With blockchain entering the world of technology, everything is at the verge of experiencing a revolution.
Pakistan welcomed this new beginning with Telenor’s Microfinance Banking and a few remittance facilities. But
imagine the impact it can create if we use the technology to its full potential. Here is how blockchain will affect rather revolutionizes Pakistan but first a little introduction for our readers who are not familiar with the technology.
What Is Blockchain Technology?
To simplify the hype, Blockchain is an online, unalterable, foolproof, record of all the previous, current and future
transactions between two parties. It is a decentralized system for business transactions, which means that no 3rd party or authority is involved to ensure honest dealings rather the Blockchain technology is there to help maintain authenticity through its record-keeping and transparency!
Blockchain is an online, unalterable, foolproof, record of all the previous, current and future transactions between two parties
How Does Blockchain Work?
The mechanism relies upon two parts; the Blocks and the Chain.
Blocks refer to the stored data or ledger. The data in it are stored in the form of a ‘Hash’ and works upon the principle of ‘Secure Hashing Algorithm 256′. Each dialogue and transaction is secured in the form of a Hash and can be accessed by everyone on the internet but is unalterable.
The second part, the chain refers to the connectivity of the blocks with one another and the trail that it follows keeping a record of the history of transactions.
What Is BlockChain Capable Of Doing?
1. Enables Peer-to-Peer Network:
Blockchain Technology tends to cut down the middle man and become one itself. Only that it is no man but a bunch of computers doing this task for them. This is known as a ‘peer-to-peer network’ where no 3rd party is involved. Blockchain ensures none of the parties goes against the contract as the ledger is open and unalterable The buyer purchases directly from the seller and their transactions are securely kept by computers working upon the principle of Blockchain Technology.
As the transactions are pursued by machines, there is no chance of any corruption. Moreover, blockchain ensures none of the parties goes against the contract as the ledger is open and unalterable. Thus, once a transaction has been made, it is considered to be the final verdict and no one can go against it which makes it fraud-proof as well. Imagine a business environment with 100% trust assurance.
2. Cuts Down Transactional Fees:
As there is no 3rd party involved, the dealing parties enjoy all the profit by themselves and do not need to share it with the middle man.
3. Hack Proof:
It is almost impossible to alter the data of a block due to the complexity of the Hash. But if for instance, someone
breaks into one block and alters the transactional data, he will then have to change the entire record of all the pre-existing blocks because of each block being connected to one another and containing the transactional history which is humanly impossible. This makes blockchain technology is hack-proof. If for instance, someone breaks into one block and alters the transactional data, he will then have to change the entire record of all the pre-existing blocks
As it is an Open database; everyone on the internet has access to the ledger of all the transactions being made which means that nothing is hidden from anyone. As it is an Open database; everyone on the internet has access to the ledger of all the transactions being made which means that nothing is hidden from anyone
We may check on companies providing the quality goods they claim to offer, can predict the market trend for fruitful investments, government officials may be checked for corruption, etc.
5. Smart Contracts:
The blockchain smart contracts allow proposed partially or fully delivered contracts without any human assistance although this has not been implemented as yet but is viewed as one of the visions about the blockchain technology.
How Blockchain will Revolutionize Pakistan?
Now let’s take a look at the impact Blockchain will create in Pakistan; What new doors of opportunities it may open and how can it prove to be revolutionary towards the economic and political system of Pakistan?
1. Digitalized Voting:
Blockchain voting means no more rigged elections. Imagine democracy being practised in its true spirit in Pakistan through this technology. Digital voting means a government purely by the people without any corruption as the system allows no space for any alteration.
Digital voting means a government purely based on public opinion as the system allows no space for any alteration.
2. Digital Identification of Citizens:
Pakistan has trouble maintaining its law and order situation lately. Blockchain technology can create an opportunity to monitor and register all the citizens of Pakistan to an online database. Although the main complication in this regard can be that half of the population lives in total technological isolation and unawareness. But with the proper planning, this may be accomplished. After which each baby born would have digital birth registration. And through this, we can have the entire nation on board. Telenor Pakistan, together with UNICEF and the Governments of Punjab and Sindh provinces have already started digital birth registration. Telenor distribution centres serve as a point of contact that attracts members of the community for their mobile-related needs. These authorized personnel report birth-related data along with the required documentation directly to the approving authority via the app.
Telenor Pakistan, together with UNICEF and the Governments of Punjab and Sindh provinces have start digital birth registration
3. Tax Collection:
When Digital Identification will be coupled with online tax collection, Pakistan will finally be able to win its war against corruption and tax evasion. Non-Tax payers will be identified and penalized. Moreover, the bribery culture will finally come to an end. When Digital Identification will be coupled with online tax collection, Pakistan will finally be able to win its war against corruption and tax evasion
4. Money Transactions:
The word ‘Bank‘ will be erased from our dictionaries, with blockchain technology being there to help secure every sort of transactions. Payments will be made without any paper money involved and more importantly, with 100% authenticity and transparency Payments will be made without any paper money involved and more importantly with 100% authenticity and transparency.
5.Property Related Transactions:
One of the major issues in Pakistan’s Real Estate industry is the ‘Kabza Groups‘. These are a bunch of people
working together to unlawfully take over people’s property by displaying fake property papers.
Blockchain technology will put an end to this treachery. With all property-related records secured on an online
database, owning, reclaiming and transferring of the property will be a matter of mere seconds rather than the
the traditional lengthy process with many loopholes.
In the near future, Pakistan can become a country fully reformed through technology if it aims to introduce
Blockchain in all of its major work mechanisms.
How Can Blockchain Produce New Business Opportunities in Pakistan?
Pakistan is facing employment issues for a very long time. Blockchain may not be the very solution but it can
contribute to providing business and job opportunities to the citizens of Pakistan. Following are a few ways in which blockchain may unlock business and employment opportunities. Blockchain may not be the very solution but it can contribute to creating job opportunities for the people of Pakistan
1. Blockchain Developer:
Pakistan, like most of the world, is in the process of shifting towards new technologies. So, the demand for blockchain developers will be very high in the near future. Thus, this will open doors to profitable opportunities for blockchain developers in the country.
2. Data Analyst:
Data analysts play a very important role in traditional business setup but with blockchain, their role will become even more essential. Companies may require data analysts to analyze the transactional record of their competitors in order to maintain a progress record or to know their position in the market for future decisions.
Companies may require data analysts to analyze the transactional record of their competitors to make better business decisions. All you have to do is to keep an eye on the required data, as blockchain allows open access to anyone and everyone on the internet to check the market trends.
3. Teaching Blockchain Developing:
If you are a trained professional, then along with a full-time job as a blockchain developer, you can teach blockchain development as the high demand of the subject requires a number of trained and practising professionals to teach it. Moreover, you can take it up as a full-time job.
What Are The Challenges In Implementing BlockChain Technology In Pakistan?
Blockchain came into full swing during 2013 and 2015 but even today there is merely any implementation of BlockChain technology in Pakistan. There are a number of reasons for the delay like:
1. Energy Crisis:
Firstly, Blockchain implementation means all the records and transactions being made online; to be this active
online, there are no stabilized energy resources. Persistent load shedding and lack of required infrastructure are the problems the country is still struggling with.
2. Limited Trained Professionals:
Pakistan lacks trained professionals in Blockchain as there have not been any specialized institutes to train
individuals in the field. In this regard, the President of Pakistan has initiated ‘The Presidential Initiative for Artificial Intelligence & Computing’ (PIAIC) program to train Pakistanis for the upcoming digital challenges for minimal charges. It aims to open doors to new job and business opportunities in the digital world.
3. Traditional Business Mindset:
Most of the business owners are of a traditional mindset. They stick to their policies and do not want to shift to any unfamiliar technology. They are unaware of what blockchain may bring to them. Pakistan as a nation prefers
traditional setup rather adopting modernism.
President of Pakistan has initiated ‘The Presidential Initiative for Artificial Intelligence &
Computing’ (PIAIC) program to train Pakistan for the upcoming digital challenges for minimal charges
4. Political Instability:
There is a number of small businesses in Pakistan. The vast majority is unable to set up a fully developed business. Moreover, the current political scenario of Pakistan makes it very difficult for the business-men to cope with the market conditions.
The key to any sort of development is a stable political environment and controlling law and order situation and unfortunately, Pakistan has none of the two. An environment of ‘hand to mouth’ has been created. In such difficult times where stabilizing a business is getting difficult day by day why would anyone spend an extra rupee on adopting Blockchain where blockchain is viewed an additional investment rather than a business opportunity.
Blockchain to be fully implemented in Pakistan will require more time. But the idea has set its grounds and we see slow but consistent implementations being initiated. With support from the public and private sector and creating awareness about the revolutionary technology can bring wondrous results in the near future.