Ninad Bohidar, BBA LLB(H), Amity Law School, Noida, Amity University Uttar Pradesh
ABSTRACT
A blockchain is a decentralised, distributed database that is shared on a computer network. This technology stores information in a digital format, in the form of blocks that are linked together via cryptography. Data is stored in a chronological structure; new data is entered into fresh blocks and are linked to previous blocks1. It is the unique characteristics of the blockchain technology that has grasped the attention of many nations, corporates, investors, businesses etc., in managing and governing matters related to corporate governance. It is believed that the blockchain technology holds enormous promise in the industrial and financial sector in the near future. However, the inculcation of such a system comes with a lot of challenges, keeping aside its advantages. With the blockchain technology, organisations will have to tackle the problems that it might bring about. Further, due to the technology being relatively new, there are unexplored areas which could have threatening impacts, making it difficult to trust and rely upon. The legality of blockchain in India is also not certain at the moment and is seen as a big threat to India’s macroeconomic stability.
This paper will explore the use of Blockchain technology in different sectors in India and will highlight its use in the corporate sector. It is to study the implications of blockchain in the corporate world and how it affects governance of corporate bodies. The paper will provide solutions and suggestions as to how India as a nation can embrace this technology and move forward in the global race. This will enable corporates and multinational companies that exist in India to streamline processes and work efficiently. This can be only done if the technology is at harmony with all the laws and regulations by the government. This paper will further discuss about the legal issues and challenges that are faced while incorporating blockchain into the governance of corporates and will provide for suggestive solutions on how to overcome such problems
Keywords: Blockchain Technology, Corporate Governance, laws.
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