Blockchain is a real-time ledger for recording financial transactions whose history can be found out through the technology. The history of financial transactions come along with contracts, supply chain information and so on. The blockchain doesn’t belong to any person or organization. Anybody can have access to it. They can see the details of each record which is known as a block. Each block is having a timestamp and it remains encrypted. A person who owns a particular block can unblock it. Owners can get access to a block through a key that is owned by the owner. Whenever there is a change in a block, everyone’s distributed blockchains are synced and updated in real-time.
Emirates’ Blockchain Strategy – 2021
The government of the UAE launched the Emirates’ Blockchain Strategy-2021 during 2018. The goal has been to leverage the blockchain technology for transforming government transactions to the blockchain by 2021. Blockchain technology is quite useful because it saves time and resources. It facilitates people to process their transactions at a particular time of their choice. It is expected that the UAE shall employ blockchain for the digital transactions. Each person will be allotted a unique ID number which will show up their transactional information over the secure chain. It will also include date and information that is not susceptible to hacking. There will be digital security for important and secret documents of national importance. It will decrease operational cost and speed up decision making.
Blockchain technology is a powerful tool that will shape the future of the internet with the aid of simple and safe transactions. It is a part of the new wave of economic opportunity and digital innovation. It will usher in a new era of opportunity for different sectors. It will signify the importance of the UAE as a leader in technology. It will help the smart city concept for the cities and towns. It is an initiative to become a global leader in the smart economy in the milieu of global competitiveness. When successful, the UAE will be the first blockchain-powered government. It will drive the future of the economy.
In January 2020, during the fourth industrial revolution in UAE, the UAE and the world economic forum jointly published a whitepaper. The name of the report is “inclusive deployment of blockchain: case studies and learning from the UAE.” There are seven blockchain case studies. These are to bring about awareness about the challenges and the factors for bringing in success while deploying this technology. It will enable other nations and corporations to gain insight into the best practices. Based on these insights, they can implement the technology to their advantage. The world economic forum too is working on designing tools to support companies in deploying this blockchain technology. The country wants to share this with other countries so that they can benefit from the time-tested best practices. Majority of the public sector entities agree that adapting blockchain solution in the early phases is necessary and important. For the bigger organizations, the success factors are associated with the scope of the projects. There should be a thorough understanding of roles and responsibilities as well.
About GCC Filings
GCC Filings in the UAE provides professional chartered accountancy and tax consultancy services to the business communities there. They are experts in VAT return filing, VAT auditing, tax audits and VAT consultancy.