Even as the Centre debates the fate of cryptocurrencies, the Ministry for Electronics and Information Technology (MeitY) has recommended setting up a national blockchain framework for use in e-governance services.
In a 52-page National Strategy on Blockchain published on Friday, the ministry called for creating digital platforms using blockchain infrastructure to provide trusted service delivery to citizens and businesses. The document also recommended promoting research and development and harnessing the benefits of the emerging technology.
The ministry will work with various government organisations to realise the advantages of blockchain technology. It will identify a dedicated team to hand-hold the implementers at various central and state government applications, the document said.
Existing services of the ministry for electronics and information technology and other government organisations would also be onboarded onto the trusted digital platform, it said.
Blockchain technology is used for cryptocurrencies and to build web applications for third-generation of the Internet (web3).
The document identified 44 key areas where blockchain technology can be applied such as e-notary services, e-voting, managing digital certificates, transfer of land and property, pharmaceutical supply chain, smart grid management and maintaining electronic health records.
Apart from this, integration of the technology with online Electronic Signatures (e-Sign), ePramaan and DigiLocker will also be advantageous, it said.
Many countries had launched blockchain-based platforms and services such as US, China, Brazil, the UAE, Canada, Singapore, and countries in Europe. Companies such as LG, Amazon, Samsung, Oracle, IBM and Microsoft are also using blockchain technology, the National Strategy on Blockchain said.
Blockchain has the potential to reach business value of more than $176 billion by 2025 and $3.1 trillion by 2030, the paper says quoting Gartner.
“The potential of blockchain technology may be explored in the proposed public digital platforms in various sectors such as agriculture, health, and energy to meet enhanced security requirements," the paper said.
“Blockchain provides an excellent technological framework for preservation of classified and unclassified data in a reduced risk environment. Hence, it is suitable for entities requiring such capability,” the document said.
"It also helps in transparent transaction processing as it has track and trace capabilities," it added.
“The national strategy on blockchain provides a holistic framework for building a blockchain infrastructure for the nation. We, as an industry, are looking forward to collaborate with the government," Ashish Singhal, founder and CEO of crypto exchange Coinswitch Kuber, told Livemint.
