SJU holds talk on ‘Blockchain and Asset-Backed Security Token’
Chümoukedima, November 1 (MExN): Only a mere 27.9 % of its adult population is financially literate and it is even is even lesser for the ethnic Nagas, informed Dr Somingam Mawon, Assistant Professor of the Department of Political Science, St Joseph University (SJU) on November 1.
This is not due to lack of resources but more so due to financial illiteracywhich is not determined by educational literacy, he noted, addressing a talk organised by the Department on “Blockchain and Asset-backed Security Token.”
To this end, with the shrinking size of the middle class, he argued that there is an urgent need for financial literacy and opined that “early adoption of blockchain technology (both centralised and decentralised) sounds promising” and in 10-15 years’ time, blockchain technology will become “integral part of our lives, much like the internet is today”.
The talk was held with the objective of increasing financial literacy and knowledge-disseminating exercise for the students, a press release from the department informed.
During the talk, Dr Mawon, who is also a Private Investor, highlighted about the evolution of the various generations of the internet from Web 1.0 to 3.0 and now Web 4.0 (a.k.a “Symbiotic” web) in some advanced countries, and how Web 3.0 is built on blockchains.
Blockchain as “a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system…a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain,” he explained.
The benefits of a blockchain range from time-saving to cost-saving as well as tighter security, besides being the database for recording transactions, he said.
Properties of Distributed Ledger Technology (DLT) of a blockchain are that it is Programmable (through Smart Contracts);Distributed to all the network participants with a copy of the ledger (which guaranteed complete transparency); Secure (since all records are individually encrypted); Immutable (since all validated records are irreversible and unalterable); identity of participants Anonymous, Unanimous or Consensual (since all network participants agree to the validity of each records); and transactions are Time-stamped and recorded on a block, he added.
Dr Mawon highlighted the usability of blockchain for digital IDssuch as copyright and royalties’ protection, and data sharing which can be applied in health care, hospitality and other sectors, besides cryptocurrency.
He further provided a brief note on Bitcoin as the most dominant peer-to-peer electronic cash system that made blockchain mainstream, and the primary differences between Initial Coin Offering (ICO) and Security Token Offering (STO).
He emphasised on the ever-growing role of blockchain in payments systems, including Central Bank Digital Currencies (CBCDs) and stable coins in the context of liquidity, and how entities like government and business houses can issue security tokens that serve the same purpose as stocks, bonds, and other equities.
“A security token offers the same benefits one would expect from traditional securities like shares, voting rights, and dividends…STO is regulated through strict procedures like the Know Your Client/Anti-Money Laundering that uses the two-factor-authentication (2FA) method,” he maintained.
The programme was hosted Limongi, Assistant Professor and introductory note was given by Dr Chubatila, Assistant Professor. The talk was followed by a Q & A Session.