Blockchain technology is a perfect solution for government services (development blueprint)

Given that government services are one of the most obvious and direct application areas of blockchain, it is not surprising that many progressive governments are already conducting research on related blockchain projects.

In the first half of 2016, cities, municipalities and governments have been vocal about their plans for this technology.

Indeed, a quick look at the projects in development shows how far the idea that blockchain can transform government services has spread around the world:

Delaware, USA

In Delaware, Gov. Jack Markell announced two blockchain projects at CoinDesk’s Consensus 2016 event.

According to information detailed by the governor, the first project focuses on moving the state’s archival records to an open distributed ledger, while the second allows all private companies in the state to track equity and shareholder rights on a blockchain.

At the time, Markell claimed that Delaware was ‘open to blockchain business’ and that he hoped 2016 would continue to be fruitful on the blockchain front.

Singapore

Another place is Singapore, where the government has turned to blockchain technology for a number of reasons.

The city-state is seeking ways to prevent merchants from defrauding banks, in part because Standard Chartered lost nearly $200 million in a fraud at China's Qingdao port two years ago.

Fraudulent companies have been using the same goods to obtain millions of dollars from banks by repeatedly using invoices, so the Singapore government and local banks have developed a system to prevent invoice fraud by using blockchain to create a unique cryptographic hash (equivalent to a unique fingerprint) for each invoice.

The banks share this unique key, rather than the original data, and if another bank tries to register an invoice with the same information, the system will alert you.

Estonia

Estonia has made great progress in digital government, and the government has established an e-residency program where anyone in the world can apply to become an e-resident of Estonia.

In turn, residents who are granted an application receive an electronic ID card with a key that enables them to securely sign digital documents, eliminating the need for ink signatures on official paperwork.

E-residents can also open bank accounts using the Estonian electronic banking system, set up Estonian companies using the country’s online system, and use Estonian electronic services. By using blockchain technology, Estonia is bringing global residents to the country and gaining new sources of income accordingly.

Estonia also has a healthcare project where medical records are tracked so that as a patient you can know who has accessed your medical records and when. This allows patients to take control of their own data. You can see transparently what care you are receiving.

Georgia, Ghana and Sweden

Another emerging area of ​​focus is government land registration.

For example, Georgia is developing a blockchain project related to land registration, led by the National Public Registry Authority. They want to show that Georgia has a corruption-free, modern and transparent government.

Another land registry application is taking shape in Ghana, West Africa, where the government is implementing it in 28 communities to create an immutable title.

The driving force behind these projects is the fight against state corruption, and the project serves as a symbol to attract foreign investors.

Switzerland is planning to put real estate transactions on the blockchain so that all parties involved in the transaction - banks, governments, brokers, buyers and sellers - can track the progress of the agreement immediately after the transaction is completed. This will enable instant confirmation of valid transactions with the highest level of security and integrity.

U.K.

The UK is exploring the use of blockchain to manage the distribution of donations. Monitoring and controlling the use of grants is complex and vulnerable to potential fraud or abuse.

A blockchain that is accessible to all parties involved could be a better way to solve this problem.

Blockchain activity areas

If your government, county, city, town, municipality or jurisdiction has not yet considered blockchain technology, they should.

There is plenty of room for innovation in blockchain, especially in smaller cities and municipalities, as they are a perfect starting point.

Given that blockchain technology is still in its early stages, it may be easier to implement blockchain solutions on a smaller scale first, in jurisdictions with 5 to 300,000 citizens, rather than in large cities with more than a million residents.

As a government entity, what can you do with blockchain? Generally speaking, there are four types of activities:

1. Verification : A license, proof of record, transaction, process, or event. Did this thing happen? Was this service performed on this piece of equipment? Did this person have the correct license?

2. Asset movement . The transfer of money from one person/entity to another. Direct payment once a certain work condition has been performed.

3. Title . Land registry, property titles and any type of real estate ownership. Blockchain is a perfect custodian of the chain of custody for all physical assets.

4. Identity . Governments and cities should issue blockchain electronic identities to their citizens, enabling them to securely use services such as voting. Electronic identities could be similar to passports, granting their holders access to a wide variety of services and rights.

Next Steps

But how do we realize these blockchain applications? And what actions can governments take?

Government leaders should:

1. The first step is to start spending time learning about blockchain and devoting yourself to exploring the potential of this technology.

2. Assign someone to develop a blockchain strategy. Perhaps there are already employees who have been exploring the technology, and they should be given the go-ahead to gain the legitimacy to enter new projects.

3. Start experimenting with blockchain technology through proof-of-concepts, sandboxes, and small, harmless projects.

4. Develop new and more progressive ideas that are increasingly ambitious and touch the lives of the citizens they serve.

5. Making a Difference. Committed to introducing innovative blockchain-based solutions that reduce costs and provide better and faster services to citizens.

We hope that public sectors around the world will start putting blockchain into their agendas. Perhaps, then, we can see significant improvements in how governments deliver services.