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.
If you want to know about the process journey on NPCI DLT platform then check out the contents of the image given below:
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.
We’ll keep you updated as the story develops.