Govt Launches Blockchain-Based Vajra Platform To Secure Payments

Vajra platform can be accessed by various payments companies

Vajra platform is based on the Distributed Ledger Technology (DLT)

This blockchain-based technology will also help in Aadhaar authentication

Impressed with the safety features of the blockchain technology, the National Payment Corporation of India has launched a blockchain-based payments platform called Vajra.

According to NPCI, the Vajra platform can be accessed by various payment companies for providing secured transactions on their online platforms or mobile applications. For easy incorporation of Vajra in payments systems operated by banks, NPCI will provide an application programming interface (API).

The newly launched platform, which is based on the Distributed Ledger Technology (DLT) has been designed for automating payment clearing and settlement processes of NPCI products such as unified payments interface (UPI) and Rupay card.

DLT is a distributed ledger account that facilitates secured transactions through a distributed and immutable database. The technology can be adapted to secure various payments methods. DLT also acts stores information for all transactions in hashed digital packets called blocks.

Notably, usage of DLT in payments will ensure minimal reconciliation of transactions, which will result in higher efficiencies through automation and transparency. All the transactions operated by the DLT follow real-time clearing and settlement. It also helps 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.

In addition to securing payments, this blockchain-based technology will also help the Unique Identification Authority of India (UIDAI) in facilitating Aadhaar authentication.

How Vajra Facilitates Secured Payments

The blockchain-based payments platform uses cryptography security for the protection of data. Notably, cryptography is a technology which protects information by…

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