Some Use cases of Blockchain Technology for Governments

Blockchain is an intelligent technology that underpins the intelligent cryptocurrency of Bitcoin to make it secure. As a technology, blockchain had far gone from obscurity to one of the mainstream topics in just a few years. Now, the applicability of blockchain is there in various fields ranging from document management to public administration of governments. Different government authorities combine their central administration with blockchain to bring in more security and authenticity.

As of late, blockchain is a technology that is building day by day as more and more administrative agencies are now trying to test their blockchain applications in the supply chain, secure data sharing, identity management, secure payment, and much more applications. We can also see the first-hand benefits of blockchain in terms of government administration. While the list of public sector applications continues to grow, there are three major areas where the public sector is largely making out of blockchain lately. Let us review those in detail.

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  • Building trust of citizens

As per a research report, it is found that Americans’ trust in the government it now had fallen to an all-time low. About 80% of Americans say that they cannot trust that their government will do the right thing at the right time. Reasons for this distrust are many, including complex political and administrative reasons. However, the potential of blockchain in streamlining these is becoming more and more into the light now.

A major feature of blockchain applications that make is acceptable to all is transparency, which is enabled through decentralization. A transparent approach will let the involved parties see everything in black & white and verify the data. Blockchain solutions for citizen services will allow easy verification of government claims. For example, some central governments like Georgia, Sweden, etc., are now experimenting with land registries based on blockchain technology. This enables various parties involved to securely hold a copy of the same along with the government. This model is proved to help resolve property disputes quickly, and sometimes it can prevent any such things from happening at all.

The governments and citizens share common access to records so that the possibility of distrust is effectively eliminated. It is important to have a strong database system for this to happen with blockchain technology. For organizations that are planning to adopt the new-age technologies like big data, blockchain, or AI, RemoteDBA.com offers reliable assistance in enterprise database management and remote administration. You can consult the expert consultants out there to get inputs about the best action plan for your business databases.

  • Protection of sensitive data

There are various cases reported in which personal data breaches are happening from the government authorities. This is not just the concern of the governments, but it is happening everywhere in the digital world. Social security numbers, driving license and passport details, health records details, etc., are at constant threat of being stolen. Studies show that about 143 million personal data records of Americans were exposed in the Equifax data breach that happened in 2017. About two years ago, about 20 million records of the Government employees were stolen from the Personnel Management office.

Blockchain, by default, can act as a record keeper for the governments, which is a constant target of hackers and other intruders. However, rather than accepting such attacks as a part of the game, it is intelligent to take preventative measures in this information era. When done properly, timely action can mitigate the risk of data theft and data loss. These types of data structures will help to harden network security, reduce any single point of failure, and avoid any data breach.

Government Agencies like Homeland Security are now getting very serious about blockchain applications and cyber security measures. DHS now funds blockchain startups and conducts research and development to explore various cybersecurity approaches. As per DHS spokesperson, “blockchain technologies have the fullest potential to revolutionize the way how online identity and access are being managed. R&D projects are happening in this area which will help to bring this goal closer to reality.”

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  • Improving efficiency and reducing cost

Government agencies need to try and fulfill their efforts while managing it with scarce resources and a limited budget. Blockchain will be a lifeline for government decision-makers with stringent budgets. While used in the right context, blockchain can reduce redundancy, streamline various processes, decrease the audit burden, increase security, and ensure the integrity of data.

To illustrate blockchain solutions in terms of increasing the efficacy of government processes, you can consider how the federal government’s ongoing reconciliation in intra-government transactions is happening based on blockchain applications. There are trillions of dollars of the reconciliation funds being moved into the federal budget at any given in time. The process of reconciliation is time-consuming and expensive. It can also create some budget uncertainty while being run. The payment and accounting system that uses blockchain technology will provide order trials and facilitate reconciliations faster.

As we know, blockchain is a relatively new technology, but this can be considered as new tradecraft where the ecosystem around blockchain is quickly evolving. With various possibilities for ledger-based administration solutions, the primary step in blockchain administration is to identify the challenges and test and develop the corresponding applications. It is expected to narrow down the use cases and collaborate to test the potential of this technology in the future. As the blockchain continues to evolve, we can anticipate newer and unforeseen applications for government operations by increasing trust, security, and efficiency of citizen services.

More and more governments are now researching blockchain applications for adoption in varying public administration fields. In the long run, we can expect this technology to replace many of the existing models in public records management, fund handling, and various administrative tasks by bringing in more transparency and reliability in the same. As we have seen above, blockchain technology is still in its early stages of growth, and we will surely witness it evolving as the mainline application shortly.

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