This has crypto backers very excited,in a big step of acceptance in mainstream markets Indian capital markets regulator Securities and Exchange Board of India (SEBI) begins to use blockchain technology.
The SEBI has asked depositories to create a platform using Distributed Ledger Technology (DLT) which is commonly known as the blockchain technology. The platform would be used to record and monitor the security creation, covenants, and keeping a track of asset cover.
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The decision has been taken based on the recommendations of a working group, comprising officials from SEBI, depositories, stock exchanges, and trustees association of India, constituted by the regulator last November to suggest ways to strengthen the capturing process.
WazirX founder Nischal Shetty, in a conversation with editorji, also urged the Indian government to not lag behind in the crypto revolution that is underway in many parts of the world.
The system will come into effect from April 1, 2022, however, testing of the system will start from January 2022.
DLT is a technological infrastructure that allows simultaneous access, validation, and record updating across a network that's spread across multiple entities or locations. The technology creates an immutable database, which means information, once stored, cannot be deleted and any updates are permanently recorded for all future generations.
The technology was introduced by Bitcoin and is now a buzzword in the tech world, given its potential across industries and sectors. In simple words, the DLT is all about the idea of a decentralized network against the conventional centralized mechanism, and it is deemed to have far-reaching implications on sectors and entities that have long relied upon a trusted third party.
The very nature of a decentralized ledger makes them immune to a cyber-crime, as all the copies stored across the network need to be attacked at the same time for the attack to be successful. Additionally, the simultaneous (peer-to-peer) sharing and updating of records make the whole process much faster, more effective, and cheaper.
DLT has great potential to revolutionize the way governments, institutions, and corporations work. It can help governments with tax collection, the issuance of passports, recording land registries and licenses, and the outlay of Social Security benefits as well as voting procedures. The technology is making waves in industries such as finance, music and entertainment, diamond and other precious assets, art, supply chains of various commodities, and more.