Indian Web3 “Great Leap Forward”

Compared to Japan, India appears more likely to be the “dominant” of Web3, known as the next-generation Internet.

This month, two “heavy players” in the capital market expressed their preference for India. On June 14, Sequoia launched a venture fund of about 2 billion US dollars in India, which immediately refreshed the record of Sequoia’s annual investment scale in India. It is reported that some of the funds will be used to expand investment in the Web3 field; On March 19), Binance executive Tigran, who has invested heavily in Web3, revealed his development plan in the Indian market. He believes that India can become the global center of Web3 talents.

One is the “uncrowned king” in the Internet venture capital world, and the other is the “absolute overlord” in the crypto world. The two giants are optimistic about India at the same time, which makes people think.

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Sequoia invests unprecedented capital in India and Southeast Asia

This year, Sequoia has shown unprecedented confidence in India, betting more than $2 billion, more than the sum of the funds raised in the past five years.

This is reminiscent of the mobile Internet era, where Sequoia Capital represented by Shen Nanpeng cast all the Chinese Internet tracks. Now, Sequoia Capital seems to want to replicate the success again, only this time they are betting on India, and the betting track may be blockchain, encryption and Web3.

Indian Internet ‘overtaking on bends’

India missed the first two phases of the internet, but seems imperative for Web3, the third phase of the internet.

Web3 is an Internet ecosystem based on blockchain technology. It is characterized by decentralization and is committed to the ownership of data by users, so as to discover more ways to use data and form a more benign digital economic ecology.

People divide the Internet into three stages: Web1, Web2, and Web3. These three stages represent the continuous improvement of human ability and rights to use data. In the first stage of the Internet, ordinary users can only passively obtain information; in the second stage of the Internet (the current mobile Internet), users can not only read information but also participate in the production of data and information; in the third stage of the Internet, ordinary users can not only read , participate, and directly own the data they produce. Web3 not only represents the improvement of a technology, but also represents the improvement of the public’s rights and freedom in the digital world.

Now, the Internet “poor student” in India is quickly making up for the courses missed by Web1 and Web2, and the effect is remarkable.

Before 2020, Chinese and American mobile Internet companies have already taken over overseas markets, especially in the field of mobile payment and social networking. Internet companies in China and the United States have exhausted the dividends of expanding overseas users, and local Indian companies have faced Chinese mobile phone and Internet companies. The attack basically collapsed.

But through its indigenous protection policy, India is making up for this lesson.

The latest data from GitHub shows that India is rapidly catching up with China in terms of new technology unicorns. Although there are only 94 existing unicorn companies in India (the third in the world), 36 of them were born in the third quarter of 2021 and beyond. During the same period, only 17 new unicorns were created in China. According to a report released by Ernst & Young, there will be 44 more unicorn companies in India in 2021, surpassing the United Kingdom to become the third country in terms of the number of unicorn companies. The younger demographic structure and better IT innovation environment, It has become the most competitive advantage when it develops the new technology ecology of Web3.

To some extent, the growth in the number of tech unicorns represents a trend. India has now cultivated a number of relatively competitive Internet companies. For example, India has run out of many companies in the field of mobile payment. Paytm, known as India’s Alipay, went public last year, while the competing Indian mobile payment There are not a few companies.

Just as China needs to make up for 2G and 3G lessons in order to overtake in 4G and 5G corners. India is quickly catching up with Web1.0 and Web2.0, trying to succeed in Web3. And it works better in the class of mobile Internet (especially mobile payment and mobile social networking).

For Web3 or the new wave of Internet technology, India is ready and has initially shown its rapid growth potential. Unlike the mobile Internet, India still has great opportunities on the Web3 value Internet track.

India also has some “core capabilities” for the development of the next-generation Internet, such as a broad market and a better environment, a large number of high-quality programmers, and an influx of capital.

India’s performance in the crypto market is very impressive, which may be the reason why major international capitals are betting on India.

Take the exchange CoinSwitch Kuber as an example. In just nine months, the number of users has risen from 1 million to 10 million. This may not be worth mentioning for the mobile internet giant, but it is “astronomical” for the still-early crypto agencies and Web3 companies. Taking an inappropriate example, StepN, the most popular Web3 application in the past two years, has only 3 million users and has become a popular product.

Interestingly, corresponding to the surge in the number of users of encrypted exchanges, the acceptance of Web3 in India is also relatively high. According to Finder’s latest report “NFT Gaming Adoption Report” targeting 43,312 people in 26 countries, NFT games are popular in India. The most popular, with 34% of respondents having played it, 28% of those in Hong Kong, China, and 9% in the US. In more countries, most people have never been exposed to NFT games.

Both India and Japan are promoting Web3 at a political level, making their citizens more receptive to the new wave of technology. The Indian civil service exam involves Web3 and NFT, and its large financial institutions are also actively promoting the development of this technology. For example, the Bank of India launched a $20 million Web3 fund.

In terms of the number of programmers, India is almost the same as China, which has also attracted many large encryption institutions to “recruit” in India.

India has the second largest user base in the world and the third largest (closer to the second) number of programmers in the world, making it fundamental to develop the next generation of the Internet.

According to the “GitHub 2021 Annual Report Release”, the United States has 11.08 million programmers, China has 6.52 million, and India follows with 5.19 million. India is almost equal to China in terms of the number of programmers. Coupled with a large number of users and a good IT environment, India is growing into the third largest single Internet market after China and the United States.

India, will it become Asia’s Web3 hub?

Compared with Asian countries, India Web3 occupies a good position.

Countries with a stronger economy than India (Japan, China) either do not have as many Indian programmers or choose to ban the encryption market; countries with a better Web3 environment than India (South Korea, Singapore) have too small population and market to compete with Ability.

At present, among the major economies in Asia, South Korea is the easiest to supervise encryption, and does not even tax related transactions. Yesterday (June 20), South Korea announced that the encryption tax of digital assets will be postponed for another two years to 2025. The Four Asian Tigers seem to be more active in the development of Web3, especially Singapore, which is considered to be the first choice for Web3 entrepreneurs in Asia, which solves the problems of immigrant entrepreneurs from school to work. Hong Kong, China is also actively deploying the Web3 ecosystem, but the policy is more stringent.

In general, there is still a relatively large gap between the economic size and market size of the Asian Tigers and the big countries. The imaginary enemy of Indian Web3 is Japan.

Like India, Japan has also shown its determination to win Web3. They were all “losers” in the mobile Internet era and “foils” for the Internet in China and the United States. Tiger Sniff once mentioned in Japan’s determination to “grab the beach” for the next generation of Internet, Japanese Prime Minister Kishida Fumio attaches great importance to Web3, believes that this is the next-generation technology wave of the Internet that can lead Japan’s economic growth, and said that he will start to promote it from a political point of view. Development of Web3.

At the beginning of June this year, Japan promulgated the “Financial Accounts Amendment Act” to support the development of Web3. The Prime Minister’s platform indicates that the development of Web3 in Japan has reached a new height.

However, Japan’s disadvantages are more obvious. It does not have a large number of high-quality programmers in its country. The business methods of Japanese companies often tend to outsource technology. Japan has not been able to attract global influential capital to help it promote technology development.

Of course, India’s development in Web3 has not been smooth.

A more intuitive problem is that India charges relatively high crypto taxes to investors or users, up to 30%. Indian officials are also far from Japan’s firm on the development of Web3, and its central bank officials said that cryptocurrencies may lead to the dollarization of part of the economy. The deputy governor of the Reserve Bank of India believes that most cryptocurrencies have zero intrinsic value.

At present, the vast majority of Web3 products are still based on encrypted currency, not based on actual value, which is also a common problem faced by countries such as Russia and Japan.

On the one hand, supporters believe that Web3 based on blockchain technology is the future development trend, which will further deepen the digital economy, but on the other hand, opponents believe that the current technological development has encountered application bottlenecks, and most application-based products Entrepreneurs have developed Web3 into a capital disk project, rather than an application that truly brings value to the industry and society.

Today, the number of programmers in India is comparable to that of China, and even surpasses it. Its programmer dividend and huge demographic dividend have not yet been released. This is the advantage and fundamentals of its development and competition for the next generation of Internet. In the past, both capital and powerful enterprises are deploying and promoting the development of Web3 in India.

India has shown positive ambitions in terms of policy, capital, civil environment, etc. However, after all, Web3 is still in its infancy, and India itself has many shortcomings in culture and system. Whether he can truly grasp this revolution needs to be more It takes time to give an answer.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/indian-web3-great-leap-forward/
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