The Indian State's Redescription of Blockchain: From Transparency to Trust and Adjustable Transparency

Core Concepts

The Indian state is redefining blockchain technology as a code-based trusted intermediary to centralize power and governance, moving away from blockchain's original promise of transparency.

Abstract

The paper analyzes how the Indian state, through two key policy documents by NITI Aayog and the Ministry of Electronics and Information Technology (MeitY), is redefining blockchain technology to serve as a governance infrastructure.
The NITI Aayog discussion paper enacts a discursive shift from framing blockchain as a transparent technology to one based on trust, and then to "adjustably transparent" - where the state retains control over who has read and write access to the blockchain. This allows the state to reinsert itself as the central, trusted intermediary, contrary to blockchain's original promise of decentralization.
The MeitY report further stabilizes this redescription of blockchain, presenting it as an "amalgamation of innovations" with a clear business value. It enrolls various actors to develop blockchain as a techno-managerial solution that can deliver state functions, erasing the contingencies around the technology.
The analysis shows how the state is using blockchain to centralize power and governance, rather than enabling the transparency and decentralization that the technology was meant to provide. This highlights how emerging technologies can be strategically redescribed by powerful actors to serve their own interests.

Stats

"blockchain is a database, which is distributed, adjustably transparent, highly secure, and immutable" (NITI Aayog, 2020, p. 11)
"Blockchain follows secure by design paradigm which makes it a unique system that makes business transactions transparent and trusted in a consortium environment" (MeitY, 2021, p. 7)

Quotes

"Blockchain is an innovative distributed ledger technology…introduced in the design and development of cryptocurrency, Bitcoin in 2009 by Satoshi Nakamoto…is an amalgamation of various innovations, with a clear business value" (MeitY, 2021, p. 2)
"…Blockchain enables a shared ledger among the various parties involved in business transactions…acts as the single source of truth…and eliminates the need for a central entity to validate the transactions" (MeitY, 2021, p. 2)

Key Insights Distilled From

Web3 and the State: Indian state's redescription of blockchain

by Debarun Sark... at arxiv.org 05-02-2024

https://arxiv.org/pdf/2405.00320.pdf

Deeper Inquiries

How might the state's redescription of blockchain impact the technology's potential for enabling greater transparency and citizen participation in governance?

The state's redescription of blockchain as a trusted, centralized intermediary could potentially limit the technology's ability to enable greater transparency and citizen participation in governance. By framing blockchain as a tool for trust rather than transparency, the state may control access to information on the blockchain, restricting citizen oversight and participation. The adjustably transparent nature of the blockchain, as proposed by the state, could allow the government to decide who has access to the data, potentially excluding citizens from certain records or transactions. This could hinder the democratizing potential of blockchain technology, which was originally designed to provide a transparent and immutable ledger accessible to all.

What counter-arguments could be made against the state's framing of blockchain as a trusted, centralized intermediary?

One counter-argument against the state's framing of blockchain as a trusted, centralized intermediary is that it goes against the core principles of blockchain technology. Blockchain was originally conceived as a decentralized and transparent system that operates without the need for intermediaries or trusted third parties. By centralizing control over the blockchain and positioning the state as the ultimate authority, the technology loses its inherent benefits of decentralization, immutability, and transparency. This centralized approach could introduce vulnerabilities, increase the risk of censorship, and undermine the trust that users place in the system.

In what ways could blockchain's decentralized architecture be leveraged to reimagine the relationship between the state and its citizens?

Blockchain's decentralized architecture offers a unique opportunity to reimagine the relationship between the state and its citizens by promoting transparency, accountability, and citizen empowerment. By leveraging blockchain technology, the state can create a more open and participatory governance system where citizens have direct access to government records, transactions, and decision-making processes. Smart contracts and decentralized applications built on blockchain can automate and streamline government services, reducing bureaucracy and enhancing efficiency. Additionally, blockchain can enable secure and verifiable voting systems, ensuring the integrity of elections and increasing citizen trust in the democratic process. Overall, blockchain's decentralized architecture can foster a more inclusive and democratic relationship between the state and its citizens, promoting transparency, trust, and collaboration.