Blockchain, a digitally distributed, decentralized, public ledger technology which goes beyond powering cryptocurrency, was valued at a whopping USD 17.57 billion in 2023, according to Fortune Business Insights, the global blockchain technology market size. By 2030, it is going to soar higher and expected to touch USD 469.49 billion. The technology is seeing a rise in adoption in public and private sectors, particularly in finance, manufacturing, and logistics. A look at how 2023 shaped up for this technology.

1. Acknowledged by Central Bank

The Reserve Bank of India (RBI), one of the most innovative and powerful apex banking institutions in the world, acknowledged the utility of blockchain to build a better foundation. “To prepare for the future, Indian banks will need to focus on digital transformation, enhance customer experience, adopt innovative technologies such as AI and blockchain, invest in cybersecurity measures, look for opportunities to derive synergistic benefits through collaboration with other players as well as upskilling their workforce to meet the demands of the digital era,” shared MK Jain, Deputy Governor, Reserve Bank of India earlier. The RBI has noted the technology to be one of the innovative technologies which can help build and test products in RBI’s sandbox environment.

2. Active investment by companies

Blockchain technology reportedly is said to enhance trust among stakeholders, reduce the need for intermediaries and improve operational efficiencies. A report by HERE Technologies suggests that Indian firms are keen on drones, cloud, IoT and blockchain. A whopping 30 per cent of logistics companies in India are planning to invest in blockchain. Blockchain specifically helps supply chain firms to document production updates to a single shared ledger, providing complete data visibility and a single source of truth. This helps in preventing counterfeit goods, compliance violations, delays, and waste.

3. Rise in government initiatives

India is actively encouraging blockchain adoption across various sectors and industries. States like Maharashtra, Odisha, Telangana, Karnataka and Tamil Nadu introduced blockchain-based initiatives. Maharashtra leads the way with the recent introduction of a transparent Blockchain-Based System For RTO Inspector transfers.

The Tripura government introduced a Blockchain-based beneficiary management system to secure scheme-wise approved beneficiary lists, approved transaction requests, and scheme-wise details of successful transactions. The New Town Kolkata Development Authority (NKDA) partnered with Web3 startup Airchains to digitally record and track the land ownership and mutation system by using blockchain.

“Every state government is looking at technology which will ensure that the data of the citizens are sufficiently protected,” shared Manoj Kumar Mishra, Principal Secretary – Electronics and IT, Government of Odisha.

NITI Aayog and the United Nations Development Programme launched a project to issue blockchain-based 65,000 caste certificates for the tribal population of Etapalli, Gadchiroli.