Niti Aayog Proposes Deployment of Blockchain for Easing Governance Process

Blockchain: The New Trust Paradigm

According to the authors of the report, blockchains can be coded as a trusted digital intermediary. The technology can lead to the system which adheres to rules seamlessly resulting in ease of doing business as well as ease of bureaucracy. The disintermediation of traditional processes by Blockchain can facilitate as the harbinger of a vibrant ecosystem.

The report defines Blockchain technology as the way to organize the information which can create “trust” by instituting verifiability and auditability.

Challenges for Implementation

Analysis of Niti Aayog’s pilot program realized that various challenges are needed to overcome for the successful implementation of blockchain technology. 

The think tank highlighted the legal and regulatory modifications are required for the introduction of Blockchain in the public and private sectors. Also, the initial cost of implementation, the human resource constraint as well as nascent developers can prove as the barriers in the growth of technology.

Way Forward by Niti Aayog

The first part of the Strategy Document focussed upon the applications of Blockchain ( through various case studies) to resolve inefficiencies in business and governance process. The technology penetration can enable better contract management along with upgraded accountability and decentralization of few authorities in decision making.

The second part (releasing soon) would be highlighting the recommendations for regulatory policies for the blockchain ecosystem. The Niti Aayog will focus on creating India as the blockchain hub as well as the future of cryptocurrencies in the country. According to Vice Chairman of Niti Aayog, Rajiv Kumar, Data is the new oil which is needed to modernize.