The Ministry of Electronics and Information Technology in India is taking the lead in developing a national blockchain infrastructure to enhance collaboration among various entities through open APIs.
This infrastructure aims to promote the creation of decentralized applications (dApps) and will be accessible to both private and government bodies. The National Informatics Centre (NIC), a unit within the Ministry, is spearheading the project and has already conducted a proof-of-concept trial of the blockchain network.
About the Blockchain Infrastructure
The upcoming infrastructure is set to be established on the existing IndiaChain blockchain network, which was initially launched in 2018. IndiaChain is a blockchain network that operates under permissioned access and is optimized for utilization of dApps by businesses and government entities.
It is constructed on the Ethereum blockchain and runs on smart contracts to automate diverse processes. The primary objective of the new infrastructure is to develop reliable decentralized applications that can be employed in various sectors, including healthcare, finance, and education. The National Informatics Centre (NIC) is also planning to introduce a blockchain-based platform designed for managing land records. This platform will be accessible to both government and private entities.
The demand for a blockchain infrastructure based in India has been consistently increasing and has recently peaked when Dilip Asbe, the CEO of the National Payments Corporation of India (NPCI), voiced his support for the project in an op-ed featured in the Indian Express. According to Asbe’s article, it has been noted that a national unified platform could serve as the most effective solution for addressing the majority of the existing issues related to decentralized technologies.
The Stance of India towards Blockchain
Regional governments in India have been actively exploring the use of blockchain technology for record-keeping in land transactions and criminal forensics.
To promote the adoption of blockchain technology, several civil society groups have joined forces with service providers and universities to launch learning modules. India’s Finance Minister, Nirmala Sitharaman, has expressed the government’s confidence in blockchain technology and set a target of a 46% adoption rate for the country.