Mihika Saraf

INTRODUCTION For a country where inefficiency and corruption often erode public trust, blockchain offers not just innovation, but institutional reform written in code. As India accelerates toward a $5-trillion digital economy, the need for transparent, tamper-proof, and efficient systems of governance has never been more urgent. Unlike artificial intelligence, which thrives on computational intelligence, blockchain’s true strength lies in its ability to create verifiable trust without intermediaries. Once synonymous with cryptocurrency, it is now redefining trust systems across sectors, from digital identity and finance to governance and logistics. Globally, blockchain is being institutionalized: in the United States, regulatory clarity and venture-backed innovation drive enterprise adoption; in Europe, sustainability goals and frameworks like MiCA shape cross-border blockchain applications; while the Asia-Pacific region, led by China, Japan, India, and South Korea, is rapidly integrating blockchain into trade, public services, and finance. India, too, is witnessing this shift, from experimenting with pilot projects to embedding blockchain into national infrastructure. The future of blockchain here is not about speculation, but systemic transformation. Once synonymous with cryptocurrency, it is now redefining trust systems across sectors, from digital identity and finance to governance and logistics. Globally, blockchain is being institutionalized: in the United States, regulatory clarity and venture-backed innovation drive enterprise adoption; in Europe, sustainability goals and frameworks like MiCA shape cross-border blockchain applications; while the Asia-Pacific region, led by China, Japan, India, and South Korea, is rapidly integrating blockchain into trade, public services, and finance. India, too, is witnessing this shift – from experimenting with pilot projects to embedding blockchain into national infrastructure. The future of blockchain here is not about speculation, but systemic transformation.  UNDERSTANDING BLOCKCHAIN AND THE PROBLEM OF TRUST At its core, blockchain is a decentralized digital ledger that records transactions across a peer-to-peer network without needing a central authority. Each transaction, once validated, becomes part of a chain of blocks that is immutable and verifiable by all participants. Historically, human economies evolved around centralized “trust systems” – banks, registries, notaries – entities we rely on to verify, record, and enforce transactions. However, such intermediaries bring inefficiencies, high costs, and in many developing contexts, corruption and opacity. India’s position (78th in Transparency International’s Corruption Perception Index) and poor performance in indicators such as enforcing contracts (163rd out of 190 in the World Bank’s Ease of Doing Business) reflect systemic trust deficits. Blockchain addresses this gap by replacing institutional trust with mathematical trust – cryptographic verification ensures that every transaction is transparent, tamper-proof, and recorded across multiple nodes, making unauthorized alteration nearly impossible. FROM BITCOIN TO BLOCKCHAIN: A SHIFT IN PARADIGM The origins of blockchain lie in the 2008 white paper introducing Bitcoin, a peer-to-peer electronic cash system designed to eliminate reliance on banks. Its key innovation was the ability to ensure trust without intermediaries, through cryptographic proof and distributed consensus. While the cryptocurrency debate continues, the underlying blockchain architecture has evolved into a general-purpose technology, capable of enabling smart contracts, decentralized applications, and transparent governance systems. INDIA’S POLICY AND LEGAL LANDSCAPE India’s legal journey with blockchain began contentiously. The Reserve Bank of India’s 2018 circular prohibited banks from dealing in virtual currencies. However, in Internet and Mobile Association of India v. Reserve Bank of India, Writ Petition (Civil) Nos. 528 and 373 of 2018, the Supreme Court struck down this ban, holding it disproportionate and lacking legislative backing. This judgment paved the way for blockchain innovation beyond crypto-speculation. Since then, the Ministry of Electronics and Information Technology (MeitY) and NITI Aayog have led policy formulation. The Blockchain: The India Strategy report by NITI Aayog emphasized blockchain’s potential in land records, health, and supply chain transparency. Building on this, in September 2024, India launched its National Blockchain Framework (NBF) with a ₹64.76 crore budget. The National Blockchain Framework (NBF) is designed with a robust technical architecture to ensure scalability, interoperability, and security across applications. At its core lies the Vishvasya Blockchain Stack, envisioned as India’s national blockchain backbone to facilitate trusted data exchange and decentralized record management. Complementing this are NBFLite and Praamaanik, modular frameworks that enable secure, adaptable, and scalable blockchain adoption across different levels of governance and enterprise. Additionally, the National Blockchain Portal serves as an integrated platform to unify blockchain initiatives undertaken by various ministries, departments, and state governments, thereby promoting coordination and standardization in implementation. Deployed in NIC data centres across Bhubaneswar, Pune, and Hyderabad, the framework has already verified over 34 crore documents as of October 2025, demonstrating real-world implementation at scale. STATE-LEVEL ADOPTION AND INNOVATION At the state level, India’s approach to blockchain adoption reflects a federal model of innovation, where states act as experimental grounds for wider national implementation. This decentralized structure allows regional governments to tailor blockchain applications to local governance challenges while contributing to a cohesive national strategy. Telangana has emerged as a leader in this regard, integrating blockchain into its land registration systems to prevent tampering and enhance transparency. The state is also developing India’s first Blockchain District in Hyderabad, an innovation hub aimed at attracting startups, investors, and researchers to build a comprehensive blockchain ecosystem. Andhra Pradesh was among the earliest adopters of blockchain for e-governance, deploying the technology to secure land and administrative records. The state’s collaboration with technology startups has improved efficiency in public service delivery and demonstrated the feasibility of large-scale blockchain integration within government frameworks. Maharashtra has taken a complementary approach by launching an accelerator program and regulatory sandbox to promote blockchain startups. The state is exploring applications across supply chain management, healthcare, agriculture, and vehicle registration, sectors with high potential for efficiency gains through distributed ledger systems. These initiatives highlight India’s federal experimentation model, where proactive state-level innovation serves as the foundation for scalable, nationwide blockchain adoption. APPLICATIONS BEYOND CRYPTOCURRENCY The role of blockchain in India extends far beyond digital currencies, encompassing transformative applications across governance, finance, healthcare, supply chains, and sustainability. Its decentralized, immutable, and transparent design makes it a cornerstone for enhancing efficiency, trust, and accountability in both public administration and private enterprise. Governance