Brief Context
Context India is accelerating its adoption of blockchain technology to transform governance, enhance transparency, and strengthen digital trust through the National Blockchain Framework (NBF). What is Blockchain? Blockchain is a distributed, transparent, secure, and immutable database that functions like a ledger of records or transactions, resistant to tampering and accessible across a network of computers.
Source Content
Syllabus: GS2/ Governance. GS3/ Science and Technology
Context
- India is accelerating its adoption of blockchain technology to transform governance, enhance transparency, and strengthen digital trust through the National Blockchain Framework (NBF).
What is Blockchain?
- Blockchain is a distributed, transparent, secure, and immutable database that functions like a ledger of records or transactions, resistant to tampering and accessible across a network of computers.
- Understanding Types of Blockchain:
- Public Blockchain: In this network, all nodes can access records, verify transactions, perform proof-of-work, and add new blocks.
- Private Blockchain: It is a permissioned blockchain, restricted to selected participants within an organization.
- Consortium Blockchain: In this network, the blockchain is semi-decentralized, governed jointly by multiple organizations for shared data management and validation.
- Hybrid Blockchain: It is a blend of public and private blockchains allowing selective data access.
National Blockchain Framework (NBF)
- Developed by the Ministry of Electronics and Information Technology (MeitY), NBF was launched in 2024 with a budget outlay of ₹64.76 crore.
- NBF is designed to accelerate the development and deployment of permissioned blockchain-based applications, marking a strategic step towards building a secure, transparent, and scalable digital infrastructure for India.
Key Components of NBF
- Vishvasya Blockchain Stack: It is an indigenous and modular platform designed to provide the technical foundation for building and deploying blockchain-based applications for governance. The features of Vishvasya Blockchain Stack are:
- Blockchain-as-a-Service (BaaS): Vishvasya enables rapid development and deployment of blockchain applications for governance, providing third-party cloud-based infrastructure and management so that organizations can launch blockchain applications without maintaining complex infrastructure themselves.
- Distributed Infrastructure: The stack is deployed across NIC data centres located in Bhubaneswar, Pune, and Hyderabad, ensuring fault tolerance, scalability, and resilience for blockchain-based applications.
- Permissioned Blockchain Layer: The platform is built on a permissioned blockchain, ensuring that only verified and authorized participants can join or validate transactions.
- Open APIs and Integration Services: Vishvasya provides open APIs (Application Programming Interfaces) and integration modules for authentication and data exchange.
- NBFLite – Blockchain Sandbox for Startups and Academia: A sandbox environment for startups, academia, and research institutions to prototype blockchain applications in governance.
- Praamaanik: It is an innovative solution that leverages blockchain technology to verify the authenticity and source of mobile applications.
Blockchain-Enabled Applications Transforming Governance
- Certificates and Document Chain: The chain allows secure issuance, storage, and retrieval of documents such as academic certificates, caste, income, ration cards, driving licenses, and birth or death certificates.
- Logistics Chain: Provides a tamper-proof and transparent platform to track goods across multiple stakeholders.
- Example: Karnataka’s Aushada system tracks medicines from manufacturers to hospitals, verifying quality, expiry, and traceability, reducing the risk of spurious drugs.
- Property Chain: Ensures transparency in land and property transactions, allowing verification of ownership and rights, minimizing disputes, and expediting resolution processes.
- Judiciary Chain: Blockchain facilitates electronic delivery of notices, summons, and bail orders, reducing delays and eliminating manual dependencies.
- The Inter-operable Criminal Justice System (ICJS) integrates the criminal justice ecosystem, ensuring a unified digital platform for case records, evidence, and judicial documents.
Initiatives for Blockchain Adoption in India
- The Centre of Excellence in Blockchain Technology (NIC) provides consultancy, training, and support for pilot projects, using platforms such as Hyperledger Fabric, Hyperledger Sawtooth, and Ethereum.
- RBI is leveraging blockchain for the Digital Rupee, enabling traceable, secure, and inclusive digital payments.
- Telecom Regulatory Authority of India (TRAI) has integrated blockchain-based Distributed Ledger Technology (DLT) to track SMS transmissions for regulatory compliance and consumer protection.
- The National Securities Depository Limited (NSDL), has introduced a Distributed Ledger Technology (DLT)–based blockchain platform for Debenture Covenant Monitoring, marking a major step in modernizing India’s capital markets.
Conclusion
- Various blockchain-based use cases are being studied across sectors to enhance efficiency and trust in public services.
- Key Proof of Concepts (POCs) include Land Records for secure ownership records, Blood Bank for transparent donation tracking, GST Chain for real-time tax monitoring, and Public Distribution System (PDS) for secure supply chains.
Source: PIB