Almost every Technology across the world faced resistance. The degree of resistance was different. Every resistance was of its kind that decided the fate of adaption. For some, it was mild while some gone through the very hard path to convince the audience to make a user. Shockingly, the world’s favorite child Internet comes in the ‘hard zone’ followed by another more or less popular tech. Blockchain is something following the course of the internet today.
The validation and user base of block chain tech in western countries have grown rapidly in the last 5 years. In Asia- Korea, Japan, and China are the leading ones while Europe and Russia are the other regions where the blockchain flourished in recent years. In India too the existence is evident but the coverage doesn’t justify the huge tech affable population.
India is the second-most populous country after China. But when it comes to youth population it tops the charts with 600 million counts as per the UNFPA report. Though the position will be dethroned by Africa in the near future. Let’s not discuss it here.
Now the question is- With such a huge youth dividend, why India is not among the frontrunners?
The answer can not be a single factor but a corollary of many. This article of Blocksutra discusses all such challenges for blockchain technology in India in detail.
Top 7 Challenges for Blockchain Technology in India
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Awareness of Blockchain
This prospect is alone very crucial to make any tech reach the probable stakeholders. For most people, blockchain and bitcoin is the same thing but actually, it’s not. Bitcoin is a cryptocurrency that is one of the many possibilities with blockchain.
Blockchain is a powerful technology. It holds the potential to touch millions of lives with its efficient and secure solutions. Supply chain, electoral practices, Insurance, fintech, and a lot many are being benefitted from blockchain tech already.
Additionally, awareness programs and support from the tech leaders is also important so that the goal can be attained with greater success. Organizations should promote such programs so that the professionals can get the flavor of the potential of the block chain.
This is an ironic part plaguing a lot many things. In the past, social stigma and rumors have kept people in a cocoon. The baseless rumors stop them from trying new things and blockchain is no different. For years several Govts. across the world are posing Bitcoin as the enemy of the financial autonomy of the country. Though it’s not true at all.
For instance, if this rumor has even the slightest possibility of being true then bitcoin is just a byproduct of cryptocurrencies developed out of blockchain tech. Based on just one product, labeling the whole tech is nothing more than a childish attitude.
It is one of the major challenges for blockchain technology in India. It has been seen the very limited success the blockchain tech is experiencing today is just limited to the Tier-1 Indian cities, IT cities to be specific. Bangalore, Hyderabad, Mumbai, Pune, Gurgaon are the IT cities where almost all of the Indian blockchain companies can be concluded. Most of the state capitals can be regarded with their negligibly existent presence.
On the other hand, a considerable portion of small IT solutions companies operates from T2 cities as well. Unfortunately, the blockchain world is either unknown or little presence in these cities too. Most of the MSME operates only in this Indian tier so it’s not surprising that they never heard of blockchain before
Now comes the Tier 3 Indian cities where a large chunk of Indian population resides. The penetration in the T3 Indian cities highly depends on the T2 cities as they are closely knitted. But the spread is even slower due to the paucity of resources and awareness in tier 2 cities.
Lack of Government Support
The lack of regulation and infra support from the govt has been a major roadblock. The leading countries in blockchain space like Singapore, Japan, Europe, Malta, Estonia, Swiss, etc. are duly supporting the blockchain start-up ecosystem. Some tech enthusiasts braved themselves to start their blockchain-based projects in the past where Matic, Marlin protocol and Fesschain came as some prominent names.
Instead of incentivizing new tech-based start-ups and initiatives in the blockchain and crypto arena, Indian govt has been critical to them. This works as a setback for the blockchain techpreneurs. The situation is not at all friendly for blockchain-based start-ups in India. They are majorly on their own. There are no clear-cut guidelines and directives from the Indian Ministry of Broadcast and Information technology.
Time to time blockchain and cryptocurrency communities in India put allegations on govt bodies. In the past, they said- the responsible govt bodies have little to zero knowledge about the blockchain and thus banning the developments is the best they can do. The voices became even critical when RBI imposed the ban on cryptocurrency trading in India in 2018.
India is the world’s largest democracy and the public is majorly driven by the orders and narratives by the govt. In the past variety of bans and impositions were placed on cryptocurrencies (synonymous with blockchain for the majority of the Indian population). People were bribed with the thoughts of being jailed, labeling criminals and all sorts of negative propaganda.
Before embracing any new tech, a common person wants a positive overview. A positive govt support in the outlook is a green signal for an individual or community to go ahead. People want to play safe and there is no wrong in it. So, a clear-cut narrative from the govt is necessary to build a positive sentiment in the public. Although the role of scams can not be overlooked here too.
The response coming after recent ban revoking judgment by hon’ble Supreme Court is mesmerizing.
Every innovation in the fintech industry is facing this challenge and blockchain is no different. A lot of companies have duped people, not in millions but billions in the past. Bitconnect is officially the biggest scam in the history of blockchain-based cryptocurrencies. But is it right to term the crypto industry a scam on the basis of few ugly developments?
The answer is a big No. Even after decades of the existence of banking regulators and market regulators chit fund scams, share market scams, carding and account hacking is very common. But still, govt supports regulated banking and stock markets. Here we need to understand Scam is a problem but not an entity or technology like blockchain.
The real inclusiveness lies within the support at the institutional level. And there is no better alternative than the educational bodies for this support. The blockchain technology is not part of the school and colleges’ curriculum. There is an informational gap which is preventing the students and professionals of tomorrow to get hold of blockchain technology.
All such information should reach the masses and blockchain education is a must. The level of retention and comprehension is far better at such a tender age. So, familiarity will be much easier. This is possible via including the technology in schools and colleges’ curriculum. Tomorrow’s youth is breathing inside these institutions and their awareness is crucial for greater participation.
We need to work at the grassroots level to escalate the rate of penetration to inject it into the mainstream. Blockchain is a revolutionary technology and for that participation is a must. We need to find a space where blockchain can coexist with the other leading technologies in India. This can be resource-saving and help India to keep up with the pace of global blockchain innovation.