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Blockchain And Government

Nov 29, 2022
5 min read

This blog post will cover:

  • How can blockchain technology be used in government?
  • E-identities, e-documents, e-voting
  • Use cases of blockchain in government
  • Risks and future of blockchain in government

The potential of blockchain technology seems to be endless. A decentralized network where people can exchange peer-to-peer, without ever having to rely on a middleman is a revolutionary concept that could change the way we interact with the world. 

And among all the potential applications, blockchain technology could be used when interacting with government services to provide a smoother experience with less bureaucracy. However, the topic is quite controversial as many fear this would give too much power that could be abused to the people governing us. But without further adieu, let’s take a look!

How can blockchain technology be used in government?

Many governments around the world have started using blockchain technology as a potential way to provide public services. If implemented correctly, blockchain could connect the government and citizens like never before. Due to its peer-to-peer nature, the blockchain would effectively reduce the need for bureaucratic organs that sometimes turn out to be slow and even ineffective. 

The impact of cutting out the middleman between government and citizens can not be understated. The efficiency gained will make the service a lot easier to access even for citizens in underdeveloped areas. By greatly speeding up the process citizens in need could receive services without the days or even month-long waits. Furthermore, without all the government agencies lots of taxpayer money could be saved in the process. The cutting in spending means that citizens could be taxed less and their money spent on providing better services.

However, we are still far from full blockchain government adoption. It has been happening in countries like El Salvador and Nigeria and has had some positive results, however much more needs to be done. 

Overall, adopting blockchain technology in government could improve the services received in multiple ways. The trick is doing it right. 

E-identities, e-documents, e-voting

A particular use case that deserves its own section is the adoption by governments of e-voting, e-documents, and e-identities. E-identities could be used by citizens to interact with the services offered on the blockchain, just as you would do with your ID card. The idea has already been gaining traction and most developed countries are starting to slowly replace traditional IDs with e-identities. 

E-document is also increasingly being used to replace the piles of government paperware we are all too used to seeing nowadays. These are used to again interact with the blockchain effectively by simply uploading them into a protocol. 

Both of these technologies could ultimately be used for e-voting. Voting done on the blockchain would allow for a more transparent process, as the technology is known to be extremely safe and non-manipulable. Counting could be done automatically and with no risk of election fraud or similar. Without a doubt, this would increase trust in the government exponentially.

Use cases of blockchain in government

As we’ve already explained, cutting out the middleman bureaucracy between the government and citizens opens up a whole world of use cases. One of the main features of the blockchain is its security and immutability, once a block is confirmed there’s nothing that you can do to change the data on it. 

For starters, the feature allows for proof-of-ownership of assets and would allow the government to store a record of asset transactions such as land. This would have the effect of making real estate and other assets a lot easier to invest in, not needing piles of paperwork. Documents could be validated by this feature without having to visit any professional.

Additionally, purchases of the sort as well as other government services could be done via smart contracts. Allowing for decentralized transactions as well as making the whole process a lot quicker. 

This would also allow for social benefits to be sent directly to the citizen in need. Using blockchain for that could prove particularly useful for citizens living in underdeveloped areas or countries that do not have access to the services. 

Risks and future of blockchain in government

The adoption of blockchain by governments remains a controversial topic among crypto enthusiasts. Many fear that the government using blockchain technology would give them too much power that could potentially be abused. Due to the blockchain transparency and the likely KYC policy that would be implemented gives the government the possibility to see all transaction details and increases the risk of spying.

However, blockchain technology adoption comes with its pros and cons, only time can tell how it will all play out.  

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