Why India is the right place to be for Blockchain startups?
Blockchain is expected to be one of the most important technologies of the future. The world economic forum expects 10% of global GDP to be stored on Blockchain in 2025, and list it as one of the 7 great technologies of the future.
Blockchain can be defined as a new type of network infrastructure that create trust by acting as a shared database, distributed across networks where no single entity can modify the data stored on it unilaterally without the consensus of its peers. New data can only be added to a blockchain through agreement between the various nodes of the network, a mechanism known as distributed consensus. If one node changes its local copy, the other nodes reject it. Blockchains record information on a timestamped chain that extends forward infinitely. New data is added to the end, and once added, it is permanent. Older data cannot be removed nor modified because a snapshot of it is captured in the blocks of data that come after it.
India is probably one of the countries which can benefit the Blockchain-technology the most. The country has historically had large problems to attract foreign companies, due to overcomplicated public systems and corruptions. Prime Minister Modi has tried to change this since his election, which is reflected in the “ease of doing business” scores, where India have leaped from number 134 in 2014 to number 63 in 2019.
But there are a few areas which are still lagging for India; starting a business puts them at number 136, registration of property number 154 and enforcing contracts number 163. These are areas which typically needs a structural and systematic public sector built on efficiency and trust. India will probably get there in the future, but the need to “sidestep” these areas today is clear. In addition, with a population of almost 1,4 billion people, the automation which blockchain can create could lead to huge savings. And while Blockchain is still in its infant, its strategic value towards streamlining processes, reducing inefficiency and cost optimization could be very important for India to do exactly this.
Based on these issues, India is increasing its focus on blockchain, and is preparing a national framework to support a wide use of the technology in a number of different sectors like Governance, Banking and Finance, Cyber Security. Pilots are already being developed and a of number opportunities for startups/scaleups will be available in the near future. Considering the size and scale of India, this might be a once in a lifetime opportunity for many developers/Startups/scaleups. Comparable projects in India would be:
- The Aadhaar project which is Indias development of an identity database with more than 1.2bn biometric identities
- Unified Payment Interface (UPI) which is the world’s most sophisticated digital payments system, with 1.3bn transactions processed in December 2019
- Goods and Service Tax Network (GSTN) with More than 400 million returns filed and more than 800 million invoices uploaded
- PM-JAY which is the world’s largest healthcare initiative with more than 500 million beneficiaries covered
So if you find this interesting, Nordic Hub India will help you to take the next step.