Blockchain Technology: A chain towards digital innovation in UAE
The introduction of the internet has enhanced the process of monetary transactions around the world. There are enormous privileges that users enjoy in digital payment, including transparency, savings, speed, trust, and the most significant one is security. Blockchain technology on the other hand has hyped digital transactions globally, which has enabled the potential of maintaining large amounts of record-keeping. Among the smart cities across the globe, Dubai, UAE is profoundly adapting the decentralized technology of Blockchain.
Modern technology empowers humans to communicate via various modes that develop trust and worthiness on third parties. But the invading of the third party in the privacy shatters communication, transaction, and information.
It is thus only logical that when faced with a pandemic, ‘Digital Payment’ has become the norm. So, how is Blockchain technology benefiting us in this situation? Let's have a detailed go through on what is blockchain technology and how Dubai has adopted to it.
What is Blockchain Technology?
Global experts have explained the concept of Blockchain technology very precisely and accurately. But those technical terms are sometimes critical to conjecture, so here is a brief understanding of Blockchain technology, the future of economic development.
First of all, Blockchain Technology is a distributed ledger technology widely known as DLT that uses the internet to record, share, protect data, and financial transactions through a chain of blocks. The distributed system is developed on math and cryptography, composed of an open decentralized database for any transaction that holds value and whose authenticity can be verified by the entire community.
The technology is immutable and unhackable, which is basically a giant spreadsheet accessible by anyone, anywhere, and anytime without any loopholes to exploit the same. The technology with the use of cryptocurrency is revolutionizing the world economy, and the overall benefits have been asymmetrical.
Earlier, the system used third parties for support, and if anyone had to send money to another person they needed authentication and approval either from a powerful bank or government. This may lead to infringement of security and privacy, loss of data, but the giant spreadsheet makes it secure, unhackable, and transparent.
Chronicle of Blockchain Technology
The concept of technology was introduced several years ago, but in 2009 an anonymous person named Satoshi Nakamoto released a white paper dubbed “Bitcoin: A Peer to Peer Electronic Cash System'' and brought back the blockchain technology live. The anonymous white paper elaborated on the concept and code of Bitcoin using technology that has developed over a decade.
Currently, it’s not only used for financial transactions, rather it is adapted by different organisations, including healthcare, trade finance, supply chain, voting, transportation, etc. for management. As of 2017, around 15% of all banks were using this technology. Beyond this, blockchain-based applications are being discovered and implemented all-time since 2014.
Blockchain-based technologies are groundbreaking systems offering digital trust that allows only the owner only to change it with the specified user identity. The identity of the person is completely anonymous, publicised with a digital signal alone. The system was quite frustrating with limited programming in 2013, so the co-founder of Ethereum and key developers of Bitcoin, Vitalik Buterin developed a malleable blockchain. Ethereum Blockchain, is a second public blockchain that can record assets such as loans or contracts, not just currency.
The upgraded technology easily attracted giant organisations with smart contracts, including Microsoft, BBVA, and UBS. Leading on, proof of work concept authenticates every transaction as legitimate and bundled into a block. This new consensus system is called 'proof of stake' that validates transactions, decoded by forgers.
How Dubai evolved with Blockchain Technology?
The buzz of blockchain is expanding across the globe, and the rate of research and adoption is significantly increasing, reshaping the world. The tremendous amount of growth acknowledged after the year 2018, while some countries directly or indirectly considered regulatory measures to initiate blockchain adoption.
Among various countries' smart city, Dubai, UAE had widely accepted friendly technology with its digital revolution strategy. Without any doubt, UAE is the most digital-friendly nations with the support of the government and vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and Vice President of the United Arab Emirates.
The UAE government adopted blockchain technology to conduct transactions and advance this move; they have launched Emirates Blockchain Strategy 2021 and Dubai Blockchain Strategy. Dubai will be powered on Blockchain by 2020 with a sole agenda to make it the happiest city on Earth.
Though the entire plan is liable on three strategic pillars -
Emirates Blockchain Strategy 2021
A safe, seamless, and efficient opportunity has expanded in collaboration with the Smart Dubai Office and Dubai Future Foundation. It will not only usher economic opportunity but also bring the city in line to become a global leader. Adhering to so many benefits and savings of AED 11 billion in document processing, AED 98 million printed documents annually, and lastly, 77 million works hours annually, driving the future economy.
The innovative idea was established in 2016 after the Smart Dubai Office partnered with IBM as the Blockchain Lead Strategic partner, making 50% of government transactions on blockchain by 2021. In the wake, Dubai has launched its own currency dubbed Dubai Coin (DBIX) and has been using it since then. Additionally, the emirate is investing in blockchain startups and plans to roll out blockchain-based initiatives through Global Blockchain Council (it discussed current and future application with facilitation of transitions in various sectors, the council consist of 46 members).
As per the latest information, Smart Dubai released its flagship application DubaiNow revealed a user statistics that had processed 700,000 transactions worth AED 358 million between March and May 2020. The application allows users to access more than 120 services across ten key sectors namely, security, justice, travel, residency, driving, health, education, housing, Islam, donation, and public services.
There are 40 plus government entities, 120 plus Blockchain companies and 200 plus Blockchain Initiatives are led by the government while including some of them are -
●Vehicle history blockchain project - a vehicle lifecycle management system
●Abu Dhabi Securities Exchange - shareholder voting system
●Etisalat Digital, etc.
The Arabian country, UAE is an optimistic and welcoming place in the entire globe, and it further plans to incorporate more advanced technologies. The initiatives and innovations will develop a global stand and is currently Arab’s first mission to Mars ‘Hope Probe’ is part of Smart Dubai, which is set to launch from Japan’s Tanegashima Space Centre.
The world will develop in a place of a beneficiary under a smart contract that gives each person its own identity. Keeping the data and monetary value privacy protected with the transformation to the digital age.