Insights

India Stack – An Introduction to Open Networks

January 31, 2023

Open Networks is the core infrastructure that enables the vision of India Stack. It establishes a level playing field for members of a digital ecosystem. Application developers can focus on building the best consumer experiences and products instead of having to worry about infrastructure, permissioning, and access. There are two implementations of open networks in India Stack. The first is Open Credit Enablement Network (OCEN), and the second is the National Digital Health Mission (NDHM). The former supports the easy transmission of credit to consumers and businesses, and the second is an open network for consumers to securely share their health data with an ecosystem of healthcare apps and providers.

What is OCEN?

OCEN is an implementation of Open Networks standard that enables the flow of credit between borrowers, lenders, and credit distributors is codified under a common set of standards. Using these standards, various participants in the credit ecosystem can seamlessly connect with one another without needing to build bespoke APIs and infrastructure. In a consumer goods marketplace with millions of customers and thousands of suppliers.

What are the benefits of OCEN?

OCEN offers multiple benefits to both suppliers and financing companies.

1. Deepens the value add of their offering to the consumer
2. Allows more commerce to flow through its system as a result of better-funded suppliers
3. Results in direct revenue for the company through loan origination fees
4. Provides an opportunity for smaller companies to participate and contribute to the ecosystem similar to their counterparts

What problem does it solve?

1. Allows a company to partner with multiple lenders
2. Avoids the necessity to build custom integrations
3. Enables the partners to connect with multiple companies
4. Provides a secure transaction environment
5. Democratizes the ecosystem, removes duplication of effort and friction in developer experience

As more data is available with user consent it can flow into the applications to provide the most value. It is important to protect it so that the value doesn’t accrue to rent-seeking platforms that seek to corner the consumer. This is the principle behind open networks.

What is NDHM?

NDHM aims to create an integrated healthcare system linking practitioners with patients digitally. It gives them access to real-time health records. This will promote prompt and structured healthcare across the country. Every citizen can obtain a special health card known as Ayushman Bharat Digital Mission (ABDM). This One Nation One Health ID Card with a unique identification will hold all the information on patient safety by technology. A person can authorize the patient care to share specific details such as the part history of ailment and medications for a limited duration.

What are the benefits of NDHM?

Individuals who avail of this scheme are eligible for the facilities as mentioned:

• Unique Health ID Card
• Personal Health Record
• E-Pharmacy
• DigiDoctor
• Telemedicine

What are the benefits of the ABDM Health Card?

• The health ID card will include all the data associated with the health of each person. It can include the data of the blood group of that person, the information of previous sickness health, and prescription information.
• Nationwide Digital Health Mission Well-being Card will be a novel 14-digit number
• There will probably be a unique QR code within the health card, which will probably be different in all of the cards
• Each person registers with a user ID password along with a cell number. Logins methodology is only via OTP.

Opportunities

• The current strong public digital infrastructure provides opportunities to streamline healthcare information through digital management.
• The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) can expand the reach of digital health to all residents. It facilitates the development of an open and inter-operable health management system. It empowers residents, healthcare providers, the Government, and researchers.
• Emerging technologies such as artificial intelligence, the internet of things (IoT), blockchain, and cloud computing provide additional opportunities for facilitating a more holistic digital health ecosystem, that can increase equitable access to health services, improve health outcomes and reduce costs.

Summary of Open Networks

In conclusion, the Open Network Layer of the India Stack is a vital component of the overall India Stack digital infrastructure. It provides a secure and standardized way for developers to build applications that can interact with government and financial systems, as well as other service providers. This enables to build of a wide range of applications and services, including those in the areas of e-governance, e-commerce, financial inclusion, and more. The Open Network Layer is helping to drive digital transformation in India, enabling the delivery of efficient and effective digital services to citizens and businesses. Overall, the Open Network Layer is an important part of India Stack’s mission to build a digital infrastructure that serves the needs of all citizens and businesses in India.

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Credits:

1. https://indiastack.org
2. 2022 Pradhan Mantri National Digital Health Mission – NDHM Yojana – WBGOV.org