Reliance Jio may soon launch its own cryptocurrency "JioCoin"
At a time when cryptocurrency has become one of the hottest tech and financial trends, Mukesh Ambani-owned Reliance Jio is reportedly planning to foray into the blockchain and virtual currency space. According to LiveMint, after disrupting the telecom industry, Reliance Jio is planning to launch its own cryptocurrency called "JioCoin". Mukesh Ambani's elder son Akash is overseeing this project. Here's all about it.
JioCoin Project: Akash Ambani to work with 50 young professionals
A person familiar with Reliance Jio's plans said the company would hire 50 young professionals to work on various blockchain products; this team would be led by Akash Ambani, the JioCoin project head. The source said there are multiple applications of blockchain technology for Jio; they can develop smart contracts and supply chain management logistics applications. However, Jio has not confirmed the report yet.
JioCoin project in proposal stage
The source also said: "One (application of blockchain) is cryptocurrency. We can deploy smart contracts. It can be used in supply chain management logistics. Loyalty points could altogether be based on JioCoin." The person, however, stated that the project was still in the proposal stage.
What is Blockchain Technology?
The blockchain is a continuously growing public ledger of records/transactions. It is linked and secured using cryptography and cannot be modified. Rather than storing data in one place, blockchain uses a distributed ledger technology (DLT). It was earlier limited to cryptocurrency transactions, but blockchain -disruptive technology that can change the way transactions/records are maintained- is now used in banking, supply-chain, healthcare, government, agritech, etc.
Cryptocurrency, most popular application of blockchain technology
The blockchain is simply a digital ledger that decentralizes data, makes it public but encrypted. The information is stored in the cloud; it can't be copied but accessed through a shared database in real-time. Cryptocurrency has been the most popular application of blockchain.
Jio planning to use blockchain in IoT
Reliance Jio is also planning to foray into the Internet of Things (IoT) where blockchain technology can address security risks. IoT is witnessing tremendous growth with faster network and connectivity at its core. With its 4G services, Jio seems to be ready to foray into the sector. IoT is a network of devices where smartphones, wearables, gadgets, appliances, etc. can connect and exchange data.
Centre, RBI caution against cryptocurrencies
The development comes at a time when the government's concerns over cryptocurrencies have been increasing. Even the Reserve Bank of India cautioned against virtual currencies several times of the potential financial, operational, legal, customer protection and security risks. Recently, Finance Minister Arun Jaitley said the government doesn't consider virtual currencies to be legal tender, adding they were studying the issues related to cryptocurrencies.
