Tomorrow’s Google and Amazon will be built on blockchain, and made in India

At the World Economic Forum (WEF) summit in Davos in May this year, following a pandemic-induced hiatus, a meeting point for Indian history and the future of the Internet was perceived.

With the growing crypto adoption worldwide, there is an urgent need for global consensus on regulation. So at Davos, it was great to see world leaders recognizing the need for technology-neutral regulations that protect users and enable innovation.

Engagement with thought leaders on the forum highlighted a broader understanding of this crypto can build a better and more open Internet, Web3.

Davos also strengthened my willingness to do in India for the world. I have always believed that India has what it takes to take the lead in this technological shift caused by cryptocurrency. I saw the early signs that this dream was coming true and how we can work together to write the next chapter in this great India story.

What does Web3 promise and why should India build on Web3?

Before I answer that, I want to take a step back. Think of the smartphone in our pockets. Today we can use 10-20 apps on our phones – social media, professional networks, video sharing platforms and more. We post, comment and engage in these apps regularly.

With each of these engagements, we build the app – unconsciously or consciously. We as users give these platforms the network power to make them successful. Yet we remain only users. We do not own our identity on the platform. We do not own our data. And we can not transfer our online experience to another platform. It is clear that there is an imbalance of power.

Go to Web3. By giving power back, a user is upgraded to a stakeholder. She owns her identity, her data and her experience. A Web3 platform will be built on a decentralized network. For a platform, this means that no user is trapped. User satisfaction thus becomes a business imperative. The focus will be on building a community through shared experience.

Web3 can make India a global technology hub: Today, India has over 700 million Internet users. They form the largest user base for today’s Internet platforms. India also has a large talent pool of software developers, content creators and innovators. We have built a robust start-up ecosystem that is recognized worldwide and supported by blue-chip investors. This puts India in a sweet spot.

Web3 benefits Indian users, builders and startups and businesses — India’s Internet users will have greater control over data and digital identity; India’s content creators will get a fairer revenue generation agreement for content; and India’s start – ups and small businesses will find a better balance of power as the Internet infrastructure will be decentralized and not controlled by Big Tech.

But the transition to Web3 will need regulatory clarity: India has been at this point before and lost the chance to build Web2 giants. We should not miss the bus on Web3. In the early days of the Internet in the 1990s, India’s best engineers moved to the West as they provided better opportunities and freedom to experiment.

Today, these companies have grown to become the gatekeepers of the Internet – Big Tech. India can avoid repeating the mistake by activating start-ups and innovators. Regulatory clarity will encourage India’s estimated 4 million strong developer communities to learn and explore Web3 projects.

Innovations have always taken precedence over regulations: You can not others guess innovation. But the regulations must follow and keep pace with innovation to protect users and enable legitimate businesses. Change is inevitable and India must be ready. Activation of regulations will promote innovation and at the same time protect users.

India is a digital first country, with deep Internet adoption and a robust digital infrastructure. India has the potential to lead the technological shift triggered by crypto, and it is my belief that the government recognizes this. Crypto is the gateway to Web3, and it is here to stay. Tomorrow’s Google and Amazon are to be built on the blockchain, and they are to be made in India.

(The author is the founder and CEO, CoinSwitch. He tweets @ ashish343)