Welcome to the future of blockchain and its impact on the economy in Pakistan
Pakistan permitted the use of blockchain technology in the nation last year a step in the right direction. The decision was made to attract Malaysia’s remittances. In the first year which translated to a 13 percent rise in remittances. However, to understand how various sectors of the country, such as business, banking, and government, will potentially affect it to name a few it is best if we also understand how it works.
Due to its use in cryptocurrencies, Blockchain has gained an enormous following of late. Several countries including the United States, Canada, Australia, the United Kingdom, the European Union, Finland, Belgium, Cyprus, and Germany, have allowed the blockchain to operate within their borders.
Blockchain technology is based on the use of blocks. These serve as information storage spaces, and they connect to the previous block when they are full, eventually forming a chain as more blocks are filled. This chain is what gives a certain permanence to actions that can not be altered, or else you risk detection.
Usage of blockchain in Pakistan
A hash is included in each block. These are like fingerprints, and they are unique to every block, just like fingerprints. In addition, every block holds the block’s hash before it as well. That is why the block that comes after it will know if any changes were made to a block because the hash of the changed block will also change.
Other advantages of using blockchain, aside from security, include improved tracing ability, transparency, and improved efficiency. Taking these into account, it is evident that a country like Pakistan can benefit from the integration of blockchain technology.
Impact on Pakistan’s healthcare-related issues
Blockchain can play an important role in fixing healthcare-related problems in Pakistan. It is necessary for the government to be proactive, as countries such as the United Kingdom, the United States, Canada, Estonia, Russia, and France have given citizens the power to control their healthcare delivery. As a result, data is accessed at a better pace, and authorities are therefore in a better position to identify where services are most needed.
Blockchain can, optimistically, give Pakistanis more control over their health records, which could directly affect the system’s delivery. The supply chain and administrative processes in healthcare are simplified by blockchain technology. It can prove to be instrumental in streamlining prior approval, which can reduce costs. Blockchain also allows hospitals to locate inaccurate data more quickly than they would on their own, and there are minimal potential risks of cyberattacks.
Resolving Governmental issues
The technology of Blockchain has the potential to provide the government, citizens, and business data with secure storage. By providing an official registry for public and private assets, it can facilitate the government. The blockchain-enabled digital identity mechanism can provide a comprehensive national database that stores each citizen’s personal information, such as details of birth certificates, marriage licenses, driving licenses, and passport information.
Moreover, by simplifying the public service data management mechanism, there is a significant reduction in labor-intensive processes. In addition, it not only reduces excessive costs but also inculcates fool-proof accountability mechanisms. By registering property titles, Blockchain also provides a platform to carry out secure property transactions.
We have seen the government come up with various philanthropic schemes for underprivileged individuals in recent times. A multi-billion-rupee economic package for pandemic-affected citizens was unveiled by Prime Minister Imran Khan. These projects require high levels of transparency that can potentially be achieved with the help of the blockchain.
Blockchain has the potential to enhance the way organizations handle their most sensitive information. The higher level of security ensures that the level of public trust and cooperation with the justice system is enhanced. Blockchain technology also removes the ability to purchase and intimidate votes that usually occur just outside voting precincts or booths. It also improves the safety of voters by eliminating the need to come out of the house to cast a vote.
In addition, it is less likely that tampering and fraud will happen. The mechanisms developed by the blockchain are safe and, given the limited time available for each block, interfering with the data is extremely difficult. In countries such as India, this system has been in place and has shown significant improvement in their voting process.
The banking industry has already felt the impact of blockchain technology with the remittances that the nation received as early as last year. It is possible to take this influence further. Transactions made online take between one and three working days on most occasions. These delays have cost the banking industry a significant $15 billion-$20 billion, according to Santander, a European-based banking institution.