Ease of doing business, from the tallest leader of our Country to a very common man, everybody is talking about ease of doing business. We want to improve our ranking.
Benefits of ease of doing business
- More companies will be created.
- It will bring more investments.
- Many jobs will be created.
- It will bring prosperity to all of us.
How Blockchain can help to skyrocket ranking in ease of doing business?
Current Scenario of India in business ranking
Well, India is doing great in ease of doing business. There are many infrastructure developments going on. But infrastructure takes lots of time and money I mean 1000 of crores. If we can improve the soft infrastructure with the help of Blockchain we can grow a lot. Software infrastructure cost’s much much less than your road and building.
How it can be improved with Blockchain easily and low investment
Let me tell you why we are lagging in process improvement and how it can be improved in a few months with Blockchain and with very very less investment. If you don’t know what is blockchain please refer to this blog: what is blockchain. Let me tell you, one of my personal experiences. You know the first thing you require to do business.
- Good business idea
- A registered company
- A bank account
- The credit
- And all the permits (electricity, building, land, and water)
When I registered the company in India
So when I registered the company, the next thing I needed to do is open a company bank account, then only I can avail of some credit or loans depending upon by credit limit. As soon as I registered the company, I got a visit from a few banks for opening a bank account. I said this is great. I was very happy with the proactive services of the bank I choose one of the banks and the very next day bank drop me an email.
Hey man you need to submit
- Company Registration Document
- Company MOA and AOA Document
- Pan Card
- ROC Receipt
- List of Shareholders
- My Aadhar Card, and a few more.
Please keep the signed copy ready we will send the executive to collect the document.
Getting angry and frustrated
I said yaar, I am not taking a loan, I want to open an account. I have just submitted the documents to the government. Why do you need everything again. I am not taking your money. Anyways It took 3-4 Days to have my bank account ready, they said they wanted to verify it. It was a very simple process and still, it took 3-4 Days to have my company account. And it consumed my time. I had to wait for a few days to apply for credit just because of the bank account.
How blockchain can help and you can open an account in hours – Ease of Doing Business – India
As soon as I open a new company, the State Government can send me a notification, hey congrats you have opened a company, this is the list of banks around your office, tell me where we should send the documents so that your account will be opened immediately.
Again I am repeating, that as soon I open a Company, the State government can send all the documents for the bank. Wow, I can never imagine such a service, but if it becomes true, we will be on the seventh cloud. Major problems for proactive services from Banks and other Pubic Departments.
We have some processes and rules, due to which this is not happening.
- The very first problem is Bank have compliance with RBI, they need to have records of KYC.
- The second problem, the bank will say why we should believe in the data of the State Government, they can modify it any time or it could be hacked.
- The third problem bank will say they need a signed copy, I don’t know why but they still need it.
- The fourth problem, State Government will say we have too much work, for this kind of work for new companies.
Well, Blockchain can resolve all the problems. Let’s see how
- The solution to the First Problem is simple, Blockchain is public, records can be kept with the bank as well as the government and will all the parties and no one can modify it. Blockchain is a public distributed ledger.
- The second problem, banks don’t have to believe in the data of the State Government, they have to believe in the blockchain. The basic definition of blockchain says data can never never be modified, it doesn’t matter even if it’s stored in your computer, still, you cannot hack it. Thanks to a military-grade algorithm and linking of blocks in the blockchain.
- The third problem is they need a signed copy, blockchain has the feature of the private key and public key, they can sign and approve the records on their mobile just like we send and receive bitcoins.
- The fourth thing is, that the state government doesn’t have resources and time. Well, blockchain has a feature called a smart contract. As soon as the company is registered smart contract will start its work and it will continue to work until the account is opened and permits are sanctioned. Yes, the blockchain smart contract is so powerful.
Benefits in ease of doing business with Blockchain
If this one thing is implemented it will save a lot of time and will transform the way companies are registered and permits are given. This was just one of the areas of credit I am talking about. There are 100 such things that can be automated using blockchain while maintaining trust. I don’t know whether you understood this or not, but it’s true. The government can give proactive services to new entrepreneurs. Decrease the time required to open a company and get the credit. There are many other benefits.
Request to all the readers
Hey, guys please make a note to implement such a thing orders have to come from a very high authority. For that, we need to take this video/blog to them. So please share it so that it reaches the right authority. One more thing we have identified 10 such processes which can improve ease of doing business in no time. We will be creating the videos on them in the next few days. So please subscribe to this blog. Thanks for reading such a long video.