Vietnam Launches National Blockchain Platform to Enhance Digital Ecosystem

According to Cointelegraph, Vietnam has officially introduced a national blockchain platform, NDAChain, aimed at strengthening its digital ecosystem. Announced on Friday, the state-run blockchain network is set to verify digital transactions and records across various sectors. Developed by the National Data Association (NDA) and operated by the Ministry of Public Security’s Data Innovation and Exploitation Center, NDAChain seeks to address challenges associated with centralized data models, such as cyberattack vulnerabilities, scalability issues, and limited global integration. Nguyen Huy, the head of technology at the NDA, emphasized the blockchain's significance as a protective layer for Vietnam’s live data, describing it as "critical" to the country's digital society and economy. The platform is designed to offer a "decentralized layer of trust" for national systems, including e-government, finance, healthcare, logistics, and education. However, Huy noted that the network is not entirely decentralized, as Vietnam has opted for a hybrid data architecture that combines centralized and decentralized components. The NDAChain is a layer-1 permissioned blockchain featuring 49 public-private validator nodes operated by state agencies like the NDA and the Ministry of Public Security. Companies such as SunGroup, Zalo, Masan, MISA, Sovico, and VNVC will also contribute to securing the network. Permissioned blockchain networks incorporate access control layers, allowing entities to regulate network participant actions, thereby adding a layer of security and control. These node operators will maintain a distributed ledger for transaction records, smart contracts for automation, and identity verification modules linked with Vietnam’s national identity systems. The platform utilizes a Proof-of-Authority (PoA) consensus protocol, enhanced with zero-knowledge proofs for added security. In addition to managing transaction data, NDAChain will support NDA DID, a decentralized identity solution implemented by the NDA. This solution will verify counterparty identities during transactions, facilitate service access, and enable digital contract signing. The Vietnamese government has introduced the NDAKey application, which allows users to verify identities within seconds, aiming to prevent scams and digital identity theft. This initiative marks a significant step in Vietnam's efforts to bolster its digital infrastructure and enhance security across its digital platforms.