With an increase in cyber-attacks or frauds, people are now concerned to share personal information, more than ever. As a result blockchain’s popularity has soared and people have started to discover the technology’s use beyond cryptocurrency such as for security oriented applications. In a conversation with FE Digital Currency, Suraj Kalwani, co-founder and CEO, Crypso, a cryptocurrency investment application, talks about how blockchain can ensure financial security, and remove the dependence on centralised authorities. (Edited Excerpts)
Can blockchain play a role in security ventures?
I believe that blockchain oriented security is at a nascent stage. Through the use of digital protocols such as Layer-1, which refers to the main blockchain architecture, and Layer-2, which refers to a secondary framework built over an active network, blockchain has potential to ensure security but it’s still early to be implemented for long-run. Due to blockchain’s decentralised nature, industry experts have suggested that it takes a period of five years to know whether the network is secured or not. As decentralised applications (dApps) remain prone to vulnerabilities, blockchain is yet to prove itself as a security venture.
Which sectors can benefit from blockchain oriented security?
I think that the decentralised finance (DeFi) ecosystem can benefit from blockchain and its security measures. It can remove the dependence of users on centralised authorities for borrowing and lending funds, through assurance of financial security. In the cybersecurity sector, blockchain oriented security is expected to play a key role in upcoming years. Businesses can ensure better user experience through blockchain oriented security through facilities of cryptocurrency wallets and digital addresses.
What can be the pros and cons of blockchain based security?
Through implementation of blockchain based security, it can remove a system’s dependence on a single stakeholder, and make it independent of traditional usage and inputs. However, blockchain based security is at a developing stage, it cannot support high volume transactions.
What is the future of blockchain entrusted security ventures in India?
Blockchain entrusted security ventures should receive widespread adoption in India, in the next couple of years. Due to progress in Indian information technology (IT) sectors, the accessibility to high bandwidth developers will help to drive this process. Financial technology (fintech) companies are expected to play a part in this. To ensure institutional adoption of blockchain oriented security, governments should provide clarity with regard to regulations.
Also read: What will be the outlook of cryptocurrency market in the second half of 2022
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