NPCI Vajra Platform blockchain-based platform launched for secure and fast payments
Vajra Platformuses distributed ledger technology to ensure security and improve the speed of transactions.
- Payment companies and end users alike are expected to benefit from this new platform.
- UIDAI will also use the Vajra Platform for Aadhaar authentication.
While making the announcement, NPCI said that the Vajra Platform uses distributed ledger technology (DLT). It uses a permissions model to ensure that only approved parties are a part of the network. Payment companies can apply to be a part of the network. Once approved, they can deploy the platform using an application programming interface (API) that will be provided by NPCI.
Benefits of the Vajra Platform
According to NPCI, following are the benefits of the Vajra Platform:
- Near real-time clearing and settlement of transactions.
- Minimal reconciliation of transactions.
- Improved security and reduced operational and financial risks.
- Legitimate audit trail as DLT is incorruptible.
As far as end users are concerned, the introduction of Vajra Platform should make the process of payments even more seamless than it is right now.
The use of DLT and the resulting audit trail should also make it easier to track and resolve payment disputes. At the moment, payment disputes raised by users take at least three working days to be resolved.
In addition to improving the security of payments and making the process faster, the Vajra Platform will also be used for Aadhaar authentication by the Unique Identification Authority of India (UIDAI).
Although the Indian government and has been against the concept of cryptocurrency, it has now embraced one of its features. The Reserve Bank of India has also revealed that it is thinking about developing a sovereign digital currency, although it banned cryptocurrency.
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