National Payments Corporation of India (NPCI), the Indian government-backed organization for payments, has revealed plans on a blockchain-based platform,according to IBS Intelligence.
The payments corporation is developing a distributed ledger technology (DLT) mechanism to provide a secure, tamper-proof database for various payment procedures, including UPI.
Vajra is a permissioned blockchain-based platform, which means only a registered party under the network administrator can be part of the blockchain network. There will be three types of nodes on the platform.
Clearing House node: Possesses admin rights for this platform and is maintained by NPCI. It will provide a root-authority-signed TLS certificate from the network’s permissions service to Participant nodes.
Notary node: Validates a transaction only if the Aadhar biometric is used for authentication. It will receive transactions only from the Clearing House node.
Participant node: Represented by the banks. These nodes can post, receive, and view transactions.
NPCI’s move to build blockchain-based solutions comes in at a time when digital payments are on the rise, thus making such transactions vulnerable to cyberattacks. There have also been reports of a massive spike in online banking frauds lately with fraudsters trying to steal money via UPI, a real-time payment model created by NPCI.
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