In the sprawling landscape of emerging markets, countries like India are definitely on the cusp of a digital revolution. With over a billion people and a burgeoning middle class, we have a massive opportunity for technology-driven innovation. Enter Web3, the decentralized web, which is poised to reshape the way consumers in India interact with digital services, conduct financial transactions, exercise control over their online identities, and even manage their healthcare.
Web3 is a sizeable opportunity for India. According to a report by NASSCOM, Web3 investments in India have totalled over US$1.3 billion since 2020. With mass adoption and robust regulations, Web3 business growth can add US$1.1 trillion to India’s GDP by 2032.
“Consumers in emerging markets can take some of the power back as the user,” says Edward Cullen, Founder and CEO of Crescite, an organization that’s building a Web 3.0 community for faith-based institutions and ESG investments and aims to expand into India.
“This can range from microtransactions to pay small amounts for housing to become decentralized identities for the unbanked allowing for participation in the greater global economy. The combination of tools for peer-to-peer engagement enable consumers easier access to financial services,” he adds.
The Web3 Revolution
Web3, often described as the next evolution of the Internet, is built upon blockchain technology and promises a more decentralized, open, and user-centric internet. Unlike Web2, where a few tech giants control vast amounts of user data and digital services, Web3 aims to give users greater ownership and control over their data and online experiences.
“By embracing the immense potential of Web 3.0, India can revolutionize its existing systems, making them more transparent, secure and efficient,” says Cullen.
India’s metaverse market size is estimated to be worth almost US$1.6 billion in 2023. Also, according to Forbes, 11% of global Web 3.0 talent is in India, making it the third-biggest talent pool in this sector, which is growing at 120%. That’s probably why Web3 startups in India have grown six-fold since 2015, as investments soared since the beginning of 2020.
Financial Inclusion
One of the most significant impacts of Web3 is its role in promoting financial inclusion. Despite remarkable progress in recent years, a significant portion of India’s population remains unbanked or underbanked. Web3’s decentralized finance (DeFi) platforms provide an alternative to traditional banking systems, allowing individuals to access financial services like savings, loans, and investments directly through blockchain-based applications. This democratizes access to financial services, empowering the unbanked to participate in the global economy.
“In leveraging peer-to-peer blockchain based technology we can increase access to loans, savings, and investments without a financial intermediary. We can use Web 3.0 for real-time settlement of financial transactions and eliminate burdensome fees from the everyday consumer in an emerging market,” says Cullen.
An example is cryptocurrency, which is decentralized digital cash that is not controlled by any government or a centralized authority like a bank. While the cryptocurrency sector does face regulatory challenges, blockchain in the FinTech area is constantly trying to give back the power into the user’s hands. This year the G20 discussed crypto regulations, paving the way for a robust industry.
Governance
Web3 technology has the potential to significantly impact and improve governance systems by enhancing transparency, security, efficiency, and accountability. Governments can use blockchain to record and verify important data such as election results, land registries, or financial transactions.
For example, in July, Airchains, a Web3 middleware SaaS platform tied up with West Bengal’s New Town Kolkata Development Authority (NKDA) to transform the land ownership and mutation system by employing blockchain, an initiative that plans to reshape the landscape of land mutation by introducing 500,000 Non-Fungible Tokens (NFTs) deployed on Polygon Supernets.
Web3 can also facilitate secure and transparent digital voting systems, which is a very feasible eventuality, says Cullen, “Eventually blockchain-based voting systems may be implemented within elections reducing the potential for risk in emerging markets. This will take time and effort, yet a plausible use case can come by 2030.”
Governments can also use Web3 for proper identification. For instance, in August, Web 3.0 company Dhiway, tied up with SBL Knowledge Services, an implementor of intelligent governance solutions to redefine the landscape of digital governance and skill development through innovative digital identity solutions.
Decentralized Identity
Web3 introduces the concept of self-sovereign identity, allowing users to control and manage their digital identities securely. India, where identity verification is a critical aspect of accessing government services, financial products, and healthcare, Web3’s decentralized identity solutions provide a secure and convenient way for individuals to prove their identity without relying on a central authority. This reduces the risk of identity theft and fraud, making digital interactions safer for consumers.
A recent good example is EdTech, where blockchain-based fake-proof certificates have increased authenticity as they verify data using a decentralised mechanism. In May, India based EdTech platform RISE, in collaboration with an India-based startup named Print2Block, started issuing blockchain-based digital certificates to its students and alumni to counter fraudulent activities pertaining to identity theft and to give the students a fake-proof certificate.
Gaurav Bhatia, CEO at RISE, says, “In today’s day and age where security inks, 3D images, and even holographic stickers can easily be faked or forged, no other method is completely fake-proof. Any human interactive or people-based processes are prone to errors and are never 100% secure. The only true trust mechanism is to check authenticity using a decentralised entity, which is exactly what blockchain technology offers.”
Each certificate is equipped with a unique QR code, and when scanned, opens up a unique URL, which in turn is backed by data that enables the recruiter to verify the authenticity of the certificate in real-time through the blockchain server. Learners can directly share the verified blockchain certificates on their LinkedIn profiles and other social media channels.
Content Creation and Ownership
The entertainment and creative industries in India are thriving, with a growing number of content creators and artists seeking platforms to showcase their talent. Web3 offers new opportunities for creators to monetize their work directly through non-fungible tokens (NFTs) and decentralized marketplaces. This not only empowers artists but also ensures fair compensation and ownership rights, addressing long-standing issues of exploitation in the creative sector.
Borderless Commerce
E-commerce has witnessed exponential growth in India, but cross-border transactions can still be complicated and costly. Web3’s borderless nature, enabled by cryptocurrencies and decentralized marketplaces, simplifies international trade for consumers and businesses. This opens up new avenues for entrepreneurs to access global markets and for consumers to explore a wider range of products and services at competitive prices.
Healthcare Transformation
Web3 is also poised to revolutionize healthcare. Web3-powered healthcare solutions offer secure and efficient ways to manage health records, facilitate telemedicine consultations, track pharmaceutical supply chains, and promote medical research collaboration. This empowers consumers by providing access to quality healthcare services, even in remote areas, while ensuring data security and patient privacy.
Recently, Malaysian organization KERC, offered a solution to merge Web3 and healthcare industries in a strategy that intends to give patients access to their data while providing sustainable disruption within the industry. Other companies using Web3 are Solve.Care, which offers a decentralized healthcare platform featuring interoperable Web3 digital health networks. Users can access their healthcare application, Care.Wallet, to accumulate SOLVE tokens that can be used for healthcare products and services within its platform.
Empowerment for Consumers
Web3 is ushering in a new era of empowerment for consumers in emerging markets like India. It is transforming financial services, identity management, creative industries, cross-border commerce, and healthcare. However, addressing infrastructure gaps, regulatory concerns, and enhancing digital literacy will be essential to fully realize the potential benefits of Web3 for all segments of the Indian population.
“Web3 has expanded to include a plethora of consumer centric offerings and services which has opened new avenues to revenue creation. Apart from the fundamental qualities of blockchain technology – immutability, security, traceability, and decentralization, web3 has infused new vigour into the tech sector,” says Kaavya Prasad, Founder of Lumos Labs, a company that helps Web3 founders source, interview and hire Web3 engineers.
Having reached the US$2 billion+ mark in 2022, where the industry was still experiencing downturns, web3 has established itself as a long term sustainable sector with a thriving community.
“By moving away from the norm, the web3 industry has given a platform to young thinkers and risk takers, resulting in the creation of fresh solutions that can generate wealth and can be monetized in the current heavily digitized era,” she adds.
Web3 stands as a powerful tool for achieving inclusive and sustainable growth across multiple sectors, including healthcare.
By Navanwita Sachdev, The Tech Panda
