23 November 2024, Sat |
8:24 AM
By: Omar Abdulla, Content Developer at TECHx
We know that the definition of blockchain is challenging to parse for the everyday internet user. So, What does it do?, and how does it work?. Blockchain is a decentralized and transparent system for storing digital information. In simple terms, It is a type of database that stores encrypted information in blocks that form a chain known as a blockchain – which contains multiple copies of data on different computers around the globe. The United Arab Emirates has established a blockchain strategy in various industries to deal with the difficulties and challenges it faces.
A simple analogy of blockchain is a google docs file, In the past, files would often be sent back and forth using email. This may sound familiar to a lot of you out there—receiving a file, working on it, only to realize that you need another sender’s input for yours to make sense. With Google docs, this wait-and-get-it cycle is done away with. Docs can now be viewed and edited simultaneously by those who have access to the file without waiting for each other’s responses or copying docs over and over again as changes are being made. Everyone has access to the doc at once; changes are visible in an easily accessible revision log. This is also how blockchain works. The more blocks a chain has, the harder it is to modify it. Most people have heard the term blockchain from cryptocurrencies, well that’s not the case, blockchain can be used to store any type of digital data or information, such as secured documents, certificates, currencies, passports, records and more. Some of the advantages of using blockchain technology are:
The UAE has implemented a blockchain strategy to transfer 50% of its
transactions using blockchain for safety precautions, and efficiency. The Dubai Blockchain Strategy was launched by His Highness Sheikh Hamdan as the outcome of a joint effort between the Dubai Future Foundation and the Smart Dubai Office aimed at evaluating the most innovative technology to facilitate seamless, safe, and efficient city life.
This new technology is already influencing the future of the internet and providing safe, secure and simple transactions. By implementing the Dubai Blockchain Strategy, Dubai will achieve the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, to create a future for the city and create the happiest city on earth.
Using blockchain technology to recover lost documents such as passports is one of the applications currently being experimented within the UAE. Recently close to 4000 passport certificates were recovered by Dubai Police. A second instance is how the UAE government has begun using digital channels to combat COVID. This prevented easier accessibility to documents and, moreover, prevented social interaction between people. The Ministry of Community Development has been using blockchain to ensure recognition for digital identity, by processing different types of documents on a secure network. The blockchain system can now process 2919 types of documents, which will be available online instead of having to physically travel to government offices, making checking government services easy from your home or at work instead! One of the applications included is the UAE SMART PASS.
Road & Transport Authority (RTA) is another sector where blockchain is being experimented with. A project to create a vehicle lifecycle management system utilizing blockchain technology is currently in development. Car manufacturers, dealers, regulators, insurance companies, buyers, sellers and garages will be able to obtain a transparent history of vehicles from the manufacturer to the scrap yard through this project. With this blockchain-based system, vehicle transactions will be more transparent, more trusted, and cheaper because disputes can be avoided. Supply chains can be smarter and more efficient by tracking ownership, sale and accident history. “The adoption of this technology will reflect on the quality of life in the UAE and will enhance happiness levels for citizens,” says Sheikh Mohammed Bin Rashed.
