Blockchain has been heralded as the most significant innovation since the Internet itself. It initially emerged as the backbone of bitcoin and is an incorruptible digital public ledger of transactions. Blockchain technology is a novel data structure that is secure, cryptography-based, and stores transactional records (known as the block) in databases (known as chains) distributed across a network through peer-to-peer nodes, allowing the transfer of digital goods. It works on the principles of transparency, decentralisation, accountability, and immutability. They find wide applications in Smart contracts, Supply chain management, Asset protection through an indisputable record of real-time ownership, Personal data management and Identification, Payment processing, Crowdfunding through cryptocurrencies, tracking drugs in pharmaceutical supply chains, verification of land records and certificates, etc. The potential of blockchain technology to enable remote voting is also being explored by the election commission. It is estimated that blockchain will generate $3.1 trillion worldwide in new business by 2030. India aims to become a digital economy powerhouse and embracing emerging technologies like cryptocurrency and blockchain is a necessity. The digital economy currently comprises 14-15% of India’s total economy, which is targeted to reach 20% by 2024.
Globally India is among the fastest-growing FinTech markets. It is expected that 60% of retail and SME credit will be digitally disbursed by 2029. In 2019, fintech investments nearly doubled to $3.7 billion from the previous year’s $1.9 billion. The Indian fintech ecosystem is the third-largest in the world and attracted investments of nearly $6 billion since 2014. Digital payments are expected to touch $500 billion by 2020, about 15% of the GDP. The International Financial Services Centres Authority (IFSCA) introduced a framework of “Regulatory Sandbox” for entities operating in the capital market, banking, insurance, and financial services to experiment with innovative FinTech solutions and operates within the IFSC located at GIFT City (Gandhinagar). The Centre of Excellence (CoE) in Blockchain Technology was launched in Bengaluru for identifying and sharing suitable data and rendering world-class blockchain services to government departments. It is set up by the National Informatics Centre (NIC) to provide Blockchain-as-a-Service (BaaS) as a third-party cloud-based infrastructure and management. Institute for Development and Research in Banking Technology (IDRBT), an arm of the Reserve Bank of India (RBI), is working on a model platform for blockchain technology.
worth Blockchain ecosystem in India
of the states in India are involved in Blockchain-related initiatives
Blockchain initiatives are being executed by the public sector in India
Demand for blockchain talent is growing every quarter
India is among the 44 participating member countries for standardization of blockchain technologies and distributed ledger technologies in the International Organization for Standardization.
MeitY has released a National Strategy on Blockchain which aims at making India a global leader in Blockchain Technology
NITI Aayog has prepared a draft discussion paper titled as "Blockchain the India Strategy: Towards enabling ease of business, ease of living and ease of governance"
Blockchain district, anchored by the Government of Telangana, brings together different facets of the Blockchain technology realm in the city of Hyderabad.