Blockchain The India Strategy Part I

 

‘Blockchain’ has emerged to become a potentially transformative force in multiple aspects of government and private sector operations. Its potential has been recognized globally, with a variety of international organizations and technology companies highlighting the benefits of its application in reducing costs of operation and compliance, as well as in improving efficiencies. While the technical underpinnings of the technology can be intimidating to a large section of policy and decision makers – simply and functionally, blockchain can enable ease of collaboration for enterprises and the ease of living for our citizens by bringing in transparency across government and private sector interfaces. Despite the fact that the technology is still in a nascent stage of its development and adoption as it continues to evolve, it is important for stakeholders such as policy makers, regulators, industry and citizens to understand the functional definition of the entire suite of blockchain or distributed ledger technologies along with legal and regulatory issues and other implementation prerequisites. Equally important is the fact that this technology may not be universally more efficient and thus specific use cases need to be identified where it adds value and those where it does not. This discussion paper, the first part of the strategy titled “Blockchain: The India Strategy –Towards Enabling Ease of Business, Ease of Living and Ease of Governance”, aims to address these needs. The paper first analyses the value of blockchain in facilitating trust in government and private sector interactions, followed by considerations when evaluating a blockchain use case for implementation, possible challenges and lessons from NITI Aayog’s experiences in blockchain implementation showcases potential use cases that the ecosystem may consider. The paper is a culmination of multiple consultations over the last two years together with NITI Aayog’s own experiences in implementing blockchain systems in a variety of contexts. It is meant to serve as an essential ‘pre-read’ to implementing a blockchain system in India and help guide broader thinking in the area.

Dr. Rajiv Kumar Vice Chairman, NITI Aayog

Blockchain technology has the potential to revolutionize interactions between governments, businesses and citizens in a manner that was unfathomable just a decade ago. Though very often grouped with technologies such as artificial intelligence (AI) or IoT (Internet of Things), the technology is unique in its foundational nature. Unlike other technologies, which have the potential to deliver completely new services to citizens and other stakeholders alike, blockchain has the potential to revamp currently existing processes to unlock new sources of efficiency and value. Governance in India faces unique challenges given the scale, diversity and complexity of processes involved for delivery of varied public services. Blockchain offers unique possibilities of addressing issues relating to improving governance. In business, by allowing ‘self-regulation’, India can considerably move towards improving the ‘Ease of Doing Business’ by allowing entities to interact through a trusted medium with a reduced dependency on cumbersome regulatory oversight and compliance. By empowering citizens through features of transparency, decentralization and accountability, blockchain would help in improving ease of living. The Strategy document is being presented in two parts where independent but connected pieces are aimed to help convey a more cohesive message. NITI Aayog has been at the forefront of promoting adoption of frontier technologies through demonstration of their efficacy. In this first part of the ‘Blockchain: The India Strategy’, various learnings from pilot initiatives and consultations undertaken over the last two years have been highlighted. Despite the hype around the technology, there is limited appreciation on its potential for governance. This edition of the Strategy document attempts to demystify and improve the understanding of amenability of blockchain to specific use cases. This is a fast evolving space and the Strategy aims to present a more functional view of blockchain and not delve in the technical aspects. A simple framework is also presented to help decision makers identify use cases that would benefit from the usage of the technology. This is supplemented by ‘deep dives’ of the initiatives undertaken by NITI Aayog in collaboration with a host of government and technology partners. The paper attempts to highlight the specific challenges faced during their implementation in an effort to help future initiatives achieve success, and ends with additional potential use cases that governments and businesses may explore towards ‘Enabling Ease of Business, Ease of Governance, and Ease of Living’. Significant work is already being undertaken by a number of other nations, state government, government agencies and businesses, but this paper does not report them, and focuses on NITI Aayog’s own experiences in the area. Part 2 of the Strategy would elaborate on the recommendations in greater detail.

real full details https://niti.gov.in/sites/default/files/2020-01/Blockchain_The_India_Strategy_Part_I.pdf