“Unlocking the Web3 Potential” report released by Primus Partners
Primus Partners, a management consulting services provider, released a report titled “Unlocking the Web3 Potential: India’s Journey from a Talent Exporter to a Product Powerhouse”. The report suggests that India is at the forefront of the technological revolution and has the potential to become a global leader in technology.
The report highlights that India has over 900 Web3 enterprises and is home to 11% of the global Web3 developer community. This makes India the third-largest talent pool of developers in the world. The report also suggests that the Web3 sector could create 2 million high-paying jobs in India.
The report offers insights on how India can move forward, including:
- Coordinated global efforts
- Strong domestic legislation
- Increased awareness
- A nurturing business environment
What is Web3?
Web3 is described as future of the internet, it includes cryptocurrencies, Non-Fungible Tokens, Decentralized Autonomous Organizations (DAOs), and more.
It provides a version of the web where users have a financial stake and more control over the web communities they belong to.
- Web 1 also called the Static Web, enabled easy access to information.
- Web 2 built on advancements in web technologies, enabled interactive platforms e.g., Facebook etc.
Key findings
- In 2022, India held 11% of the global Web3 developer pool, ranked 3rd worldwide.
- Web3 sector is projected to create 2.2 million direct jobs in India in next decade.
Application of Web3
- Decentralized Finance: Open access to financial services without intermediaries.
- Asset Tokenization: Convert physical/digital assets into digital tokens offering fractional ownership, liquidity, etc.
- Digital Identity and Ownership: Secure maintenance of ownership of digital identity.
- Metaverse: Create an immersive, inter-connected virtual experience.
Challenges of Web3:
High tax rate, lack of ease of Doing Business, and fragmented regulatory approaches.
Recommendations of Report on Web3 potential:
- Recognize Web3 as a separate vertical under Startup India.
- Global emphasis on coordinated monitoring and enforcement.
- Identify primary regulator and define licensing and registration requirements.
- Establish regulatory sandboxes, etc.