How Web 3 Can Help India and Add Value to Their Financial Systems

A transaction that has been encrypted and added to a blockchain cannot be changed or removed. As a result, many computers worldwide have copies of the ledger. This increases the trustworthiness and clarity of the ledger transactions.

Web 3.0 decentralizes information storage and allows for peer-to-peer transactions. For example, it allows people to program "smart" contracts that can quickly transfer money, rights, and property between people.

Smart contracts eliminate the need for many middlemen, such as banks, who facilitate people doing business with one another. As a result, an entire financial system is separate from the current banking system. People and businesses can buy, sell, borrow, lend, and invest without using a bank in this blockchain-based ecosystem.

Aside from the rise of smart contracts, Web3 has seen the emergence of a new class of digital assets, such as cryptocurrencies and tokens that cannot be exchanged for cash (NFTs). The blockchain technology on which these digital assets are based has enabled them to be used for various purposes. These include decentralized governance, payments, investments, and currency and collectibles in virtual reality metaverses.

Web 3.0 in India

Web 3.0 is on its way to India, a game-changing technology that even India's richest man, Mukesh Ambani, believes will change everything. Is India, however, prepared for Web 3.0? The goal is to make the Internet more accessible, dependable, and less restrictive.

Web 3.0 enables websites and apps to use data analysis to help users. Mobile, social, and cloud computing are the three main types of digital innovation. The ecosystem is ready to grow beyond Web 2.0 based on these three levels of creation.

Web 2.0, on the other hand, will continue to provide benefits in India even after Web 3.0 replaces it. According to Tim Berners-Lee, the Semantic Web will change everything in the world, including India. India could make a lot of money if it fully uses the Semantic Web.

People in India are concerned about Web 3.0 because of the country's digital divide. It's been a source of contention for a long time. Therefore, when considering India on issues related to Web 3.0, it is important to consider various technological, social, and cultural issues.

According to a survey, approximately 61 percent of Indians use the Internet. This places India as the world's second-largest country in terms of Internet users. One of the best aspects of the country is how many people start businesses, make things, and consider how to improve them. India is a developing country, but it has one of the world's fastest-growing online markets.

Potentials Of Web 3.0 In India

Because digital technologies have so many benefits for everyone, Web 3.0 in India has the potential to transform India into a more digital economy. Moreover, India is well-positioned to lead in Web 3.0 and Blockchain because it has many people who are good at technology and know-how to use it.

Web 3.0 has the potential to improve people's lives and contribute to the growth of the Indian economy. However, following Web 2.0, the country requires a well-thought-out plan to ensure that it is prepared for the next major Internet change.

Telangana is in charge of the India Blockchain Accelerator Program. It makes it simpler for the state government to approve Web 2.0 and Web 3.0 blockchain startups. One of the organization's main goals is to help new businesses in the early stages of Web 2.0 and Web 3.0.

How Will Web 3.0 Improve India's Financial System?

The third generation of internet services will transform the Indian financial industry. They will do this by changing how people, businesses, and government agencies collaborate. Here are some of the primary advantages Indians will benefit from after combining the new decentralized operating model and Web 3.0:

Trustworthiness

Web 3.0 will ensure that Indians always own and have complete control over their online data by using decentralized networks. In addition, every change to the Internet makes businesses more dependable by removing concerns about data storage security.

Accessibility

One of the most exciting aspects of Web 3.0 is that people will be able to access information from anywhere in the world, including India. This technology will make it easy for Indian businesses that provide services such as loan origination and servicing or BNPL (buy now, pay later) to determine how much money is in an account or data that verifies a person's identity.

Improved Customer Service

With Web 3.0, Indian FinTech companies will be able to understand their customers' wants and need better. Indian businesses can use the list of Web 3.0 technologies to automate processes to map the customer journey. Furthermore, they can use their resources more efficiently to meet their customers' needs. This will make it easier for them to participate and build long-term loyalty.

Faster Transactions

The three pillars of Web 3.0 (artificial intelligence, the Internet of Things (IoT), and blockchain technology) will help Indian FinTech companies worldwide make secure and transparent transactions.

Businesses will be able to work more efficiently with Web 3.0 because of automation and peer-to-peer transactions for digital payments, loan origination and servicing, BNPL, digital lending, etc.

Uninterrupted Service

Decentralization will make Web 3.0 less likely to close accounts or prevent people from using distributed services because data will be stored on distributed nodes. This will also help Indian FinTech companies lower the costs associated with seizures and server failures.

Web 3.0 Helping Financial Institutions

Even though FinTechs are accustomed to rapid market changes, regulations, and digital transformation, banks, and other financial institutions will need to catch up and collaborate with innovative FinTechs. This means that financial institutions must invest in their technology. Several examples of financial institutions using AI to make more money, cut costs, and automate repetitive tasks. Most people in the financial services industry are bullish on AI's potential. According to a recent NVIDIA survey, 83 percent of finance professionals believe AI is to their company's future success.

The Royal Bank of Canada trains its artificial intelligence using millions of data points. This means customers will contact the bank less frequently, and applications will be processed more quickly. At the same time, BNY Mellon, the world's largest cross-border payment services provider, improved its fraud prediction by 20%. Artificial intelligence (AI) and high-performance computing (HPC) collaborate to analyze real-time market data in nanoseconds to improve and accelerate trading intelligence.