Why the ONDC Must be Open Source
The Open Network for Digital Commerce (ONDC) in India was launched with great fanfare by the government and its architects led by Mr Nandan Nilekani on 29th April. The stated goal of the network is to “democratise fast growing e-commerce sector, help small retailers and reduce dominance of online retail giants” by creating a level playing field like the Unified Payments Interface (sic).
This is yet another national governance project that comes on the heels of massive successful implementations of the Universal ID (Aadhaar), the Goods and Service Tax Network (GSTN) and the Unified Payments Interface (UPI). These projects have arguably unlocked the possibility to build large scale platforms (telecom and fintech) and also made payments cheap and affordable to everyone. There have been huge benefits to the public in terms of access and cost and have helped India leapfrog to one of the most technologically advanced administrations globally, making it one of the rare instances where government innovation has raced ahead of both the private sector and academia.
On the flipside, these platforms that affect the lives of a billion people, leave a lot to be desired when it comes to adhering to the essential tenets of openness and democracy. Most of the platforms are controlled centrally with a layer of tightly controlled entities and large players. This has led to the rise of a new set of incumbents who have been at the forefront of harnessing these platforms to build large telecom and fintech platforms. Was there an alternate approach to building out these platforms?
Large decentralised networks
We can look at the Internet as an example of how to build a large decentralised network. There are broadly two types of computers on the Internet, those that are reliably ON and have a near permanent (leased) presence on the network (servers) and those that connect time-to-time based on need (clients). Servers form the backbone of the internet and are identified by a number and optionally a name. These numbers and domain names are given out by an autonomous agency via sub-registrars for a small fee. Based on this simple numbering and naming system and a protocol for connecting and exchanging information and a unified client (browser), the internet has become the largest and the most impactful platform ever created by humanity.
Features that make the internet powerful and inclusive:
- The function of the central node is extremely simple (give out names and numbers)
- The registration is distributed through a federated network of registrars
- It is extremely cheap and easy to set up a server on the internet.
- Setting up a server on the internet and the core infrastructure of the internet can be done completely by free and open source software (FOSS)
- There is a free unified way of consuming information and applications on the net (web browser)
Each of these features are critical to the runaway success of the internet. The system is massively decentralised and it is extremely easy for anyone to lease a number and use FOSS based servers to start running a service on the internet.
The case for decentralisation
As India prepares its next phase of national platforms, it would be important to reflect on the architectures promoted by these projects. Can we envisage these platforms as parts of society (like the internet) rather than as parts of government? How easy or hard is it to become an ID provider, a payment service provider? Just as I have an option to run my own website or email account, do I have the option of hosting my own wallet?
While some of these questions may sound naive in the face of internet scale security threats and frauds, the internet has proved resilient to all kinds of large scale attacks right from spamming to service attacks. At the same time it has opened the floodgates for anyone with talent to set up their own internet service without being beholden to any bureaucracy. We believe that India’s national infrastructure must make it easy for anyone with talent and minimum resources to be able to participate by using the platforms to create a new generation of services and platforms on top of it.
As we look at the ONDC, a few key questions spring up:
- How easy is it to register and run a marketplace?
- How easy is it to register and run my own shop?
- Do we have open source implementations of marketplaces and merchant tools so that people can easily participate without signing up with a 3rd party?
While the Beckn Protocol (on which we assume ONDC is based) aims to be an internet scale protocol, without free and open source implementations, it has the potential of turning into a massively centralised system that would end up benefiting a few incumbents. Hence our strong recommendation would be to open source every implementation of this protocol and co-create along with the community so that we can build a truly decentralised national platform that will be robust and resilient and truly democratic.
Note: These are just my personal views, not officially of FOSS United (maybe we need a mechanism for that)