Observability In Digital Public Infrastructure
- Feb 12, 2025
- Blogs
- 7 min read
Introduction
Imagine this. On a busy day, a commuter is unable to pay for a ride, a student is locked out of an online exam or a small business loses a crucial payment. When a transaction seemingly this simple fails, one has to quickly identify in which of the systems a failure occurred. But the challenge is, behind this simplicity lies an intricate web of interconnected systems processing billions of operations in real-time making, identifying and fixing an error not so simple and instant.
To add to this, let us look at the staggering scale of digital transactions and the Digital Public Infrastructure (DPI). Aadhaar has issued over 1.3 billion IDs, covering nearly 99% of India’s adult population. UPI processes over 14 billion monthly transactions, handling payments worth INR 180 lakh crore annually. Meanwhile, eKYC has streamlined digital verification with nearly 15 billion transactions completed by 2023. These numbers highlight the vast reach of DPI, touching nearly every aspect of digital transactions and identity verification in India.
At this scale, ensuring uninterrupted service isn’t just about fixing failures when they happen—it’s about anticipating and preventing them. This challenge is particularly critical for DPI, the foundational digital systems that power essential services like digital identity, real-time payments, and e-governance. As nations increasingly rely on DPI to drive economic activity and public service delivery, maintaining its reliability becomes non-negotiable. This is where observability comes into play. Before we explore how observability strengthens DPI, let’s first understand what DPI is and why it serves as the backbone of modern economies.
What is Digital Public Infrastructure (DPI)?
Governments build infrastructure like roads, railways, and power grids to support economic activity and public services. These systems are open for both public and private use, enabling businesses to grow and people to access essential services efficiently. Just as physical infrastructure supports economic activity, DPI provides the foundational systems for digital services, forming the backbone of a nation’s digital economy.
Digital Public Infrastructure (DPI) refers to a set of interoperable, open, and scalable digital platforms that enable public and private services to build solutions on a common digital foundation, driving economic growth and improving service delivery.
In India, DPI has transformed governance, finance, and public service delivery. Built on open, interoperable, and scalable digital platforms, India’s DPI is enabling seamless collaboration between government, businesses, and citizens.
The scale and complexity at which DPI operates – reliability, security, and performance, becomes increasingly vital which are beyond the means of traditional monitoring tools. The need is for deeper insights of the network of systems in the DPI framework and Observability is the answer to this need. Let us delve deeper into the key reasons why DPI needs robust observability.
Why Observability is Critical for Digital Public Infrastructure (DPI)?
In the context of DPI, the need is not just about detecting failures—it’s about safeguarding the trust millions of users place in these systems daily. The stakes are higher given the sheer scale of operations and the need for DPI to be always available. This makes observability in DPI uniquely complex—it must operate at a massive scale while providing granular insights, ensuring security without compromising transparency, and balancing high performance with regulatory compliance. Let’s delve into how observability serves as a powerful tool for ensuring success of DPI and how VuNet’s observability platform addresses these needs effectively.
Observability, Key To Seamless Operation Of DPI
Ensuring Smooth and Uninterrupted Transaction Processing
Observability enables continuous monitoring of system health and performance, offering real-time insights into transaction flows. By analyzing logs, metrics, and traces, it proactively detects bottlenecks and slowdowns before they escalate. Additionally, AI-driven analytics help predict surges in demand, allowing for preemptive resource allocation to prevent system overloads and maintain seamless operations.
Providing End-to-End Transaction Visibility
Observability provides complete visibility into every step of a transaction, correlating logs from different stakeholders to eliminate blind spots. By pinpointing exactly where a failure or inefficiency occurs, observability enables faster troubleshooting, reducing downtime and ensuring transaction reliability.
Enhancing Security with AI-Driven Anomaly Detection
Observability enhances security by using AI-driven behavioral analytics to track anomalies and detect suspicious activities in real time. It proactively identifies fraudulent transactions, unauthorized access attempts, and potential breaches before they escalate. Additionally, it ensures compliance with regulatory standards through continuous monitoring and audit trails.
Automating Compliance Monitoring
Observability helps ensure regulatory compliance by providing detailed logs, metrics, and traces that can be audited to verify adherence to standards. By continuously tracking compliance requirements, organizations can proactively address gaps and avoid penalties.
Accelerating Incident Response and Enabling Self-Healing Mechanisms
Observability accelerates incident response by automating Root Cause Analysis (RCA), instantly identifying the source of failures and integrating with ITSM frameworks to trigger automated remediation actions. WithWIth pre-defined scripts, observability can provide self-healing mechanisms, such as restarting microservices or dynamically adjusting configurations.
VuNet’s platform vuSmartMapsTM, provides all of the traditional observability for DPI. But what differentiates VuNet’s platform is being able to provide business observability—a solution that goes beyond system monitoring to ensure that every transaction is processed successfully and securely. vuSmartMapsTM is a AI-driven business journey observability platform. By combining deep transaction monitoring with AI-powered analytics, vuSmartMapsTM provides end-to-end visibility, predictive intelligence, and automated remediation capabilities, making DPI more resilient, secure, and efficient.
Conclusion: The Future of Observability in DPI
In today’s digital world, sending money, verifying identity, or accessing essential services happens in just seconds. But behind this simplicity lies a complex network of systems handling billions of transactions in real time. As DPI continues to grow, keeping these systems reliable, secure, and fast is a major challenge.
At the beginning of the blog, we asked: What happens when a single transaction fails? The answer lies in observability. Traditional monitoring only tells us when something is wrong, but observability helps us understand why and helps fix issues before they impact users. Whether it’s a failed UPI payment, an Aadhaar authentication issue, or a slowdown in eKYC verification, observability ensures that DPI runs smoothly and maintains public trust.
As DPI expands across countries, the next big challenge will be making sure different systems work well together. Digital identity, real-time payments, and trade networks will need global interoperability, meaning they must function smoothly across different countries and regulations. Initiatives like India’s UPI expanding internationally and Europe’s Digital Identity Wallet show the growing need for cross-border observability. This will require AI-driven insights, real-time monitoring, and better data-sharing models to track transactions across different regions.
In the end, observability is not just about avoiding failures—it’s about creating a stronger, more resilient digital future. Investing in AI-powered observability solutions, like VuNet’s vuSmartMapsTM, will help ensure that DPI remains secure, efficient, and ready for the future, powering the next generation of global digital infrastructure.