Doing Business of Blockchain in India

DOING BUSINESS OF BLOCKCHAIN IN INDIA
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WHAT IS BLOCKCHAIN TECHNOLOGY?
The business world has been abuzz about blockchain technology across many
industries, ranging from finance to healthcare. Blockchain appears to have
significant potential toadd a newelement to the revered double-entryaccounting
method on which the accounting industry is based. Bitcoin/cryptocurrency is one
of the application of broader blockchain technology or ‘the blockchain’.
Blockchain is an online register or a ledger of digitally recorded transactions
which is encrypted in the form of blocks where each block is connected by a
network of computers which store these blocks, together forming the
Blockchain. In normal business transactions, a physical ledger is maintained by
a central authority and not by participants. In physical ledger, any update or
correction has to be done in all the ledgers maintained separately by everyone,
which increase the possibility of human error or fraud along with frequent
delays and potential losses for all stakeholders. The blockchain, however, is a
distributed ledger which resides on each participant’s device. The device of each
participant or user is usually referred to as a ‘node’, which forms part of a
network nodes. Every node must authenticate every transaction in the network,
which is a unique feature of blockchain. In blockchain, there is no requisite for
any trust on third party, as the blockchain ensures transparency and integrity of
transactions purely through mathematics.

1.TECHNOLOGY
Backend database that
maintains a distributed ledger
openly
2. BUSINESS
Exchange network for moving
value between peers
3. LEGAL
A transaction validation
mechanism not requiring
intermediary assistance

Platforms
ApplicationsBlockchain
Solutions
Sphere of Blockchain Technology
1. Platforms- Ethereum, etc.
2. Blockchain Solutions- Azure
Blockchain as a Service, Eris
etc.
3. Applications- Financial
Services/Fintech, Real Estate,
Legal Services, Government
Services, Healthcare,
Insurance, Energy, etc.
Smart Contract is the ability of
blockchain technology to attach
business logic to the transactions.
For executing smart contracts,
computer protocols with terms &
conditions of a contract are
embedded in blockchain database,
where the terms are made partial
or full self-executing, self-
enforcing or both.
Are Smart Contracts enforceable under Indian Contract Law,1872? In larger sense, it can be argued
that Smart Contracts fulfill the necessary criteria of traditional contracts such as offer, acceptance,
free consent & valid consideration. Moreover, Smart Contracts prohibits unilateral non-performance
or non-payment which can be additional layer of protection under Smart Contracts in comparison to
traditional contracts.
Smart
Contract
s

Bitcoin was the first blockchain technology
created in 2009, as a kind of virtual currency
database, where all the transactions could be
stored without any banks or governments
involved. And at present, several corporates,
startups, government and other agencies are
looking for similar databases-often independent
of virtual/crypto currency to solve some of the
most intractable issues facing society. Many
sectors such as finance, mobile app, healthcare,
real estate, fintech, regulatory, insurance and
others have a huge market potential for
blockchain technology.
Business Model Analysis

Legal Framework & Blockchain Technology
1. Bitcoin/Cryptocurrency one of the many
outcome of Blockchain Technology had
already stirred up regulatory & legal
enforcement in several countries
including India. Some of the countries
had put blanket prohibition like Bolivia
etc. Whereas some country structured it
under its legal framework like USA,
Japan etc. and there are few countries
which are still yet to decide the fate such
as India etc.
2. At present, Reserve Bank of India had
shown positive response and had already
in process of coming up with framework,
as Reserve Bank of India had already
realized that – Bitcoin/crypto currency
may or may not be allowed, but they can’t
ignore the blockchain technology and its
usage which can be business &
consumer friendly.
However, there are some serious legal issues, which
might be consider before venture into Business of
Blockchain:
i. Pseudonymity, KYC & Legal Enforcement;
ii. Privacy & Cybersecurity;
iii.Accountability of the parties involved in
transactions;
iv.Irreversibility which can be cause of problem
for fraudulent transactions once done and
can’t be reversed by any single or central
party;
v. Jurisdictional issues, Regulatory Authority
and applicable laws
vi.Consolidation of the present traditional legal
system and blockchain technology along with
uncertainty in regulatory framework
mandates to be extra judicious and compliant.

 To know further details about Doing Business of
Blockchain Technology in India, development of
blockchain for sector specific including healthcare,
financial, etc., blockchain platform and other legal aspects
including legal structure, tax aspects and for any other
query w.r.t. Blockchain Technology, please contact us at
admin@equicorplegal.com / 08448824659

Equi Corp Associates, Advocates & Solicitors
1
st
Floor, NBBC, Inox Towers, Tower-B, Plot No.17,
Sector-16 A, Film City, Noida-201301
Connect with us: admin@equicorplegal.com +91 1204797509 +918448824659
To know more visit: www.equicorplegal.com http://equicorplegal.blogspot.in/

Doing Business of Blockchain in India

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