NITI Aayog is building largest blockchain network to boost economy

In order to boost ease of doing business and agriculture economy of the country, NITI Aayog is building IndiaChain, a blockchain network. IndiaChain will be linked to IndiaStack, a set of code developed around India's unique identity project Aadhar.

Once implemented, the project will be a huge boost in bringing transparency in governance and reducing frauds, according to a FactorDaily report. NITI Aayog officials said that the government is in the process of firming up regulations for the use of blockchain technology in the country.

“This is just the beginning of a government-led blockchain initiative. There is a long way to go,” said an executive, who has been in discussions with NITI Aayog on implementing a nationwide blockchain network, to FD.

#RoadToGES Generation Blockchain has helped to identify challenges across several key areas: Additional Secretary, NITI Aayog @yadujaipur pic.twitter.com/DEUaUBqKko

— NITI Aayog (@NITIAayog) November 11, 2017

This will make India the largest scale of blockchain implementation in governance anywhere in the world. At present, Estonia is considered the leader in blockchain adoption. The country's eHealth Foundation is using a blockchain-based system to process and store patient health records.

The government is working on the project in the states of Telangana and Andhra Pradesh, added the report.

Blockchain is a decentralised distributed digital ledger collectively maintained by a network of computers, called nodes. The system is considered safe as no data in it can be changed by anyone without everyone else who maintains the records giving nod to it. The record book is not stored in one place but instead is distributed among the bookkeepers.

More than $1 billion investments went into blockchain-based companies in 2016. Technology experts and investors believe that like mobile was a decade ago, blockchain will be the disruptor in the coming one decade.

However, there are some challenges in safeguarding the privacy of individuals and companies on IndiaChain, as blockchains are usually open ledgers for everyone to see. It will need to address identity, privacy, and policy.