NITI Aayog will first identify areas where the blockchain technology will be implemented. And then a national strategy on the use of blockchain will be developed. It is consulting with various ministries on the same
NITI Aayog to plan Blockchain Technology Strategy
India’s national premier think tank NITI Aayog is looking to implementing blockchain in the country and will identify areas this can be done and how it can be done. Officials said a policy paper on this will be released by July. Aayog will share a discussion paper being prepared with all states and central ministries according to a government official who requested for anonymity.
This paper, in addition to listing areas where blockchain will be applied, indicates cautionary advisories to avoid taking the project overboard amidst hype around it.
After this, there will be a national strategy for use of distributed ledger that is encrypted but can be tracked. So basically, it will be a strategy to see government ministries use blockchain technology to improve operations where need be.
Blockchain Technology works when multiple parties involved
It is important for the government to identify where the technology can be applied. This is because it will be involved in implementing this technology directly. Unlike in artificial intelligence where it acts as a facilitator, said the official.
The official said NITI is currently doing consultations in order to put the framework to adopt the technology. He added that the technology works best when multiple parties do not trust each other, in land records, for instance.
“A lot of people think that just because it is a database let’s put it on the blockchain. This is because there is overhype, but blockchain is going to work only when multiple parties are collaborating,”
The announcement comes after a request to them by the finance minister Arun Jaitley in his budget speech this year, to prepare a roadmap for blockchain.