Top Five Technical Skills Required to Manage Virtual Digital Assets

The Finance Minister introduced a new framework of taxation in the Finance Bill 2022 as clause (47A), under Section 2 of the Income Tax Act. According to this, the virtual digital assets are to be taxed at 30%. While there is a debate about what is exactly meant by the virtual digital assets, it is widely believed that crypto currency is included in this category.

While this shift is promising to drive discerning investors or revolutionise businesses and redefine economies, it is pivotal to monitor security issues and ensure that robust-technology is used with hybrid IT infrastructure as well as skilled workforce to support the systems. The growth of digital assets in India has been noteworthy with an estimated market worth $15 billion, according to a report by CREBACO. Technology is the catalyst to optimise the potential of digital assets in full, to effectively manage the accelerating demand and to ensure transparency in governance as well as to be complaint.

Against the backdrop of this rapidly evolving technology, it is imperative that companies and aspiring professionals focus on skilling and upskilling, to manage the technology involved in virtual digital assets without encountering challenges. Following top 5 technical skills need to be future-ready -

• Cybersecurity and Cryptography - Blockchain is predicated on cybersecurity, utilizing communal oversight, and layered digital cryptography to protect data which makes it difficult to hack or otherwise manipulate. Though blockchain breaches are rare, they can have consequences if successfully achieved. Working knowledge of cybersecurity is hence a valuable skill in understanding blockchain and manage virtual digital assets. 

• Data Structures - The entire blockchain system is made up of data structures. Data structures are amongst the most critical Blockchain abilities since they aid in comprehending the underlying behaviour of the most primary element in Blockchain, the block. Knowing about data structures will aid in the development of a solid basis for grasping complex topics more quickly and effectively. 

• Smart Contracts - Smart contracts help in conducting transactions of goods or services without the need for any intermediary. Smart contracts are executed only after the parties involved in the transaction comply with their conditions of the transaction. The basic reason for focusing on smart contracts as one of the top Blockchain skills is their capability to remove middlemen, thereby providing cost and resource effectiveness. 

• Blockchain Architecture - Blockchain architecture is a fundamental concept in Blockchain that is mandatory for all professionals. It is important to understand the significance of a ledger in Blockchain, the meaning of consensus, and the working of smart contracts. Fluency across the three types of Blockchain architecture, such as private architecture, consortium architecture, and public architecture, is key. 

• Python - Python is amongst the most popular programming languages in the world. It is versatile, and its various libraries enable one to use it for both front-end and back-end development—a super skillset in 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 enormous opportunities. Organizations and individuals must embrace change and focus on capability building to get future-ready and look ahead at the new era of VDAs with optimism.

--By Ashish Kumar, Head of Product and Growth, KnowledgeHut