Racial Bias in Web3, Blockchain Boom in Indian Entreprises: Interview With Polygon’s Sandeep Nailwal

Polygon’s Sandeep Nailwal answers our questions about ongoing challenges, the current regulatory landscape, and the crypto sector in India.

Written by Radhika Parashar, Edited by David Delima | Updated: 11 December 2024 12:37 IST

Racial Bias in Web3, Blockchain Boom in Indian Entreprises: Interview With Polygon’s Sandeep Nailwal

Photo Credit: X/ @0xPolygon

Stepping into 2025, Polygon plans to grow its involvement in India’s enterprise sector

Highlights

Polygon Labs was set up in 2017
Its valuation rose to $20 billion in 2022
Flipkart has set up 3.6 million user wallets on Polygon PoS

Polygon, the eco-friendly blockchain ecosystem that was co-founded by three Indian technology enthusiasts in Mumbai in 2017, was valued at $20 billion (roughly Rs. 1,69,744 crore) in 2022. Sandeep Nailwal is one of the co-founders and the COO of the blockchain firm, that competes with the likes of Ethereum and Cardano. He has been working with Web3 technology since 2016. Today, India-made Polygon Labs is licenced in the EU, collaborating on projects in South Korea, while also expanding presence in other nations. Nailwal spoke to Gadgets360 on an array of subjects, at the recently concluded India Blockchain Week 2024 in Bengaluru.

In a recent TV interview, Polygon Labs CEO Marc Boiron said that the blockchain brand has struggled in broader adoption due to racial prejudice against Nailwal and Polygon's roots in India. In this interview with Gadgets 360, the company's founder addresses the alleged racial bias prevalent in the global Web3 arena while also voicing his opinion on India's Web3 market, Polygon's future, and the urgent need for Web3 regulation.

Gadgets360: Are you concerned about Marc's statement that that the Polygon's PoS chain is struggling in broader adoption due to racial prejudice against you, and how does this impact developers in India?

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Nailwal: I appreciate Marc highlighting this issue but let me be clear about how I view this. Early in our journey, yes, we faced skepticism and bias. What I have learned is that nobody is doing this deliberately or systematically. The universe doesn't owe us respect - we have to earn it. I used to get pained by this, but now I understand that worrying about prejudice is just wasting energy we could use for building.

When Polygon started, people doubted whether an Indian team could build critical blockchain infrastructure. Today, Polygon PoS powers thousands of dApps and global brands deploy on the network. This didn't happen by complaining. It happened through relentless execution.

The only way to change these perceptions is through sustained success. Keep building, keep winning. Web3 is inherently borderless - it doesn't care where you come from. What matters is what you build and how well it works.

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Gadgets360: What are the key factors that have driven Polygon's growth so far?

Nailwal: Several factors have contributed to the success of the Polygon network. First and foremost is the community. From the developers grinding away at DeFi protocols to enterprises taking their first Web3 steps, from NFT creators to dApp builders - they're the ones driving real innovation. With a strong, engaged developer community, adoption follows naturally.

We made a conscious choice to build a network that just works - the PoS chain. It's simple, fast, and secure. We are not building for just one segment of Web3. That's why we went all-in on ZK technology. It's not about following trends; ZK is fundamental to blockchain scaling.

Now, with AggLayer, we're tackling chain connectivity and shared liquidity. Again, not because it's trendy, but because it's necessary — blockchain's future hinges on overcoming its inherent fragmentation. For mass adoption, the user experience must rival the seamlessness of today's internet. Agglayer's mission is to enable liquidity to flow across the ecosystem, effortlessly.

Gadgets360: How will Polygon address the challenge of blockchain scalability?

Nailwal: Aside from fragmentation, scalability is blockchain's biggest challenge. ZK technology is where we're making the biggest breakthrough. This is the ultimate answer to scaling blockchain without compromising security. zkEVM and other rollups are pushing the boundaries of what's possible with transaction throughput while staying compatible with Ethereum. The final piece is aggregation through AggLayer.

All these chains can be connected into one unified ecosystem. Think about it - shared liquidity, seamless movement between chains, and a user experience that just works. This is how aggregated networks will support the next billion users.

When you combine modular and monolithic approaches like this, you're solving the issue for good beyond temporary patchwork fixes. This ecosystem will allow every chain to be connected, fast, and accessible. No compromises on security, decentralisation, or performance. That's the future of Web3.

Gadgets360: How does Polygon Labs view the Indian market?

Nailwal: What excites me is how Indian companies are innovating with blockchain. Take Flipkart - they've already created over 3.6 million user wallets on Polygon PoS, and they're just getting started. This shows how enterprise adoption can bring millions of users into Web3 seamlessly.

Looking beyond Polygon, through my Blockchain for Impact (BFI) project, we've committed $200 million (roughly Rs. 1,697 crore) towards building India's biomedical capabilities because we believe in long-term impact.

Gadgets360: Can you comment on the global and Indian regulatory landscape around the crypto and Web3 sectors?

Nailwal: The regulatory landscape around Web3 is complex, but real progress is taking place. Globally, countries are starting to understand that blockchain isn't just about crypto - it's about building better infrastructure for the digital economy.

In India, we've had our ups and downs, but I'm optimistic. The government is taking time to understand the technology. Sure, there's uncertainty, but let's look at the talent pool we have. Indian developers are building incredible things in Web3, and with the right policy framework, we could become a global hub for innovation.

Here's what really matters - we need regulations that make sense. Not so loose that bad actors can exploit users, but not so strict that we kill innovation. The future of Web3 depends on finding this balance between innovation and protection. Good regulation actually helps adoption.

Some responses have been condensed and slightly edited for clarity.

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Further reading: Cryptocurrency, Polygon, Web3, Sandeep Nailwal, India Blockchain Week 2024

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More