Indian Payment Provider Launches a New Blockchain Platform
January 6, 2020 8:22 pm
The National Payment Corporation of India (NPCI) has launched a blockchain-based payment platform called Vajra. According to the announcement made by NPCI, the Vajra platform is going to be accessed by multiple payment companies for providing secured transactions on their online platforms or mobile applications. For the easy incorporation of Vajra in payments systems operated by banks, NPCI will be providing an application programming interface (API).
Vajra is based on Distributed Ledger Technology (DLT) and it is designed for automating payment clearing and settlement processes of NPCI products such as unified payments interface (UPI) and Rupay card.
Using DLT in payments will ensure minimal reconciliation of transactions, which could help generate higher efficiencies through automation and transparency. All the transactions operated by the DLT follow real-time clearing and settlement. It also intends to cooperate in reducing the overall charges incurred in operating transactions. Moreover, the transparency provided by the DLT platform also helps in easy tracking and resolving complaints.
To secure payments, this blockchain-based technology will be helping the Unique Identification Authority of India (UIDAI) in facilitating Aadhaar authentication. Vajra uses cryptography security for the protection of data. However, cryptography is a technology that protects information by converting it into some codes, which can be accessed and read by only authorized entities.