BLOCKCHAIN FOR

GOVERNMENT

January 2020
Table of Contents

1. BACKGROUND 15

2. WHAT IS BLOCKCHAIN ? 17

3. BLOCKCHAIN USE CASES IN GOVERNMENT 23

3.1. Blood Bank Management System 23

3.4. Urban Property Management System – e-Aasthi 33

3.5. Land Records 36
3.6. State Excise Supply Chain 39

4. CENTRE OF EXCELLENCE IN BLOCKCHAIN TECHNOLOGY 49

NIC | Centre of Excellence | Blockchain for Government 3

NIC | Centre of Excellence | Blockchain for Government 4
NIC | Centre of Excellence | Blockchain for Government 6
NIC | Centre of Excellence | Blockchain for Government 8
NIC | Centre of Excellence | Blockchain for Government 10
NIC | Centre of Excellence | Blockchain for Government 12
 ensure that the latest technological standards

become a channel to engage companies and

Being an emerging technology, the Blockchain

as a coordinated, interoperable Blockchain

-
-
es and resources.

Bangalore in India.

Deputy Director General - NIC

NIC | Centre of Excellence | Blockchain for Government 13

NIC | Centre of Excellence | Blockchain for Government 14
1. BACKGROUND

Under these circumstances, it is extremely

Internet

decades, Blockchain technology heralds a paradigm

that the data presented to them electronically is

indeed not tampered.

NIC | Centre of Excellence | Blockchain for Government 15

NIC | Centre of Excellence | Blockchain for Government 16
2. WHAT IS BLOCKCHAIN ?
Blockchain client

technology resilient no single

point of vulnerability2

Blockchain node

generates block header, block metadata and block

and its state to other Blockchain nodes. As per the

consistently.

database.

Blockchain data structure, Blockchain metadata, Blockchain network

nodes.
may also be included as part the Blockchain

2 NIC | Centre of Excellence | Blockchain for Government 17

 State Database

-
base.
run on Blockchain

maintaining the status in ledger database. During

the process, it can call or execute other business

is

Block Chain Node

BC client Blockchain Tr
API Processor(s)
Core Process

Consensus
Engine Ledger Database
State Db

BC Node BC Node

BC Node BC Node

NIC | Centre of Excellence | Blockchain for Government 18

 Model Descrip on
A public Blockchain operates in a decentralised open environment
where there are no restric ons on the number of people joining the
Public Blockchain network (as peers or validators).
Bitcoin and Ethereum are examples of public Blockchain.
A private Blockchain is a network with a single controlling en ty, who
has the power to determine who the par cipa ng en es in the
Private Blockchain
network would be and their rights to append informa on to the
ledger.
A consor um Blockchain operates in an environment where the rights
Consor um Blockchain to control who par cipates and what can be transcribed to the ledger
is determined by a collec on of known en es.

the requirement to accommodate dynamic user

NIC | Centre of Excellence | Blockchain for Government 19

Prevalent Consensus Protocols

Merkle Tree

NIC | Centre of Excellence | Blockchain for Government 20

 Block 1 Block 2
Block Header Block Header
Genesis
Block Hash (Gen Block) Nonce Hash (Block 1) Nonce

Root Hash Root Hash of Txn

Hash 01 Hash 02

Hash 0 Hash 1 Hash 2 Hash 3

Txn 0 Txn 1 Txn 2 Txn 3

Blockchain ledger.

ra
4 4 can involve any
digital asset
Va n
4 4
4 4
Requested The network of
tr oadcasted nodes validate the
to the p2p network tr ollowing
A tra equested of nodes the protocol 4
4

e
tr
part of new block for
the ledger
4

4 4

d
to the exi ng blockchain
4

Syncing in all nodes

NIC | Centre of Excellence | Blockchain for Government 21

NIC | Centre of Excellence | Blockchain for Government 22
3. BLOCKCHAIN USE CASES IN
GOVERNMENT
3.1. BLOOD BANK
MANAGEMENT SYSTEM

procedures to be carried out in hospitals. Any

management, supply chain management,

• Blood Bank Management System

tasks such as donor record management, test result
• management, component management,
• e-Judiciary
• Urban Property Management System – e-Aasthi
• Land Record Management System
• State Excise Supply Chain -e-Abgari
In India, established supplies are limited and donors
•

NIC | Centre of Excellence | Blockchain for Government 23

 Another challenge in blood cycle management is

serious loss, as blood is a precious resource and the

3. Unavailability of donor’s medical history

consequences.
•
4. Lack of transparency and traceability

address these challenges to some extent, the system

is highly dependent on the stakeholders in

Challenges
stakeholders in the blood supply chain.
1. Transfusion of unsafe blood caused by human
errors

NIC | Centre of Excellence | Blockchain for Government 24

In order to adequately address all these challenges

ledger to ensure traceability.

expiry date etc. By scanning the barcode in the

– donor, test centre, blood bank and hospital. An

described as follows:

stakeholders
.

earlier etc.

NIC | Centre of Excellence | Blockchain for Government 25

 Donor ID
Name
Gender
Age
Registra te
tal Donor Registra
D n
Donor ID
Bags ID
Hos Sample ID
Receiving Date Camp ID
BC Note
Blood Bank ID Sample Date
Pa nt ID

Hospital
Hospit
itall BC Note BC Note e Colllec onn

BC Note BC Note

Blood
B Bank Test Centree Donor ID
Bag ID
Sample ID
Bank ID
Blood Group
Storage Entry
Components
Expiry Date Testresult
Testdate
Test Center
Remarks

donor.

Traceability of blood from donor to recipient mismanagement

the blood bag contains the physical and digital data

online.

NIC | Centre of Excellence | Blockchain for Government 26

3.2. PUBLIC DISTRIBUTION SYSTEM

Step 4

Step 5
millers and procurement centers.

Challenges

Step 1

Step 2
1. Unpredictable supply

Step 3

Govt of Karnataka

Registra y s Payment to Miller/Farmer

Miller

Godown & Hulling Govt Warehouse

Fair Price Shop Consumer

Farmer

MillerID Farmer ID FDSID

Capacity Commodity Av y
ACC Details y Commodity
rd No
d

NIC | Centre of Excellence | Blockchain for Government 27

•
•
• the supply chain quickly.
•
•
•
•

Proposed System

at each stage etc.

ledger.
Farmer

commodity during procurement period. When the

commodity is collected in the mill, the present

proposed to be digitally captured and stored in the

NIC | Centre of Excellence | Blockchain for Government 28

 Prompt payment to Farmers and Millers

Storage facility

to be completed in the supply chain.

should be coded in the smart contracts.

Payment

approaches to scheduling smart contracts using

greements
Hyperledger sawtooth framework is used to
implement the PoC.

5
6

NIC | Centre of Excellence | Blockchain for Government 29

3.3. e-JUSTICE SYSTEM

Indian democracy is held up by three pillars – the Challenges

pillars are complementary to one another. As per the 1. High Turn-Around Time (TAT)

3. Lack of a tamper-proof mechanism for data and

document exchange among stakeholders

4. Disconnected systems

decisions.

Proposed System

Judiciary.
prepare the charge sheet and submits the same to
Judicial Deposits
Under certain circumstances, a party is ordered to
summons are issued to the concerned party through

the Prisons. stages during case hearing, the court might also

immutably stored in the Blockchain ledger. It could

NIC | Centre of Excellence | Blockchain for Government 30

 Tr c Prison
en Police Pe r
Police
Court

Registry
BlockChain e-Judiciary

from Police Department

system in courts and then registered as a case.

served by the Police

Blockchain.

Issue of bail orders by the Court

document management system, its hash can be

trust the digital document.

NIC | Centre of Excellence | Blockchain for Government 31

land or property.

Tracking of Judicial deposits

ensure that no tampering occurs and also automate

departments such as land records, property

NIC | Centre of Excellence | Blockchain for Government 32

3.4. URBAN PROPERTY MANAGEMENT

e-Aasthi departments etc.

Challenges

and has issued about 6-lakh documents. e-Aasthi is

increased the responsibility and accountability on

Stakeholders in the e-Aasthi system: Enabling ease of service delivery

en In
s

l
sparenc
Tran y

eAasthi
BlockChain
il i t y
Reve ment

S ec u

ies l
Bod Loca
nue

ab
ri t

y
al
art

Sc
an
Dep

Urb

Registra n
Department

NIC | Centre of Excellence | Blockchain for Government 33

Proposed System

Revenue Department

stakeholders to take correct decisions.

Urban Local Bodies

NIC | Centre of Excellence | Blockchain for Government 34

Town and Country Planning

e-Aasthi are as follows:

• Immutable property records and immutable

maps and land records

•

holders, make learned decisions.

Query APIs exposed to public

Registra n Revenue Urban local API API
Dept. Dept. bodies
API
Survey Agriculture
Dept. Dept. bodies
API

API
API
DILRMP API
API es
Land Records Writ
System Private BlockChain

NIC | Centre of Excellence | Blockchain for Government 35

3.5. LAND RECORDS
Challenges

disputes

are generated by tampering original documents and

tampered documents. Also, one property is being

- other key stakeholders.

2. Lack of a single-source-of-truth for land

ownership

database.

3. Time consuming and cumbersome processes

document gets updated accordingly.

security etc.

4. High Turn-Around-Time (TAT) for service

delivery

5. Possibility of data tampering due to lack of

tamper-proof system

problem.
deed document is printed, signature is obtained

NIC | Centre of Excellence | Blockchain for Government 36

Proposed System

and hence, land records require high accuracy and

sale deed, the document should be stored in a

history and encumbrance should be stored on the

block is created it cannot be edited or tampered.

stored on the Blockchain ledger and can be used by

•
tasks can be done by accessing the Blockchain
•

Blockchain ledger.

etc. can also be recorded in the block chain.

sale deed, the document should be stored in a

block is created it cannot be edited or tampered.

•

persons

NIC | Centre of Excellence | Blockchain for Government 37

• •

courts

also help in ensuring that only eligible

need not depend on any non-reliable

NIC | Centre of Excellence | Blockchain for Government 38

3.6. STATE EXCISE SUPPLY CHAIN
•

Challenges

• The following are the major challenges in the

• current system:
• 1. Revenue leakage
supply
•
• that are packaged as popular premium alcohol
•

exchequer.

2. Lack of a fool-proof tracking system

Stages in the supply chain include:
•

Stakeholders cannot maintain an appropriate

made.
•

NIC | Centre of Excellence | Blockchain for Government 39

 Excise supply chain on Blockchain

Use Case of Blockchain based State Excise Supply Chain

API generates
API generates Blockchain tr
Blockchain
tr n Packet scanned
Items Created with App
API generates
Blockchain
tr n
POS
Items
Packaged

Manufacturer Dis User

Packet Label
Packet scanned
with App
Packet scanned
API generates with App
Blockchain tr Dis
API generates
Blockchain tr
Packet scanned
with App

Proposed System
excise duty is stored in the ledger. During the
Chain Management System enabled by Blockchain

NIC | Centre of Excellence | Blockchain for Government 40

retail store.

NIC | Centre of Excellence | Blockchain for Government 41

3.7. AUSHADA - ONLINE SUPPLY CHAIN MANAGEMENT
SYSTEM FOR DRUGS
•

•
Warehouses
•
• Issue to the Sub Store

hospitals through 26 Warehouses. Challenges

Key challenges of the system include:

•

•
•

Proposed System
•
Drug Supply Blockchain system is proposed to
the district.
•

unprecedented transparency and traceability across

the system.
procurement and supply involves the following
steps:
• Blockchain based system are:
Procurement and Schedule
year
•

• published so that the supplier makes arrangement

•
Suppliers
•

ledger.

NIC | Centre of Excellence | Blockchain for Government 42

Blockchain-Drugs Logis

Hospital Procurement Warehouse Substore

Hospital ee Supplier Quality & Substore

Warehouse

Warehouse pharmacist

issuance is stopped.

stored in the Blockchain ledger.

sent to all concerned stakeholders.

contract. A monthly indent is

NIC | Centre of Excellence | Blockchain for Government 43

Required are stored on the Blockchain ledger.

Blockchain ledger.

main store issues the drugs to the Sub Store on Enhanced Traceability Using Blockchain, the drugs

products etc.
Supplier are stored in the Blockchain ledger so that

in the Blockchain ledger.

Inherent trust that only approved drugs reach end
consumers

Move to Push based inventory

NIC | Centre of Excellence | Blockchain for Government 44

3.8. CERTIFICATE VERIFICATION SYSTEM

social status etc.

Challenges

Standard marks card, caste, income, rural area

humungous task.

admission etc.

Accreditor alidators Employers

esters Student

Ed
(Transfe
c..)
Local Bodies
tc..)

Blockchain
Document System

Revenue Dept
te
tc..)
Police Dept

Government Dept
Professional Courses tc..)
tc..)
NIC | Centre of Excellence | Blockchain for Government 45
 Based on the income, grades and caste, the

documents.

NIC | Centre of Excellence | Blockchain for Government 46

the eligibility using the Blockchain based system.

admission, recruitment, scholarships, social security

can then be stored in a Blockchain based system in a

Blockchain based systems.

NIC | Centre of Excellence | Blockchain for Government 47

NIC | Centre of Excellence | Blockchain for Government 48
4. CENTRE OF EXCELLENCE IN
BLOCKCHAIN TECHNOLOGY

departmental and inter-departmental use cases

departments

be streamlined and secured using Blockchain

NIC | Centre of Excellence | Blockchain for Government 49

a) Evangelising use of Blockchain technology in
Government
suite.

c) Consultancy services and development of PoCs

build and test the necessary Blockchain based

departments to understand their requirements and

Blockchain Pla rm
Dev Tools Op Tools
API f Management Console
VAS
Tu On-boarding Console
Test n Governance Tools

Tools

Frameworks

Deployment
Cloud On Premise

NIC | Centre of Excellence | Blockchain for Government 50

Blockchain.

d) Training on Blockchain Technology

enterprise scale Blockchain based system.

training programmes.

NIC | Centre of Excellence | Blockchain for Government 51

Contributors
B.Vinaya Jayanthi. S K. Pariselvan

State Informa cs O cer Dy. Director General Sr. Technical Director

Karnataka NIC- Karnataka NIC- Goa

Mainak Mukhopadhyay Sreekumar T. Pechimuthu

Sr. Technical Director Sr. Technical Director Technical Director
NIC- West Bengal NIC- Karnataka NIC- Karnataka

P. Sumanth

Scien st B
NIC- Karnataka

NIC | Centre of Excellence | Blockchain for Government 52

 Blockchain for Government
Centre of Excellence in Blockchain Technology

4th Floor, F Wing, Kendriya Sadan, Koramangala, Bengaluru - 560034