The future of blockchain and DeFi in India

Today, India stands on the brink of a historically significant time, where we can witness the emergence of innovative technologies that include the Internet of Things (IoT), augmented and virtual reality (AR/VR). These industries are developing at a tremendous speed, promoting innovative business systems, payments and efficiency models.

Among these revolutionary technologies, blockchain technology is at the forefront. Blockchain is often mixed with cryptocurrency and usually used the other way around, but a significant difference between these two needs to be understood. It is a fact that cryptocurrency is one of the first applications of blockchain technology.

Blockchain has several use cases that work on a smart contract whose successful implementation costs. This technology has radically changed many industries and transposed their way of working. It is clear that blockchain is here to stay.

Blockchain technology has a very influential effect on the fintech industry when it comes to transparency, credibility, security, availability, cost effective, etc. Due to these beneficial factors, many significant organizations are shifting 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 potent to revolutionize the FinTech industry?

To get an idea of ​​what DeFi can do, let’s first draw a quick comparison between Traditional Finance (TradeFi) and DeFi. To secure a loan from a bank, think about all the complex procedures you have to go through. You have to go through a series of bank protocols, provide a significant amount of personal information, and then wait for a loan at a reasonable interest rate. This whole process definitely involves a good amount of paperwork which is also quite time consuming.

Now think about securing a loan in a few minutes that does not involve paperwork or revealing any of your personal information; you just need Cryptos and blockchain technology.

You can use your crypto as collateral to borrow money from anywhere around the world in just a few clicks. With DeFi, you can secure your loan in a few minutes. This is what DeFi is capable of doing!

Think how this could revolutionize our underbanked population. DeFi can provide credit to small and medium-sized businesses that have traditionally been underserved by the banking system. According to a study by Chainanalysis in 2021, India was found to be in the sixth position in terms of DeFi adoption globally. It is definitely one of the most thriving and innovative sectors in the Web3 space.

Let’s go to blockchain and check how it is restructuring various sectors in India. The following section will reveal how several industries are ready to embrace blockchain with open arms.

Blockchain and its impact on multiple sectors in India

• Public sector: The Securities and Exchange Board of India (SEBI) has mandated that all financial institutions should incorporate blockchain technology to secure records. The system of keeping records will become more transparent as a consequence, as will the process of monitoring the issuance of securities and clauses for non-convertible securities.

• The Tea Board of India intends to leverage blockchain technology to increase the supply chain. The organization has experienced a drop in the quality of the tea brewed due to incorrect treatments. With the integration of blockchain technology, it will be simplified to keep records at each stage of the supply chain. This will increase accountability and facilitate administrators’ 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.

• Telecom sector: All telecom firms have been ordered by the Telecom Regulatory Authority of India (TRAI) to begin the adoption of blockchain technology. The introduction of this technology in the telecom industry will solve the problem of spam calls. Further utilization of blockchain technology will help authorities identify unlicensed telemarketing firms. Bringing AI on the bandwagon along with blockchain technology will help address the telecom industry’s loopholes, the industry experts believe.

Blockchain, Monetization and Creative Economy in India

Smartphone affordability and easy access to the internet, when clubbed with social media, encourage creators and place them in a better position to generate income through content creation. But is the income enough to live a financially stable life?

YouTube’s growing creator ecosystem generates significant economic value for the Indian market and contributed Rs 6,800 crore to the country’s GDP while supporting 6.83 lakh FTEs in 2020. YouTube shares only 55% of revenue with creators. Monetization takes time, especially with so many other platforms in India.

This is where blockchain and NFTs play their role in empowering the creative economy. Anything digital can be an NFT: Benarsi silk sari designs, Warli drawings or even Rajasthani folk songs. Much of the current euphoria is about using technology to sell digital art. NFTs are essential because they offer superior economics to developers and creators compared to existing platforms.

Web 3.0 gives creators the freedom to monetize their content and capture their royalty income. No third party can change the content or steal the data.

Final thoughts

It is clear that India is steadily moving towards becoming the key center for blockchain and DeFi. According to industry experts and analysts, India and its neighboring regions are on the verge of rising to global hegemony.

The possible options for blockchain evolution and incorporation of DeFi are limitless because they have the potential to greatly strengthen the many facets of the Indian economy, including the nation’s cumulative financial infrastructure.

Looking at the significant impact of blockchain and DeFi on Indian industrial sectors, we can say that India is moving forward to become a full force superpower.