Today, India stands on the brink of an important historical epoch. There, you can witness the emergence of innovative technologies including Internet of Things (IoT), Augmented Reality, Virtual Reality (AR/VR), and more. These industries are evolving at breakneck speed, facilitating innovative business systems, payments and efficiency models.
Among these revolutionary technologies, blockchain technology is at the forefront. Blockchain is often confused with cryptocurrency and is usually used interchangeably, but it is important to understand the practical difference between the two. It is true that cryptocurrencies are one of the first applications of blockchain technology.
Blockchain has multiple use cases that work with smart contracts that are costly to successfully implement. This technology has fundamentally changed many industries and changed the way they function. Blockchain is clearly here to stay.
Blockchain technology will have a tremendous impact on the fintech industry when it comes to transparency, trust, security, accessibility, cost efficiency, etc. These favorable factors are driving many important organizations to move from centralized finance (CeFi) to decentralized finance (DeFi). ).
Let’s take a closer look at what DeFi can do for the Fintech industry in India.
Why is DeFi considered to have the potential to revolutionize the FinTech industry?
To understand what DeFi can do, let’s first do a quick comparison between traditional finance (TradeFi) and DeFi. Getting a loan from a bank is a complicated process. You have to go through numerous banking procedures, provide tons of personal information, and wait to get a loan at a fair rate. This whole process definitely involves a lot of paperwork and takes quite a while.
Now think of securing a loan in minutes without any paperwork or disclosure of personal information. Only Cryptos and blockchain technology are required.
Using crypto as collateral, you can borrow funds from anywhere in the world in just a few clicks. With DeFi, you can secure a loan in minutes. This is what DeFi can do!
Think about how this will revolutionize the unbanked. DeFi has the potential to provide credit to small businesses that have been previously underserved by the banking system. A 2021 study by Chainanalysis found that India is in her sixth position when it comes to DeFi adoption at the global level. This is arguably he one of the most thriving and innovative sectors in the Web3 space.
Let’s turn to blockchain to see how different sectors in India are being reshaped. The next section reveals that multiple industries are ready to embrace blockchain with open arms.
Blockchain and its impact on multiple sectors in India
- Government Department: The Securities and Exchange Board of India (SEBI) has mandated that all financial institutions incorporate blockchain technology to protect their records. A system of record keeping will necessarily be more transparent, as will the process of monitoring the issuance of securities and the terms of non-convertible securities.
- Indian Tea Commission We plan to leverage blockchain technology to strengthen our supply chain. Organizations are experiencing declining quality of brewed tea due to fraudulent practices.The integration of blockchain technology simplifies record keeping at each stage of the supply chain. This enhances accountability and facilitates management’s ability to identify and address problem areas.
- During the COVID-19 pandemic, the Maharashtra government’s Disaster Management Department used the Polygon blockchain to issue COVID-19 test certificates.
- Communications sector: All telecom companies have been mandated by the Telecommunications Regulatory Authority of India (TRAI) to start using blockchain technology. If this technology is introduced into the telecom industry, the problem of nuisance calls will be solved. Further use of blockchain technology will allow authorities to identify unlicensed telemarketers. Industry experts believe that getting AI on the bandwagon, along with blockchain technology, will help address loopholes in the telecommunications industry.
Blockchain, Monetization and Creator Economy in India
The affordability of smartphones and smooth access to the internet, combined with social media, encourage creators and put them in a better position to generate revenue through content creation. But is that income enough to live a financially stable life?
YouTube’s growing creator ecosystem is creating significant economic value in the Indian market, contributing Rs 680 billion to India’s GDP while supporting 6.83 billion full-time equivalent jobs in 2020 doing. YouTube only shares 55% of revenue with creators. Monetization takes time, especially on many other platforms in India.
This is where blockchain and NFTs play a role in powering the creator economy. Benarsi silk sari designs, Warli paintings, Rajasthani folk songs – anything that has been digitized can become an NFT. A lot of the current euphoria is in using technology to sell digital art. NFTs are essential as they offer superior economics for developers and creators compared to existing platforms.
Web 3.0 gives creators the freedom to monetize their content and earn royalty income. Third parties cannot modify the content or steal the data.
It is clear that India is constantly moving towards becoming a significant hub for blockchain and DeFi. According to industry experts and analysts, India and its neighbors are on the verge of taking over the world.
The possible options for blockchain evolution and DeFi embedding are endless. Because they have the potential to significantly enhance many aspects of the Indian economy, including the country’s cumulative financial infrastructure.
Given the huge impact blockchain and DeFi will have on India’s industrial sector, it can be said that India is moving forward to become a full-powered superforce.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect those of YourStory.)