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  • April 29, 2023

Web 3.0 is focused on serving the greater good.

GS 3 Indian Economy & Related Issues Science & Technology

In News

  • According to the U.S.-India Strategic Partnership Forum’s 2021 report, the third-generation web will be essential for India to realize its $1,100,000,000,000,000 digital asset opportunity by 2032.

India’s Digital Infrastructure:

About

  • Digital Public Infrastructure (DPI) refers to solutions and systems that facilitate the effective provision of society-wide functions and services to the public and private sectors.

Indian Initiatives:

  • The Government of India and the Reserve Bank of India (RBI) have promoted simplification and transparency to accelerate interactions between individuals, markets, and the government.
  • With the launch of the Digital India mission in 2015, our payments, provident fund, passports, driving licenses, toll crossings, and accessing land records have all been revolutionized by modular applications based on Aadhaar, UPI, and the India Stack.

More about ‘third-gen web:

How does the third-gen web work?

  • The third generation enables web applications to communicate with one another to personalize the browsing experience for each user.
  • The evolution of the web is driven by the development of technologies such as Big Data, Artificial Intelligence, and Blockchain, which are redefining its nature.
  • Through the use and application of data storage and analysis, and particularly machine learning, it is possible to construct a unique profile for each user to enhance the browsing experience.

Significance

  • Web3 is independent and trustworthy, as the data will no longer rely on these large corporations or institutions, but rather on each individual.
  • Web3 seeks to revolutionize the generation, monetisation, sharing, and circulation of data.
  • Furthermore, it promotes decentralized data storage systems with the aim of liberating data from the oligopolistic control of technology behemoths.

Non-custodial wallets/digital passports

  • The most audacious aspect of Web3 is the strategic role it allocates to non-custodial wallets, which serve as digital passports for users to access blockchain-enabled transaction platforms.
  • These purses facilitate the development of a “ownership economy” in which creators control their own content.
  • Essentially, they function as digital evidence of identity.

Decentralised autonomous organisations (DAOs)

  • Web3 intends to supplant microeconomic organizations with autonomous decentralized organizations (DAOs).

Role of digital tokens and cryptocurrencies

  • On a broader scale, it aims to establish a distributed economic system in which special classes of native digital tokens and cryptocurrencies serve as the means of monetary circulation.
  • Peer-to-peer transactions would be facilitated by Web3 platforms more efficiently.

How can India benefit?

Handicraft industry

  • India’s handicraft industry is renowned for design-related innovations, many of which are not protected by Intellectual Property rights.
  • The digital tokens issued by Web 3 platforms would empower our handicraft businesses to protect their innovations.

Dissemination of grassroots innovations

  •  Web 3 based instruction tools enable the rapid dissemination of grassroots innovations from master artisans to fellow members, thereby enhancing the economic well-being of craftsmen and artisan communities in north-east, western, and peninsular India.

Digital public infrastructure

  •  India’s massive push for digital public infrastructure and the widespread deployment of Internet of Things (IoT) in rural development initiatives present significant opportunities for Web 3 deployment in rural areas.

Management of community data

  • The Atal Bhujal Yojana is an important source of data on groundwater utilisation practices and aquifer contamination; however, this resource remains largely untapped due to a lack of data analytics capabilities at the community level.
  • Web3’s decentralized analytics systems can overcome this limitation.

Challenges & suggestions :

  • From a policy standpoint, the next-generation web is complicated.
  • The diverse descriptors utilized by experts contribute to the problem.
  • The current incapacity of data analytics capabilities to keep up with the rate of data generation in rural areas is a further limitation.
  • India’s talent pool for data analytics and web design is rapidly expanding.
  • By incentivizing decentralized analytics and tokenizing them (as envisioned in Web 3), rural communities can tap into the talent pool.

Way ahead

  • India is in the process of constructing a large citizen-scale digital public infrastructure.
  • The country’s National Blockchain Strategy 2021 proposes exploring tokenisation and implementing blockchain solutions for development programs.
  • It will be natural for India to develop a third-generation web strategy that prioritizes public interest.
Blockchain technology

·        A blockchain is a database that holds encrypted data blocks and links them together to form a single chronological source of truth for the data.

·        Distributing digital assets instead of copying or transferring them creates an immutable record of the asset.

·        The asset is decentralized, permitting full real-time access and public transparency

·        A transparent ledger of changes preserves the document’s integrity, which instills confidence in the asset.

·        Blockchain’s inherent security measures and public ledger make it an ideal technology for nearly every industry.

Blockchain-based digital governance:

·        A digital government based on blockchain technology can better protect data, streamline processes, and reduce fraud, waste, and abuse while concurrently fostering greater trust and accountability.

·        Individuals, businesses, and governments share resources over a distributed ledger protected by cryptography in a blockchain-based government model.

·         This structure eliminates a single point of failure and inherently protects sensitive citizen and government data.

Advantages

·        A blockchain-based governance has the potential to alleviate existing issues and provide the following benefits:

·        Secure storage of government, citizen, and business data

·        Reduction of labor-intensive processes

·        Reduction of superfluous costs associated with managing accountability

·        Reduced corruption and abuse potential

·        Enhancement of confidence in government and online civil systems

Central banking:

  • Real-time gross settlement is the ongoing process of resolving interbank payments in central bank records, as opposed to daily settlement.
  • Blockchain facilitates a substantial increase in transaction volume and network resiliency, allowing central banks to process RTGS at a faster rate and with increased security.

 

Daily Mains Question

[Q] India will require the third-generation web to realize its $1.1 trillion digital asset opportunity by 2032. Examine.

 

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