the country’s core infrastructure. US Homeland Security Secretary Jeh Johnson told media reporters how elections would qualify for state-funded cybersecurity assistance, federal transport systems, and federal protection.

The Department of Homeland Security reported more than 500,000 damaged voter records after the 2016 US election. A series of investigations led by Robert Mueller, a special counsel, indicted 26 Russian nations for allegedly hacking into voting systems. The investigation report highlighted the hackers target voting systems in at least 21 states.

Security researchers have just recently discovered attempts at phishing campaigns targeting three candidates in the 2018 midterm elections. Homeland Security Department claims that a lack of confidence would impact voter turnout. Say a scenario where you’d prefer to stay home and not vote, rather than participate in a rigged election or may lose their trust in the elections.

Blockchain voting remains one of the most explored blockchain use cases. However it isn’t clear why most tests for blockchain voting have been on a small scale. Especially targeting community projects and student organizations. Nonetheless, the largest blockchain voting system was tested in Moscow, Russia during a city council election. In fact, the end result was increased voter turnout with 90 percent of those registered to use the blockchain program.

 

CoinDCX CEO Pens Letter To India’s Finance Minister About Crypto; Reiterates The Fantastic Opportunities

by

India’s tryst with cryptocurrencies has been ongoing for a long time now and the negative stance perpetuated in the country has also become a big issue. This has not stopped cryptocurrency organizations and proponents from clearing the air about the industry.

In a recent letter to the Financial Minister of India, the CEO of the cryptocurrency trading platform CoinDCX spoke about how the digital assets industry can become a major part of the country’s next Union budget. 

Sumit Gupta, the chief executive of CoinDCX urged FM Nirmala Sitharaman to keep an open mind about digital assets and look at it as an opportunity. Gupta added that the goal was to create a dynamic industry that would run parallel to the traditional economy. He reassured the minister that cryptocurrencies were not planning to usurp the position held by fiat currencies but rather complement it. In his words:

“India has been presented with the chance to be a part of a new wave of innovation, which is a tremendous opportunity to bolster the strength of our future economy. Just as the internet fundamentally altered the way we live and work, cryptocurrencies have the potential to change the way we participate in the global financial system.”

The CoinDCX official opined that at a time when other countries were receiving billions of dollars in fintech investments, India was barely scratching the surface. He took the example of Singapore, a burgeoning economy that received $53 billion just in the fintech industry. Looking at the numbers, India only received a mere 0.02 percent of Singapore’s total holdings.

In the letter, Gupta tried to convince Nirmala Sitharaman about the socio-economic advantages of crypto in India. He claimed that the agricultural sector in India can greatly benefit from microfinance portals and smart contract-based supply chains. The implementation of such models is expected to lead to greater traceability and convenience during transfers.

According to Gupta, the implementation of blockchain technology will result in greater collaboration between the public and private sectors. He reiterated that the opportunity presented by crypto should not be passed upon by a growing economy like India. The country is still in the midst of figuring out how to deal with digital assets, with the Supreme Court overseeing the proceedings.

Meanwhile, the Reserve Bank of India has directed all the banks to not deal with cryptocurrencies. The main reasons cited for this ban was that cryptocurrencies could be used for ‘terror financing’ and blatant money laundering. To counter this notion, the CoinDCX CEO suggested measures such as penal frameworks and KYC implementation across the fintech industry. The Finance Minister was told that clear guidelines were imperative for the industry to thrive, guidelines created on proper facts and information.

Nirmala Sitharaman has not responded to the letter yet but crypto proponents were anxious to see what her reply might be. At a time when tensions were high in the country, a public letter from a crypto personality is seen as a step in the right direction for the industry.

 

Cryptocurrency Price Tracker Application Wins Prestigious Award As India Awaits Supreme Court Decision

by

India’s tryst with cryptocurrencies has been ongoing for quite some time with the Supreme Court standing firmly against the field. This has not stopped Indians from innovating in the sphere and creating new products.

On January 27, Harshita Arora, an 18-year-old app developer won the Bal Shakti Puraskar Award for inventing the Crypto Price Tracker. 

The budding entrepreneur created the application to help in portfolio management and cryptocurrency price tracking. Arora was given the award in recognition of her passion for science, technology, and human welfare. Indian PM Narendra Modi had tweeted in her recognition saying:

Arora’s application Crypto Price Tracker, analyzes and keeps records of price movements for more than a thousand cryptocurrencies. At the same time, the app will also track details of 18 cryptocurrency exchanges as well as 32 fiat currencies. The application was highly praised and well-received, leading to its acquisition by Redwood City Ventures.

The Bal Shakti award is usually given by the government to someone who has created tectonic shifts in a particular industry. In this case, Harshita Arora was given the award for her excellence in the field of innovation. A cryptocurrency application being in the positive limelight is expected to create a ripple effect across all sectors.

The recognition comes at a time when India is at a critical juncture with regards to cryptocurrency discussions. Just last week, the Indian Supreme Court started hearing arguments on the petitions of crypto businesses against the central bank ban on crypto again.

Asim Sood, the advocate representing crypto companies put forth the statement that cryptocurrencies are actually ‘currencies’. Sood also questioned the Reserve Bank of India’s decision to ban crypto as they resemble legal commodities. The defendants claimed that it was the ‘mode of exchange’ cryptocurrencies that was the main problem.

The ‘mode of exchange’ factor would mean that all digital assets fall under the purview of the monetary regulatory which was the RBI. Some other experts have also shared their opinion on the ongoing problems. Sumit Gupta, the co-founder of CoinDCX said that governments make decisions based on how they value a particular asset. This particular metric for judgement cannot be changed.

The earlier proceedings had not drawn out a complete solution for this predicament but the Court is expected to come to a consensus this week. The award mentioned earlier might just prove to be an indicator that reveals the Court’s final stance.

 

Reserve Bank of India Claims ‘Crypto Is Not Banned, Banks Just Cannot Use It’ Before January 28 Hearing

by

India has been a major hotbed for cryptocurrency discussions within the South Asian region. The country has repeatedly held a negative stance against digital assets despite several citizens using crypto on a day to day basis.

In a new twist to the Indian crypto saga, it has been revealed that the Reserve Bank of India [RBI] had not banned cryptocurrencies from the country. It had rather asked institutions like banks do not deal with Bitcoin and other altcoins.

The new information came to light on the back of a petition filed by the Internet and Mobile Association of India [IAMAI]. The IAMAI also includes some cryptocurrency exchanges, which is why they took this initiative. The central bank clarified that its 2018 circular was aimed to regulate cryptocurrency trades within the country and not ban them. The affidavit from the RBI read:

“Firstly, the RBI has not prohibited VCs (virtual currencies) in the country. The RBI has directed the entities regulated by it to not provide services to those persons or entities dealing in or settling VCs… The RBI has been able to ringfence the entities regulated by it from being involved in activities that pose reputational and financial risks along with other legal and operational risks”

Some legal experts said that the stance taken by the RBI could be a weak one if it is not backed up by facts. One of the major concerns voiced by the RBI and the government of India was that virtual assets could be used to fund terrorism and drug trafficking. The IAMAI had blasted the RBI for curbing the development of an industry that was thriving in other regions and even contributing to the economy.

According to India’s principal bank, virtual assets will not be allowed to facilitate cross border transactions in the country. If any service is found to do so, stringent actions will be taken against them.

The 2018 discussions between the Reserve Bank of India and the government also included amending certain rules to exclude the functioning of crypto. The government suggested that the Foreign Exchange Management Act [FEMA] be changed to oversee digital asset developments.

The FEMA is an act established by the Parliament of India in 1999, the same time period when India first opened up for globalization. The main aim of the act is to make offenses related to foreign exchanges into civil offenses.

The Supreme Court of India had recently wrapped up the first three days of a landmark hearing related to the crypto ban. The proceedings went on from January 14-16 where the crypto side was defended by Ashim Sood, IAMAI’s legal counsel.

The court did not come to a final decision on the third day and has scheduled another hearing for the 28th. During the hearing last week, Sood argued that a ban cannot be imposed simply because of a lack of regulations related to cryptocurrencies.

Blockchain Tech Breaks Glass Ceiling in India as it Begins to Tackle Property Tax Issues

by

Blockchain-based solutions are slowly but surely getting their time in the limelight with various mainstream organizations realizing its potential to streamline processes. 

Just recently, the Thane Municipal Corporation [TMC] in the state of Maharashtra revealed that they will be using blockchain technology for property tax assessments. The general populous has always witnessed land assessments and surveys conducted manually. The decision to integrate such a nascent technology has certainly turned heads within the public sector and the TMC does not plan to stop just yet.

The TMC is in the throes of building the blockchain-based solution in partnership with a Hyderabad based company called Veridoc Global India, The main aim will be to create a fast and easy digital portal for the citizens by integrating blockchain technology to provide a single functional access point.

Sameer Unhale, the Chief Executive Officer [CEO] of Thane Smartcity and Additional Municipal Commissioner, TMC had said:

“Government data sometimes sits in silos and this (blockchain solution) can help unify that and ease the administrative overhead as well as reduce processing time for citizen requests and verification time for other officials. The government can move from problem-solving mode to nation-building mode.”

A country as large and diverse as India has always faced problems when it comes to the tabulation of citizen data. This has not been helped by the burgeoning population in the country, currently hovering near the 1.4 billion mark. With the blockchain-based solution, data stored will be authorized by an external agency. This will then be cross-verified through a QR code which will greenlight the original document required by the individual or the department.

Although a specific date has not been set for the launch, officials close to the project were confident that it will occur in the next two months. The entire transition between traditional processes and the latest method is carried out by the ‘one scan’ implementation of the proposed QR system.

Blockchain solutions for property tax issues will not be the last avenue for the new and exciting technology as several other sectors have expressed their interest too. Sameer Unhale further added that once the pilot project completes all its deliverables, the technology can be expanded to handle documents like permission grants, birth certificates, etc.

The aforementioned solutions have taken flight because of the initiatives taken by the country’s Ministry of Housing and Urban Affairs. The governmental body has also associated with Startup India, InvestIndia and AGNIi to make the dream a reality.

India’s NPCI Officially Announced Permissioned Blockchain-based Vajra Platform for Payment Industry

by

Unlike other countries that are becoming more open to the idea of the nascent crypto-blockchain industry and its benefits, India’s view has always been baffling. Although, earlier reports indicate how India’s most significant organization NPCI flirts with Blockchain for payment, the more recent report officially published by NPCI details about its forthcoming DLT-based project for the payment industry.

How is NPCI Leveraging Blockchain Technology?

NPCI (National Payments Corporation of India) claims itself as “an umbrella organization for all retail payments in India.” India’s central bank supports the organization, the Reserve Bank of India (RBI) and the Indian Bank’s Association (IBS).

Notably, NPCI’s own instant payment system called Unified Payments Interface reached a milestone after crossing a billion transactions in October this year. While UPI is simply a money transfer mechanism on top of existing IMPS payment systems, India hasn’t upgraded to a level that other countries are already waving their digital payments.

Technologists and experts in the digital payment industry often talked about the need for a new paradigm in the Indian banking system, given the fact that India is a home for over a billion people. Consequent to the recent official press released by NPCI, it appears that India is quietly adapting the blockchain-based payment mechanism.

NPCI Announces DLT-based Vajra Platform

The 17-page long report details “a distributed ledger system for automated payment, clearing & settlement” dubbed as Vajra Platform.” Unlike Permissionless blockchain, the so-called Vajra platform is built on top of “permissioned network” means that the parties intending to involve need approval by the Network administrator.

Since Vajra is being developed for a payment processing industry, permissionless blockchain systems were not considered, NPCI said in a blog. After an initial assessment, the DLT based system has been designed for automating payment clearing and settlement processes of NPCI products.

More so, the Vajra frameworks seek to ensure zero/minimal processing time for reconciliation, faster resolution of disputes, implements cryptography to increase the security of payment transactions by leveraging the maximum advantage from the Blockchain framework. The working mechanism/architecture of Vajra is detailed as follow;

The Vajra platform will be accessed by multiple payment entities for performing transactions via web interfaces. The bank nodes will receive requests from APIs and will process it on Vajra. The system will have self-executing contracts containing business rules. After successful processing of the requests, the on-chain data (eg. Hashes of the transactions) will be added to the ledger

Furthermore, the participants will carry a node in the network, and the data will be accessible only to the node (the participant with node basically). Accordingly, NPCI details three types of nodes on the platform, namely, Clearing House node (CHN) for NPCI, UIDAI node for Aadhaar authentication, which is only applicable in case of biometric authentication, and lastly Participant node (PN) for all banks/ASP/PPI/PSP.

Besides, NPCI elaborates payment processing via the Vajra framework in 7 simple ways, noting that the platform is majorly designed for automation of the clearing and reconciliation process at NPCI and its partner banks/ASPs.

NPCI DLT platform process

In a short note, NPCI also remarks that they will be able to detect frauds using AI and ML, which will soon be executed against ledger data.

Also, the Vajra framework promotes transparency in terms of real-time visibility of transactions, reduces the time required for the clearing & settlement cycle as well as the other activities, including reconciliation and reporting. With the permission blockchain network, NPCI also ensures to break-down the unrelated parties currently involved in the clearing and settlement process.

Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

Never miss our daily cryptocurrency news, price analysis, tips, and stories. Join us on Telegram | Twitter or subscribe to our weekly Newsletter.