Equipping Emerging Markets with Digital Technology

India, with its vast population and growing middle class, is on the verge of a digital revolution in the emerging markets. The decentralized web, known as Web3, is set to revolutionize the way Indian consumers engage with digital services, carry out financial transactions, maintain control over their online identities, and even handle their healthcare. This presents a significant opportunity for technology-driven innovation in the country.

Web3 is a significant opportunity for India. According to a NASSCOM report, Web3 investments in India have been over $1.3 billion since 2020. With mass adoption and robust regulation, Web3 business growth could add $1.1 trillion to India’s GDP by 2032.

“Consumers in emerging markets can take back some of the power as users,” says Edward Cullen, founder and CEO of Crescite. The organization is building a Web 3.0 community for faith-based institutions and ESG investments and is looking to expand into India.

“This can range from microtransactions to paying small amounts of housing to become decentralized identities for the unbanked that enable participation in the larger global economy. The combination of peer-to-peer engagement tools enables consumers to easily access financial services,” he adds.

The Web3 revolution

Web3, often described as the next evolution of the Internet, is based on 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 more ownership and control over their data and online experiences.

“By harnessing the enormous potential of Web 3.0, India can revolutionize its existing systems and make them more open, secure and efficient,” says Cullen.

India’s metaverse market size is estimated to be close to US$1.6 billion by 2023. Additionally, according to Forbes, 11% of global Web 3.0 talent is in India, making it the third largest pool of talent in the industry, growing by 120. %. That’s probably why Web3 startups in India have increased sixfold since 2015, with investment skyrocketing since the start of 2020.

Financial inclusion

One of the most significant impacts of Web3 is its role in promoting financial inclusion. Despite significant progress in recent years, a significant portion of India’s population remains unbanked or underbanked. Web3’s decentralized financial platforms (DeFi) offer an alternative to traditional banking systems, allowing individuals to access financial services such as savings, loans and investments directly through blockchain-based applications. This democratizes access to financial services and allows bank stables to participate in the global economy.

“Using peer-to-peer blockchain technology, we can improve 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 for the everyday consumer in emerging markets,” says Cullen.

An example is cryptocurrency, which is decentralized digital cash that is not controlled by any government or central authority such as a bank. Although the cryptocurrency sector faces regulatory challenges, the blockchain in the FinTech area is constantly trying to put the power back in the hands of the user. This year, the G20 discussed crypto regulations, paving the way for a strong industry.

Administration

Web3 technology has the potential to significantly influence and improve government systems by increasing transparency, security, efficiency and accountability. Governments can use blockchain to store and verify important information such as election results, land records or financial transactions.

For example, in July, Airchains, a Web3 middleware SaaS platform, partnered with West Bengal’s New Town Kolkata Development Authority (NKDA) to transform the land ownership and mutation system using blockchain, an initiative that intends to reshape the land mutation landscape by introducing 500,000 Non-Fungible Tokens (NFT ) that have been implemented in Polygon Supernet.

Web3 can also facilitate secure and transparent digital voting systems, a very viable possibility, says Cullen. “Blockchain-based voting systems may eventually be deployed during elections, reducing risk in emerging markets. This will take time and effort, but a plausible use case could come by 2030.

Authorities can also use Web3 for proper identification. For example, in August, Web 3.0 company Dhiway teamed up with SBL Knowledge Services, a smart management solutions provider, to redefine the digital governance landscape and skill development through innovative digital identity solutions.

Distributed identity

Web3 introduces the concept of autonomous identity, which allows users to securely control and manage their digital identity. In India, where identity verification is an important part of accessing government services, financial products and healthcare, Web3’s decentralized identity solutions offer individuals a secure and convenient way to prove their identity without a central authority. This reduces the risk of identity theft and fraud and makes digital interactions safer for consumers.

A good recent example is EdTech, where blockchain-based fake certificates have added authenticity because they verify data using a decentralized mechanism. In May, Indian EdTech platform RISE partnered with an Indian startup called Print2Block to issue blockchain-based digital certificates to its students and alumni to combat fraudulent activities related to identity theft and issuing fake certificates to students. .

Gaurav Bhatia, CEO of RISE says, “In this day and age, when security inks, 3D images and even holographic labels can be easily faked or faked, no other method is completely counterfeit-proof. Any human-interactive or human-based process is prone to error and will never be 100% secure. The only real trust mechanism is to verify authenticity using a decentralized entity, which is exactly what blockchain technology provides.”

Each certificate is equipped with a unique QR code, and when scanned, it opens a unique URL with information behind it that allows the recruiter to verify the certificate’s authenticity in real time via a blockchain server. Students can share verified blockchain certificates directly on their LinkedIn profiles and other social media channels.

Content creation and ownership

India’s entertainment and creative industries are booming, with a growing number of content creators and artists looking for platforms to showcase their talents. Web3 offers creators new opportunities to monetize their work directly through non-fungible tokens (NFT) and decentralized marketplaces. This not only empowers artists, but also ensures fair compensation and property rights, solving long-standing exploitation issues in the creative industry.

Unlimited trade

E-commerce has exploded in India, but cross-border transactions can still be complex and expensive. The borderless nature of Web3, enabled by cryptocurrencies and decentralized marketplaces, simplifies international trade for consumers and businesses. This opens up new opportunities for entrepreneurs to access global markets and for consumers a wider range of products and services at competitive prices.

Change in healthcare

Web3 is also ready to revolutionize healthcare. Web3-based healthcare solutions offer safe and efficient ways to manage health information, facilitate telemedicine consultations, monitor drug supply chains and promote medical research collaboration. This enables consumers to provide quality healthcare services even in remote areas, while ensuring data security and patient privacy.

Recently, Malaysian organization KERC offered a solution to bring together Web3 and the healthcare industry in a strategy to give patients access to their data while providing sustainable disruption in the industry. Other companies using Web3 include Solve.Care, which provides a decentralized healthcare platform with interoperable Web3 digital health networks. Users can use their healthcare app, Care.Wallet, to collect SOLVE tokens that can be used for healthcare products and services on its platform.

Authorization for consumers

Web3 ushers in a new era of consumer empowerment in emerging markets like India. It will transform financial services, identity management, creative industries, cross-border trade and healthcare. However, addressing infrastructure gaps, regulatory concerns and improving digital literacy are essential to fully realize the potential benefits of Web3 for all segments of India’s population.

“Web3 has expanded to include numerous consumer-centric offers and services, which has opened up new avenues for revenue generation. In addition to the basic features of blockchain technology – immutability, security, traceability and decentralization – web3 has brought new power to the technology industry,” says Kaavya Prasad, founder of Lumos Labs, a company , which helps Web3 founders source, interview and hire Web3 engineers.

After hitting the $2 billion+ mark in 2022 while the industry was still in recession, web3 has established itself as a long-term sustainable sector with a thriving community.

“By moving away from the norm, the web3 industry has provided a platform for young thinkers and risk-takers, leading to the creation of new solutions that can create wealth and be monetized in today’s highly digitized era,” he adds.

Web3 is a powerful tool for achieving inclusive and sustainable growth in many sectors, including healthcare.

By Navanwita Sachdev, The Tech Panda