1、 Draft Discussion Paper Blockchain: The India Strategy 2 This page has been intentionally left blank Draft Discussion Paper Blockchain: The India Strategy 3 Acknowledgments In writing Blockchain: The India Strategy, Arnab Kumar, Tanay Mahindru, Punit Shukla and Aalekh Sharan have made valuable contr
2、ibutions. The support of several of our partners and contributors are also thankfully acknowledged. A list of all partners and contributors is appended at the end of this Strategy document Anna Roy Senior Advisor NITI Aayog Draft Discussion Paper Blockchain: The India Strategy 4 Contents FOREWORD 5
3、INTRODUCTION 6 BLOCKCHAIN: THE NEW TRUST PARADIGM 8 THE BLOCKCHAIN NECESSITY FRAMEWORK 16 CHALLENGES IN BLOCKCHAIN IMPLEMENTATION 26 BLOCKCHAIN USE CASES 31 WAY FORWARD 52 APPENDIX I: BLOCKCHAIN EXPLAINED 53 Draft Discussion Paper Blockchain: The India Strategy 5 Foreword Blockchain has emerged to b
4、ecome a potentially transformative force in multiple aspects of government and private sector operations. Its potential has been recognized globally, with a variety of international organizations and technology companies highlighting the benefits of its application in reducing costs of operation and
5、 compliance, as well as in improving efficiencies. While the technical underpinnings of the technology can be intimidating to a large section of policy and decision makers simply and functionally, blockchain can enable ease of collaboration for enterprises and the ease of living for our citizens by
6、bringing in transparency across government and private sector interfaces. Despite the fact that the technology is still in a nascent stage of its development and adoption as it continues to evolve, it is important for stakeholders such as policy makers, regulators, industry and citizens to understan
7、d the functional definition of the entire suite of blockchain or distributed ledger technologies along with legal and regulatory issues and other implementation prerequisites. Equally important is the fact that this technology may not be universally more efficient and thus specific use cases need to
8、 be identified where it adds value and those where it does not. This discussion paper, the first part of the strategy titled “Blockchain: The India Strategy Towards Enabling Ease of Business, Ease of Living and Ease of Governance”, aims to address these needs. The paper first analyses the value of b
9、lockchain in facilitating trust in government and private sector interactions, followed by considerations when evaluating a blockchain use case for implementation, possible challenges and lessons from NITI Aayogs experiences in blockchain implementation showcases potential use cases that the ecosyst
10、em may consider. The paper is a culmination of multiple consultations over the last two years together with NITI Aayogs own experiences in implementing blockchain systems in a variety of contexts. It is meant to serve as an essential pre-read to implementing a blockchain system in India and help gui
11、de broader thinking in the area. Dr. Rajiv Kumar Vice Chairman, NITI Aayog Draft Discussion Paper Blockchain: The India Strategy 6 Introduction Blockchain technology has the potential to revolutionize interactions between governments, businesses and citizens in a manner that was unfathomable just a
12、decade ago. Though very often grouped with technologies such as artificial intelligence (AI) or IoT (Internet of Things), the technology is unique in its foundational nature. Unlike other technologies, which have the potential to deliver completely new services to citizens and other stakeholders ali
13、ke, blockchain has the potential to revamp currently existing processes to unlock new sources of efficiency and value. Governance in India faces unique challenges given the scale, diversity and complexity of processes involved for delivery of varied public services. Blockchain offers unique possibil
14、ities of addressing issues relating to improving governance. In business, by allowing self-regulation, India can considerably move towards improving the Ease of Doing Business by allowing entities to interact through a trusted medium with a reduced dependency on cumbersome regulatory oversight and c
15、ompliance. By empowering citizens through features of transparency, decentralization and accountability, blockchain would help in improving ease of living. The Strategy document is being presented in two parts where independent but connected pieces are aimed to help convey a more cohesive message. N
16、ITI Aayog has been at the forefront of promoting adoption of frontier technologies through demonstration of their efficacy. In this first part of the Blockchain: The India Strategy, various learnings from pilot initiatives and consultations undertaken over the last two years have been highlighted. D
17、espite the hype around the technology, there is limited appreciation on its potential for governance. This edition of the Strategy document attempts to demystify and improve the understanding of amenability of blockchain to specific use cases. This is a fast evolving space and the Strategy aims to p
18、resent a more functional view of blockchain and not delve in the technical aspects. A simple framework is also presented to help decision makers identify use cases that would benefit from the usage of the technology. This is supplemented by deep dives of the initiatives undertaken by NITI Aayog in c
19、ollaboration with a host of government and technology partners. The paper attempts to highlight the specific challenges faced during their implementation in an effort to help future initiatives achieve success, and ends with additional potential use cases that governments and businesses may explore
20、towards Enabling Ease of Business, Ease of Governance, and Ease of Living. Significant work is already being undertaken by a number of other nations, state government, government agencies and businesses, but this paper does not report them, and focuses on NITI Aayogs own experiences in the area. Par
21、t 2 of the Strategy would elaborate on the recommendations in greater detail. Draft Discussion Paper Blockchain: The India Strategy 7 I hope this document would help start a dialogue on this very important subject and help various government instrumentalities to explore how this technology is effect
22、ively leveraged for the betterment of society. Amitabh Kant CEO, NITI Aayog Draft Discussion Paper Blockchain: The India Strategy 8 Blockchain: The New Trust Paradigm Trust systems reimagined The need for trust Milton Friedman publicized “I, Pencil” an essay by Leonard Read that demonstrates the pow
23、er of markets to drive collaboration. In the essay, written as an autobiography of a pencil, attention is drawn to the extremely complex and large-scale human collaboration needed to manufacture even something as simple as a pencil. The pencil lists its constituents including cedar, graphite, lacque
24、r, ferrule, etc. and describes the interactions required to manufacture these through different processes across different components, from the complex machines that extract graphite to the sweeper in the factory and the lighthouse keeper granting entry into the port. The book draws attention to the
25、 fact that there is no mastermind directing this coordination. The invisible hand of the market, with price signals being its only weapon, is able to incentivize collaboration amongst the various entities involved in the market thinking selfishly of maximizing their own respective gains. Though the
26、parable is instructive, in practice disagreements could potentially occur at each step whether each entity got what they bargained for and whether promises were kept with respect to the mode and manner of value exchange. These disagreements can take a number of different forms and can cause delays o
27、r inefficiencies in the market, often leading to losses for the participants. Such disputes are traditionally addressed by introducing trust in the system through a network of intermediaries to ensure that the entities adhere to the commonly understood rules of the game. We thus observe that the mar
28、ket never needed a mastermind, it needed an impartial and trusted facilitator a mediator with the power to enforce rules. Banks, regulatory bodies, and even governments perform this role. Enforcement is typically through an ex-ante regulation the state would employ a bureaucracy to ensure that laws
29、and rules were being adhered to and would have the power to recognize, investigate, and punish transgressions. As the Noble laureate Friedman stated, contract enforcement as one of the three primary functions of a government is mostly implemented through mechanisms of deterrence and penalty. Consequ
30、ently, these mechanisms have their own challenges that also introduce inefficiencies due to several factors including lack of transparency, rent seeking and apathy by the constituents etc. Blockchains represent another form of intermediaries code as a trusted intermediary. By encoding the rules of t
31、he game as computer programs and by allowing different entities with differing interests to collaborate on an immutable ledger, blockchains lead to a system that seamlessly adheres to the rule and fulfils the promise of not allowing transactions that did not comply to the agreed conditions. This asp
32、ect of blockchain technology is the harbinger of its true promise seamless transactions Draft Discussion Paper Blockchain: The India Strategy 9 that promote ease of doing business as well as ease of living for citizens via disintermediation and the reduction of ad-hoc bureaucracy. Transactions today
33、 are facilitated by trust systems and intermediaries Removed from the context of finance, a transaction is commonly defined as “the act of carrying out or conducting a deal or exchange to a conclusion or settlement”. Today, an individual transacts with multiple entities every day, either offline or
34、online, and in a variety of forms. Transactions could take the form of small purchases from a roadside vendor or a deal between two very large organizations. Immaterial of the size or nature, however, a common underlying feature of transactions is that they require the parties involved to trust each
35、 other, or adhere to a system that enables this trust to be executed. These trust systems can take a variety of forms, depending on the nature of transactions being executed, to create checks and balances to ensure that parties involved fulfil their responsibilities and recourse in the case of disag
36、reements is available. In the assignment of a job to a vendor for a construction project, for example, trust is encoded in contracts enforceable by law. Escrow accounts can be seen as another instrument to create trust. In the execution of outcome driven project financing, for example, escrow accoun
37、ts are used to store project implementation funds pending completion of the project as per previously ascertained goals or objectives. Economic structures, as we know them today, have evolved to create these systems of trust. Banks are perhaps the most well-known of these systems, existing largely t
38、o facilitate creation of trust while transacting in money. Regulatory bodies and certain government agencies exist almost exclusively to establish enforceable guidelines or regulations to create trusted environments for stakeholders to transact. In essence, the need for trust in execution of these p
39、rocesses necessitated the need to create centralized authorities to oversee their procedures and enforce them. These trust systems have become increasingly complex With development and growth, the complexity of these systems has increased, making them more susceptible to inefficiencies. India, speci
40、fically, has not fared well in indicators to measure the efficiency of processes to ensure trust. In the Ease of Doing Business rankings, released annually by the World Bank, while India has registered phenomenal progress and has gained 79 positions since 2015 to be ranked 63rd in the 2020 edition,
41、it continues to perform abysmally low in indicators such as enforcing contracts (ranks 163 out of 190 countries), property registration (154 out of 190 countries) and starting a business (136 out of 190 countries)1. Of note is also Indias poor performance in trading across borders (68 out of 190 cou
42、ntries) which includes parameters such as cost of compliance to export. 1 World Bank Ease of Doing Business Ranking 2020 Draft Discussion Paper Blockchain: The India Strategy 10 Apart from the increase in complexity, centralised authorities introduce risks and disadvantages of their own, since they
43、themselves need to be trusted and compensated for their services. In India, the perceived level of corruption in public trust systems is especially poor, with a position of 78 out of 180 countries in the Corruption Perception Index released by the Transparency International2. The Government of India
44、 has taken several initiatives to improve both the ease of doing business and ease of living by streamlining and simplifying processes, primarily by leveraging technology as well as proactively rationalizing various regulatory and other requirements. However, there is still a case for further improv
45、ement. Blockchain presents the potential for achieving the vision of Honble Prime Minister of less government and more governance. Enter blockchain a new paradigm of trust In 2008, a technical white paper was released to describe the design of a new Peer to peer electronic cash system called Bitcoin
46、. The paper argues that the traditional trust based payment models, with the possibility of reversals, lead to high transaction costs and increase the level of intermediation required by a trusted third party (in this case, a bank). The high transaction costs, in turn, prohibit the digital execution
47、 of small value transactions3. The paper proposed that instead of trust being introduced to transactions through trust systems or trusted third parties, it could be introduced to transactions cryptographically. This would ensure a shared order of transactions through computations without the need of
48、 parties knowing each other. Through a peer to peer distributed network that time stamped transactions, participants would be able to execute transactions without the need for a trusted third party as intermediary, thus eliminating inefficiencies caused by the more traditional system. While the shape and form the technology takes has evolved since its introduction, certain features remain consistent, as does blockchains goal to facilitate trusted electronic transactions more efficiently. Though some of the foundational technologies that m
sgpjbg002
工作日 8:30 - 17:30
会员动态：
报告分类
新质生产力
ChatGPT
新能源汽车
大模型
Sora
机器人
微短剧
芯片
薪酬
白皮书
低空经济
数据要素
创新药
人工智能
AI产业
信息科技
互联网
消费经济
汽车交通
电商零售
传媒娱乐
医药健康
投资金融
能源环境
地产建筑
传统产业
英文报告
其它
扫码登录
手机快捷登录
账号登录
