Blockchain, the public ledger for online transactions, is expected to gain some momentum next year driven by startups, collaboration among the stakeholders, and government-led initiatives. The trend will shift from experimentation to actual use cases, at least to some extent.
According to a Nasscom Blockchain Report 2019, startups are involved in over 50% of the blockchain projects in India across different industries. While venture capital investments in blockchain startups have reached $5.6 billion globally, India has so far been able to attract only a small fraction (0.2%) of those investments, the report said. But the trend is picking up.
Draconis Capital Future Fund (DCFF) is investing $100 million in the next one year in startups related to blockchain and other emerging areas. Recently, DCFF has invested ₹3.5 million in Aayaan Smart Systems, a blockchain-based B2B property management solution provider that is expected to roll out its product by March 2020.
Startups seem to be gaining ground gradually. For instance, blockchain startup Param Network started signing up trial customers since Q1 2019. “Currently we have four top multinationals converted into real use environments,” said Vaideeswaran Sethuraman, founder, Param Network.
As long as you use blockchain as a distributed ledger technology (DLT) platform, the regulatory challenges are almost next to none, Sethuraman said. “We have managed to bring down the cost of an invoice by roughly half from around $11 to $15 per invoice to around $6. This can be significant for companies, as globally around 430 billion invoices are processed manually.”
However, experts feel blockchain as a technology is network-based and for any such technology to gain competence, industry stakeholders should cooperate with each other to realise its full potential. “Though world over, a lot of consortiums have emerged, the cooperation has to extend to the next level, where regulators, compliance…