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NITI Aayog outlines plan for using blockchain tech, Indiachain, for maximizing efficiency in governance.

Amit Agrahari by Amit Agrahari
22 June 2018
in Economy
blockchain, indiachain, niti aayog

PC: forexnewsnow

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NITI Aayog could be called a truly 21st-century policy think tank. It thinks in a modern way of using technology, unlike its predecessor Planning Commission. Planning Commission used to prepare policy document for a period of five years in a world where everything changes so fast. Therefore, it had become irrelevant to a large extent. On the other hand, NITI Aayog prepares plans for particular projects keeping implementation in mind, so these could be called action plans rather than policy documents. India has long been reluctant to use cryptocurrency as a valid instrument of transaction. RBI has released a notification about banning cryptocurrency in the country. The NITI Aayog showed less skeptical attitude about cryptocurrency and the technology it uses- Blockchain.  It is planning to bring a blockchain policy paper by next month which will explore best possible cases of deployment of blockchain in India, according to sources close to the development.

The Blockchain technology is built using cryptography, therefore, it is completely secure and does not need any centralized authority to control and regulate. It is continuously growing list of records which is monitored and managed by a peer-to-peer network by using standardized protocols. The government will build a blockchain called Indiachain which is similar to unified payments interface, or UPI, a layer of software that makes it easy to transfer money in real time. The UPI which is a blockchain developed by National Payments Corporation of India, a government entity allows the private players like Paytm, Google’s Tez, Phonepe to use its software. The Indiachain was conceptualized nine months ago on similar lines with the aim to allow both government and private entities to take advantage and build large scale solutions. A NITI Aayog official said IndiaChain is being looked at from the same lens to build an interoperable platform that others can also use, some reference blockchain applications will be built and then other companies can build similar or better applications. As of now, the following countries use Blockchain technology for various purposes.

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(source: Deloitte Analysis)

 

The Indiachain could be used for land Records, supply chain Management, Identity management, benefit distribution, educational certificates, power distribution, cross-border finance etc. India has long faced a problem with availability of data which could be used for efficient delivery of public goods, keeping records of income of the people, the property they own etc. If an independent entity has data of these there will be more effectiency in delivering the products according to the need of the people.  To protect the misuse of data from private companies “The government can build two-three layers, standardize these data layers, and build adequate consent controls” said a government official. The blockchain will also be used for healthcare benefits like vaccines and immunization and for this IndiaChain or its side chains will need to be built in such a way that hospitals and doctors see value in it and adapt it easily.

The Indiachain program by NITI Aayog indicates towards the success of the government as well as the policy think tank. It tells us the country is no longer fearful towards any new technology as it used to be in the previous decades. India was reluctant to bring telephony and computer technology to India because the government was fearful of the negative impact of these technologies in India. If the program succeeds it will give a major boost to the economy of India and make the delivery of public goods more efficient.

Tags: blockchainModi Government AchievementsNiti Aayogtechnology
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