Confusion over Crypto Narrows Growth of Blockchain in India

Earlier this year RBI had put a hold on banks on trading or providing services to anyone who deals in virtual coins which are used for transferring funds all over the world also acts as payment medium without the intrusion of the third party. The government feared that this independent and decentralised system might increase the vulnerability involved with the digital currency and also make the economy unstable. While the government may be sceptics of the revolutionary cryptocurrency, there have been some startups in India that want to use the Blockchain technology to get involved with the Blockchain leaders.

The advanced technology which is the basis of cryptocurrencies might be a little uneasy to grasp for few. There are more than 100 Blockchain and crypto startups in the entrepreneurial ecosystem, however, the lack of applications and use cases is impeding the industry.

A startup founder explains that his company has been allowed by a state government to launch tokens, that will be pegged to a crypto. They plan to offer smart contracts to the government and farmers; then issue token to let the government compensate farmers. “The tokens will be linked to the price of the crypto,” the founders say. He further added “Its value will grow once linked to an exchange. It will be linked to a currency, and investors will get 10 times the return.” When the founder was asked of their Business model though, they have no answers, the basic idea on the mind of people is that the model seems to be to get people to invest on the pretext that tokens will let them exit at a higher valuation.

KoineArth, founded by Praphul Chandra is one of the few India based companies to have built token-based smart contracts globally. Praphul says,” The challenge today is that the Blockchain world is divided into sceptics and fanatics. It would help if both sides listen to each other a little bit more carefully. The technology is very promising. We have challenges of speed, scalability, and privacy, but the community is getting bigger, the technology stronger, and decision makers are starting to pay attention.” He further added, if we go beyond and see the technology on the global scale it is an economy creator.

Nio, A New York-based blockchain company founder, Oz Sultan, throws light on the same by stating that “The confusion is because, for the first time, information technology, game theory, economics, and business have converged on a single platform. Not many have understood it, including those who started companies related to crypto and Blockchain.”

Even if the new technology may find a little time consuming to get into the gut of the world and even one can accept it or neglect it but this revolutionary tech cannot be ignored.