An Assessment of impact of block chain on UAE economic mechanism

Technology adoption by a country to improve living standards of its residents, easy of doing business and improving transparency gives a competitive advantage to the country. Technologies helping countries in many ways to increase economic growth by reducing production cost, bringing new businesses and communication advancements. Economists have mentioned that technology investment are needed to improve the productivity, but many developing countries have not realized the same and invest little on technology. Blockchain is possiblymost important and known technology came out ofbitcoin (Swan 2015). However, the importance of the Blockchain does not rely on bitcoin and its very loosely coupled (Buterin 2015). Nakamoto has provided the solution for double-spending problem (which is referred as ‘Byzantine General’s problem’ in subject of computer science) by creating a non-centralized peer-to-peer electronic cash system (Nakamoto 2008). The blockchain is solving this problem by using a decentralized ledger (or database) network which is based on a consensus mechanism (proof-of-work) for change the status of the ledger. Blockchain is better known as a new “general purpose technology” (Bresnahan and Trajtenberg 1995, Lipsey et al 2005) which can disrupt any centralized system that coordinated valuable information between multiple parties like government money, property title, resident identity etc. Blockchain adoption by industries (Banking Sector, Real Estate, Government entities) are happening in large scale all over the world. There are multiple use cases are already in use and many of them are being under execution. There are many use cases which are helping directly or indirectly the economic growth of the country and others are to improve customers experience which will add to resident happiness. As per NASSCOM (National Association of Software and Services Companies) report 2019 on blockchain adoption the key findings reported as below

• Blockchain’s transformational potential has been recognized by enterprises and governments across the world. More than 50 countries actively creating standards to integrate blockchain in their economies

 About 50% Indian states involved in various blockchain initiatives  BFSI (Banking, financial services and insurance) at 55% leads adoption; growth Blockchain are relatively new technology but potentially revolutionary which is undergoing the Schumpeterian phases of acceptance and dissemination through the economy, which is a kind of journey towards internet.

• To analyse the impact of block chain on UAE economic mechanism.

• To assess the impact of resident understanding about block chain on UAE economic mechanism.

The research is based on a combination of primary and secondary research. The primary research will consist of structured interviews of technology leaders who has participated in blockchain related initiatives and quantitatively by distributing a research questionnaire to 500 randomly selected residents covering various nationalities in the UAE. Therefore, the sample size is 500 Study area is - UAE The survey will be conducted based on standardize questionnaire prepared before meeting the respondent and planned well in advance; the respondent will have no flexibility but freely offer feedback on set questions. Each person will be given survey questionnaire and researcher will clearly explain the purpose of the survey. Primary data will be collected from the people that can provide the correct answers which will be appropriate to solve the problem and who represent the whole people the researcher want to study. Therefore, the population of this study consists people who has ever used or aware of any services of which were based on blockchain technology. The population consists of people who are residents of UAE and has stayed here for some time. The researcher will be choosing people from different nationalities with the age more than 18 years. The primary research data will be checked for reliability and validity of the study and provided the Cronbach Alpha for the data collected. As this research is deductive and quantitative in its nature, one of the important characteristics of deduction is the need to operationalize the variables of the study in a way that facilitate the measurement of facts quantifiably. The structured interviews will be conducted by asking the same questions in the same order, so that it will be easier to compare and contrast the answers. The key consideration will be to have diversity of respondents by various cultural back ground and interviewees and transcribed verbatim during and after fieldwork. Besides these interviews, all of the observation moments were registered in fieldwork diaries. This furthermore it will be extended for coding and analysing all of the data collected through qualitative data analysis software in order to isolate patterns and topics and to define the major research lines. The findings will be articulated and compared with the literature and document analysis.

H1: there is no significant impact of block chain on UAE economic mechanism H2: there is no significance impact of resident understanding about block chain on UAE economic mechanism

Before processing data, we need to first check the reliability of the scale of the variable at which variables are measured. As mentioned in chapter-3 (research methodology) Cronbach Alpha test is applied to know the score for analyzing the reliability. The following table is giving the glimpse of the outcome and details of the variables.

Table-B is representing the scale reliability score. From the reliability test score, Awareness level constructed by 13 items are reliable as it has higher alpha value (0.79). Because Alpha score more than 0.5 shows a higher value for the scale and construct of the variable. In this case we can move ahead to make a composite variable from those items for the measurement. Furthermore, resident happiness also has 0.721 alpha score having reliable items for the variables.

In the study chapter- three we have following hypothesis to understand and explore the relationship between the variables. H0: there is no significant impact of block chain on UAE economic mechanism H0: there is no significance impact of resident understanding about block chain on UAE economic mechanism To examine these two hypothesis, linear regression model is being applied with the equation of E = b0 + b1* BC + b2* Aw + u1…………(1) There are three table for this assessment. variation in the model can be expressed by the two variables and they are sufficient to explain the variation in the model. Second table ANOVA table is representing the model significance based on within and between the variance as f value does have p = .000, that infers the model is signified to examine the relationship. Third table is related to impact analysis. As in coefficient table, p value of Block chain technology is having .000 p value that refers to reject the null hypothesis and suggested to accept the impact of blockchain technology on UAE economic activities in public and private sectors i.e. 0.89 marginal rate. Moreover, awareness among resident also impacts the UAE economic function in positive way with the 0.091 marginal rate at 5% significance level.

The UAE government is eager to use block chain technology in all domains. However, based on the immense potential for growth and development. This has already had an influence on the UAE's economy's governmental and commercial sectors. However, as seen by the 4 score, block chain technology is doing well in the UAE. Blockchain technology has a substantial influence on economic activity in the UAE, covering both the public and commercial sectors, with a marginal rate of 0.89. The UAE's economic performance is likewise favourably influenced by resident knowledge, with a marginal rate of 0.091 at a significance level of 5%. The efficient functioning of the block chain benefits the UAE's prospective economic growth. Similarly, people' awareness and comprehension of Blockchain technology protects the UAE's future economic prosperity. While knowledge has a slightly favourable influence on resident satisfaction (a rate of 0.426), block chain adoption and functioning have a moderately positive impact (a rate of 0.255). Another factor to examine is the number of dependents living in the household; persons with a large number of dependents are less acquainted with blockchain technology. Understanding of blockchain technology is positively connected with wealth; high-income individuals comprehend the technology better than low-income ones.

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