Vietnam launches national blockchain for identity of 100 million

Vietnam has officially launched NDAChain, a state-run national blockchain platform. This strategic move seeks to build a secure and modern digital ecosystem for its 100 million citizens, revolutionizing everything from digital identity to contract signing.

In a bold step toward digitalization and technological sovereignty, the Vietnamese government has unveiled NDAChain, a national blockchain platform designed to serve as the backbone of its digital ecosystem. This initiative, led by the National Data Association (NDA), aims to manage and protect the data of more than 100 million people and thousands of organizations, marking a milestone in the adoption of Web3 technology at the national level.

NDAChain is a Layer 1 permissioned blockchain. Unlike public blockchains like Bitcoin or Ethereum, which are completely open, a permissioned model means that access to validate transactions is controlled. In this case, the network operates under a hybrid architecture, combining centralized and decentralized components.

The network is secured by 49 validator nodes operated by a combination of state agencies, such as the Ministry of Public Security, and large Vietnamese corporations, including giants like Masan, SunGroup, and Zalo. This system uses a consensus protocol known as Proof of Authority (PoA), which is energy-efficient and fast, and is reinforced with zero-knowledge proofs to ensure the privacy and security of transactions.

NDAChain's primary goal is to provide a "decentralized layer of trust" for national systems, spanning critical areas such as e-government, finance, healthcare, logistics, and education.

The first major application to run on this platform is NDAKey, a decentralized identity solution. This tool will allow citizens and businesses to verify their identity in seconds, with the goal of preventing fraud and digital identity theft, and facilitating the secure signing of digital contracts. This seeks to solve long-standing challenges of centralized data models, such as vulnerability to cyberattacks and scalability issues.

Nguyen Huy, chief technology officer of the NDA, emphasized the importance of blockchain as a protective layer for Vietnam's live data, describing it as 'critical' to the country's digital society and economy.

The launch of NDAChain is much more than a simple technological upgrade; it's a powerful geopolitical and economic statement. By building its own sovereign digital infrastructure, Vietnam is taking giant steps toward reducing its dependence on foreign technology platforms, whether Western or Chinese. This move not only dramatically improves its cybersecurity but also positions the country as a leader in the adoption of Web3 technology in Southeast Asia.

This digital sovereignty strategy creates a more secure and predictable environment, which in turn attracts foreign investment in the technology sector, as evidenced by the recent interest from funds and companies seeking to expand in Asia. By taking control of its data infrastructure, Vietnam is positioning itself not merely as a consumer of global technology, but as a serious and competitive player in the future digital economy.

In short, NDAChain is not just a software project. It is a fundamental part of Vietnam's national strategy for the 21st century. Its success could serve as a model for other nations seeking to achieve digital sovereignty and secure a competitive advantage in the relentless global technological race.