By Gaurav Dahake
Web3.0, commonly referred to as the decentralized web, represents the next generation of the internet. It is a collection of interconnected, open-source decentralized applications that operate on the blockchain computing architecture. With India’s growing digital economy and sizable internet user base, the country is well-positioned to benefit from the potential of Web3.0. To fully leverage this technology, it is crucial for policymakers, entrepreneurs, and investors to explore its potential applications and implications for various industries in India. Harnessing the power of Web3.0 as a tool for promoting growth and development can be tremendously beneficial for the country’s future.
Some of the potential ways Web3.0 can be used as a toolkit are:
Decentralized Finance (DeFi): Decentralized Finance (DeFi) has many potential use cases in India, as it can greatly benefit the Indian economy by increasing financial inclusion, reducing the cost of credit, and enhancing the efficiency of various financial services. Some of the key use cases of DeFi in India include microfinance, remittances, peer-to-peer lending, insurance, and digital identity. Decentralized lending platforms can provide loans to borrowers without intermediaries, while decentralized payment platforms can facilitate low-cost and instant remittance transactions. P2P lending platforms can reduce the cost of credit, and decentralized insurance platforms can increase the availability of insurance services. Decentralized identity platforms can provide secure and efficient identity verification services online.
Smart Contracts: Smart contracts are self-executing contracts that contain the terms of the agreement between a buyer and seller. Smart contracts have potential use cases in the real estate industry for property transactions, in supply chain management to track goods movement and ensure contract compliance, in healthcare to manage patient data, and in intellectual property for licensing and royalty payments. Smart contracts increase efficiency, security, and transparency in various sectors of the Indian economy, making all contracts automated, cheaper, and more efficient.
Cryptocurrencies: With several firms and efforts focusing on various Web3.0 technologies, India has a thriving and active blockchain and cryptocurrency community. Web3.0 enables using cryptocurrencies, which are digital assets that function on blockchain technology. Compared to conventional financial systems, cryptocurrency can make cross-border transactions faster, less expensive, and more secure.
Data Management:.Web3.0 technology has the potential to revolutionize the way financial institutions share data in India. By using a decentralized system, ownership of data can be documented on a public ledger that is accessible to everyone, making it more secure and efficient than current systems. Web3 further facilitates the development of decentralised systems that use cryptographic methods to verify and authenticate data. This can be used to guarantee the legitimacy and integrity of data. Decentralized data management systems enable customers to own and control their data, which can enhance privacy and security.
Law Enforcement and Cyber Security: With its ability to track and trace criminal activity on the blockchain, Web 3.0 can aid law enforcement. It is increasingly difficult or even impossible to completely erase digital footprints due to the blockchain’s everlasting records of all transactions. Blockchains are unchangeable ledgers that capture each transaction that occurs on the network. This makes it possible to track the movement of funds and identify the parties involved in any given transaction. One key use case is the ability to track and trace financial transactions on the blockchain, which can assist in preventing and detecting financial crimes such as money laundering. Law enforcement agencies can use this information to investigate and prosecute cybercriminals.
The Indian Web3 sector is poised for rapid growth, with a white paper presented at the Entrepreneur India Web3 Conference projecting it to increase from $0.0049 billion in 2022 to $1.1 billion by 2032, with a compound annual growth rate (CAGR) of 57%. Furthermore, the Indian government’s interest and support for investigating the possible uses of Web3 and blockchain technologies is expected to propel the country to become a global leader in the space. The adoption of Web3 technology in India can leverage the power of decentralization to drive innovation and growth, and contribute to creating a more inclusive and equitable society.
The author is CEO, BitBNS