Blockchain technology is still in a very nascent stage in India. For many companies it is still a concept that is yet to be fully explored. As per the reports, majority of mid and large service providers invested in less than 5 per cent of blockchain projects in India, which is less when compared to their investment in similar projects in North America and Europe. Even among blockchain start-ups, India has only managed to attract only 0.2 per cent of venture capital investments.
Lack of understanding and knowledge are key challenges in the growth and adoption of blockchain technology.
In simple terms, blockchain is a way for people to share extra computational powers in their computers in order to create a supercomputer which can be accessed by anybody. All computers that are connected to a blockchain network helps in recording and validating transactions.
One of the applications of cryptocurrency is Bitcoin which can be used to bring huge value to several industries such as finance and banking, supply chain, real estate or healthcare.
In India, blockchain technology have found the most takers in financial services, banking and insurance industry. Not only this, public sector has also been extensively using this technology for use cases such as vehicle lifestyle management, farm insurance and record keeping system.
Both US and China are finding ways to innovate with the use of blockchain. For instance, China has a blockchain policy and a state-sanctioned blockchain infrastructure project called Blockchain-Based Service Network (BSN).
Many top Indian tech giants would need clarity on regulatory measures before adopting blockchain. Proper regulations will certainly help the ecosystem in India.