Why Is Web 3 Heavily Dependent On Communities? Ankur answers by stating the human need to socialise by forming communities. Communities in Web3 is not a new concept as existing Web2 platforms too have communities. Though In Web 3, economic elements makes it essential to being a part of community. Scriblooooor adds to this by stating examples of Airbnb and instagram who are active with their host community meet-up and creator’s engagement. He states that the key difference between the communities in Web3 and Web2 is ownership of asset is with the user and not the platform. To put in simple words, communities in Web3 is equivalent to Amul, a jointly owned co-operative where the owners are the dairy farmers who hires the services like marketing. How Different Your Life Would Have Been Without Being A Part Of An Active Community In Web 3? For Scriblooooor, the shift to remote work and being a part of community has made him more open to absorbing newer ideas, exploring opportunities and trying new products. The reason for this is that working in Web3 is working on internet and in a community one works with other people while working for self at the same time. Ankur feels the same. Being a part of community helps him in understanding the crypto space in depth as there is a scope of shared learning and experiences. For the same reason we are witnessing emergence of Global Web3 communities.
The global crypto ecosystem faced a blow with the collapse of the biggest crypto exchanges like FTX and Voyager. This has led to an erosion of trust amongst the users. In such a situation, CoinDCX, India’s leading crypto exchange took a step to establish the trust back by releasing their proof of reserves and liquidity with a statutory auditors certificate. Proof of reserves and Proof and liabilities are a part of the proof of solvency. It enables users to track the value and usage of their funds in real time. In this, Reserve to liability is an important metric to measure solvency. If the ratio of assets of the organization to its liabilities is 1 then it indicates that the organization has enough asset classes to back its liabilities. For CoinDCX this ratio is more than 1. As of Dec 15th, 2022, its total asset value stands at USD $157 million and total liabilities at USD $155 million. CoinDCX partnered with Coingabbar to provide a no-bias third-party overview of the audit in order to lay a strong foundation of trust and transparency. Paras Malhotra, SVP - Exchange Operations, CoinDCX states that building trust is a process and measures have to be taken consistently. For the same reason, CoinDCX took the call of not having native tokens, unlike other crypto exchanges. Apart from this, having a strong KYC process, regular INR and trade surveillance, no manipulation of records, and releasing proof of reserves every quarter going forward are some processes that the organization has opted for as regular practices for self-governance.
Rohit Jain, MD, CoinDCX Ventures, discusses the emergence of Web3 unicorns in India with Aabha Bakaya Rohit Jain, and Aabha Bakaya explore the emergence of Web3 unicorns in India, how to build the world for Web3, and the kind of opportunities and potential scale that can be tapped for more unicorns in the space. In India, large companies are being built for Web3 because of a unique vantage point based on two primary reasons. First, India is the most extensive retail crypto base in the world. Second, India has the most number of Web3 developers, giving India a unique positioning. Over time it has been noticed that the trend has changed dramatically in terms of quantity and quality of developers because the Web3 developer is different from the Web2 developer. When Web2 development started, India didn't have a thriving digital economy, and this is because the developers had a service mindset for building global companies. But in Web3, the developers have a builders mindset, and large companies are created out of India, thus the expected increase in the number of unicorns. Understanding the difference between a Web3 unicorn and Web2 unicorn is important. In the Web3 space, there are two types of business models; first, the centralised business model and the other one, the decentralised business model. The centralised business model is similar to the Web2 unicorn. In contrast, the decentralised system is close to the Web3 business model, where the company's value is distributed among all the token holders, making it more significant for retail to participate. The other difference is the function of the Web3 market space, which is more global than the Web2 market space. Over the last few years, the market faced turmoil, yet development continues at a robust pace. When exploring the new unicorns coming up in the Web3 space and the technology adoption for global peers one can consider DeFi, NFTs etc. The advent of mass adoption of CeFi within Web3 technology will also bring new unicorns to the market. The Indian ecosystem stands out on a global level which will bring more Web3 developers and retail customers. Companies can build, trade and provide builders with an edge in the Web3 space. For example, EPNS and Spheron are creating the messages layer in the Web3 area. The layers of abstraction for distributing storage protocols are making it easier for developers to build in Web3 space. CoinDCX Ventures is a prominent initiative in this space. In a nutshell, it is an early-stage investor with flexible mandates that support entrepreneurs to build the stage. It also focuses on building a portfolio with three dimensions. The first is VC funds, which add value to the portfolio companies by fundraising, being a strategic partner and helping in networking. Second is Crypto VCs, which allow the companies to build a portfolio through tokenomics and help build community. Finally, CoinDCX Ventures has been built on the experience of CoinDCX as the largest crypto exchange in India, thus lending tremendous experience and resources to all its portfolio companies.
Neeraj Khandelwal, Co-Founder, CoinDCX, is in conversation with Aabha Bakaya, Senior Editor & Anchor, of Business Today TV, as they discuss DeFi and CeFi. Aabha Bakaya and Neeraj Khandelwal deep dive into the topic of DeFi and CeFi. CeFi ( Centralized Finance) is a company responsible for running all the financial operations like NSE ( National Stock Exchange) or any bank. It is a world where the whole financial management is centralised within one company. In 2017, a new term called Defi, also known as Decentralization Finance, was coined. Here, centralised players like banks or stock exchange functions are removed and put on the blockchain, which essentially runs those functions. Going a step further, the challenges faced in accessing DeFi and the opportunities and benefits it can present for users is discussed. The decentralised financial ecosystem runs on the blockchain. The observation was made in 3 years where it grew from 100 million Dollars worth of logged assets to 270 billion Dollars. But when the bull run went down, the market crashed, and currently, 70 billion dollars of value is logged in decentralised finance. Also, daily trading volume in the decentralised finance world stands between 5 to 10 billion Dollars. One of the challenges for DeFi is customer adoption. It is because retail customers are technically challenged, but some institutions have adopted DeFi and understand the benefit of it with the help of teams and their capabilities. In the global context of the crypto world, the retail customer base is 300 million; out of this 20 million exist in the decentralised finance world. The Indian global peers and their stand on the rank, progression & adaptation of DeFi as well as the challenges they can face can be understood in terms of the regulatory challenges faced in the last four to five years. Still, stats provided by websites and apps say that India has the primary market for DeFi crypto apps, and it ranks under the top three countries worldwide in terms of customer adaptation. This is because of the digital native population India has. Different apps like metamask wallet, trust wallet or coin-based wallets give access to decentralised finance. If they have 10 million active users, 4 million are from India. Despite having challenges, India has been a massive adopter of this space, and this is because of the software engineers. CoinDCX plays a major role in making the opportunities accessible for users in the Indian ecosystem. At the time of launch 2018, CoinDCX was a simple buy-sell exchange of bitcoin and other top cryptos. Web3 wasn't introduced back then, so they worked on multiple other fronts. First, they started exposing users to buying and selling crypto and making users understand the technicalities and features. Second, they focused on educating customers and policymakers about crypto and blockchain. They also launched CoinDCX ventures, where they helped other entrepreneurs and start-up companies in financing and networking. Subsequently they founded Okto, a product line that only focuses on decentralised finance, NFTs and Web3. The main objective of Okto is to simplify access to decentralised finance. To summarise, DeFi and India's potential to lead the Web3 revolution in the crypto world is immense. Decentralised finance helps to bring the centralised finance cost down as it is expensive and would bring far more efficiencies in this ecosystem.
GAURAV ARORA, SVP CoinDCX PRO, is in conversation with Aabha Bakaya, senior editor & anchor, Business Today TV as they discuss how CRYPTO and DeFiI are correlated. Abha asks Gaurav about how DEFI is different from Crypto. Gaurav explains Blockchain as the underlying technology that allows transactions to be done without a centralized entity. DeFi is the overarching platform that enables lending, earning, stock transactions, etc. and Crypto is one of the most prominent use cases. Abha then asks about the potential risks associated with DeFi in the Indian as well as global market. According to Gaurav, what is happening is a leap of 150 years of financial evolution within five to ten years. Thus, the early stages come with a possibility of technological risks. As the code in DeFi is open source, it is prone to hacks, attacks and vulnerabilities. On the flip side there are thousands contributors who work on identifying flaws and enhancing the code, so eventually this will lead to a more resilient and stronger code base. The second risk is around scalability and cost . For example, Ethereum, despite being the most common decentralized finance entity, can only support 15 transactions per second whereas Visa, which is one of the second largest payment processors, can support many thousands. There is constant work being done in this space to enhance productivity; for instance the upcoming ‘Merge’ event where Ethereum is moving to an advanced level- Ethereum 2.0 where the electricity cost will go down by 99.9 %. The third risk is called self-custody. In DeFi, users have full custody of assets which can be accessed using a private key.Thus, the downside is that losing the private key would mean that the user can never access that money again, and if somebody else gets access to that private key, then they can take all of the assets. The solution is a smarter and better recovery mechanism. Fourthly there are regulatory risks. There's a certain level of anonymity which DeFi brings, which can create risks for money laundering and exploitation. Association of an identity with the transactions without losing the anonymous nature is the key to resolve this risk. Going forward, Abha asks about DAO and its connection to DeFi. Gaurav explains that DAO stands for Decentralized Autonomous Organization. It can be seen as the next evolution in workplace organizations. The strength lies in the fact that DAO code cannot be broken, thus it can be seen as the most puritan form of democracy. Also, every decision of DAO is available for audit. Aabha then moves on to discuss the major concerns of DeFi technology. Firstly Gaurav discusses the factor of pricing as the price has been going against what was actually expected. In terms of regulatory ambiguity, the focus must be on removing inefficiencies, unlocking value and distribution. Hence Gaurav proposes that the next wave of growth is not going to come from just pure speculation, it will come from actual utilities and use cases. Understanding how exactly to regulate this space is time consuming, yet continuous progress is undeniably seen in this field.
Rohit Jain, MD, CoinDCX Ventures, is in conversation with Aabha Bakaya, senior editor & anchor, Business Today TV as they discuss how Web 3 will be instrumental in India's growth story. Abha asks Rohit about building a successful Web 3 business. Rohit makes 2 key points: Firstly, the focus of Web 3 technology vs Web 2 is the factor of decentralization. Satoshi Nakamoto who published critical articles on Bitcoin & Blockchain, says that it's primarily about building a trustless, permissionless economy. The subtle switch is the fact that Web 3 moves away from requiring a centralized entity to connect. Secondly, the focus is also on community building. Customers are more connected and more engaged in Web 3. Community engagement and management becomes the focus more than simply the technology that is being built. Rohit explains that for the most part Web 3 technology is still in the first stage of development where the infrastructure layer is being built. Aabha then asks about the evolving regulations and how that affects the way people think about their businesses moving forward. Rohit explains that regulators are in the process of deciphering the best way forward in order to promote innovation, yet look after the interest of the masses. The times are progressively moving towards regulatory clarity and secularism. Aabha moves on to talk about Web 2 vs Web 3 technology and the use cases for the two. Rohit details several use cases of Web 3 including: -Defi -Gaming and NFTS -Opportunities for content creators -Social media platforms Infact, Rohit says DeFi has grown 10x in past years; Crypto is the 20th largest bank in the world in terms of assets under management. Soon, we will see a lot of Web 2 players adopt the crypto rail, to make businesses more efficient. Secondly, we will see rampant adoption of web 3 by the masses. As the Web 3 world continues to grow, Rohit says we will have more control and creative applications, we will have decentralized apps, and Web 3 and Web 2 will coexist. CoinDCX is bullish on opportunities in India, as this is a country with the 2nd largest retail crypto base in the world. In the next 12 to 24 months, India will have the largest Web 3 developer pool worldwide. The Indian market will see a builder mindset vs services mindset and thus, a vast amount of Web 3 unicorns are expected to grow in India. The strengths that will bode well for the development of this space in India include having a large customer base and Web 3 developers pool.
CoinDCX’s EVP Engineering Vivek Gupta is in conversation with Aabha Bakaya, senior editor & anchor, Business Today TV. This insightful conversation is centric around Blockchain and Web3. Aabha begins with asking Vivek about the Blockchain technology, why he feels it is gaining prominence and its merits for the future. Vivek talks about how Blockchain technology is distributed through a centralised public ledger across networks. The key elements of Blockchain technology are: - Public - Accessible To All - Cryptographically Secure - Immutable - Decentralised Thus the power of what can be done with Blockchain is immense as it shifts the focus back into the hands of the participants of the ecosystem, making it a transparent platform. Aabha asks about the use cases for Web 3, the examples and adoption rate seen in India vs globally. To which Vivek answers by first talking about the functionality of Web 2.0. In web 2.0, the platforms are built on aggregating users and user data. He takes the examples of Facebook or Instagram, and how they get value from user data, and in turn the network effect from which they drive value for the users. Here, it is important to log the users and their data, to make it a prime source of getting competitive advantage and thus acts as a vast arena for micro-targeting. On the contrary, Blockchain and Web 3 have proposed a whole different model; this is a totally new digital ecosystem, a fundamental shift, creating value that is accessible to all participants in the ecosystem. This is based on the premise that there is an alternative to exploiting users for data. This creates more value for everyone including the platform itself. Based on this, we have already seen the growth and adoption of blockchain and a lot of disruption pertaining to it. Be it fashion, sports, pharma, supply chain, entertainment and fintech. Additionally, Vivek explains how any innovation starts with fintech. Be it adoption of the internet or Web 3. Since the users have control, it creates more equal value. Today, more and more ecosystems are growing. By 2022, spending on blockchain solutions by businesses is factored to $11.7 billion. Thus, a high level of growth is expected in this space. We are also seeing such patterns in government to government and government to citizen projects. Examples are in the domains of tax registration, healthcare, food supply chain, procurement and identity management. In the next 7-10 years Web 3 will become the centerpiece of economics, transcending across multiple domains. Aabha also asks about the ways of leveraging blockchain to expand businesses. Vivek discusses how having a large database that is accessible to all, combined with computing power will create innumerable opportunities and possibilities. For example- smart contracts that allows logic driven trust to be built between two trustless systems. Here the intermediary party is replaced by logic. Talking about businesses, CoinDCX has launched CoinDCX Ventures, to support the growth and development of a budding crypto startup ecosystem. Vivek highlights how the crypto space in India alone is in excess of $10 billion. Government projects related to blockchain can add $5.1 billion to India's GDP. Workforce for global tech in India plays a key role in driving innovation. The next Facebook, Amazon, Google etc. can all come from Web 3 technology. In order for this to happen, Vivek asserts that India needs to grow and build on talent to support. India needs to have regulated clarity from the government that will go a long way in driving forward an exponential growth in blockchain innovation. In conclusion, we can expect to see huge potential for India to establish itself as a global leader in driving forward Web 3.
The way ahead in the crypto market CoinDCX’s COO Mridul Gupta is in conversation with Aabha Bakaya, senior editor & anchor, Business Today TV to guide viewers on the best approach to investing in the crypto market. At the onset, Mridul sets the tone that Crypto is a new ecosystem and we should not confuse it with the financial one. He suggests we should learn about it first rather than investing in the upper hand and that different crypto investment strategies are needed depending on one's level of experience. Setting up a systematic investment plan is required and is a very important tool for developing the discipline needed to build long-term wealth. Aabha carries on to discuss whether there has been a clear knee jerk reaction from investors in terms of queries, withdrawals or simply panic. Thus she asks if the nature of investing has changed, and if there is any style that is growing faster than others? Here Mridul talks about DEFI, vertical NFTs and gaming- DEFI being a new trend in the crypto space. DEFI means decentralized finance- this is a buzz phrase that describes financial services offered on open blockchains, most notably Ethereum. Earning interest, borrowing money, lending money, purchasing insurance, trading derivatives, trading assets, and other activities are all possible with DEFI, but the process is quicker and doesn't involve any formalities or a third party. DEFI is global, peer-to-peer (meaning directly between two people, not routed through a centralized system), pseudonymous and available to everyone, much like cryptography in general. Aabha points out that in equity markets it is said this time is just a correction, not a crash given the kind of uptick that was seen over the last few years. She asks therefore about the cryto markets- how would one assess what would make a good investment at this time? Mridul's advice for new investors and traders is that they should invest modestly and adhere to a systematic investment plan in order to play in the market for the long term. Both traders and investors can be seen in the crypto markets. For new investors, it's a great time to learn about new things related to crypto, and since the crypto market is just getting started, investors can take this time to readjust their portfolios. In this trend, traders are observed to be continually buying and selling and frequently rebalancing their portfolios. Aabha notes how a key takeaway is that it’s always a wise strategy to do smaller investments over a longer period of time; she asks Mridul on a closing note for advice to leave viewers with According to Mridul, those who trade or invest in crypto are best off using sophisticated and dependable tools like CoinDCX because they limit orders and margins, stop loss limit orders, and also assist users in deploying funds and generating income that can be used as a passive source of income. Statistics show that if prices reach low or high levels, there is a quicker market readjustment. The blockchain is currently a steady part of the crypto industry since it keeps evolving despite market crashes. Growth in the blockchain industry is a crucial indicator of growth in the crypto market.
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