Ever since the popularization of Bitcoin (BTC), blockchain technology has been incorporated into various processes, ranging from finance to public administration. What initially started as a trend among early adopters has now become a means to improve legacy systems and enhance immutability, transparency, and decentralization.
While government agencies have been hesitant to adopt blockchain due to its association with cryptocurrencies, emerging economies like India are recognizing its potential to establish trust-based systems in society. India has generally accepted blockchain technology and has implemented numerous initiatives using blockchain, such as data management systems and verifiable certificate issuances.
India’s accelerated adoption of blockchain is supported by an active developer and startup community that develops customized solutions for specific use cases. Cointelegraph recently spoke with Ankur Rakhi Sinha, co-founder and CEO of Airchains, a Web3 startup focused on a middleware software-as-a-service (SaaS) platform, to understand India’s enthusiasm for blockchain and how elected leaders are driving change.
According to Ankur, the primary driver behind India’s blockchain adoption is the recognition of the benefits it offers to enterprises and institutions. Organizations within India’s ecosystem acknowledge blockchain’s potential in addressing challenges, such as improving transparency, traceability, and establishing trust. India boasts one of the fastest-growing blockchain markets globally, with over 56% of Indian businesses inclined to adopt blockchain technology. The country’s developer base of 10 million is globally recognized by leading Web3 firms for fostering innovation and growth.
While Indian government agencies are actively exploring blockchain solutions, discussions around cryptocurrency adoption regulations are still uncertain. However, government agencies are open to the idea and are working towards creating a conducive environment for crypto adoption.
There have been notable improvements from older systems through blockchain adoption in India. For example, Airchains collaborated with the New Town Kolkata Development Authority (NKDA) to implement NFTs for land mutation, revolutionizing traditional approaches. These initiatives demonstrate India’s growing recognition and commitment to leveraging blockchain for innovation and efficiency in various sectors.
India is betting big on blockchain, with several government entities actively seeking to collaborate with blockchain solutions. Though there hasn’t been a high-level blockchain initiative from the government, the demand from government agencies is significant. Some government bodies have already implemented blockchain-based systems, such as the blockchain-based tree plantation monitoring system created for the Raigarh District Authority and the blockchain complaint management system developed for the Firozabad Police Department.
Indian government agencies and bureaucrats possess a profound understanding of blockchain and associated technologies. They are well-versed in the latest developments and trends, with in-depth insights into how the technology functions.
Blockchain is expected to play a significant role in India’s overall growth, driving innovation, fostering economic development, and creating new opportunities across sectors. India’s vast developer talent pool and active Web3 community contribute to this potential. Various global Web3 players have also entered the Indian developer market, with 450+ Web3 startups in India receiving over $1.5 billion in investments between 2021 and 2022.
While there have been state-wide blockchain implementations in India over the past three years, nationwide implementations are being considered. Organizations like the National Payments Corporation of India and public sector banks are actively exploring blockchain’s potential, indicating a likelihood of nationwide blockchain use cases emerging in the future.
To convince government bodies to accept a new system, transparency, efficiency, and improved outcomes are crucial. Operating within regulatory frameworks and demonstrating the benefits of blockchain can help gain government support.
Several countries in Central America are ahead of India in wide-scale blockchain adoption. To expedite blockchain adoption, clear regulations, guidelines for implementation, and defining permissible use cases are essential.
Home-grown blockchain technology from India, such as Polygon, has gained global recognition. Airchains has collaborated with government agencies globally, and there are offshore projects in the pipeline. Using home-grown blockchain technology in offshore use cases is a goal being pursued.
In terms of funding, investors look for scalability, feasibility, and transformative potential when investing in blockchain projects.
Ankur’s advice to fellow blockchain entrepreneurs in India is to focus on developing scalable and feasible solutions that showcase the transformative potential of blockchain technology.
