By Erick Short answer: Yes.
Long answer: Yeeeeeeeeeeeeaaaaaasssssssssssssshhhhhhhhhhhh. And haan.
Blockchain for dummies: In one minute
Blockchain is a digital ledger technology that stores information across multiple computers simultaneously, making it nearly impossible to hack or manipulate. Think of it as a shared notebook that everyone can read, but no one can erase or alter past entries.
How It Works
Each “block” contains a collection of transactions or data, along with a unique digital fingerprint called a hash. When a new block is added, it references the previous block’s hash, creating an unbreakable chain. This linking mechanism ensures that changing any past information would require altering every subsequent block—a practically impossible task.
Key Features
- Decentralized: No single authority controls the blockchain
- Transparent: All transactions are visible to network participants
- Immutable: Once recorded, data cannot be changed
- Secure: Cryptographic protection and distributed storage
Real-World Applications
Beyond crypto, blockchain powers supply chain tracking, digital identity verification, smart contracts, and voting systems. Companies use it to create tamper-proof records and eliminate the need for intermediaries in various transactions.
Essentially, blockchain creates trust in a trustless environment by ensuring everyone has access to the same, unchangeable version of the truth.
RBI Approved?
Yes, the Reserve Bank of India (RBI) has approved blockchain technology for specific applications, most notably the recently approved Indian Banks’ Digital Infrastructure Company (IBDIC) platform for MSME (micro, small, and medium enterprises) financing using tokenized invoices. The RBI has also established a dedicated research unit to explore emerging technologies like blockchain and cryptocurrency and uses its Regulatory Sandbox to test innovative blockchain solutions, though it has previously banned banks from servicing crypto exchanges.
If you’re an MSME, you might actually reap fiscal and other benefits from this.