Koneru Lakshman Havish, vice-president, KL Deemed to be University, an educational institute, talks about on blockchain’s influence on digital assets for peer-to-peer communications with FE Blockchain
What are the three best practices that today’s youth should follow when it comes to digital assets?
Digital assets is a new trend and this comes with lots of risk. No matter what are the risks, this is a non-traditional asset having significant potential to outstanding gains. The top three best practices are:
Be knowledgeable, don’t trust the myths: Before investing in any digital asset, one must do ample research regarding the same. A few things that must explore are – the backing agency associated with the digital asset, the past market trends, word of mouth from other users, and so on.
Safety and privacy measures: As the concept of digital assets is still budding, one must be well aware of the usage platform, the tools, the apps you are using. Think twice before you click. Do a comprehensive check with the digital platform you are using so that you don’t fall prey to phishing attacks.
Be authentic: For all the transactions, pay all the taxes and bills. Don’t get trapped in any lucrative offers. Where there is a huge and sudden gain, the chance of forgery is higher.
How can blockchain be used to keep digital assets safe? Which are the apps consumers can use?
Recently, organizations are making their data, workflow, modules as digital assets. These are highly confidential to the organization so the whole life cycle of such assets has to be monitored securely which cannot be obtained using traditional methods involving third parties. In blockchain, there is no third party. All the transactions are peer to peer. This property of blockchain makes it appropriate for digital asset management so the peer to peer communications can be performed safely.
A few apps which consumers can use are IBM® Hyper Protect Digital Assets Platform, Key Coin Assets, Brandfolder, PhotoShelterforBrands and many more.
What are the three tips you would like to give to people who dabble in crypto trading?
It is critical to use a secure communication connection for all of your crypto transactions. For beginners and investors in the field of cryptocurrency trading, here are some things to consider before entering this high-risk, high-reward arena.
Study the market before signing up to an exchange, and don’t dabble in risky transactions.
Protect your Internet connection and don’t buy the coins simply because the price is low.
Use a reputable exchange because it is not uncommon for cryptocurrency exchanges to be hacked or used to defraud investors.
Which according to you is the country leading in the space and the Indian start-up ecosystem can pick up the best use cases?
Obviously China is the ruler of the whole crypto market. Maximum number of Bitcoin owners are from the country, China. India, being the country with a huge population and top masterminds of the world, has a highly positive future in the crypto market. In fact, now we have our own crypto coins such as and many other small-scale startups working under the tag of blockchain. Few people have made outstanding gains from digital assets and that is why the government has imposed a tax of 30% on all virtual digital assets.
What are the disadvantages of blockchain?
The biggest disadvantage of blockchain is the energy and computation power requirement for mining. This is a big threat to our environment. Though the concept of green coins, which requires a lesser amount of energy such as cardano, chia are being developed but none of them has still taken the market like Bitcoins and Ethereum. The two giant rulers of the crypto market Bitcoin and Ethereum have the highest carbon footprint. Another, dark spot is the scalability of the blockchain network. Till today, only a very few percent of the human population uses blockchain and still the system is facing the issue of scalability. With a full population using a single blockchain will surely bring the whole system to standstill. Moreover, there are many cryptographic attacks to which the blockchain is highly vulnerable.