Vietnam Launches NDAChain to Accelerate Digital Transformation with Hybrid Blockchain for Secure Identity and Records

Vietnam has launched NDAChain, a state-operated blockchain network designed to streamline digital identity verification and record-keeping across government and private sectors. The platform, developed by the National Data Association (NDA) and operated by the Ministry of Public Security’s Data Innovation and Exploitation Center, aims to enhance transparency, security, and efficiency in managing digital transactions and critical data infrastructure [1]. This marks a pivotal step in Vietnam’s digital transformation strategy, with the government positioning blockchain as a foundational layer for verifying identity documents, land records, and other official data [2].

NDAChain is a hybrid blockchain architecture, combining centralized and decentralized components to address vulnerabilities in traditional data models, including scalability and cyberattack risks [1]. The network employs a layer-1 permissioned blockchain with 49 public-private validator nodes, operated by state agencies and private firms such as SunGroup, Zalo, and Sovico. These nodes maintain a distributed ledger for transaction records, smart contracts for automation, and identity verification modules linked to Vietnam’s national identity systems [1]. The platform uses a Proof-of-Authority (PoA) consensus protocol, augmented with zero-knowledge proofs to enhance security while maintaining control over network participation [1].

A key feature of the initiative is NDA DID, a decentralized identity solution integrated into NDAChain. This system will verify identities during transactions, enabling secure service access and digital contract signing. The government also introduced NDAKey, a mobile application that allows users to verify identities in seconds, reducing risks of scams and digital identity theft [1]. Nguyen Huy, head of technology at the NDA, emphasized that the blockchain will serve as a “protective layer” for the nation’s digital ecosystem, offering a “decentralized layer of trust” for sectors like e-government, finance, and healthcare [1].

Vietnam’s adoption of blockchain reflects a strategic shift from its historically cautious regulatory approach to cryptocurrencies [2]. While the country has maintained ambiguity about mainstream cryptocurrency legalization, this move institutionalizes blockchain as a tool for modernizing public services. The initiative aligns with Vietnam’s broader goal of advancing a digital asset ecosystem by 2026 [2]. Analysts note that the hybrid model balances innovation with control, mitigating risks while fostering trust in digital systems [2].

The platform’s hybrid design, however, underscores the government’s preference for managed decentralization. Unlike fully decentralized networks, NDAChain’s permissioned structure grants authorities oversight over validator nodes, ensuring alignment with national interests. This approach mirrors similar efforts in Southeast Asia, where governments seek to harness blockchain for governance while maintaining regulatory authority [2].

Vietnam’s blockchain deployment also positions it to compete in a global market increasingly driven by decentralized technologies. With a young, tech-savvy population and growing engagement with digital assets, the country is well-placed to attract foreign investment and tech partnerships. Early applications are expected to focus on high-priority sectors such as land registries and healthcare records, with potential expansions into cross-border trade [2].

Challenges remain, including public awareness and technical integration hurdles. However, the government’s phased rollout strategy, targeting 2026 completion, suggests a measured approach to implementation. By embedding blockchain into national infrastructure, Vietnam aims to reduce corruption, enhance citizen trust, and establish itself as a regional leader in digital governance. This initiative reflects a broader trend of governments leveraging emerging technologies to address systemic inefficiencies, balancing grassroots enthusiasm with institutional oversight [2].

Sources:

[1] [Vietnam deploys national blockchain for identity and records](https://cointelegraph.com/news/vietnam-ndachain-national-blockchain-launch-2025)

[2] [Nadcab Labs' Insights on Blockchain Development](https://themalaysianreserve.com/2025/07/25/nadcab-labs-insights-on-blockchain-development-services-adoption-for-transparency-trust/)

[3] [Advancing Toward a Mainstream Digital Asset Economy](https://opengovasia.com/vietnam-advancing-toward-a-mainstream-digital-asset-economy/)

[4] [Singapore: Embracing AI to Build a Resilient and Inclusive Future](https://opengovasia.com/singapore-embracing-ai-to-build-a-resilient-and-inclusive-future/)