Blockchain technology is increasingly being integrated into India's public administration. While a comprehensive crypto regulatory framework is still on the way, India has generally embraced blockchain technology. Local and state governments across the country have initiated numerous projects incorporating blockchain, ranging from data management systems to verifiable certificate issuance.
One of the prominent cases of blockchain adoption by the Indian states includes the first-ever NFT-based land mutation in India. New Town Kolkata Development Authority (NKDA), in collaboration with Airchains, adopted NFTs for land mutation. Covering 27,000 acres, they implemented 50,000 NFTs to represent one million property records, streamlining the traditional land mutation process. This improved the process and eliminated manual paperwork, record-keeping, and administrative procedures.
India's rapid adoption of blockchain is bolstered by a thriving developer and startup community. These startups play a vital role in developing and implementing blockchain solutions, driving innovation, and fostering the technology's growth across various sectors in the country. With a developer base exceeding 10 million, India's talent pool has attracted the attention of leading Web3 firms, fostering innovation and growth in the Web3 space. India's active web3 community received over $1.5 billion in funding between 2021 and 2022, according to a 2022 NASSCOM Indian Web3 Landscape Analysis report.
While blockchain adoption is progressing at the state level, there are discussions about nationwide implementations in India. Organisations like the National Payments Corporation of India (NPCI) and the Unified Payments Interface (UPI) are exploring blockchain technology and conducting tests. Additionally, public sector banks are actively engaged in experimental efforts to ascertain how they can leverage the potential of blockchain.
Moreover, home-grown blockchain technology from India is also gaining global recognition, with projects like Polygon gaining prominence. The aforementioned Airchains, a web3 startup focused on a middleware software-as-a-service (SaaS) platform, collaborates with government agencies worldwide, indicating the potential for offshore use cases.
India's embrace of blockchain technology in public administration marks a significant stride towards modernisation and efficiency. From the pioneering use of NFTs for land mutation to the active involvement of startups and developers, the nation is actively exploring blockchain innovation.
To expedite this progress, the introduction of well-defined regulations is imperative. This involves establishing clear guidelines for implementing blockchain and outlining permissible use cases. Such regulatory clarity will facilitate quicker implementation and broader adoption of blockchain technology.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash