Vajra- A New Blockchain-Based Payment Platform Announced By NPCI in India
The National Payment Corporation Of India (NPCI) has announced a new automated payment platform known as Vajra which is built on the blockchain technology.
The team behind NPCI has researched the Distribution Ledger Technology (DLT) and created a payment platform that is promised to be highly secured and offers “tamper-evident” transactions. In simple words, you will be able to enjoy a seamless and safe payment facility with this new payment platform, that is of course if you’re in India.
How is Vajra Unique?
An interesting fact is that not everyone is allowed to participate in this network. Only members who have been approved by the Network Administrator can be a part of this platform. Talking about the architecture of the Vajra platform, it will be used by various payment entities for doing transactions through the web.
Currently, there are three nodes (a fundamental component of Distributed Ledger Technology) that constitute that Vajra architecture:
- Clearing House Node (CHN)
- UIDAI Node/Notary node
- Participant Node (PN)
The first node (CHN) is maintained by the National Corporation of India. This node has all the admin rights and issues a route-authority-signed TLS certificate from the network’s permission service to the participant nodes. The UIDAI or notary node will validate the transactions when Aadhaar biometric is used for authentication. The validation starts after receiving the transaction from the Clearing House Node.
The last node that is the participant node includes all the banks/ASP/PSP/PPI. These nodes can post, receive and view transactions on the Vajra platform.
The Key Feature Of Vajra Payment System
As the Vajra payment system is built on the blockchain framework, it offers the following features:
- The manual processing will be reduced as the Vajra platform is an automated payment system.
- The arising disputes will be sorted out at a faster rate due to the decentralized and centralized data storage service.
- The platform uses cryptography to provide highly secured payment transactions.
- All the transactions are kept transparent.
According to NPCI, the following are the benefits of the Vajra PLATFORM
- Improved security and reduction in manual reconciliation should reduce the cost of operations for payment companies.
- 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.