Table of Contents
Key Takeaways
- Vietnam launched NDAChain, a permissioned blockchain with 49 validator nodes from government and private sector giants.
- The hybrid system combines centralized data storage with decentralized verification, targeting 3,600 TPS with PoA consensus.
- Use cases span e-governance, healthcare, and anti-counterfeiting, with EU-standard traceability for exports.
Vietnam’s Digital Turn
In a unique development and a win-win situation, combining bureaucracy and blockchain, Vietnam’s Ministry of Public Security has launched NDAChain, a domestic platform designed to serve as the trust layer of Vietnam’s National Data Center. In short, Vietnam is developing NDAChain to handle the data of 100 million citizens, while avoiding the problems of absolute centralization – this is like creating Vietnam’s Blockchain-based Service Network (BSN) or the EU’s European Blockchain Services Infrastructure (EBSI).
This development is not coincidental. With the rapid growth of Vietnam’s digital economy (e-commerce alone is expected to reach $25-32B this year), the Vietnamese government needed to find a way to authenticate identities, verify exportation, and secure health records without relying on older systems. NDAChain uses Zero-Knowledge Proofs (ZKPs) to verify data integrity and value without disclosing it; a critical element given the heightened cyberattack threat in this country.
How It Works: Validators, Not Miners
Instead of the wild-west mentality of Bitcoin mining, NDAChain instead uses a Proof of Authority (PoA) model, with 49 carefully handpicked nodes that validate transactions, ranging from state actors to companies such as Zalo (the WhatsApp of Vietnam) and Masan Group. This has resulted in very fast processing times (3,600 TPS) and low energy use, but for its critics, it is decentralised in name only.
Key features include:
- NDA DID: A decentralized ID system tied to Vietnam’s VNeID (the national digital ID).
- NDATrace: QR-code-based supply chain tracking for exports, compliant with the EU’s EBSI standards.
- NDAKey: An app to verify identities in seconds, useful for everything from banking to spotting scam sellers on e-commerce sites.
The Global Context
Vietnam isn’t the first country to bet on a national blockchain [see: Dubai’s Blockchain Strategy or Estonia’s Keyless Signature Infrastructure (KSI)], but its approach is notably pragmatic, which allows them to implement it in conjunction with existing centralized systems and not at the “all-or-nothing” point that has prevented other projects from being implemented.
The challenge is adoption. Officially, Vietnam plans to onboard local agencies and universities by 2026, but convincing SMEs to replace their paper trails with blockchain ledgers will not be easy. We need to understand that nowadays, this is not just about the tech itself, but about changing habits.
A Map for Emerging Economies?
NDAChain points to an emerging trend: countries viewing blockchain innovation as critical infrastructure rather than just crypto speculation. For Vietnam, this time, the upside of success could be streamlined trade with the EU and a reduction in fake “Made in Vietnam” goods getting into the market. And for those who argue against the notion of permissioned chains, it could serve as a strong reminder that the decentralization we so ardently fight for is sacrificed for control.
Final Thought: Now, Vietnam has just put a flag in the sand in the race to digitization. Could your country benefit from a national blockchain?
For more blockchain innovation-related stories, read: Dubai’s VARA Partners with Solana Foundation to Boost Blockchain Innovation
