Government is a foundation that helps with public’s requirements with existing resources in an efficient and sustainable manner. Governments are centralized in nature such that a leadership team usually governs them. On the other hand, blockchain is a decentralized network; an ever-evolving system attempting to provide better user benefit and user control.
Digital government is the state-of-art concept which focuses on providing users with swift and advanced public services. Blockchain is the most innovative digital technology that can be implemented for governmental policy making and service delivery. On a blockchain-based government model, individuals, businesses, and governments can allocate resources over a secured and digital distributed ledger. The distributed ledger protocol can be utilized in various government and public sector applications such digital currency/payments, land registration, identity management, supply chain traceability, health care, corporate registration, taxation, voting, and legal entities management.
A blockchain-based government has many potential benefits such as:
- Secure storage of government, citizen, and business data therefore reduced potential for bureaucracy, corruption, and abuse leading to increased trust in government and online civil systems
- Reduction of time and money in information exchanges enhancing the government administration.
- Promotion of automation, transparency, auditability and accountability of information in governmental registries benefitting citizens.
- Increased trust of citizens and companies in governmental processes and recordkeeping due to the use of algorithms independent of government.
Given all these benefits, blockchain technology can help immensely improve the status quo in the government. Blockchain can bring efficiency by inspiring new service delivery models for governments as well as lessen operational risk and transactional costs, increase compliance and trust in government institutions. The technology, however, has yet to be executed in a fundamental level within government. Nonetheless, we hope to see the implementation of blockchain government in the near future.