Blockchain technology in general and smart contracts in particular can unlock hidden values for legacy digital systems, according to the World Economic Forum (WEF). To understand how, one should look no further than India's crop insurance scheme.
In an official 40-page report released Wednesday, the Geneva-based organization is promoting the importance of interoperability between legacy systems and distributed record technologies - But only for specific use cases suitable for blockchain networks.
where the World Economic Forum says: Once readers have already demonstrated that a blockchain is desirable for their use case and business processes, this report aims to shed light on the role of blockchain and contracts. Smart and Oracle rules to accelerate the automation of such processes.
and although the report promotes very abstract technical solutions to enhance interoperability between the blockchain and legacy systems - which it calls the interoperability bridge - it provides a concrete example in the form of Crop Insurance Scheme in India, which was established in 2016 as a means to achieve the provision of insurance coverage and financial support to farmers affected by natural disasters.
All issues ranging from transparency and accountability to corruption and information security have been raised by the agencies involved in implementing the scheme. The Preliminary Report outlines how blockchain-based smart contracts and Oracle systems can overcome these challenges.
and in the text of what it says: The crop insurance program acts as a suitable case to highlight the current shortcomings that most legacy systems face when dealing with multilateral commercial operations.
he goes on: if the organization's goal is to automate business processes in a decentralized and non-intermediary manner for various reasons, then a blockchain-based architecture becomes necessary.
Indian regulators had mixed feelings about cryptocurrencies, but were more accepting of the blockchain technology. Earlier this year, the National Corporation for Transformation of India, a government entity, released a report exploring the role of blockchain in improving business, social, and governance outcomes in the country.
