How blockchain technology changes government service systems

As the presidential election sparks another discussion about how the government can better monitor our elections and provide security services, emerging blockchain technology can provide a solution. By providing security and transparency, reducing the risk of violations, and enabling everyone to audit the results, blockchain solutions can reshape the future of American elections.

Blockchain is already driving huge investments and innovation across a wide range of industries. Governments could be next.

At its core, blockchain is a distributed ledger that enables efficient and reliable transactions through privacy (or anonymity), security and transparency, making it effective and reliable. Blockchain records are visible to all members of the network, so they can be easily monitored and audited. They are protected by encryption technology and a breakthrough peer-to-peer network encryption and effective verification mechanism, which makes them more secure. Moreover, once a record is added to the blockchain, it is permanent and difficult to tamper with.

This unique, seemingly contradictory combination of properties makes blockchain technology an interesting option for government applications, from digital voting and digital identification to electronic medical records, digital certificates and even free tax audits.

At scale, if blockchain proves to be efficient, reliable, and secure, the technology could reach a tipping point and begin to gain widespread acceptance during the next presidential administration, which could provide our nation’s leaders with an opportunity to revitalize and reinvent government.

When considering the technologies that can be used to improve and transform government business operations and services, it helps to look at them from three different perspectives : government to citizen (G2C) , government to government (G2G) , and government to vendor (G2V) .

G2C

Blockchain’s tendency to replace existing intermediaries means that governments, often one of those intermediaries, can find blockchain’s unique position when the set of functions provided by service providers is gradually reduced. That is, blockchain can provide governments with a secure platform for transaction layers, and this service function can remain executed and recorded.

The ability for governments to put this technology to work for their citizens, providing an accessible and self-verifiable source of truth for citizens’ interactions with the state is worth exploring, and many governments are already doing just that.

Potential applications include secure electronic voting, self-controlled electronic health records (EHR), and digital property rights. A pilot project has been launched in Ghana, enabling citizens to submit and digitize land titles, register property disputes, etc. through GPS positioning.

G2G

Because blockchain enables a shared ledger with minimal transaction latency, it can allow transactions and budgets to be coordinated faster than before without having to change their traditional service models. In cases where government agencies store information in silos, blockchain can make information sharing easier by serving as a common transaction layer for agencies to communicate.

One potential application is DHS using blockchain as an advanced analytics system to help quickly resolve identity issues and protect national security interests. Another potential application is internal identity management of people, products and services. In the UK, blockchain is currently being tested as a decentralized platform for taxation and remittances.

G2V

In some cases, governments are able to use their influence with suppliers to encourage compliance. This means that not only can governments work and allocate funds through blockchain-based applications, but they can also promote compliance with suppliers by providing access to the platform to incentivize corporate practices.

So far, blockchain activity in the government procurement space has been negligible, although startups, industry consortiums and at least one foreign government have made interesting progress in trade and shipping applications.

One potentially compelling G2V application is blockchain-based chain-of-custody platforms that provide supply chain assurance; such platforms are currently being developed in the private sector, and the government could help drive adoption by making them a prerequisite for federal contracting eligibility.

Government action... or inaction?

Some believe blockchain technology could eventually have the same transformative impact as the internet, and the private investment dollars and the diverse ecosystem of startups that have already built around the technology are promising.

So where can government add value? In the short term, it can provide space for open source ecosystems and private enterprise development to continue to thrive, while providing regulatory clarity in areas such as asset tax treatment and industrial blockchain standards.

Can our nation’s leaders further strengthen America’s position as a global leader in blockchain innovation? Or will others lead the way?

Congress recently formed a blockchain caucus to study how the technology can help financial inclusion. Meanwhile, states are learning more about blockchain. For example, Delaware, a popular state for many businesses, is actively exploring how to use blockchain for company registration.

Whether we’ll see mass adoption of this technology in its current form is unclear, but given its speed of rise and potential impact, blockchain deserves attention and attention.