Ever since Bitcoin (BTC) popularized blockchain technology around the world, the technology has found its way into myriad processes from finance to public administration.
What started as a flex statement for early adopters has now become a way to revitalize legacy systems and improve immutability, transparency, and decentralization.
Despite its proven real-world use cases, most government agencies continue to take a cautious approach to adopting and incorporating blockchain into their paper-based processes, given the key links blockchain has to the cryptocurrency ecosystem.
However, a change of heart is occurring as emerging economies see blockchain as a rare opportunity to establish a trust-based system for society.
Although still reluctant to fully legalize cryptocurrencies, India has generally accepted blockchain technology.
Many initiatives by local and state governments in India – from data management systems to issuing verifiable certificates – currently use blockchain technology at their core.
The rapid adoption of blockchain in India is supported by an active developer and startup community, which creates custom solutions to tackle specific use cases.
Cointelegraph’s quest to understand India’s affinity for blockchain led to a conversation with Ankur Rakhi Sinha, co-founder and CEO of Airchains, a Web3 startup focused on middleware software-as-a-service (SaaS) platforms. .
Speaking to Cointelegraph, Ankur spoke about India’s huge appetite for blockchain and how elected leaders are driving change.
Cointelegraph: What is the primary driver behind the blockchain adoption race in India?
Ankur Rakhi Sinha: The driving force behind the adoption of blockchain in India is the numerous benefits it provides to enterprises and institutions. Within their ecosystem, organizations recognize the immense benefits of incorporating blockchain technology. It addresses various challenges at different levels, such as increasing transparency, traceability and establishing trust.
These factors contribute to the growing interest and widespread adoption of blockchain in India.
India is one of the fastest growing blockchain markets globally, with over 56% of Indian businesses reporting inclination towards adopting blockchain technology. With a huge developer base of 10 million, the Indian talent pool has been recognized globally by leading Web3 firms aimed at promoting Web3 innovation and growth.
CT: In your discussions with government agencies, is there any discussion of crypto adoption?
ARS: No, currently, regulatory approvals related to cryptocurrency adoption are still uncertain. However, government agencies are actively exploring different avenues and looking for better regulations. They are open to the idea and are working diligently towards creating a conducive environment for cryptocurrency adoption.
CT: Can you share any data and/or use cases that show improvements over the old system?
ARS: Yes, our recent collaboration with New Town Kolkata Development Authority (NKDA) shows the real-life adoption of blockchain. With a vast expanse of 27,000 acres of land and a staggering 50,000 NFTs [nonfungible tokens] NFT adoption for land mutation by NKDA, representing one million ownerships [the transfer of property titles] Having revolutionized traditional approaches, these initiatives demonstrate the growing recognition and commitment to harnessing blockchain’s potential to drive innovation and efficiency across a variety of sectors.
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CT: Is India betting big on blockchain? Are there any government initiatives that help pursue this objective?
ARS: Yes, India is definitely betting big on blockchain. Various government agencies and bodies within India are actively looking to collaborate with blockchain solutions. Although there have been no high-level blockchain initiatives from the Indian government yet, there is a strong demand from government entities which Airchains is actively addressing. One of the deeper use cases of blockchain adoption involves the first-ever NFT-based land mutation in India.
Additionally, in January 2020, NITI Aayog’s two-part report titled “Blockchain: The India Strategy” made it clear that while regulations regarding cryptocurrencies and other digital assets are under consideration, the government is planning to transform the core blockchain technology. Is quite aware of the promise. Various systems.
Many Indian government bodies are supportive of the adoption of blockchain technology and have collaborated with Airchains to incorporate novel blockchain-based systems that ensure accountability and security. Raigarh District Authority has collaborated with us to create a blockchain-based plantation monitoring system for the betterment of CSR [corporate social responsibility] initiative, while the Firozabad Police Department worked with us to build a blockchain complaint management system to prevent tampering of reports.
CT: What kind of understanding do Indian officials have about blockchain and related technology?
ARS: Indian government agencies, state governments and bureaucrats have a deep understanding of Blockchain and Web3 technologies. They are well-versed on the latest developments and trends in the blockchain sector, including liquidity, private chains, and zero-knowledge rollups. […] Their understanding of blockchain goes beyond surface-level knowledge, as many executives have in-depth knowledge of how the technology works. While some executives are considering how blockchain should ideally operate, others are actively exploring ways to leverage this technology to address their unique challenges.
CT: What is the role of blockchain in the overall development of India?
ARS: Blockchain technology is set to play a big role in India’s future development, propelling the country to a prominent position on the global stage. The growing number of emerging developers, enterprises, and institutional use cases in India underlines the significant growth potential of blockchain in the country. As blockchain adoption continues to expand, it is expected to spur innovation, spur economic growth, and create new opportunities in a variety of sectors.
Another significant push to India’s growth has been the entry of various global Web3 players into the Indian developer market. According to the 2022 NASSCOM Indian Web3 Landscape Analysis Report, India is home to 450+ Web3 startups and has received investments of over $1.5 billion between 2021 and 2022.
Additionally, the report also states that 11% of the global Web3 talent is in India, making it the third largest globally. Blockchain in India has the potential to make significant contributions due to the vast developer talent and active Web3 community present in the country.
CT: We have seen many examples of state-wide blockchain implementation over the past three years. Is there any nationwide implementation of Blockchain in India or any such plans for the future?
ARS: Yes, there have been important discussions at various levels regarding nationwide blockchain implementation in India. For example, organizations such as the National Payments Corporation of India and the Unified Payments Interface are exploring and testing the potential of blockchain technology. Public sector banks are also actively experimenting with blockchain to determine how they can utilize its capabilities.
These initiatives indicate a strong possibility of nationwide blockchain use cases emerging in the near future. Airchains recently executed a state-wise use case with NKDA, and we are currently working on multiple state-level use cases that have the potential to impact the entire country.
CT: How do you convince a government body to accept a new system?
ARS: Government […] Entities are actively interested in adopting blockchain solutions to address their specific challenges. However, they stress the importance of working within the regulatory framework. It is important to demonstrate transparency, efficiency and better results to get government support in the development journey.
CT: Which countries are ahead of India in terms of wide-scale blockchain adoption? What measures should a country take to accelerate blockchain adoption?
ARS: There are several countries in Central America that are actively working on wide-scale blockchain adoption in their ecosystem. India, being a large country, is actively trying to accelerate the adoption of blockchain technology through multiple use cases. With multiple agencies exploring various applications, the country has established itself as a center of excellence in blockchain.
Implementing clear rules is important to accelerate progress. This involves defining guidelines for blockchain implementation and determining permitted use cases, which will facilitate faster execution and widespread adoption.
CT: Can domestic blockchain technology be used in off-shore use cases?
ARS: Many projects originating from India, such as Polygon and various Layer-1 and Layer-2 solutions, have gained global recognition. Airchains has also successfully collaborated with government agencies globally, including in Central America and Europe. Currently, there are several offshore projects in the pipeline for Airchains, which are scheduled to be completed within the next six to seven months. Using domestic blockchain technology for offshore use cases is indeed a goal that is being pursued.
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CT: How does the funding work? What are your investors looking for?
ARS: Among other key factors, investors primarily look for scalability and feasibility in blockchain adoption. Funding in the blockchain sector generally involves investors who believe in the potential of the technology and its ability to bring about transformational change.
CT: What is your advice to fellow blockchain entrepreneurs in India?
ARS: My advice […] The focus is on building a wide range of use cases and driving high level adoption of blockchain. By creating innovative solutions and demonstrating the real-world benefits of blockchain technology, we can accelerate its adoption and drive positive change across a variety of industries.
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Source: cointelegraph.com
