Virtual Digital Assets is the term coined by the government in the Union Budget 2022-23 to define digital assets, while introducing the new taxation framework in the Finance Bill 2022 as a clause (47A ), under Section 2 of the Income Tax Act. The emergence of virtual digital assets in India has helped to address concerns over the credibility of the digital asset, while building the confidence of potential investors and new customers to get into crypto.
While this change promises to attract savvy investors or revolutionize businesses and redefine economies, it is essential to monitor security issues and ensure that robust technology is used with hybrid IT infrastructure as well as a skilled workforce to support the systems. The growth of digital assets in India has been remarkable with an estimated market of $15 billion, according to a CREBACO report. Technology is the catalyst for fully maximizing the potential of digital assets, for effectively managing demand acceleration, and for ensuring transparency in governance as well as being subject to claims.
In the context of this rapidly changing technology, it is imperative that companies and future professionals focus on skills and development, to manage the technology involved in virtual digital assets without encountering challenges. KnowledgeHut, a global education technology leader delivering on-demand technology courses through immersive, outcome-based learning, recommends the following 5 core technical skills to be ready for the future:
- Cybersecurity and Cryptography: Blockchain relies on cybersecurity, the use of common surveillance, and layered digital cryptography to protect data, making it difficult to hack or manipulate. Although blockchain breaches are rare, they can have consequences if successful. A working knowledge of cybersecurity is therefore a valuable skill for understanding blockchain and managing virtual digital assets.
- Data structures: The entire blockchain system is made up of data structures. Data structures are among the most critical Blockchain capabilities because they help understand the underlying behavior of Blockchain’s most primary element, the block. Knowing about data structures will help develop a solid foundation for grasping complex topics faster and more efficiently.
- Smart contracts: Smart contracts help to transact goods or services without the need for an intermediary. Smart contracts are executed only after the parties involved in the transaction have complied with their transaction conditions. The fundamental reason to focus on smart contracts as one of the core competencies of Blockchain is their ability to cut out the middleman, thus providing cost and resource efficiency.
- Blockchain architecture: Blockchain architecture is a fundamental Blockchain concept that is mandatory for all professionals. It is important to understand the importance of a ledger in Blockchain, the meaning of consensus and how smart contracts work. Mastery of the three types of Blockchain architecture, such as private architecture, consortium architecture and public architecture, is essential.
- Python: Python is one of the most popular programming languages in the world. It is versatile and its various libraries allow it to be used for both front-end and back-end development, making it a great skill set for understanding and managing VDAs. In addition to Python, Java and C++ should be part of your blockchain skills.
Today’s world continually brings incredible challenges and tremendous opportunities. Organizations and individuals must embrace change and focus on building capacity to prepare for the future and look to the new era of VDAs with optimism.