The July 25, 2025 announcement marks Vietnam as one of over 50 nations building national blockchain infrastructure to secure identity systems and enhance data governance.

The platform addresses critical vulnerabilities in centralized data systems, including cyberattack risks, scalability issues, and limited global integration. NDAChain will serve as a protective layer for national data across government, finance, healthcare, logistics, and education sectors.

How NDAChain Works

NDAChain operates as a Layer 1 permissioned blockchain using a hybrid model that combines government control with private sector participation. The system runs on 49 validator nodes managed by state agencies and major corporations including SunGroup, Zalo, Masan, MISA, Sovico, and VNVC.

The platform uses Proof-of-Authority consensus enhanced with Zero-Knowledge Proofs for security. It can process between 1,200 and 3,600 transactions per second with 0.5-second latency, according to the National Data Association.

Each validator node contains a distributed ledger for transaction records, smart contracts for automated processes, and identity verification modules connected to Vietnam’s national ID system (VNeID). The blockchain meets international standards including W3C Decentralized Identifiers and GDPR compliance.

Nguyen Huy, head of technology at the National Data Association, stated that the blockchain will be “critical” to Vietnam’s digital society and economy, serving as a protective layer for the nation’s live data.

Digital Identity and Product Tracking

NDAChain powers two key applications: NDA DID for digital identity and NDATrace for product authentication.

NDA DID enables citizens to verify identities during online transactions, service access, and digital contract signing. Through the NDAKey mobile app, users can confirm someone’s identity within seconds, helping prevent scams and fake accounts.

NDATrace assigns unique digital IDs to products that meet international GS1 standards and work with the EU’s EBSI system. This allows Vietnamese businesses to join global supply chains while giving customers confidence in product origins. Each item receives a verifiable digital passport tracking its journey from production to consumer.

The system captures supply chain activities as verifiable credentials embedded in packaging through QR codes or RFID chips. This transparency helps combat counterfeiting and builds trust in Vietnamese products worldwide.

Strategic Foundation and Regulatory Support

The blockchain deployment builds on Vietnam’s comprehensive National Blockchain Strategy, established through Decision No. 1236 in October 2024. This strategy aims to position Vietnam as a regional blockchain leader by 2030.

The government plans to develop 20 prominent blockchain brands, establish at least three blockchain testing centers in major cities, and secure a place among Asia’s top 10 blockchain research institutions. Vietnam currently has over 20 million cryptocurrency holders, representing 20% of its population and ranking fifth globally in cryptocurrency adoption.

The strategy emphasizes building “Make in Vietnam” blockchain platforms to enhance domestic technological capabilities. The approach aligns with the Digital Technology Industry Law, which prioritizes development of local digital products and infrastructure.

NDAChain addresses Vietnam’s need for data sovereignty as the country manages data from more than 100 million people across thousands of agencies and organizations. Traditional centralized data management reveals security, interoperability, scalability, and international integration challenges.

Implementation Timeline and Future Development

By the end of 2025, NDAChain will be fully integrated into the National Data Center. The platform will then expand to local governments and universities throughout 2026.

Future phases focus on workforce development, international collaboration, and building Layer 2 applications for specific sectors. The open architecture design invites startups and technology companies to develop digital services including identity wallets, anti-counterfeit solutions, and digital notarization platforms.

The Ministry of Public Security’s Data Innovation and Exploitation Center operates the platform under strategic direction from the National Data Association. This governance structure ensures proper oversight while enabling innovation.

Global Context and Unique Approach

Vietnam joins countries like China, the European Union, and South Korea in deploying national blockchain platforms. China’s BSN operates under strict centralization, while the EU’s EBSI focuses on regulatory harmonization across member states.

Vietnam’s hybrid model stands out by combining public-private collaboration with adherence to international standards and deep integration with national data systems. This approach reflects a long-term vision for data infrastructure and digital economic development.

The platform’s integration with existing national systems, including the VNeID digital identity system, demonstrates Vietnam’s commitment to practical blockchain implementation rather than experimental projects.

The Road Ahead

Vietnam’s NDAChain represents a practical approach to blockchain adoption that prioritizes security, interoperability, and real-world applications. The platform provides a foundation for modernizing government services while protecting citizen privacy and enabling business innovation.

As the system expands to local governments and universities over the next two years, it will demonstrate whether national blockchain platforms can deliver on promises of enhanced security, transparency, and efficiency in digital governance.

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Filed under: Bitcoin - @ July 25, 2025 10:00 pm