Block-the-Talk; Neeraj Khandelwal from CoinDCX on why blockchain has the potential to revolutionize financial services

Neeraj Khandelwal, co-founder and CTO, CoinDCX, a cryptocurrency exchange, shares his views on why blockchain uses encryption techniques and why it eliminates intervention by fraudsters with FE Blockchain.

What are the three best practices that today’s youth should follow when it comes to digital assets?

Answer: The year 2022 has seen significant growth in public knowledge and education of digital assets, especially among Millennials and Gen Z. With declining data costs and increasing availability of smartphones, the nation’s technology adoption among youth has increased]. As the world prepares for Web 3.0, 2022 will be remembered as the year crypto really took off, gaining public acceptance and elevating everyone’s perception of money.

1. Like any other financial instrument, it is important to do your own research and make informed investment decisions. “Do your own research before deciding on a good crypto match”. Keep up to date with ongoing developments in the financial markets so that you are aware of real-time obligations. Essentially, you should be well convinced before making a crypto purchase decision.
2. Take enough time to learn and adapt to the underlying mechanics. Investing long-term is a good way to manage volatility and achieve greater potential profits over time.
3. As with any type of investment, it is important to protect your assets effectively. Make sure your switchboard has a built-in robust and multi-layered security platform. One must also do due diligence before investing in virtual digital assets as there are more than 20K in circulation. Don’t fall victim to social media scams like Instagram/Facebook, and if you see any unknown or suspicious activity, report it immediately.

How can blockchain be used to keep digital assets safe? What apps can consumers use?

Answer: Blockchain technology is a digital system for recording and storing information. The technology uses encryption techniques, meaning that the transaction and financial details are securely stored in different digital locations in bits and pieces that create a network. This makes it almost impossible for someone to steal or hack your financial information. Since a blockchain is a collection of blocks that store data, it eliminates the possibility of fraudsters exploiting the network. Furthermore, previous blocks in a blockchain cannot be changed, and all transaction data is verified by all necessary stakeholders, making data manipulation extremely difficult. Although there are a number of apps available, one needs to research the chosen app thoroughly and ensure that it offers multiple layers of security, and follows proper KYC norms.

What are three tips you would give to people doing crypto trading?

A: The crypto market has always been dynamic and a fast-moving industry. First, we should not confuse virtual digital assets with financial ones.

1. Instead of investing directly in VDA, we should learn about the digital asset itself, as each crypto asset has its own value. Different crypto investment strategies are necessary depending on one’s experience level and risk-taking ability.
2. Setting up a systematic investment plan is a very important tool for developing the discipline needed to build long-term wealth. Crypto price volatility is caused due to market demands and is not based on geography as they are inherently decentralized and distributed. A bear market is an excellent opportunity for investors to reassess their investment thesis and prepare for the next stage.

Which according to you is the country that is leading in the space and the Indian startup ecosystem can pick up the best use cases?

Answer: India is poised to become a global hub for Web3. It has a combination of the ideal factors, such as technology muscle that can build products for the world, competitive talent and high speed of technology adoption. Furthermore, as per the recent Nasscom report, Web3 has the potential to contribute nearly $1.1 billion in economic value to India’s GDP by 2032. India has surpassed many countries in the Web3 startup space. The fact that 11% of global Web3 talent is present in India and India’s Web3 startup investment has reached $1.3 billion by Q12022 is a testament to the country’s efforts to encourage entrepreneurial spirit among young minds. In terms of use cases, fintech, e-commerce and SaaS companies are expected to account for 49% of India’s future unicorns. From logistics to supply chains, and from finance to insurance, we are already witnessing disruption on a scale never seen before, rapidly blurring the lines between legacy systems and new technologies. In the coming decade, we are confident that Web3 and blockchain technology will become the centerpiece of economies around the world, transcending the domains of e-commerce, healthcare and the public sector.

What are the advantages and disadvantages of blockchain?

Answer: We believe in Blockchain technology. Blockchain technology is a digital system for recording and storing information. It has immense advantages and offers several advantages such as promoting financial inclusion, especially for developing economies. This one feature, invariably, has the power and potential to revolutionize financial services, as it offers greater transparency, improved security, lower transfer fees and overall cost savings. It democratizes access to financial systems by providing an alternative funding infrastructure that is global, open source, secure and accessible to anyone with internet access. With mobile and internet penetration growing rapidly, financial services can be offered to the unbanked, via their mobile devices, without being tied to a bank or financial institution. Another major factor preventing low-income groups from accessing financial services is the lack of valid identity proof. Blockchain helps consumers circumvent some of these challenges related to documentation, account opening and maintenance.

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