The future of blockchain in India and its impact on the technological ecosystem | Interveiw

Blockchain technology has been on the rise in India, with the government and private sector investing heavily in its development. The Indian government has set up a national blockchain framework, and several state governments have also launched their own blockchain initiatives. The private sector is also embracing blockchain, with many companies using it to improve their efficiency and security.

This growth can be credited to a number of factors, including the country's large and growing population, its strong IT sector, and its government's commitment to innovation. Blockchain is seen as a technology that has the potential to transform a wide range of industries in India, including healthcare, finance, supply chain management, and government services.

To understand how blockchain is transforming the Indian technological infrastructure, we caught up with Dr. Ravi Chamria, Co-Founder & CEO, Zeeve, which is an enterprise-grade no-code blockchain infrastructure automation platform that enables easy deployment, monitoring, and management of blockchain nodes and networks.

Q1 How much has blockchain technology disrupted the Indian market as of now?

Without question, blockchain technology has had a significant impact on the Indian market. The evidence is in the numbers. According to a report by NASSCOM, India is home to over 500 blockchain startups, and the total investment in this sector has reached an impressive $1.3 billion.

The influence of blockchain isn't just restricted to the private sector. It's making waves in the public domain too, with nearly half of India's states actively engaged in blockchain-related initiatives. Prominent examples include blockchain-based solutions for land registry, agricultural insurance, and digital certificates.

Notably, Andhra Pradesh has collaborated with Zebi Data and Hitachi to develop a blockchain-based land registry, while Uttar Pradesh has partnered with UNDC for similar initiatives. In West Bengal, municipal corporations are working with Linked, a Dutch company, to issue birth and death certificates via blockchain.

Meanwhile, Assam has joined forces with Nucleus Vision for governance applications, and Tamil Nadu and Telangana governments are investing in blockchain education and IP development.

Overall, it's clear that blockchain is no longer a fringe technology in India. It's becoming integral to both public and private sector innovation, with a projected increase in usage of 46 percent in the coming years.

Q2 Which industries are witnessing the highest rate of transition from Web 2.0 to Web 3.0? What are the reasons?

The Retail and Finance sectors are taking the lead in the transition from Web 2.0 to Web 3.0 in India. For instance, e-commerce giants like Flipkart and Myntra are pioneering immersive customer experiences with initiatives like Flipverse and virtual try-on. These innovations herald a new era of e-commerce in India, leveraging the interactivity and decentralisation of Web 3.0.

The Finance sector is seeing a similar shift, with tokenised assets and digital bonds becoming increasingly commonplace. A great example is the Union Bank of India's Virtual Lounge, which provides a one-stop-shop for banking needs in the digital space.

A recent report by Arthur D. Little also confirms this trend, identifying seven sectors that stand to be heavily impacted by the Web 3.0 evolution. Retail and Finance top the list, followed closely by Energy, Telecom, Media, Automotive, and Healthcare sectors.

The key reason for this shift lies in the inherent value of blockchain, which streamlines processes, cuts down costs, and enhances transparency. This technology serves as the backbone of Web 3.0, helping various sectors unlock new potentials.

Q3 Which blockchain protocols (both public and private) are being used the most by companies and developers in India and why?

When it comes to blockchain protocol adoption in India, Polygon and Ethereum are leading the charge. A lot of activity is happening on the Polygon PoS chain in the public sector. On top of that, other blockchain protocols like NEAR and Tezos are gaining momentum. NEAR, in particular, is doing a fantastic job in India, setting up accelerator and incubator programs to help companies transition from Web2 to Web3.

On the permissive blockchain side, big players like Hindustan Unilever, SBI, and Kotak Mahindra are experimenting with protocols like Hyperledger Fabric, Quorum, and R3. The protocol choice here largely hinges on flexibility, the ability to customize according to specific business needs, and the benefits of collaborating with other businesses in a secure and private network.

Overall, the choice of blockchain protocol is dictated by a combination of factors such as transaction speed, cost, flexibility, and the specific use case. The objective is to find the right balance that aligns with a company's strategic goals.

Q4 Considering that blockchain tech and crypto are so closely woven, how has the anti-crypto sentiment in India affected the growth of blockchain?

It's a mixed bag in India right now. We're seeing support from the government on the blockchain front, and there's even a national strategy on it. But there's a fair amount of hesitation when it comes to crypto. And this, no doubt, has impacted the overall growth of blockchain in the country.

Even though we're seeing some great blockchain startups emerge from India, the uncertain regulatory environment is pushing many to register their businesses abroad. It's quite the conundrum; on one side, we're promoting blockchain, but on the other, we're inadvertently encouraging a sort of brain drain.

Looking at the broader picture, it's 2023, and we're witnessing global businesses integrating blockchain, NFTs, and even cryptos, creating a unified ecosystem. But when a large number of Indian blockchain-based companies are registering in Dubai or Singapore to avoid uncertainties, I think that’s a red flag, and it's time we think again about our approach.

Given the current state of affairs, it's understandable for big firms to be cautious about investing in India. What we need now, more than ever, is a thoughtful, balanced regulation that not only safeguards against risks but also allows for innovation.

Q5 What regulatory changes are required in India to accelerate the adoption of blockchain?

First and foremost, we need pro-blockchain policies. We're talking about policies that make it simpler for businesses to start, operate, and scale their operations. This would include low regulatory barriers and the scope for adequate infrastructure.

If we can make it easier and more cost-effective to run a business, we'll surely attract more innovators in this field. Another thing could be setting up regulatory sandboxes centred on Web3 technologies. This will provide startups with the opportunity to explore the multifaceted applications of blockchain.

From tokenisation to NFTs and beyond, it's all about providing a safe space for creativity and innovation to flourish. And what's more important about a sandbox like this is that it can foster a meaningful dialogue amongst everyone involved - the regulators, startups, and policymakers.

This collaborative approach can help develop a more nuanced and effective Web3 framework. Another key change would be establishing blockchain-friendly zones, similar to the Special Economic Zones (SEZs) we've set up for IT growth in India.

If you look at blockchain-friendly countries like Dubai, they're offering incentives to foreign investors through these zones. It's an effective strategy that can really boost the growth of blockchain in India. Active collaboration between government, academia, and the private sector could also drive innovation.

This could be achieved by setting up 'Centres of Excellence' focused on blockchain, promoting cross-industry collaborations, and sponsoring projects that use blockchain for social good. The core idea here is to create a playground for our innovators, giving them the tools they need and watching as they shape the future of blockchain.

Q6 How is Zeeve enabling blockchain adoption at a massive rate? Which propositions of the platform stand out and give Zeeve a competitive edge?

When you think of the IT boom, you think of services like AWS that helped businesses focus on their core work by handling the heavy lifting of infrastructure. At Zeeve, we're doing something similar, but for blockchain. We aim to become the AWS of Web3, simplifying the complex layers you'd otherwise have to manage.

You see, when it comes to blockchain, it's not just about handling protocol layers. You also need cloud services, monitoring tools, and 24/7 alert systems. Integrating these parts can be tricky, time-consuming, and costly. That's where Zeeve steps in. We streamline the process, getting you up and running the blockchain infrastructure across different protocols and deployment options in no time.

We ensure businesses can focus more on their product offerings rather than the intricacies of blockchain deployment.

Our platform is a one-stop-shop offering no-code deployments for over 40+ protocols, including public, permissive, or application-specific blockchain solutions. We ensure top-notch security, support for 9 leading cloud providers, and also the flexibility to bring your own cloud. We've got all the compliance check-boxes ticked off too - ISO, SOC2 Type II, and GDPR. Zeeve is more than just a service; we’re a partner, a collaborator, enabling businesses to leapfrog into the future of blockchain.

Q7 What are Zeeve's future plans?

Zeeve's primary goal is, and will always be, to simplify blockchain adoption and empower businesses to step confidently into this new era. Our future plans are deeply rooted in this mission. We keep our finger on the pulse of our users' needs, staying abreast with the latest in blockchain advancements to ensure our platform is always up-to-date and providing the most secure and reliable Blockchain infrastructure management.

A good example is our response to the evolution of blockchain use. Not so long ago, the trend was towards public and permissioned chains, with the latter being the enterprise favourite due to its customisation capabilities, privacy, and flexibility.

However, the landscape shifted, and we saw the emergence of application-specific blockchains like Polygon Supernets designed to accommodate larger user bases. Recognising this shift, we promptly added support for these solutions on our platform.

Our proactive approach illustrates our commitment to always providing our users with the most relevant and cutting-edge solutions. As we navigate the future, Zeeve will continue to evolve and adapt, always striving to be the ultimate partner in your blockchain journey.