Blockchain is a distributed technology also known as protocol, which exchanges the value. It stores and distributes data or block across a whole computer set-up. All these blocks are connected to each other via cryptographic hash. The main aim is to provide an exact path of transactions to make certain easy verification. It is also very useful for aiding the payments. It is cheaper and more secure than other forms of payments. It uses digital modes for payment in definite places such as vending machines, restaurants, and grocery stores.
Some of the key elements of blockchain are nodes, ledge or block and miners etc. It provides many features associated with smart money through the smart contracts. Some of the essential features are bundling services, verifying authenticity of documents or data, unbundling services, new legal frameworks, time stamping, sharing a distributed ledger, implementing digital signatures, new flows of value, reconciling accounts, rethinking intermediaries, decentralized governance, sharing a distributed ledger and creating or issuing digital assets etc.
According to study, “Japan Blockchain Technology Market (2018-2023)” some of the major companies that are currently working in the Japan blockchain technology market are Coinhive, Coinbase, JSECoin, BitPay, Tidbit.
Based on applications block chain technology includes financial and non-financial sectors such as banking, healthcare & life science, media & telecom, retail & e-commerce, government & public sector, automotive vehicles & transportation, financial services and consumer products etc.
The key industries associated industries of Japan use blockchain technologies are insurance, healthcare, supply chain management and Banking Financial Service (BFS). BFS embraced the largest market share. Moreover some ofthe largest banks of Japan, which use blockchain technology for viewing customer details upon agreement, include Mizuho, Tokyo-Mitsubishi UFJ (MUFJ) and the Smitomo Mitsui Banking Corp.
The Japan Blockchain Association (JBA) is a association and consortia that has divisions dealing associated with blockchain technology and virtual currency. This association concerns tax, consumer and financial regulatory issues. JBA includes bit-coin exchanges such as bitFlyer, Kraken and Coincheck etc. In addition, the Japan Exchange Group (JPX) Plans for Blockchain Consortiumare a blockchain industry development responsible for supporting the development of blockchain based trade finance platform.
Some of the key advantages are disintermediation, transparency & immutability, process integrity, high quality data, ecosystem simplification, empowered users, faster transactions, lower transaction costs and durability & reliability etc. Some of the hurdles are nascent technology, large energy consumption, redundancy, uncertain regulatory status, cultural adoption, integration concerns and control & security.
The blockchain technology market is primarily driven by increasing adoption rate across financial institutes. Increasing urbanization, young work-force, funds availability by the companies, increasing technological advancements, rising demands for efficient transaction, mounting investments in the financial sector followed by supportive regulations. Apart from advantages acts as the major restraint is lack of awareness associated with the benefits of the technology.
The Japan government is making the nation a blockchain hub. In recent days, Tsukuba (city of scientific research, Japan) has launched an online voting system by blockchain technology. The voting system enables people to vote for social evolution programs. In addition, Strategic Business Innovator Group (SBI) is generating an endeavor capital fund to invest in this technology. In upcoming years, it is estimated that blockchain technology market to grow increasingly due to rising adoption of technology, huge population of the young people, rising prerequisites among the end users and growing applications.
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Ankur Gupta, Head Marketing & Communications