RBI to study Blockchain technology to curtail paper currency
Free Current Affairs to Your Email
Posted on:30 Jun 2016 17:46:42
30 June 2016 Current Affairs: The Reserve Bank of India (RBI) H R Khan has announced that it will soon set up a committee to study the use of Blockchain technology on 24 June 2016.
The technology will be used to reduce the use of paper currency.
Blockchain technology : The Blockchain database consists of blocks that hold time-stamped batches of valid transactions. Then, digital records are put together into blocks and then leaped together cryptographically and chronologically into a chain using complex mathematical algorithms. The encryption process is termed as ‘hashing’.
The linked blocks form a chain, with each additional block reinforcing those before it, thus giving the technology its name.Hashing is carried out by different computers. If they all agree on the answer, each block receives a unique digital signature.
Once updated, the ledger cannot be altered or tampered with.The Blockchain is seen as the main technical innovation of bitcoin.
blockchain database can help in reducing the use of paper currency : The distributed nature of a blockchain database makes it harder for hackers to attack it. The linked blocks make hacking tricky as the hackers would have to get access to every copy of the database simultaneously.
As the hash cannot be converted back into the original data, the blockchain database keeps data secure and private.
Therefore, if the original document or transaction were subsequently altered, it will produce a different digital signature. The network is highly vigilant towards a mismatch. Thus, the blockchain method makes fraudulent activities less likely and easier to spot.
FreshersLive - No.1 Job site in India. Here you can find latest 2017 government as well as private job recruitment notifications for different posts vacancies in India. Get top company jobs for both fresher and experienced. Job Seekers can get useful interview tips, resume services & interview Question and answer. Practice online test free which is helpful for interview preparation. Register with us to get latest employment news/rojgar samachar notifications. Also get latest free govt and other sarkari naukri job alerts daily through E-mail.