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Can Web3.0 Truly Lead to India’s Economic Growth?

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VOC, Voice of Crypto, Web3, India

Web3 is here to stay! The internet and the world wide web have come a long way to becoming what it is now.

Gone are the days when the internet only consisted of static web pages on a screen that lacked interactivity. The first aspect of the internet had websites that were only readable and couldn’t be interacted with in any other way. In the modern world, we call this generation of the internet Web1.

With the advent of the second generation of the internet (called Web2), However, tech giants like Google and Facebook (now Meta) sprung up, providing aspects of the internet that users could get information from and even interact with.

With Web2, users could create articles on blogs, send tweets and make Instagram posts.

The third iteration of the internet, however, is called Web-3. Although this aspect of the internet is still relatively new, it is already making waves and empowering its users with more control than Web1 or Web2 offered combined.

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In India, for example, Web3 appears to be a promising factor that may lead to and improve the economic growth of the country.

Web3 Is Making Waves In India

In India, “The India Web3 Startup Landscape: An Emerging Leadership Technology Frontier” is one of the first initiatives of its kind.

Conducted and released by the IT Industry association, Nasscom, it is a study of this new technology frontier aimed at improving and promoting an awareness of the endless possibilities Web-3 offers.

The India Web-3 Startup Landscape report attempts to analyze the web-3 startup aspects in the country while identifying the stakeholder priorities including investments and the search for new talent that may further improve the country’s economy.

India’s position in the Global response to web3

India’s position in the Global response to web-3 | Source: The India Web-3 Startup Landscape report

India is known for its rapid adoption of new-age technology. As it stands, the country’s digitally skilled populace happens to be the right building blocks to fostering economic growth, particularly in the case of Web-3 technology, according to this report from Nasscom.

According to The India Web-3 Startup Landscape report, there were over 450 Web-3 startups In the country in the first half of the year, with four of those startups already being unicorns.

The report also shows that over 1.3 billion dollars have been invested in Web-3 since 2020.

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Highlights Of The Report

The India Web-3 Startup Landscape report contains a few interesting details about the state of Web-3 in the country. Below are some of them.

India holds 11% of the world’s web3 talent 

India holds 11% of the world’s web3 talent | Source: The India Web3 Startup Landscape report

According to the report, India currently holds over 11% of the web3 talent in the world, making the country the third largest in the world in terms of talent pools.

Its tech industry also has about 75,000 web3 specialists currently employed. The report projects that this figure is expected to grow by over 120% in the next two years at most.

India’s Web3 startup ecosystem 

India’s Web3 startup ecosystem | Source: The India Web3 Startup Landscape report

The blockchain and cryptocurrency market recorded Venture Capital (VC) funding of about 30.5 billion dollars in 2021 alone. Amid the global demand for blockchain developers, India’s relatively large web3 talent pool might be one of the driving forces that push its economy forward.

Top Investors in India’s Web3 landscape

Top Investors in India’s Web3 landscape | Source: The India Web3 Startup Landscape report

Over 60% of the country’s web3 startups have also begun to expand their footprints outside India and have even established several headquarters all over the globe. By extension, this puts India on the global map for web3 solutions and talent hunts.

With many of these startups building consumer-facing products in terms of decentralized finance (Defi) and entertainment applications like web3 gaming, NFTs, and metaverse technology, decentralized communities are also on their way to springing up.

Challenges India faces In The Web3 Space

According to the report, high taxes, coupled with a lack of policy clarity in the country’s Voluntary Disclosure Agreements (VDAs) has led to a lack of trust between the founders/innovators in the country and may lead to many of them leaving the country in droves.

Challenges India’s web3 landscape currently faces 

Challenges India’s web3 landscape currently faces | Source: The India Web3 Startup Landscape report

If this continues, the mass exodus of these founders and innovators to other countries may harm the country’s web3 potential over the long term.

The country also needs to regulate usage and conduct in the web3 space, and not the technology itself. It also needs to embrace a risk-based approach and attempt to bring several industry experts together as a way to further grow India’s web3 potential and, therefore, it’s economy.

 

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Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Adekunle Joshua is a cryptocurrency writer. He has a deep understanding of the technology and how it can be used to improve the world. James is a strong advocate for using cryptocurrency to make the world a better place. He wants to help people understand the technology and use it to improve their lives.

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