Blockchain in Government Sector
A blockchain-based digital governmentcan protect data, streamline processes, and reduce fraud, waste, and abuse while simultaneously increasing trust and accountability. On a blockchain-based government model, individuals, businesses, and governments share resources over a distributed ledger secured using cryptography. This structure eliminates a single point of failure and inherently protects sensitive citizen and government data.
A blockchain-based government has the potential to solve legacy pain points and enable the following advantages:
Secure storage of government, citizen, and business data
Reduction of labor-intensive processes
Reduction of excessive costs associated with managing accountability
Reduced potential for corruption and abuse
Increased trust in government and online civil systems
The distributed ledger format can be leveraged to support an array of government and public sector applications, including digital currency/payments, land registration, identity management, supply chain traceability, health care, corporate registration, taxation, voting (elections and proxy), and legal entities management. More governments join the race to pass regulatory legislation and commence pilot projects centered around blockchain technology every day. Governments can leverage blockchain technology to provide cybersecurity, process optimization, and integrate hyperconnected services while bolstering trust and accountability. The distributed ledger format can be leveraged to support an array of government and public sector applications, including digital currency/payments, land registration, identity management, supply chain traceability, health care, corporate registration, taxation, voting (elections and proxy), and legal entities management.
Public sector blockchain can build trust, protect data, and reduce costs
Blockchain—the technology underpinning Bitcoin—has gone from relative obscurity to mainstream topic in just a few years. Realizing the cross-cutting applicability of blockchain, hundreds of leaders in government have joined the General Services Administration’s (GSA) blockchain working group to share use cases and best practices.
Excitement around the technology is building as agencies begin piloting and testing blockchain applications for payments, supply chain, identity management, secure data sharing, and more. We have seen firsthand the tangible benefits blockchain can deliver for government clients. While the list of potential public sector blockchain applications continues to grow, here are three compelling benefits within the public sector today.
Building Trust with Citizens According to the Pew Research Center, American trust in government is near an all-time low. Only 18 percent of Americans say they can trust the government to do what is right most of the time. Reasons for this distrust are numerous and complex, but there’s potential for blockchain to contribute to a reversal of this trend.
A key feature of blockchain-based solutions is transparency through decentralization, allowing participating parties to see and verify data. A blockchain solution for some citizen services could allow for independent verification of governmental claims. For example, the governments of Sweden, Estonia, and Georgia are experimenting with blockchain-based land registries, enabling multiple parties to securely hold copies of the registry. This model could help quickly resolve property disputes or prevent them altogether. When citizens and governments share access to records, potential for distrust decreases.