A New Digital Order – Unveiling The Interplay Of Law & Blockchain Technology – Part C | Blockchain Technology In India: Use Case And State Initiatives – Technology

A) Introduction

While blockchain technology fetches its own set of advantages
(as discussed in the previous parts), the decentralized
nature of the technology renders it a constant source of scuffle
against the legal machinery. In this third and final part we seek
to encapsulate the various means through which States across India
have sought to apply the technology in an attempt to create a
cross-section between the technology and various independent
sectors with the aim of harnessing the benefits thereof.

B) Blockchain – Use Cases

As discussed in the previous parts of the paper, blockchain
technology may be put to use in a variety of sectors. While the
most common usage of the technology may be in the domain of
crypto-assets at present, however, it is untrue that the technology
can only be put to use in the above domain. Continual efforts are
on across all levels to utilise the potential of the technology to
the utmost extent possible.

Niti Aayog in its January 2020 report titled
Blockchain: The India Strategy (Part 1)‘ sets out
a use case selection framework (reproduced below):1

Discussing the aforesaid framework in the context of legal
practice appears to be challenging. In order to enable a closer
analysis legal practice needs to be split into
transactional/advisory and litigation/dispute resolution. While
transactional/advisory related legal services may require a
permissioned blockchain, dispute resolution may provide a strong
case for use for both private and public blockchain (depending on
the nature of the dispute). Presently, platforms such as Kleros and
Codelegit are providing blockchain enabled dispute resolution
platforms for parties.

Other use cases like voting has gained traction especially on
account of platforms like FollowMyVote and BitCongress which are
taking the conversations around digitizing voting through
blockchains forward. The aim of such a protocol is to ensure that
an individual can vote only once and the same has to be recorded on
the immutable ledger. The process may prove quite beneficial in
cases where postal ballots may be rendered inefficient by
corruption charges. However, the utility of blockchain technology
may prove lacking because a voting network would have to be
extremely fast and efficient to record votes from multiple ballot
boxes at the same time.

In India, at the central level corporations like the National
Payments Corporation of India (NPCI) has developed ‘Vajra’,
a platform that functions on distributed ledger technology to
enable automated payments. The network can only be accessed by
entities who have received permission from the administrator. India
is also set to release its own National Blockchain Framework with
the objective of considering various case-uses of the
technology.

In 2017, Bankchain was created to act as a community of banks
for exploring, building and implementing blockchain solutions.
Presently, Bankchain comprises of 37 member banks with 8 live
projects. Few of the Bankchain projects include auction of assets,
charge registry, contract authentication, verification &
storage, shared KYC and due-diligence and Data marketplaces.

In addition to the above there are several numerous
blockchain initiatives, the Schedule sets out an indicative list of
blockchain initiatives undertaken by various states in
India.
2

SCHEDULE










STATES BLOCKCHAIN
INITIATIVES
3
STATUS

1.

Andhra Pradesh

Andhra Pradesh has started a pilot program backed by blockchain
technology in two departments and plans to expand it to the entire
administration. The State intends to adopt the technology to
eliminate tampering with land records.4


Additionally, the government has partnered up with Zebi data for
employment of blockchain in land registry. The government is also
partnering with Hitachi to set up an online citizen governance
platform.5


The Andhra Pradesh government has also sought to turn
Vishakhapatnam into a fullfledged fintech ecosystem powered by
blockchain technology. The initiative named ‘FinTech Valley
Vizag’ will create a blockchain database that seeks to make
government data freely accessible to all.6

The State has announced the Draft Blockchain Policy.

2.

Assam

The Assam government is collaborating with Nucleus Vision to
integrate the technology with governance processes towards the
creation of citizen-facing applications.7


The National Law University and Judicial Academy, Assam along
with Infinity Law Tech Educational Services has formed NLUJAA-ILTES
Centre for Blockchain Technology and Legal Studies.

The NLUJAA-ILTES Centre for Blockchain Technology and Legal
Studies is undertaking research and conducting seminars and
personnel training for sensitising government officials and others
in the field of blockchain.8

3.

Chhattisgarh

The Chhattisgarh Infotech Promotion Society
(“CHIPS”), an IT nodal agency of the
government of Chhattisgarh is taking proactive measures in
earmarking areas in which blockchain can be employed.

CHIPS organised ‘Blockchain for e- Governance Grand
Challenge’, where national and international start-ups,
companies, and students were encouraged to develop
proof-of-concepts (PoCs) in selected 4 domains viz., data exchange
management, ehealth records, land record management and open
innovation.9 The participants would also be offered an
opportunity to collaborate with the State in future projects. The
State has also collaborated with NITI Aayog to explore the usage of
blockchain technology in governance.10

4.

Delhi

Electricity distribution company BSES Rajdhani Power Ltd
(“BRPL”) has launched
consumer-to-consumer (peer-to-peer or P2P) solar power trading on a
trial basis.11


The New Delhi Municipal Council (NDMC) attempts to track the
maintenance and growth of 10,000 tree saplings – of neem, peepal,
jamun, tamarind, etc. with the help of blockchain technology and
geotagging.12

BRPL has partnered with Power Ledger, an Australian company.


Aiming to implement this at a large scale.13

5.

Goa

Government of Goa in collaboration with NITI Aayog, Nucleus
Vision and the Government of Telangana organised the International
Blockchain Congress.14

It is not clear whether the State is working on a policy or
whether it intends to incorporate the technology in its
governance.

6.

Haryana

‘Apiary’ a Centre of Excellence
(“CoE”) in Blockchain has been
established by the Software Technology Parks of India in
association with the government of Haryana to provide knowledge and
financial support to start-ups with potential cutting-edge
information technology especially in the field of blockchain
technology.15


UNDP in collaboration with the Government of Haryana sponsored
Blockscale Solutions to build a land registry using blockchain
technology for the city of Panchkula.16

The CoE has been launched this year at the STPI Incubation
Centre in Gurgaon.


Pilot project has been completed. Pending with Haryana
government for scaling up to larger cities.

7.

Jharkhand

The State government had organised a start-up hackathon based on
the theme of innovative citizen centric services using AI/Machine
learning and blockchain, with an aim to obtain innovative solutions
in the field of governance.17

A policy for the present year is yet to be released.

8.

Karnataka

National Informatics Centre (NIC) has set up the Centre of
Excellence (CoE) for Blockchain technology in
Bangalore.18


The State has arguably been the most proactive and aggressive to
examine the scope of incorporation of blockchain policy in
governance.


The State has also sought to launch an online platform for
Intellectual Property, supported by blockchain
technology.19

The State has announced its blockchain policy and it is in the
process of incorporating blockchain in governance.

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Footnotes

1. Blockchain: The India
Strategy,
(Feb. 2020), NITI AAYOG, https://niti.gov.in/sites/default/files/2020-01/Blockchain_The_India_Strategy_Part_I.pdf.

2. Several States are not included to
indicate absence of any regulations or initiatives taken by them to
regulate or employ Blockchain Technology in their jurisdiction.

3. Note: This is not an exhaustive
list of initiatives by different states in India.

4. Andhra government to adopt
blockchain tech to end land record tampering
, (Dec. 15, 2019),
The New Indian Express, https://www.newindianexpress.com/states/andhra-pradesh/2019/dec/15/andhra-government-to-adopt-blockchain-tech-to-end-land-record-tampering-2076359.html
.

5. NASSCOM and Avasant, NASSCOM
Avasant India Blockchain Report 2019
, (March, 2019), https://www.nasscom.in/knowledge-center/publications/nasscom-avasant-india-blockchain-report-2019
.

6. Sharanya Haridas, This Indian City
is embracing Blockchain Technology-Here’s why?,
(March 5,
2018, 02:13 AM), Forbes, https://www.forbes.com/sites/outofasia/2018/03/05/this-indian-city-is-embracing-blockchain-technology-heres-why/#1ab1faa18f56.

7. Supra note 5.

8. NLUJAA-ILTES CENTRE FOR BLOCKCHAIN
TECHNOLOGY AND LEGAL STUDIES, (April 29, 2020, 11:38 pm), http://nluassam.ac.in/nicblt/index.html.

9. Chhattisgarh: Blockchain for
e-Governance Grand Challenge
, (April 29, 2020, 12:33 pm),
Chhattisgarh Infotech Promotion Society, https://www.chips.gov.in/chhattisgarh-blockchain-e-governance-grand-challenge.

10. Jane T., GovBlocks wins the
Chhattisgarh “Blockchain for eGovernance Challenge,

(April 29, 2020, 10:33 pm), https://www.linkedin.com/pulse/govblocks-wins-chhattisgarh-blockchain-egovernance-dr-jane-thomason/.

11. IANS, BSES Delhi Partners
Australian Firm To Launch Blockchain-Based P2P Solar Electricity
Trading Platform For Gated Societies
, (November 14, 2019),
SWARAJYA MAGAZINE, https://swarajyamag.com/insta/bses-delhi-partners-australian-firm-to-launch-blockchain-based-p2p-energy-trading-platform-for-gated-societies.

12. Dipen Pradhan, Blockchain This
Week: West Bengal Districts To Use Blockchain For Issuing Birth
Certificates, Chinese City Using It To Track Convicts On Parole,
And More
, (Sept. 12, 2018), INC42, https://inc42.com/buzz/blockchain-this-week-west-bengal-districts-to-use-blockchain-for-issuing-birth-certificates-chinese-city-using-it-to-track-convicts-on-parole-and-more/.

13. Bringing blockchain to
India’s power consumers
, (April 3, 2020), SMART ENERGY
INTERNATIONAL, https://www.smart-energy.com/industry-sectors/business-finance-regulation/bringing-blockchain-to-indias-power-consumers/.

14. Goa Startup Mission, https://startup.goa.gov.in/IBC. Also at,
Nucleus Vision, Introducing the International Blockchain
Congress in collaboration with NITI AAYOG, Indian State Government
of Telangana Goa
, https://medium.com/@NucleusVision/introducing-the-international-blockchain-congress-in-collaboration-with-the-indian-state-government-2e3f17c0e081
.

15. STPI launches Apiary, centre of
excellence in Blockchain at its incubation centre in Gurgaon,

(July 20, 2020, 7:54 AM), https://government.economictimes.indiatimes.com/news/technology/stpi-launches-apiary-centre-of-excellence-in-blockchain-at-its-incubation-centre-in-gurugram/77048580.

16. Anirban Ghosal, How blockchain
could help make Indian land records more reliable
, (May 1,
2018), TECHCIRCLE.IN, https://www.techcircle.in/2018/05/01/how-blockchain-could-help-make-indian-land-records-more-reliable.

17. Jharkhand Startup Hackathon
2019
, (April 29, 2020, 10:35 pm), Ministry of Commerce and
Industry of India, https://www.startupindia.gov.in/content/sih/en/ams-application/challenge.html?applicationId=5cf0eae2e4b08f8b1a98a879.

18. Press Information Bureau, Government
of India, Ministry of Electronics & IT, Shri Ravi Shankar
Prasad to inaugurate ‘Centre of Excellence in Blockchain
Technology’ in Bengaluru
, (January 17, 2020), https://pib.gov.in/newsite/PrintRelease.aspx?relid=197477
.

19. Debasis Mohapatra, Karnataka set
to unveil India’s first platform for intellectual
properties
, (Dec. 1, 2018, 23:29 PM), Business Standard, https://www.business-standard.com/article/economy-policy/karnataka-set-to-unveil-india-s-first-platform-for-intellectual-properties-118120100771_1.html.

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