3 Indian Blockchain Stocks at the Centre of India's Deep Tech Revolution

Ever since the price of Bitcoin hit a new all-time high last month, the investing community has started to see the cryptocurrency as an asset class that can finally be worth investing in.

Not just that but some of the bitcoin ETFs now also offer a yield!

All this has put the Indian blockchain landscape at the centre of India's deep tech revolution.

We're seeing a surge in pilot projects and government initiatives exploring its application across sectors like finance, supply chain, and healthcare.

While regulatory frameworks are still evolving, the recent launch of the National Strategy on Blockchain by MeitY signifies a proactive approach.

With continued collaboration between public and private players, blockchain is poised to be a game-changer in India's economic growth story.

Blockchain Fundamentals

Blockchain technology is essentially a decentralised, tamper-resistant digital ledger.

Here's how it breaks down:

• Imagine a shared ledger: Think of it like a Google Doc for transactions, but instead of one company controlling it, thousands of computers on a network do. This decentralisation is key.
• Secured by cryptography: Each transaction is like a page in the ledger, cryptographically linked to the previous one. Altering a single page would mean changing everything after it, making tampering nearly impossible.
• Network validates transactions: There's no central authority like a bank approving things. Instead, computers on the network verify and record transactions according to predefined rules.
• Beyond currencies: While blockchain is famous for Bitcoin, its applications go far beyond. It can track ownership of assets (think stocks or intellectual property), streamline supply chains (verifying product origin), and even automate complex contracts.

Why India, and Why Now?

Large Unbanked Population: Blockchain can promote financial inclusion by providing secure and low-cost banking services to millions currently outside the traditional system.

Imagine microfinance platforms built on blockchain, empowering entrepreneurs and boosting financial access.

Supply Chain Inefficiencies: India's vast and complex supply chains are ripe for improvement. Blockchain's ability to track product origin, ensure transparency, and reduce counterfeiting can be a game-changer.

Government Support: The Indian government is actively exploring blockchain's potential. Initiatives like the National Strategy on Blockchain by MeitY signal a proactive approach. This government support creates a fertile ground for innovation and pilot projects.

Tech-Savvy Population: India boasts a large and growing tech-savvy population. This creates a ready user base for blockchain applications and promotes a culture of digital adoption.

Maturing Technology: While challenges remain, blockchain technology is evolving rapidly. Scalability solutions are emerging, and regulatory frameworks are being explored.

Investor Interest: Global investors are increasingly interested in blockchain solutions. This can provide funding opportunities for Indian companies developing and deploying innovative blockchain applications.

3 Indian Blockchain Stocks to Watch out

#1 Infosys

Infosys, a global IT leader, offers a robust suite of blockchain solutions and services to help enterprises across industries reap the benefits of this transformative technology.

Their proprietary blockchain framework enables the creation of tailored solutions for sectors like supply chain, finance, and government services.

A major focus is on scalability and seamless integration with legacy systems, addressing key pain points for businesses.

Collaborations with platforms like VMware and ConsenSys demonstrate strategic partnerships aimed at enhancing their capabilities.

The company has built a trade finance marketplace using blockchain that is already been used by 17 banks.

As blockchain adoption matures, Infosys's investments in blockchain expertise, coupled with their focus on practical enterprise solutions, positions them to capture significant future growth opportunities within this evolving space.

#2 Tata Consultancy Services (TCS)

Tata Consultancy Services (TCS) has established itself as a formidable force in the blockchain arena.

Its comprehensive "Quartz" suite provides a range of blockchain solutions, including pre-built "Smart Solutions" for various industries, customizable ledgers, a developer toolkit for efficient smart contract creation, and a user-friendly management platform.

TCS's focus on enterprise adoption is evident in its emphasis on integrating blockchain with existing systems, ensuring scalability, and maintaining robust security protocols.

Their dedication to this technology is reinforced through strategic collaborations with industry leaders like the Hyperledger consortium and the Enterprise Ethereum Alliance.

#3 HCL Tech

HCL Tech, a major IT solutions company, provides consulting, development, and implementation services to help companies unlock the benefits of blockchain technology.

Through their dedicated "Blockchain Labs" practice group, they offer consulting, development, and implementation services to help businesses harness the power of this technology.

HCL Tech's CoTrust platform simplifies blockchain adoption by providing a managed application environment. Their strategic partnerships with industry leaders further bolster their offerings.

By focusing on enterprise-level solutions in supply chain, finance, healthcare, and even sustainability, HCL Tech is well-positioned to capitalise on the growing demand for secure, transparent, and efficient blockchain solutions.

In Conclusion

India's blockchain journey is at a pivotal point. The technology's potential to transform crucial sectors, coupled with proactive government support and a vibrant tech landscape, presents a compelling case.

However, regulatory uncertainties and technical complexities remain, necessitating a discerning approach for investors.

Listed companies like Infosys, TCS, and HCL Tech, with their focus on blockchain solutions, are positioned to become key beneficiaries of this unfolding technology trend.

It's essential for investors to track their developments in blockchain, particularly client acquisitions, strategic partnerships, and the success of real-world implementations.

Beyond these IT giants, India's innovative startups, fueled by rising investor interest, could also emerge as potential disruptors using blockchain technology.

As we've said before, the future is all about deep tech stocks.

Companies that can capitalise on these trends and navigate the existing challenges are well-positioned for significant gains in the years to come.

For more, check out this list of some more deeptech stocks that can be on your watchlist.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here.