Blockchain-Based Digital Governance

1. The Ministry of Electronics and Information Technology and Centre for Development of Advanced Computing launched the Blockchain India Challenge to promote startup-led blockchain solutions for digital governance.
2. What is Blockchain: Blockchain is a decentralized, distributed ledger technology that enables tamper-proof record keeping, transparent transactions and auditable data trails.
3. Principles: It works on three core principles which makes manipulation extremely difficult:
   1. Immutability – Records cannot be altered once added
   2. Consensus mechanism – Network participants validate transactions
   3. Cryptographic security – Data is secured using encryption
4. Role of Blockchain in Governance
   1. Certificates & Documents: To prevent fraud and delays, the National Informatics Centre developed ‘Certificate Chain’ for secure digital storage and instant verification of official records.
   2. Logistics (Healthcare): Karnataka’s Aushada system tracks medicines from manufacturer to hospitals, including quality checks. It enables patients to verify manufacturer details, expiry dates, and quality, reducing counterfeit drugs.
   3. Judiciary: The Inter-Operable Criminal Justice System (ICJS) integrates police, courts, prisons, and forensic systems into a unified digital platform for managing case records and evidence.
   4. Property Management: Blockchain-based property systems record transactions, ownership rights, and liabilities, reducing land disputes and litigation while improving transparency. States like Andhra Pradesh, Telangana and Maharashtra have piloted blockchain for land title registration.
   5. Other Use Cases: Proof-of-concepts are being explored for remote voting, GST monitoring, blood bank tracking and Public Distribution System (PDS).
5. Other Key Government Initiatives
   1. National Blockchain Framework (NBF): Developed by MeitY, NBF provides a standardised architecture for blockchain deployment in public services.
      1. Key components: Vishvasya Stack, NBFLite and Praamaanik.
   2. Centre of Excellence in Blockchain Technology (CoE): Established to provide Blockchain-as-a-Service (BaaS) infrastructure to government departments.

FAQs

Q1. What is blockchain technology? 

Blockchain is a decentralized, distributed ledger system that ensures tamper-proof record keeping, transparent transactions, and auditable data trails.

Q2. What are the core principles of blockchain technology?

1. Immutability – records cannot be altered once added
2. Consensus mechanism – participants validate transactions
3. Cryptographic security – encryption secures data

Q3. How is blockchain used in governance?

1. Certificate Chain for secure storage and instant verification of official records
2. Aushada system in Karnataka for medicine tracking
3. ICJS platform integrating police, courts, prisons, and forensics
4. Blockchain-based property systems piloted in Andhra Pradesh, Telangana, and Maharashtra

Q4. What other use cases for blockchain technology are being explored? 

Remote voting, GST monitoring, blood bank tracking, and Public Distribution System (PDS).

Q5. What are India’s key blockchain initiatives?

1. National Blockchain Framework (NBF) – standardized architecture for public services. Components: Vishvasya Stack, NBFLite, Praamaanik.
2. Centre of Excellence in Blockchain Technology – provides Blockchain-as-a-Service (BaaS) to government departments.