Vishvasya-Blockchain Technology Stack

Syllabus: GS 3/S&T 

In News

• The Ministry of Electronics and Information Technology (MeitY) launched the Vishvasya-Blockchain Technology Stack.

Blockchain Technology 

• Blockchain is a shared, immutable ledger that records transactions and tracks assets across a business network.
• It stores information electronically in a digital format to ensure transaction security.
• It is known as Distributed Ledger Technology (DLT).
• It converts and stores anything of value, including currency, in a digital format.
• Historical linkages  :It  was first proposed in 1991 as a research project, but in the year 2009, Blockchain was used in bitcoin
  • Bitcoin is a cryptocurrency which is built on the basis of Block technology. 
• Structure and Security: Consists of interconnected data blocks.

• Each block is linked to the previous one, forming a chain.
• Blocks are designed to be secure and resistant to tampering or hacking.

Applications

• Finance and Banking: Financial institution  Testing blockchain for trade finance, foreign exchange, cross-border settlement, and securities.
  • India, with its large underbanked population, can leverage blockchain for financial inclusion.
  • Blockchain has been used in the creation of various cryptocurrencies, decentralized finance applications, non-fungible tokens and smart contracts.
• Governance and Public Services: Blockchain’s potential to enhance transparency and accountability in governance is being actively explored. Applications include land record management, voting systems, and identity verification.
• Healthcare: In healthcare, blockchain can be used to securely manage patient records, ensure data integrity, and facilitate the secure sharing of medical information between institutions.
• Transparent Elections: Blockchain can enhance election processes by providing transparent and tamper-proof voting records.
• Supply Chain Management:Tracking goods from origin to destination becomes more reliable using blockchain.
  • India’s vast supply chains can benefit from increased transparency and traceability.

Challenges and Criticisms:

• Lack of Awareness : Despite growing interest, blockchain technology is still at a nascent stage in India.
  • Many industries are yet to fully grasp its potential.
• Misconceptions persist, such as the belief that blockchain will replace existing systems entirely. 
• Scalability Concerns: Scalability remains a significant challenge. 
• Regulatory Uncertainty: Clear regulatory guidelines are essential for widespread adoption.
  • India is making progress, but further clarity is needed.
• Cybercrime: Increased crypto adoption has led to a rise in scams and cybercrime.
  • India’s nascent regulations make it difficult for victims to recover losses and for authorities to address crypto-related crimes effectively.

Recent Steps 

• Vishvasya-Blockchain Technology Stack : It offers Blockchain-as-a-Service with a geographically distributed infrastructure designed to support  various permissioned Blockchain based applications.
• National Blockchain Framework  :MeitY, with the vision to create trusted digital platforms, initiated National Blockchain Framework (NBF) for promoting research and application development; facilitating state of the art, transparent, secure and trusted digital service delivery to citizens. 
•  MeitY also unveiled the NBFLite-Lightweight Blockchain Platform, Praamaanik – an innovative blockchain-enabled solution for verifying mobile app origin and National Blockchain Portal.
• Blockchain Sandbox for Startups and Academia: NBFLite, a Blockchain sandbox platform, is developed especially for startups/academia for rapid prototyping of applications, carrying out research and capacity building.

Conclusion and Way Forward 

• The Blockchain technology holds immense potential for transforming governance in India by making public services more transparent, efficient, and accountable.
  • It has the potential to create new industries and transform existing ones, such as facilitating nano-payments and wealth redistribution.
• As blockchain networks grow, ensuring efficient transaction processing becomes crucial.
• The stakeholders should aim to position India as a global leader in blockchain technology and proliferate the developed solutions for Global adoption, leveraging it to drive economic growth, social development, and digital empowerment.

Source: PIB