Dubai is the most affluent of all Emirates which make up UAE. Formerly, just a rolling landmass of barren and infertile terrain, today Dubai has transformed into a hypermodern city fueled by world class malls, architecture, unique attractions and its very own artificially crafted island, the Palm Jumeirah.
Dubai has paved the way for advance trade and commerce. Owning and sustainably operating a business or company in Dubai is seen as a huge deal, due to its capacity to wash away feeble companies with a wave of newer and stronger firms. Dubai’s rise to power paved way to a greater wave of change, a digital change, the adoption of blockchain.
Some way or another, we’ve all come across the term cryptocurrency or Bitcoin, but what exactly is Blockchain and why are all forms of cryptocurrency associated with this term? To answer this question, let’s first dive into the process of a cryptocurrency transaction.
How Cryptocurrency Works
Cryptocurrency basically is a form of currency which solely exist in the virtual world. Consumers are digitally connected through a transparent process in which the financial sum is clearly visible, but the identities of the people conducting the transaction are veiled. This is exactly where Blockchain comes into picture. The procedure involves a network connecting a chain of computers required to approve a cryptocurrency exchange and prevent duplication of the same transaction is called blockchain.
Blockchain is a sophisticated procedure which goes above and beyond a cryptocurrency transaction. Fundamentally, it is a transparent ledger – a record which traces every transaction with compete visibility to anyone. It generates trust and authority in transactions. Dubai was quick to recognize this fact and swiftly integrate Blockchain into its economy. A great deal of unfamiliarity, mystery, lack of knowledge and awareness, and of course, a very cautious prospect market didn't stop Dubai (and the UAE as a whole) in taking up efforts in advocating Blockchain.
Shifting to Dubai’s focus on Blockchain, here are some pieces of information to comprehend the reality of Blockchain prevalence and potentiality in the prosperous Emirate…
Dubai’s Blockchain Strategy
The Dubai Blockchain Strategy launched by Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum way back in 2016, aimed to launch a blueprint to base a foundation of Blockchain technology in Dubai as well as creating a platform to integrate it with the rest of the world, paving a clear roadmap for upcoming blockchain firms for setting up a business in Dubai.
The strategy aims at fulfilling 3 benchmarks:
- Government efficiency
- Industry creation
- International leadership
The Strategy aims at driving Dubai to become the first city in the world to be fully run through blockchain technology. Basically, rendering Dubai into a gold mine for Blockchain companies and firms by providing a friendly environment for setting up a business in Dubai.
The UAE Blockchain Strategy 2021
The launch of UAE Blockchain Strategy 2021 concentrated on its goal of driving the UAE as a whole in becoming world leaders in Blockchain technology. The key feature here was reforming its government into a Blockchain fueled government.
Through the efficient use of blockchain, the Government of UAE aims at:
- Saving up to 11 billion AED forgone in processing of documents and other transactions
- Reducing the number of printed documents by 398 million annually
- 77 million work hours associated with the above procedures
The UAE will leverage digital transactions with Blockchain by giving each and every customer a unique identification number that records their information on the secure and protected chain. It is quite evident that the UAE, along with Dubai, is taking up tactical and calculated approaches to pioneer straight into this brave new world of Blockchain.
When Dubai sets it sight on achieving a goal, it will leave no stone unturned in making their vision a reality. Once Dubai set its sight on integrating Blockchain into its government and economy, the government made sure to create a wide scope for blockchain firms, large and small, to set up their companies in Dubai, assuring these companies a safe and amicable environment to run their businesses, thus making the efforts involved in setting up a business in Dubai a much more easier ordeal.
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