“Blockchain is a technological tour de force.”
~ Bill Gates
The United Arab Emirates (UAE) is one of the world’s richest countries, due to an initial impetus by its main revenue source, i.e., oil. The UAE before oil was discovered in the 1950s. Its economy was dependent on fishing and was terribly declining. Now, as we all know, it is a global hub for trade and commerce. The UAE has been an evolutionary example of technology adoption for the world. Now it is at the forefront of adopting the new blockchain technology in its economy.
What is Blockchain technology?
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
~ Don & Alex Tapscott, authors – Blockchain Revolution (2016)
Blockchain technology is a remarkable invention; the great mind behind this invention is the mysterious Satoshi Nakamoto – a personage not known to date. Blockchain is a compounding list of records, called blocks; these are linked and secured using cryptography. In simpler terms, it is an online ledger which records transactions using encryptions; this ensures security for the user and also allows a network of users to verify them. The blockchain is not controlled by any central authority, which makes it corruption-safe and more efficient to use.
The first use of blockchain was in Bitcoin, started in the year 2008, which has become a sensation now. When people began acknowledging cryptocurrency and online ledger, the prices of these currencies had already skyrocketed.
At present. many great economists and finance enthusiasts think that blockchain technology will be a revolution in the economy. The UAE has been quick in adopting this technology and it very well plans in using it in many of its sectors. Not just this, the DubaiPay has also upgraded itself with the Blockchain Technology.
How does the Blockchain technology work?
[Image Credits: https://www.ft.com]
Why the UAE wants to adopt it?
Mr. Promoth Manghat, the Chief Executive of the UAE Exchange Group, has said, “The early adoption of this game-changing technology allows us to offer a competitive service, as it will have an impact on the speed and cost of cross-border transactions”.
The UAE exchange joined hands with RippleNet Network, a provider of blockchain technology, in February. Ripple will be assisting the UAE exchange by providing real-time, quick and high-speed payment (both local and international). It will not only provide high-speed and quick transactions but will also be the most secure and transparent method to transact. Ripple is targeting customers to sign up for their network to verify and record transactions with respect to all kinds of assets.
As blockchain records all the data of transactions of anything having value, it is most likely to have various applications in many fields. Let’s have a look at some of the applications blockchain technology can be used for:
- Easing the sale and registration of land
- Solidifying and securely moving and accumulating money, titles, deeds, IPRs, and even votes, as per a 2-year research project by Don Tapscott
- Securing B2B and P2P transactions over plastic money
- Sharing over wireless networks
- Facilitating service in the fields of healthcare, hospitality, and decentralized libraries
- Screening new recruits for employment
- Maintaining records of credit facilities for banks and financial institutes
“Anything that you can conceive of as a supply chain, blockchain can vastly improve its efficiency – it doesn’t matter if its people, number, data, money.”
~ Ginni Rometty, CEO – IBM
Blockchain technology might take time to grow its presence in all the 7 emirates, but once it is absorbed in the market, it will revolutionize the entire structure of the UAE Exchange Board and its economy.