Both parties will collaborate on developing scalable blockchain platforms. Additionally, they will work on creating a multi-modal analytics platform to oversee fintech data.
India, despite its sceptic stance towards cryptocurrencies, is all in favour of conducting research and development around blockchain – the underlaying technology that powers cryptocurrencies. In a fresh development, the National Payments Corporation of India (NPCI) has joined forces with the Indian Institute of Science (IISc), Bengaluru. The aim of this partnership is to conduct research around emerging technologies like blockchain and Artificial Intelligence (AI). Both the parties signed a Memorandum of Understanding (MoU) officiating this collaboration.
The NPCI, as its name suggests, is an RBI initiative focussed on bringing innovations in the retail payment systems through technologies. The IISc, on the other hand, is among India’s premier institutes for advanced scientific and technological research – established in 1909. Both these parties together, will work on developing scalable blockchain platforms. A multi-modal analytics platform to oversee fintech data will also be in the works as part of this collab.
“As our nation progresses towards digital sustainability, we recognize the significant potential for research in deep technologies such as blockchain and AI to further enhance the payment landscape,” Vishal Kanvaty, Chief Technology Officer, NPCI said in an official statement.
Blockchains are digital ledgers that record transactions across multiple computers instead of storing the data on one single network or server. This decentralized approach enhances security by making it difficult for malicious actors to tamper with records or compromise the system. The National Payments Corporation of India (NPCI) has been actively exploring blockchain technology to bolster security and efficiency in its operations.
Last year, NPCI launched Falcon, an open-source project aimed at simplifying the management and utilization of blockchains. In 2020, NPCI developed ‘Vajra,’ a blockchain-based system for automating payment clearing and settlement processes for its products. Additionally, NPCI established an impact lab at the Indian School of Business (ISB) campus in Hyderabad in April 2023, dedicated to blockchain technology research and development.
Furthermore, the government of Telangana collaborated with the Bharat Web3 Association in February to facilitate discussions on blockchain technology. As part of this initiative, NPCI and the Indian Institute of Science (IISc) will conduct research and development focusing on cryptography and machine learning (ML) to further advance blockchain technology in India.