Guidelines for Blockchain Adoption | Saudi Arabia

The Guidelines for Blockchain Adoption were issued by the Communications and Information Technology Commission (CITC) of the Kingdom of Saudi Arabia in October 2022. These guidelines are designed to facilitate the application of blockchain technology across various industries, promoting best practices and providing executive and technical recommendations. The objectives of these guidelines are manifold: firstly, to assist decision-makers in organisations in understanding when and how to implement blockchain; secondly, to provide information on selecting the right type of blockchain network; and thirdly, to ensure that blockchain solutions are developed in accordance with legislative frameworks and regulations.

Scope of the guidelines

These guidelines are non-binding and intended for executive managers and software architects. Their purpose is to support the adoption of blockchain technology by offering general guidance, aiding in informed architectural decisions, defining interoperability principles, and providing recommendations for data privacy and security.

General guidelines

Select the right blockchain type

Choosing the right type of blockchain network is crucial. It is necessary to consider the level of transparency, immutability, access levels, and desired permission management features. Networks are categorised into public and private types.

Assess existing blockchain networks

Researching available networks and assessing the possibility of joining these networks rather than creating a new one is recommended. This approach can accelerate time to market and reduce costs.

Implement tokenization

Tokenization enables the representation of digital and physical assets on the blockchain. There are two types of tokens: fungible (for inventory) and non-fungible (for unique items).

Architecture guidelines

Select a suitable architecture model

The architecture of blockchain applications can be decentralised or centralised, depending on the use case requirements and the level of security or privacy needed.

Manage performance

Decoupling business logic from blockchain nodes is recommended to enhance the productivity of applications.

Interoperability Guidelines

Use open-source technologies

Incorporating open-source components is critical for developing blockchain applications that can evolve without high maintenance costs.

Design applications for multi-chain compatibility

Designing applications to be blockchain-agnostic enables the integration of multiple blockchain networks without significant refactoring.

Data privacy guidelines

Store data on-chain or off-chain

When choosing storage options, consider the size and sensitivity of the data.

Use decentralised oracles

Oracles act as middleware between blockchain networks and external data sources, enabling reliable data connection.

Security guidelines

Size the blockchain network appropriately

Properly sizing the number of nodes in the network is essential for ensuring the availability of a certain number of active nodes.

Identify blockchain users

Utilising digital wallets helps ensure identification, authenticity, and transaction data integrity.

Governance guidelines

Network governance

Establishing a governance framework is crucial for effective blockchain network usage and allocation of responsibilities.

Audit governance

The governance framework should define the audit process and responsibilities within the blockchain network.