India seeks global partnerships in blockchain/crypto.

The global craze surrounding crypto and blockchain has not escaped India. Ranking second in the previous year’s Global Crypto Adoption Indexby Chainalysis, the overall impact on the Indian economy, though growing rapidly, is still a tiny minuscule of the blockchain requirement at hand. This start-up phase thus provides opportunities to global organizations through partnerships and collaboration.

The Global Blockchain and Crypto Market Scenario

Blockchain has been one of the standout stars in technology with the others including AI, Big Data, Cloud Storage, and IoT. Reasons for its popularity include the intrinsic properties of decentralization, permanence, immutability, transparency, and more. Blockchain can be easily integrated with other advanced technologies optimizing them across multiple industrial sectors.

Reports indicate that blockchain technology is consistently escalating from its estimated $3 billion valuations in 2020. Projections suggest its market cap surpassing $39.7 billion by 2025. Now, that’s a solid 67.3% CAGR, much higher than other leading technologies. 

Despite current market drops, crypto trading has been going strong. There are over 460 global crypto exchanges in existence and a market cap of $1.7 trillion. Bitcoin and Ethereum still drive the global crypto markets with capitalizations of $726.74 billion and $320.76 billion respectively. 

Crypto-Blockchain Industry Scenario

By nature, blockchain is a very effective tool for data sharing and validation while safeguarding the data from tampering. Hence, the applications for blockchain in this digital data-centric age are practically limitless. We keep hearing about new blockchain-powered innovations each passing day. 

Blockchain in India

India is looking forward to the practical usage and implementation of blockchain across multiple sectors. Sectors seeing the maximum incorporation include banking, finance, and insurance. 

The nation’s Ministry of Electronics and Information Technology had published a 52-page extensive report on blockchain infrastructure and potential applications. Thereafter, the national government plans to use blockchain for secure digital platforms. Promoting research and innovation and facilitating the delivery of reliable digital services are also high on the government’s list, as it plans to build a National Blockchain Framework.      

Also Read : India Outlook towards Partnerships and Incorporation Positive for the Crypto-Sphere: Raj Chowdhury

NBF: A National Scale Implementation of Blockchain

India’s National blockchain Framework will feature experts and certified blockchain service providers in 3 categories:

1. App Developers
2. Tech Operators or Service Providers(IT, Blockchain-as-a-Service)
3. IP Creators and Tech Stack Builders.

India is looking forward to applications for NBF model construction. Prioritizing innovation and agility along with startup engagement, a blockchain framework on the national scale would also integrate national government services. Examples include digital eSigns, identification (ePramaan), land records, farm insurance, vehicle documentation, health records, DigiLocker, and more. Despite the noble initiatives, there are drawbacks at present. 

Current Drawbacks

NASSCOM released a report on India’s existing blockchain conditions, where it highlighted the nascent stage of India’s blockchain sector. VC investments on the blockchain, on a global scale, amounted to over $5.6 billion, of which India was able to attract a meager 0.2%. A lack of understanding of how blockchain works are one of the primary reasons. 

The fact that just 2% of the world’s blockchain startups belong to India points to one conclusion. There is a demand for blockchain technology and a shortage of suppliers in India. The blockchain industry in India is at a nascent stage, and tech development companies specializing in blockchain can leverage the present shortage to their benefit. 

Also Read : Blockchain in Data Analytics: Combining Data-Centric Technologies for a Better Tomorrow

Final Words

Crypto-trading is growing rapidly throughout India. People are viewing the government’s decision to introduce 30% taxation on crypto profits as a green signal. On the other hand, despite big plans on blockchain implementation, there is a shortage of blockchain specialists in India. The void can be fulfilled by global collaborations and partnerships.