Blockchain has disrupted the status quo, cross border transactions happen in the blink of an eye: Sumit Ghosh, Co-founder & CEO, Chingari

Synopsis

In an interview with ETMarkets, Sumit Ghosh, Co-founder & CEO, Chingari, spoke on various aspects like NFTs, Metaverse, Web 3.0 and crypto legislation.

The Finance Minister announced the introduction of a central bank digital currency (CBDC) to be done by the RBI from the financial year 2022-23.Blockchain technologies that power cryptos around the world are trustless systems of smart contracts. The contracts written are open and easily verifiable by anyone who may red flag any loophole or bugs. In an interview with ETMarkets, Sumit Ghosh, Co-founder & CEO, Chingari, spoke on various aspects like NFTs, Metaverse, Web 3.0 and crypto legislation. Here are edited excerpts:

1. What are the multiple aspects of crypto strategy that investors must know to start investing?
The Cardinal rule of investing, let alone investing in crypto is DYOR i.e Do Your Own Research. As we see, off lately thousands of crypto projects have come up so there has been a FOMO amongst the investors, especially the new investors to invest in these projects. Amidst the noises across social media platforms, a new investor must research the projects, their objectives, future plans etc. This information is available in the Whitepaper, well only if the projects are genuine.

Moreover, there is no one fit for all strategies. Investors have been using multiple strategies to maximize their returns. One such strategy is dollar-cost averaging where an investor buys a fixed amount of crypto in the span of every week, month or quarter which creates a hedge against volatility. Further, ‘buying the dip’ and ‘buy and Hodl’ are a few other strategies that one should know before investing.
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2. With the current taxation on cryptos, do you think traders from tier II and tier III towns will invest in them?
The effects of the current regulatory framework would not be limited to the traders from tier II and tier III cities. Traders from tier I cities would come under the ambit alike. Once the government comes up with clear legislation, things would be much clearer.

3. Amid volatility, can cryptos be considered an emerging asset class?
Volatility should not be the only parameter in classifying the Cryptos. Meanwhile, if you look at the current market cap of Bitcoin which is at somewhere around $850 billion, it is clearly poised to outpace global tech behemoths like Microsoft in the near future. It has actually offered a new avenue of investments so it should be considered an emerging asset class. The best way forward for sovereign governments across the globe would be to classify cryptos as an asset class. The concept of crypto is not to wipe out the sovereign currency but to offer a different asset class wherein the people can invest.

4. Is blockchain technology so useful that it can be used as a substitute for cash and currency?
I think there is a misnomer that Cryptos backed by Blockchain chain tech will completely substitute the traditional cash and currency. The better way of putting it up would be that it would act as a ‘supplement’ rather than a ‘substitute’ to the financial system. You see, humanity started using the coins in 600 BC and here we are in 2022 AD and still using coins. Although the modes of payment have changed coins haven’t been replaced. However, the pace with which the adoption of digital currency is growing will surely become one of the major ‘substitutes’ for cash.

5. With over 6,000-odd crypto tokens in existence today, will they pose the same problem as unregulated chit funds which take money from people and go bust?
This statement by former RBI Governor Raghuram Rajan poses serious questions but it also gives an opportunity to the crypto projects and sovereign government to cooperate and ensure that there is no ‘Rug-pull’. In such cases, the government may examine the authenticity of these projects to safeguard the investors’ money.

6. Since cryptos are unregulated as of now, are they a serious threat to any financial system?
Absolutely No. Bitcoin is now in use for more than a decade, has it posed any threat to any sovereign governments or financial systems? In contrast, the financial system has now been opened to accept cryptos. I think once the regulations come in things will be much clearer.

7. The government has announced that RBI will introduce a CBDC, how do you see this? Can you explain more about CBDC?
It is a welcome move and also gives an indication that the government is opening up to the idea of digital currency. Central bank digital currencies are digital tokens and are pegged to the value of that country’s fiat currency. There are multiple benefits of CBDC including privacy, transferability, simplicity, accessibility, and financial security for businesses and consumers. CBDCs could also minimise the expenses of maintaining a complicated financial system, lower cross-border transaction costs and provide lower-cost options to people who currently use alternative money transfer methods

.8. Will Web3.0 lead to an exponential growth in the usage of cryptos?
Surely it will lead to greater usage. Web 3.0 is the latest version of the internet that aspires to be a decentralised version of the virtual world. Users can intelligently communicate and collaborate via this network without having to bother about a centralised system. Web 3.0 aims for transparency, and users will be able to access an infinite amount of resources, content, and agreements. Presently, many Web 3.0 crypto projects like Filecoin have already started and are going to explode this year.

9. How does the Chingari coin work and how does it benefit the users?
The Chingari app’s native token is the Gari token. The GARI token allows short-form video-makers to monetize their content on the Blockchain. It serves as a governance token as well as an in-app currency. Gari Token has gained a lot of support from the community, with over 270K GARI holders in less than three months since its introduction. With this rate of growth, we anticipate 1 million active wallet users in the next three months. Furthermore, the GARI token has risen to the top three projects on Solana in terms of total holders.

At Chingari we are disrupting this existing revenue-sharing model to empower and incentivize creators with our native token GARI. Marketers on Chingari can not only arrange influencer endorsements by contacting creators directly, but also provide an opportunity to buy a product mentioned in a video directly on the app.

10. How does blockchain, the underlying technology of cryptos, maintain integrity and trust among users?
One of the most striking features of blockchain technology is that these are trustless systems of smart contracts. Any transaction can be verified by anyone which means we are not trusting an individual or a company, we are trusting the Math which is easier than trusting an entity. The contracts written are open and easily verifiable by anyone who may red flag any loophole or bugs. Trust in the traditional financial system is derived from sovereign institutions whereas in cryptos it is derived from technology.

11. How have blockchain applications disrupted the status quo? Can you name some real-world use cases?
Let’s try and understand this by example. Techies working in the US have to go through a tedious SWIFT transaction to send money in India which takes up to 3-5 days to reflect into the home account. Moreover, even after such a long waiting period, they have to pay huge transaction fees. Now, comes blockchain technology, the transactions are real-time and with minimal transaction fees. Cross border transactions within the blink of an eye are one of the prime use cases of this technology.

12. NFT was the buzzword in 2021, going forward do you see the popularity increasing, if so what could be the reasons?
It’s so popular because, like an antique house or a classic automobile, it has its own intrinsic worth. NFTs are created by combining this idea with blockchain, the technology that powers cryptos. These are essentially digital certificates of authenticity that may be applied to digital art or just about anything else that is digital.

NFTs verify an item’s ownership by recording the facts in a public blockchain, which is maintained on computers all across the internet, making it very hard to lose or destroy. So, NFTs, like the larger use of the blockchain, appear to be here to stay in some form or another, owing to their utility as commercial records of ownership.

13. How have artists adopted the era of NFT?
Artists are now realising the power of disruptive technology like blockchain. In recent years, many artists from across the globe are now diving into the world of NFTs because it is unlocking immense values. For instance, DJ Steve Aoki made more money from his NFTs in just one month than in 10 years of making music. Sounds crazy right. These developments have encouraged the artists to explore this new dimension of music.

14. Apart from art and music, which other domains can NFTs be used?
Video Game Items, Trading Cards/Collectible Items, Big Sports Moments, Memes, Domain Names, Virtual Fashion.

15. There is a lot of talk about Metaverse, how do you see it impacting us in the future?
The metaverse is going to impact us in a big way. As we know it will be much more immersive and as people learn how to influence the digital space surrounding them using tools designed for creators, by creators, we’ll start to witness extreme self-expression in these contexts. Every person will have an ‘avatar’, which is a character that portrays them in the Metaverse. We’ll discover new ways to express ourselves through these avatars that we may not have had the opportunity to try before.

Disclaimer : The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to the same. TIL does not guarantee, vouch for or necessarily endorse any of the above content, nor is it responsible for them in any manner whatsoever. The article does not constitute investment advice. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. For any queries, write to support@coinswitch.co
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Bought onCurrent Value Buy (This article is generated and published by ET Spotlight team. You can get in touch with them on etspotlight@timesinternet.in)

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Updated: 03/30/2022 — 09:00