Blockchain Brightens India's Technological Landscape: Adoption Surge and Global Recognition
Summary:
India's robust connection with blockchain technology is leading to a widespread adoption, driven by blockchain's benefits of improved transparency, traceability, and trust-building. Although the nation is yet to fully legitimize cryptocurrencies, numerous state and local government initiatives are integrating blockchain into their operations. The rapid development is supported by a strong developer and startup community, creating tailored solutions for specific use cases. Several Indian agencies, officials, and businesses acknowledge blockchain's transformative potential, with collaborations in land transfers, tree plantation monitoring, and complaint management systems. Nationwide blockchain implementations are under consideration, with a focus on clear regulations and guidelines for wider adoption. Indian-origin blockchain projects are also gaining global recognition, reinforcing India's central role in the advancement of blockchain technology.
Blockchain technology, initially made famous by Bitcoin, has found applications across a variety of sectors—including finance and public administration—since its introduction. Despite its initial use as a statement of technological progression, it's now being utilized to upgrade outdated systems while enhancing immutability, decentralization, and transparency. Although many government departments remain cautious due to blockchain's close ties to the volatile cryptocurrency market, developing economies are beginning to view it as a unique chance to build a trust-based societal system.
In India, for instance, while there's still reticence about fully legalizing cryptocurrencies, there's been a wider acceptance of blockchain technology. Numerous state and local government initiatives, ranging from data management systems to the issuance of verifiable certificates, now operate on a foundation of blockchain technology. The shift towards blockchain in India has been further facilitated by a strong community of developers and startups that create tailored solutions for various specific applications.
The deconstruction of India's relationship with blockchain brought Cointelegraph into conversation with Ankur Rakhi Sinha, co-founder and CEO of Web3 startup Airchains, which is centered on a software-as-a-service (SaaS) platform. He attributed the surge in blockchain adoption in India to the myriad advantages it offers to enterprises and institutions, including enhanced transparency, traceability, and trust-building.
India, with a significant 56% of businesses reported to be considering blockchain adoption, and a talent pool of 10 million developers, is increasingly being acknowledged by leading Web3 companies as a rapidly expanding blockchain market. Despite the lack of a nationwide blockchain initiative, Indian government entities recognize the transformative potential of blockchain technology, with multiple collaborations with Airchains reflecting this acknowledgement.
For example, under the supervision of Airchains, the New Town Kolkata Development Authority (NKDA) has made immense strides in using nonfungible tokens (NFTs) for the transfer of property titles, a move that has irreversibly altered the conventional processes. Moreover, both the Raigarh District Authority and Firozabad Police Department have joined forces with Airchains to use blockchain for monitoring tree plantations and managing complaints, respectively.
The receptiveness of Indian officials offers promising insight into the potential of blockchain to drive India's growth. The burgeoning number of developers, cases of enterprise and institutional use, and the entry of global Web3 entities into the Indian market are key factors contributing to India's projected growth. A recent analysis by NASSCOM revealed that India is home to over 450 Web3 startups and that 11% of global Web3 talent resides in India. Therefore, blockchain's contribution to the nation's development is expected to be substantial.
Conversations revolving around nationwide implementations of blockchain are unfolding at various levels across the nation. Major organizations, including the National Payments Corporation of India and the Unified Payments Interface, along with several public sector banks, are exploring how to harness the potential of blockchain technology. Airchains is also working with the NKDA on state-level use cases that could have a nationwide impact. For wider blockchain adoption, establishing clear regulations and guidelines is key.
As for offshore use cases, several Indian-origin projects, including Polygon, have achieved global acclaim. Airchains has successfully partnered with government agencies worldwide and has several offshore projects in the pipeline.
Investors in the blockchain space are typically those who are bullish about the technology's potential for making transformative changes. The primary considerations being scalability and feasibility of blockchain adoption. Sinha's advice to fellow blockchain entrepreneurs in India is to concentrate on developing a plethora of use cases and propelling blockchain adoption at a larger scale to foster innovation and bring about beneficial changes in various industries.
Published At
9/19/2023 4:30:48 PM
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