Some main advantages of blockchain in Benefit Distribution Program are:
- Value chain made efficient: Multiple banking transactions (from the government to consumers) are replaced by a handful of transactions (from the government to Vendor banks).
- Fraud-proof system: The token is a digital code that will be sent to the end consumer’s mobile phone number. This digital code will be tagged to the Aadhaar number using a mathematical hash function, thereby making every digital code unique to the Aadhaar number.
- Automated Reconciliation: Using the blockchain technology as both the government agency issuing the tokens and the laptop vendors redeeming the tokens are using the same distributed ledger.
- Cost and Time efficient system: Following the simplification of reconciliation and Value Chain. The whole process will take less time and cost.