Towards blockchain-driven communication, logistics and financial security

Successful use of Blockchain in various aspects of data security needs no introduction. In lay terms, we can consider Blockchain as a peer review process where different and unconnected networks must validate the entry to add the network. In addition to serving as the basis for cryptocurrencies, Blockchain has been used in supply chain management, land registry maintenance, banking transactions, copyright purposes and so on. In India, Blockchain is still a late beginner, given the gradually evolving regulations. Nevertheless, as a first step, various government agencies have been proactive in promoting Blockchain through policy application or pilot projects for property registration and taxation, the issuance of caste certificates and even P2P trading in solar energy.

Given the volatile nature of global geopolitics, both governments and the private sector can explore synergies to strengthen financial and logistics security through traceable supply chains, economic flows and even build their own Blockchain-based 5G network. Our national blockchain strategy is an ambitious document in this regard, and works to include security beyond just privacy-related aspects. The strategy only mentions efforts to set up a “multi-stakeholder model in the development of national Blockchain infrastructure”, and thus leaves considerable room for elaboration. The strategy also lists over 40 different applications of Blockchain that, if worked on, could potentially revolutionize our communications and national security infrastructure.

We need to bring these issues into discussion, especially when the current international situation requires complete control and identification of critical infrastructure. The Ukraine-Russia war is the latest reminder of the need for an indigenous people’s communications network that is immune to external destabilizing forces. As Russian missiles aimed at Ukraine’s communications infrastructure, distressed Ukrainians turned to SpaceX’s Internet services. In such opportunities, Blockchain-based 5G network offers a promising solution. It is a convenient moment for India to explore a decentralized network on the lines of the Helium 5G network. Helium’s pioneering efforts to develop P2P wireless networks, connecting IoT devices to the Internet network of hotspot hosts to provide coverage, could lead the Indian government’s efforts to facilitate its own version of 5G on these lines. An IoT network, as we know, could facilitate the connection of devices in a cost-effective way. This saves, first and foremost, large investments in physical infrastructure, which is still the classic way of building communication infrastructure.

India can then explore building its own supply chain network in line with Vechain. In play form we can imagine Vechain as a “supply chain based solution on Blockchain”. Major brands such as BMW and Walmart have already switched to using Vechain to eliminate discrepancies. Tracking orders moving from origin to destination through blockchain technology will ensure that any potential leaks will be checked. This raises the question of usefulness, especially when we have RFIDs and QR codes to perform the same function. The difference is that Vechain integrates the same technology with the Internet of Things, where the different devices are interconnected at different points in the supply chain and all this data becomes part of the Blockchain, and thus becomes immutable. Most importantly, a Vechain-based solution can help detect counterfeiting of goods, which thrive in India on a very large scale.

Again, Ukraine Russia war offers some lessons even in matters of economic security. After Russia was excluded from the international financial system, Russia explored the use of large-scale cryptocurrencies as an option to continue trading. This will of course require large private crypto exchanges to facilitate fiat conversions. This is a convenient moment for India to think about building its own decentralized exchange to escape dependence on private exchanges. India may also consider building its own blockchain-based exchange. First and foremost, this will eliminate broker-related complications and most importantly contribute to transparency in transactions, which will be traceable to the source. Based on the needs of the Indian market, examples of both centralized and decentralized exchanges can be analyzed.

Although the Government of India is working to set up a level playing field for cryptocurrencies, it can still think of a medium-term plan to deal with financial fraud by building its own cryptocurrency wallet, supporting it with superb guarantees. This could be the biggest source of stability for investors that could potentially add to predictable crypto trends in India.

These proposals are not new since they are implemented by various authorities and large private actors abroad. Therefore, India should not miss the bus.

About the authors

Siddharth Acharya is a spokeswoman for the Supreme Court of India and co-founder of the Center for Blockchain Policy and Research (CBPR). He is a researcher in technology and security interfaces, and is a lawyer with a panel in Brahmos Aerospace, public banks and PSUs.

Prateek Joshi is a Dphil candidate at the University of Oxford and one of the founders of CBPR.