Well, folks, have you ever wondered how an Indian small business owner gets their loan in the middle of nowhere? Pretty intense question to ponder over.
But, the answer to this question is quite simple because today, he has his own set of gadgets which includes a phone, a Reliance Jio Connection, and access to the IndiaStack. Also, he has got in his pocket a miraculous collection of national APIs for payment, identity, and more that allows him to do easy transactions with anyone in India. From a bigger perspective, IndiaStack is the software that is the point for the Reserve Bank of India’s recent proposal digital rupee, which is supposed to heighten the commercial success in the market further. I know, folks, this is an important and very fascinating topic to discuss. So, I am hoping you all must be eager to know more. Keep reading!
The Missing Component:
As we speak about the digital transaction happening in India, we must also consider the international scenario. This is the most important component still missing, and comparably there is easy access to this outside India. This is because the small business owner can now use his phone just to make domestic and international calls. This raises the question, Shouldn’t he be able to receive funds from around the world easily as now he is trading with other Indians? Again it is a pretty intense question.
The answer to that is simple- I am sure you all must have guessed it is Crypto by now. As you will see, adding Crypto’s functionality to IndiaStack along with the digital rupee aids India’s interest in two different ways. I am sure you must be thinking, what are they, and what does adding crypto to IndiaStack in India do? Well, folks, you will find the answer to these questions as you read along.
Firstly, it will be of help to Indians domestically. This would be done by giving them direct access to both the Indian and International pools of Capital
Secondly, it will help Indians Internationally; you must be wondering how? By developing an open-source software stack such as IndiaStack that will be accessible by any country for domestic and Foreign transactions without being dependent on either American or Chinese corporations.
Vision of IndiaStack API’s India:
As we talk about the vision, you all must have already guessed. The bulletins mentioned above are the primary vision of national software stacks and neutral crypto protocols. But, when you view it another way, by adding digital and cryptocurrency support to IndiaStack, the country would face two conditions.
- Will be running a permissioned ledger for domestic transactions with the help of the digital rupee.
- Secondly, it will use decentralized ledgers for International affairs.
This exposure would give India the best of both worlds. Which is a domestic currency fully controlled by the Reserve Bank of India, along with the International payments capability that any other country will not control at either the currency or the platform levels. The platform for the digital rupee would therefore become the same as the platform for digital gold, digital wallets, and decentralized finance. In the scenario that is present in our era, it is blockchain and cryptocurrency.
I know, folks, since we have discussed a lot about IndiaStack and added IndiaStack to the digital rupee, you all must be wondering what exactly IndiaStack is. Well, without any delay, let’s get into the details of IndiaStack.
What is IndiaStack?
Under this section, you will learn the simplest ways to add IndiaStack to both the digital rupee and crypto protocol to support IndiaStack. You will also come to know about the illustration of how a Crypto IndiaStack would be beneficial to India domestically through a series of case studies.
Are you all ready to know more about IndiaStack? Let’s get started.
The first step to understanding IndiaStack crypto is to understand what exactly IndiaStack is and IndiaStack stock and everything about it. Well, indiaStack is a set of national APIs that are used for making payments, as an identity, in KYC and also includes document verification and e-signature that scales to billions of people. For your quick understanding, below is a table that will help you understand IndiaStack better.
| Name | Area | Summary |
| Aadhaar | Identity | Digital identity for a billion Indians |
| eKYC | Verification | Paperless, online verification of customer identity |
| UPI | Payments | Instant, mobile payments platform |
| Digilocker | Document issuance and verification | Electronic storage platform for digital issuance and verification of government documents |
| eSign | eSignature | API for paperless, electronic signatures using Aadhaar |
| OCEN | Credit | Credit marketplace for individuals and MSMEs |
| DEPA | Data | Consent-focused user data management |
It is not like the other Government software projects in other countries. Companies inside and outside India widely use IndiaStack APIs like UPI India and Aadhar.
What is Decentralized Finance?
Well, folks, as we have looked into the first step to understanding IndiaStack, now it’s time to look at the second step.
First, I am sure you all must have heard about Bitcoin, but now the crypto world is bigger than Bitcoin. It includes new blockchains like Ethereum, which have enabled the new world of decentralized finance or ‘defi’. This new space is growing at a faster pace which is very surprising. It is actively putting Wall Street on the Internet and changing the foundations of how money is being represented and invested around the world. The most important factor here, which you must consider, is our purposes; the defi is making huge pools of capital newly available to any Indian with a digital wallet. In this same way, the Internet has made much information available.
You all must be wondering by now why it is happening. Well, folks, there are a few reasons behind this.
Performance: Firstly, before we head to the defi specifically, we must tell you that crypto is generally good for payments that are large, small, very fast, very automated, very international, and/or very transparent relative to the traditional financial system. We can say that crypto has boosted the performance of global transactions in many ways.
Programmability: Apart from giving a top-notch performance, crypto also adds to this raw performance improvement, and not only this, but it also offers programmability, which is the core of Defi.
Transparency: There is more transparency in decentralized finance than in TradeFi, and it is far more trustworthy, to say the least. Every transaction that you make gets logged on-chain technology and is protected by encryption, and this allows for cryptographically rigorous accounting as well as audits.
Well, folks, these three factors are enough to give you a flavor of the defi, but to understand the practical aspect of it. You must experiment with some of the top defi protocols.
Four Steps To Add Crypto to IndiaStack:
By now, we have got an understanding of both crypto and IndiaStack, particular;y Decentralized Finance. Well, we will now tell you why this combination is so powerful. The answer is simple- many smartphones are in hundreds or millions available in India, and by adding digital rupee along with crypto to our phones with the support of IndiaStack, we can make all the phones not just into a bank account but also into a Bonafide Bloomberg Terminal. Isn’t it amazing?
Well, you must be wondering how to add crypto to India Stack. Well, there are a few steps that need to be followed. They are:
- Understand what a digital rupee is.
- Add digital wallet support to IndiaStack.
- Add crypto assets to the IndiaStack digital wallet.
- Extend IndiaStack APIs with the crypto concept
- Extend IndiaStack APIs with crypto concepts: Understand what a digital rupee is: Well, folks, this is just the basic knowledge about how the digital rupee functions and what its benefits are. Just like the national rupee gives everyone the ability to hold and send money without having a bank in the middle, digital currency is all about the ability to download and hold money on your device.
- Add a digital wallet to IndiaStack: the first step is to adding a wallet to IndiaStack with the support for a digital rupee. The starting point would be the Unified Payments Interface, which connects hundreds of Indian banks. Each of the transactions works like you make payments through UPI.
- Add crypto assets to the IndiaStack digital wallet: It is expected that very soon that the IndiaStack digital wallet and digital rupee users will start to demand crypto functionality. There are many reasons for this, but the ones which are most important because that Indian user will want to access pools of crypto capital from around the world. Foreign investments would also be counted here.
- Extend IndiaStack APIs with the crypto concept: You can look at the table below to understand this concept better.
| API | Area | Related crypto concepts |
| Aadhaar | Identity | Local private-keys for enhanced security
Integration with crypto domains like ENS, HNS, and Unstoppable Domains Replace Facebook and Google login with decentralized single sign-on via on-chain profiles |
| eKYC | Verification | Coinbase Identity API, Civic and tokenized KYC, Decentralized ID in general |
| UPI | Payments | Stablecoins like USDC and DAI
High-throughput blockchains like Solana, Avalanche, NEAR Protocol |
| Digilocker | File Storage | Decentralized file storage: IPFS, Sia, Filecoin |
| eSign | eSignature | Digital signatures using crypto private keys |
| OCEN | Credit | Defi loans with and without collateral, like MakerDao, Aave, Compound, and Goldfinch |
| DEPA | Data | Use Zero knowledge, Oasis protocol, homomorphic encryption, or the like to minimize local storage of unencrypted data |
Conclusion:
That’s all, folks, Hope the article helped you in getting all the information that you needed.
