By Rameesh Kailasam & GT Venkateswara Rao
In an era where data is a critical asset, government departments and regulators collect and manage vast amounts of personally identifiable information (PII) from citizens. Agencies such as the income tax department, ministry of corporate affairs, Securities and Exchange Board of India, Financial Intelligence Unit, and National Intelligence Grid, to name a few, gather such data to fulfil their statutory responsibilities. Despite the significant potential for cross-departmental insights, the current system of sharing information on a case-by-case basis limits the effectiveness of inter-agency collaboration.
Each government department currently operates in silos, collecting and safeguarding PII data based on its specific operational needs and legal mandates. This includes data such as names, addresses, phone numbers, email addresses, gender, and identification markers like PAN, CIN, and demat account numbers.
The existing framework of data sharing is limited, with departments and regulators only exchanging information when absolutely necessary, often requiring formal requests and justifications. This approach is not only time-consuming but also inefficient, preventing real-time analysis and timely interventions.
To combat issues such as tax evasion and stock market manipulation, as well as to ensure the prevention of crimes more effectively, there is a pressing need for seamless data sharing among government bodies. These challenges are complex and multifaceted, requiring concerted and coordinated efforts. However, the sensitivity of PII data and the legal obligations to protect it create significant barriers to open data sharing.
This necessitates a secure, privacy-preserving framework that allows departments to share insights without compromising data integrity or individual privacy. The solution lies in the implementation of a concept called zero knowledge proof (ZKP) data vault for managing PII data.
The ZKP data vault leverages blockchain technology concepts to create a secure environment where sensitive data sets can be analysed without direct exposure. The ZKP mechanism allows one party to prove possession of certain information without revealing the information itself.
This revolutionary approach ensures that data privacy is maintained while allowing comprehensive data analysis and insights. The entity requesting data insights receives the necessary analytics — such as a yes/no answer or a specific value without accessing the plaintext data. This means that a department can obtain the information it needs to make informed decisions without directly handling sensitive data.
The entity responding to the request remains unaware of the contents of the request or the response details, ensuring data privacy and security. This approach ensures that even the department holding the data does not gain additional insights into what other departments are investigating. Audit logs track all requests and responses to maintain transparency and accountability. These logs are crucial for ensuring that all data requests are legitimate and there is a clear record of who accessed what information and why.
With a ZKP data vault, data remains isolated within each organisation’s infrastructure which prevents leakage and ensures that each department retains control over its data. Data also resides in the respective organisation’s local data centres, which help them comply with national and international data protection laws.
PII data undergoes one-way irreversible anonymisation, which is crucial for ensuring that data cannot be reverse-engineered to reveal personal information. Data is processed using probabilistic search with fuzzy logic in a federated manner that enables departments to perform complex queries and analyses without compromising data privacy. The ZKP data vault also does not allow access to plain PII data, which ensures that sensitive information remains protected at all times.
Accountability, transparency, and trust in this data-sharing framework are also maintained through comprehensive logs of requests and responses.
For the ZKP data vault to succeed, it requires a robust, proven anonymisation platform that can handle the challenges of data volume, velocity, and variety with high accuracy and minimal false positives. While the concept of ZKP data vaults for PII data is relatively new, there are several examples of their successful application in non-PII contexts.
The introduction of ZKP data vaults would represent a pioneering approach in India for enhancing inter-departmental collaboration while maintaining stringent data privacy and security standards. By enabling secure, real-time access to anonymised data, government departments can work together more effectively to address critical issues. This innovative approach not only ensures compliance with data protection laws but also fosters public trust in government data practices.
The journey towards implementing ZKP data vaults will require sustained effort, investment, and collaboration among various stakeholders. However, the potential benefits in terms of improved governance, enhanced security, and better public services make it a worthwhile endeavour. By embracing this cutting-edge technology, India can lead the way in secure and effective data sharing, setting a global standard for other nations to follow.
The authors are, respectively, CEO, Indiatech.org and MD, Posidex Technologies Private Limited.
Disclaimer: Views expressed are personal and do not reflect the official position or policy of FinancialExpress.com. Reproducing this content without permission is prohibited.