Trends to watch for in 2023

The year 2022 has been a challenging year for Web3, especially crypto space. While on the one hand we witnessed a major crash in cryptocurrencies, on the other hand we had new projects and protocols being launched. The Ethereum upgrade was one of the most important developments for the crypto industry, making the blockchain more scalable, secure and sustainable. But that wasn’t all. India also saw the Central Bank Digital Currency (CBDC) as well as the new crypto tax policy introduced by the government. Apart from Web3 space, there was a lot of movement in other sectors as well. Online fraud increased a lot, making the need for cyber security all the more necessary. The fintech space also saw something remarkable initiatives taken by the government including UPI 123 Pay, and launch of 75 Digital Banking Units (DBUs) in 75 districts to address the under-penetration of banking and financial services in the country.

While 2022 is behind us, the big question that now presents itself is: What will the year 2023 be like for some of these sectors? Entrepreneur India takes you through some trends outlined by some experts.

Web 3 place

Attention to investor education and awareness: The year 2023 is expected to see continued development of Web3 infrastructure with continued attention to investor education and awareness. According to Leon Foong, head of APAC, Binance, “To build a robust Web3 infrastructure, security is very important, and Binance plans to continue with initiatives such as the Global Law Enforcement Training Program, exposing Binance’s hot and cold wallet addresses through Proof of Reserves, and establishing the Industry Recovery Initiative (IRI) to protect consumers and rebuild the industry.”

Blockchain should be the decisive aspect: In 2022, Ethereum switched from the Proof of Work consensus algorithm to the Proof of Stake consensus algorithm, cutting their power consumption by 99%. The sustainability crisis is existential and needs a new type of digital product that is co-owned, co-created and co-operated. Says Pratik Gauri, Co-Founder and CEO, 5ire. “This constitutes the internet’s third era and is defined by decentralization, failing trust in institutions, and a new way of looking at value creation and value capture. Blockchain technology will be the defining aspect of Web 3.0. When empowered with such autonomy, people will cooperate with government, allowing citizens and organizations to play a meaningful role in shaping a future where profit and purpose go hand in hand. It is our definition of the 5th Industrial Revolution where we transform ourselves from profit to purpose.”

Companies with transparency, strong ethics to succeed. In 2023, it will be the responsibility of all players in the crypto and Web3 ecosystem to create a sense of security among consumers. Says Raj Karkara, COO, ZebPay“Those businesses that operate with transparency, strong ethics and values, while protecting consumers’ interests, will succeed. The year will weed out businesses with weaker models and practices. A key item on the wish list of all Web3 and blockchain players this year would be a favorable regulatory framework that would protect investors while encouraging innovation to create new avenues to transform business across the spectrum, allowing all industry stakeholders to thrive. We hope India’s G20 presidency will help establish an innovative regulatory framework based on new technologies and will help create a favorable environment for the crypto industry.

More use cases in decentralized networks: Despite a challenging year for bitcoin, where it crashed significantly, experts are bullish on bitcoin and see more use cases in decentralized networks. “My confidence in bitcoin, decentralized and permissionless networks has increased. I believe that we will see more adoption, more transparency and more use cases in the coming years. The regulators and the ecosystem should work together to keep the bad actors out and ensure the success of this once-in-a-lifetime technological innovation,” said Ankit Wadhwa, Co-Founder and CEO, Rario.

Cyber ​​security

Adoption of digital first technologies: With the explosion of online fraud as attackers constantly evolve their techniques for maximum utility, leading to financial and reputational losses for companies across industries, companies must look beyond traditional approaches and opt for digital-first technologies that combine AI, machine learning, behavioral biometrics and device intelligence. Says Ranjan R Reddy, Founder and CEO, Bureau“In 2023, It will also be crucial for all stakeholders to collaborate and create a data infrastructure for privacy. In the wake of increasing data leaks and alarming incidents of identity theft, the main focus for organizations across sectors will be to ensure trust and security by creating an underlying risk infrastructure that will help protect user data, simplify the user journey by creating a secure, transparent and frictionless experience across sectors. This will further pave the way for innovation and scalability.”

Rural Fintech

Focus on adaptation and sachetisation: “India has come a long way in its digital journey with over 70% of the total population living in rural areas now accessing banking and financial services with the help of more than 30 lakh rural banking locations across the country. The year 2023 is going to be a year of change for the rural fintech ecosystem,” says Dilip Modi, founder of Spice Money“ As we move into 2023, rural fintech is bound to grow by leaps and bounds, some features that will continue to be important to the rural population are customization, sachetisation and assisted travel for banking and payment services. 2023 will pave the way for a rural fintech revolution that will focus on cashless transactions, embedded finance and open banking for hyper-personalization, which will lead to increased digital adoption and thus drive financial inclusion in the last mile”.