Vietnam Launches NDAChain Blockchain to Boost Digital Economy and Secure Data Sovereignty

Vietnam has launched NDAChain, a national blockchain platform aimed at accelerating its digital economy and safeguarding data sovereignty. The initiative, announced in a Friday press release, is spearheaded by the National Data Association in collaboration with the Data Innovation and Exploitation Center under the Ministry of Public Security. The system functions as a decentralized verification layer for critical sectors such as e-government, finance, healthcare, logistics, and education [1]. By processing and authenticating data before it reaches the National Data Center, NDAChain reduces system load while enhancing security and protecting digital assets. The platform leverages a hybrid Proof-of-Authority consensus mechanism augmented by Zero-Knowledge Proofs, enabling it to handle 1,200 to 3,600 transactions per second [1].

The blockchain’s architecture supports instant verification, tamper-proof data storage, and privacy protection, facilitating real-time access and cross-sector integration. According to Mr. Nguyen Huy, Head of Technology at the National Data Association, the system acts as a “protective layer for the nation’s live data, critical to our digital society and economy” [1]. The platform’s open design encourages adoption by both enterprises and government agencies, aligning with Vietnam’s broader digital transformation goals.

NDAChain operates on a network of 49 validator nodes managed by government agencies and major corporations, including Masan, VNG, SunGroup, VNVC, and MISA. This distributed infrastructure ensures compliance with international standards such as W3C DID and GDPR, underscoring the system’s global interoperability [1]. The choice of Proof-of-Authority, which prioritizes pre-vetted nodes for consensus, emphasizes security and efficiency over energy-intensive alternatives like Proof-of-Work.

The launch positions Vietnam among a growing number of nations exploring blockchain for governance and economic resilience. While the platform’s technical specifications highlight its capacity to handle high transaction volumes, its success will depend on widespread adoption and integration with existing systems. Analysts note that the government’s role in managing validator nodes could streamline implementation but may also raise concerns about decentralization and long-term scalability. However, the press release does not address these potential trade-offs, focusing instead on the platform’s immediate benefits in reducing data risks and supporting digital infrastructure [1].

The initiative reflects Vietnam’s strategic emphasis on technology-driven governance. By embedding blockchain into core sectors, the country aims to strengthen data integrity and foster innovation in a competitive digital landscape. The inclusion of international compliance standards suggests a deliberate effort to align with global data practices, potentially attracting foreign investment and technical partnerships. Yet, the platform’s reliance on a limited set of validator nodes managed by state and corporate entities indicates a centralized approach to decentralization, which may differ from open, permissionless blockchains like Bitcoin or Ethereum.

Source: [1] [Vietnam launches NDAChain as national blockchain to power digital economy] [https://cryptobriefing.com/vietnam-national-blockchain-ndachain/]