Blockchain technology is a potential tech that can easily improve government services and foster fair and transparent citizen rights. So, blockchain for government is a splendid technology that can optimize the governmental processes and offer a secure, yet efficient sharing.
Moreover, blockchain comes with many numerous applications for the public of a country. Furthermore, using the blockchain technology, they can finally deliver different services, eliminate bureaucracy, prevent tax fraud, and reduce wastage. So, what can be a better way for a government to use it, right?
On the other hand, the concept of digital cash can smooth out any big transaction policies they have. It would also help the governments to reshape their financial transactions. As you can already see, there are plenty of blockchain use cases already.
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However, due to blockchain being relatively new technology, many governments aren’t that keen to use it. That’s why today, we’ll be talking about blockchain for government and whether it’s a must for the government or not.
So, let’s begin!
Table of Contents
Chapter-1: What Does Centralized Governmental Services Mean?
The issue with governmental institutions is that they are overly centralized. In reality, there’s only a handful of services that don’t quite go with the corrupted situation. Yes, centralized systems aren’t that bad; however, in many cases, authorities tend to use their power to promote unfairness.
Furthermore, there’s no scope for criticism as the centralized authorities have too much power at their disposal. This is where monarchy rises, and people use their powers to lay off individuals and doesn’t promote a fair ground for anyone.
On the other hand, these governmental services aren’t able to offer citizen rights as the government claims to provide. In short, the relationship between the government and the citizen is moving far apart. Thus, the economic growth of a country is at a great risk if the people within aren’t approving the government.
Every aspect of our governmental services is prone to corruption and other inefficiencies. However, to give you more insight into the whole spectrum, we will talk about the pain point of the governmental system. So, let’s begin!
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Chapter-2: Blockchain For Government – Pain Points of Governmental Organizations
Centralized government systems have a bad name when it comes to public services. Moreover, people all the time dread about having to do anything that involves the government. This involves services such as waiting in long lines to fill up forms, extremely slow process of filling out taxes. Thus, most citizens feel that government officers aren’t giving their 100% or aren’t enough to run a country.
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We can’t totally disagree with them; however, there are certain reasons why the government is lacking in every way.
We’ll see some of the pain points of a governmental organization to get a gist of why there aren’t doing so well.
Governmental organizations lack transparency in every way, and there are no real-time updates on the cash flow.
All the things the governments does seems a bit mysterious, don’t you think? Especially when it comes to all the low accessibility of documents and not enough information about how the government spends our tax money.
Furthermore, many times, citizens have trouble even accessing their own personal information. On the other hand, they have to wait a year to know whether the government spend all their tax money or not.
So, there aren’t any real-time updates on the tax money or the cash flow. Furthermore, the money always seems to disappear in thin air; we aren’t saying that’s what exactly happens. But the lack of transparency does make it seem like that.
The issue is that when there’s no transparency, there’s no scope for accountability as well. Furthermore, the federal bodies seem always to have discreet meetings, and subjective reports make the citizen more suspicious. So, in a way, the government is dealing with an opaque operation which is eating away the government-citizen trust.
Inefficient and Slow
What can be the best example of an inefficient and slow process than to shed light on the filing option? For any kind of benefits, the citizens have to file them. Furthermore, the process is quite lengthy and more importantly requires various steps to process.
Another issue is the advance filing process. The system is so slow that the people need to file then three to four months in advance. Furthermore, every governmental program needs personal documentation of people. So, they collect those using online portals or mailing. However, the process of multi-step human verification also takes up quite some time.
Moreover, transferring the funds rely mostly on snail mail, and on multiple occasions, checks don’t arrive on time. Not to mention the dominant fraudulent activities.
No regards for citizen privacy rights as governmental organizations store the private information of every citizen without full clarification. While we may not know just exactly where all of our tax money goes, but the government storing our personal information is too much. But how do they do it?
It’s quite easy, actually. Usually, many governmental services hide the fact of spying in the name of other services. Moreover, for example, take the defense departments, they use their advanced technology to snoop around our private life in the name of offering security.
Furthermore, the cell phones we use even spies on us. However, there’s no official clarification of any of it. So, if the government had other means of collecting information without invading privacy, that would be a great solution to this problem.
Falsifying data, identity thefts, tax frauds, corrupted personal sweeps the governmental organizations creating corruption in every sector. Furthermore, when it comes to local elections, corruption doesn’t let a fair voting system happen.
In reality, dishonesty is in every sector of the government. However, the citizens aren’t that honest driven either. Many citizens commit fraudulent activities such as tax evasion, staged death for social security, false insurance claims, and many more.
In reality, corruption runs from the lowest grade governmental service to the federal and presidential scenario.
Wasteful and Expensive
Many public sectors are wasteful for mismanagement and become expensive due to billions of money wastage. Moreover, with all the process of registrations, document verification, and the labor work needed for these tasks really takes up a lot of money. Not to mention all of these are totally wasteful.
In reality, if these tasks can work in a strict specific way, then the government can save up billions of money every year. Other aspects are that the government becomes bigger and grows as the country develops. So, it becomes quite hard to keep track of the spending as well.
Many governmental officers also fake bills and take up a lot of money just for their own benefits.
Inaccurate Cost Calculation
The cost calculation for every public sector deems inaccurate as most of the time; the funding is too high or too low. In reality, the persons behind this budgeting system are the actual culprit. Either they slack off their work and don’t deliver accurate information.
Or due to the very nature of mismanagement, they ultimately don’t have access to the real information. Whatever may be the case, the government sectors always bills too low or too much in terms of any governmental project.
So, there’s a big economic problem that keeps pilling up as the days go by.
Lack of Digitization
Keeping up or utilizing modern technology isn’t one of the strongest suits of government. They lack or isn’t reluctant to digitization. In reality, they tend to use the old networks over and over again. Even though there’s a much greater solution out there still, they aren’t’ ready to let go off their ancient methods.
As a result, the government can’t offer their citizens the luxury they deserve. Because in many cases developed countries do offer advanced digitization for their citizens, whereas in the developing countries it’s a rare event.
The internal networking system of every government organization runs on legacy networks, which is inefficient and slow. Furthermore, the trend of using legacy networks seems to grow day by day. All the governmental institutions still have the same system that they did back in the 90s.
Yes, changes are happening slowly among them, but at this rate, it would take years to get all the legacy networks out.
Furthermore, when the government keeps using legacy networks, many citizens that work at these places are stuck with using the old networks as well.
Not only these networks are unable to get the job done, but they also have huge security risks.
Incompetency to Provide Citizen Rights
Governments are incompetent in offering citizen rights, which creates a dissatisfaction within the citizen of a country. In every election, the parties make certain promises; however, only a handful of them keep them.
In the end, citizens get stuck with a typical government that can make all the promises but can’t actually deliver it. In reality, it makes the citizens portray their government as an incompetent entity that can’t get the job done.
Chapter-3: How Blockchain Can Shine In Government Sectors
Blockchain technology has been rising from quite a while now due to the immense functions as the asset management system. Mainly it’s because most of the government departments need asset management and transaction capabilities.
As we said earlier, the usual way that the government actually deals with the management is quite outdated.
That’s why blockchain for government can be a great solution for it. In reality, every year, we are moving away from the paper-based system management. So, using blockchain for government can be the perfect platform here.
Moreover, with blockchain for government services comes the web 3.0 technology, and it can manage new record storage, voting systems, healthcare deliveries, tax portals, and many more.
So, with blockchain for government services, now people can directly collaborate with other governmental parties as well.
However, today, we will talk about some of the key benefits of the blockchain for government scheme. So, let’s see what these blockchain features are!
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Trustless Interactions And Transactions
Blockchain for government services offers direct peer-to-peer interactions within private channels along with trustless transactions with proper verification. Furthermore, it’s an important feature because it gets rid of the trust issues and doesn’t fully rely on the paper-based system.
Moreover, if blockchain for government services use the technology to register citizens, then they’ll get a blockchain based I.D. Thus, they can finally use it to support their real-time fraud-free government to citizen transactions.
Furthermore, when the citizens give access to their documents on the blockchain for government platform, every single document will get stored securely. In reality, it would also harness personal privacy schemes along with making all interactions trustless and bureaucratic. So, in the end, every service would become much more affordable.
It can offer high-security layers that help in keeping hackers away from sensitive information. In reality, governments are the main targets of hackers, and they try to pry into the citizens’ privacy. Not to mention, they also disrupt or hurt any organizations by stealing a large sum of money from them.
However, you can easily fend off these security issues with the help from the blockchain for government services. Furthermore, when you are using distributed data storage on a protected network, it becomes extremely difficult for hackers to get in.
Usually, a hacker just has to hack one single server; however, as the users are distributed around the globe, they would have to hack all the users presented on the torch. So, if you have millions of users on the network, he/she would have to hack millions of servers, which is impossible. This, blockchain in government surely helps us out in every way possible.
Immutable Record Storage
Blockchain for government provides immutable record storage that can help governments to store any information without any tampering. In reality, governments do use our data to make predictions or projections, perform political analysis, plan budgets, and many more.
Thus, the more secure the data has, the better. So, for that, they need to store them at an accurate and not hackable place. This is where blockchain for government services come into play. Furthermore, the immutability feature makes sure that the storage isn’t penetrable or changeable. So, no one can tamper them in the blockchain for government platform.
Thus, it promotes trust and transparency for blockchain in government services. We will know for sure that all the statistics are real because no one could tamper with them for the blockchain in government scheme. So, in the end, it also improves residency and identity management on a great scale.
It also offers greater efficiency for governments by getting rid of third parties and prompting verification of documents on the network. So, using the verification protocol on the blockchain for government network, you won’t need an additional human resource to manage theme.
In short, you’ll get more efficiency without too many issues or errors. Moreover, with the help of instant transactions, there would be less need for personal or additional resources in the transaction sector saw ell. Because of the smart contract feature in the blockchain for government scheme, agreements on the network would be possible.
Thus, the blockchain government can really change the typical ways as well.
Blockchain for government services come at a lower costing and streamlining everything reduces wastage of funding. Remember how government services cost way too much than needed? Not to mention, the wastage of money occurs every year.
Well, blockchain in government can actually help out in that regard. In reality, blockchain for government services may seem like a lot of investment, but with the BAAS providers, it can be really cost efficient.
Also, you won’t have to use extra force to maintain foreign technology but get help directly from the experts. Thus, governments relying on many wasteful services would be gone, and the budgeting and services will finally cost much less.
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Corruption Reduction And Transparency
With immutable database and tracking system, governments can finally reduce corruption and promote transparency. In reality, there’s a lot of corruption within the government as you already know. However, there needs to be a fine way to detect or stop it at once.
However, with an immutable database of the blockchain for government services will finally promote honesty and transparency. Thus, it would also repair the bond between government and citizens. Furthermore, with the help from blockchain in government network, citizens can know about the cash flow.
People would be much more unbiased towards news portals, and voting would be fairer. Thus, a country can finally start to grow without any negative energy.
With authentication, only certain personals would have access to sensitive information. No other user would be able to get access to that. Yes, it’s an important factor when it comes to government. In reality, all the governments’ services are public service; however, an organization would not disclose every information out in public.
That’s why the need for authentication is absolute when it comes to blockchain for government services. Furthermore, only people with higher ranks can access sensitive information, not anyone else.
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Chapter-4: Possible Blockchain for Government Use Cases
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It doesn’t matter what you believe in, but you have to admit that trying to influence the voting system artificially has been around for ages. So, its’ a big issue within the government. Due to the nature of the political environment, most people forge or try to trick their way into power.
For example, in 1844, the votes in Tammany Hall in New York City reported 55,000 votes. However, the issue was only 41,000 voters were eligible for casting a vote, so the extra 14,000 votes were duplicates!
That’s a huge number of illegal votes right there.
Thus, the blockchain for government use cases can be the ideal fit for this application. Furthermore, it would finally stop foreign involvement in the elections. Moreover, many states are already testing out blockchain for government use cases in the voting section.
Additionally, the ability to vote right from home using the internet will increase voter participation along with added convenience. Moreover, as the blockchain for government use cases offers immutability, it would mean no one can tamper with the voting results.
Thus, finally, fair judgment will start to prevail, and citizens will get their rights back.
National Digital Currencies
Blockchain doesn’t only offer a platform, but it offers an option to launch your very own digital currency. What technology can be a better fit to store digital currencies than blockchain, right?
To you, digital currencies may seem far-fetched, but there are many countries where the economy has collapsed, and they need a new currency to get back up.
For example, Venezuela’s economy collapsed, and now they are looking into national digital currencies to get back up. But let us tell you how a national digital currency is a great solution to control the economy of a country.
As everything is digital, so it could be easier to control the currency flow according to the demand. Furthermore, with proper regulations and high-end security storage, a government can be more powerful than ever, beaus they don’t have to waste resources for management.
Another great blockchain for government use cases is the reduction of paper-based currencies. On the other hand, it would not only stable the usage, but it would also stop the money laundering process.
Moreover, with the digital currency, it would be easier to track down any currency used for illegal purposes on the blockchain for government network.
Border And Customs Patrol
The customs and border control seizes many illegal imported goods on the borders. However, the sheer amount of those apprehended goods is just a needle in the haystack. Every year, billions of goods get into countries illegally and sold at a lower rate. Not only it damages the government’s revenues, but it also gets away without paying taxes.
Moreover, many customs officers are corrupted, and they take bribes to let it slide. Thus, they alone slow down the government’s economic growth. That’s why the blockchain for government use cases in this manner could really help out.
It can offer greater provenance of where the product goods came from, thus stopping all the illegal importing for good. Furthermore, it can also get rid of the corrupted personals from the customs office and promote a transparent environment.
Additionally, the real-time records of the custom agents would also make sure to keep everything under control in the blockchain for the government.
Budgeting is a huge deal for any government as a proper budget can reduce waste and promote the right investments. Take New York City’s Council, for example. The mayor gave a budget of $89 billion, and the City Council demanded a thorough investigation of the demand.
Needless to say, the mayor was unable to provide any proper ground, and there were many loopholes. In reality, it’s not a new scene entirely. Furthermore, every year, governments have wastage in the budgeting. Moreover, it’s too late when the citizen realize where their tax money is actually going.
And so, when there’s the huge number of wastage in the government, blockchain for government system can really shine in this case. Blockchain for government use cases will offer transparent budgeting where the citizen can see where their money is actually going.
Moreover, it would also increase the overall efficiency, let along reduce wastage. Before accepting any budgeting demands, the authorities can see exactly when and where they plan to use the money for.
Not so long ago in 2015, the H.R department of the USA faced a major issue. In reality, they were hacked, and much sensitive information got leaked. Moreover, what’s more, shocking is the discovery that the malware was in their server for over a year, and they had taken up all the records in the last 15 years.
Nevertheless, it was a foreign hacking group and compromised 21.5 million people’s personal information! So, you see, you need protection even in simple data entry management.
However, with the help from the blockchain for government use cases, now the government can finally utilize multi-layer security measures. Additionally, with the help from the blockchain for government scheme, they can detect any breaches in real time.
Considering that the data entry won’t just be social security numbers but sensitive identification of undercover operatives, blockchain makes full sense.
The storage needs of the government are immense. In reality, on average, it takes up $2,603 to just take care of a five-drawer filing cabinet. Moreover, the costing includes the clerk’s salary, cost of the cabinet, file disposal form costs, indirect costs, and many more.
Furthermore, the national archive does contain files from 1775, so it includes 12 million maps, architectural drawing, charts, 400,000 sound, and video recording, 10 billion pages of textual records, and 50 million photographs.
Can you see the enormous amount of storage requirements for the government? And it would only grow in the future along with expenses.
To deal with it, blockchain for government use cases can help out. With digitizing the system, there won’t be any need for file-cabinet management.
Furthermore, it would also reduce the amount of paperwork, and there won’t be any missing file issues. Thus, it would be much for convenient to search up a file and get the information when needed. Moreover, it would also be really easy to maintain everything in the blockchain for government network.
Inter-Agency Data Management
Due to the lack of a proper management system with the agencies, there are millions of tax money dollar losses. A standard system within the interagency would call for reducing the wastage. However, the existing system is capable of handling the large load between agencies.
Obviously, agencies have to make sure that all of their resources and money are called for. Not to mention the information they gather up while training officers. Moreover, additional administrative costing also is a big wastage.
However, with the help of the blockchain for government use cases, it would be a piece of cake. As it would allow the agencies to roper manage their data, it will reduce tax money wastage. Moreover, it would also help reduce the training costs of the employees if everything can be done online.
Furthermore, as the network doesn’t rely on any administration, so, there won’t be any need for a central authority in the blockchain for government system.
For the increasing corruption in the government, most of the people in a country feel overly afraid of how much bribing they have to pay to get a service. According to a recent survey, the USA ranked 16th out of the 180 countries for corruption ranking.
Other countries that have ranking such as 135th to 180th seem to have greater consequences of bribery. Thus, due to the excessive punishment for corruption, the people in those countries do not follow bribe policies.
However, the punishment in the USA is far less than those countries, and that’s the reason for rising corruption everywhere.
In reality, the scenario might not seem like a good result. However, the good news is the blockchain for government use cases can save the nation here too. Moreover, as everything will be available out in the open, the authorities can easily figure out the corrupted persons.
Thus, any kind of bribing or tampering won’t happen in the government services anymore. If the citizens can take a look at the government’s spending records, corruption would surely perish. So, finally, public procurement would be possible.
Another great blockchain government use cases are shared service improvement. In reality, there are many shared service models, but unfortunately, they aren’t able to completely offer 100% efficiencies.
Yes, they had improved quite a lot from 2013, but to keep the business going in the future would require proper utilization of technology. Thus, adopting a more knowledge-based and sophisticated shared service would mean more cost reduction and better revenue.
That’s why using blockchain for government in this manner would surely be useful. Furthermore, it can easily save up the costing for every shared service model. Moreover, it can also improve the overall system of the models.
Another issue greatly haunts the shared service. It’s the overlapping functions between agencies. Not only it damages the organizations, but it also creates a competitive edge, which is unnecessary.
And so, using blockchain for government here would take care of the overlapping situation for good.
One of the major issues of every government is tax fraud. Many citizens within the country evade their tax payment every year. Furthermore, it not only decreases the governments funding’s, but it also hits the economy really bad.
You obviously know by now that the government uses our tax money to pay for many services that we enjoy. So, when you are invading your duties, you are hurting yourself in the process. Another huge problem is the taxation process.
In reality, it’s extremely excruciating and time-consuming. This leads to many waiting times in the government office, which makes more people less eager about giving taxes properly.
However, with the help of blockchain government use cases, it can be digitized too. The government can keep track of all the tax payments and quickly locate any tax evasions. Furthermore, with the help from smart contracts, the taxation process would be much simpler with no waiting time at all.
The intragovernmental transfer section is quite backdated. Due to the lack of a proper database, large sums of money get unreconciled within the federal budget. As a result, the reconciling process of these budgets take a lot of time, and it even costs more.
Furthermore, it also makes it difficult to offer a federal budget for the future. Moreover, many things get caught up and aren’t accounted for.
Thus, the intragovernmental transfers remain a weak point of the government. However, with blockchain government use cases, things can finally change. Furthermore, it can automate the reconciliation process of federal funds. So, you won’t have to spend extra money or time into the process anymore.
Not to mention, it can save up trillions of dollars every year with the immutable transactions. How can you do it? Well, the smart contract of the blockchain for government scheme is capable of handling it. In the end, you get a greater management system and get to save up lots of money.
The concept of e-residency alone is super smart. In reality, governments need to keep tabs on proper residency management, such as land ownership, leases, and many more. However, due to the legacy networking system, many citizens even fail to prove their ownership.
Furthermore, many times, hackers tamper with the documents and get other people’s processions in their names. This leads to more citizen frustrations. Another major issue is the rising residency prices that make it more difficult for every level of citizens.
To make sure everything is on a single level, blockchain government use cases can be the best technology.
With help from the blockchain government use cases, the government can offer virtual residency authentication. Furthermore, a citizen with land ownership will get all records stored in their identification.
So, it would easier to track and know if that citizen owns that property or not. It’s not only about domestic residences only, but many organizations can also store their documentation online, which would not be hackable.
Governments have to deal with identity management in a country. It’s to make sure they have their citizens, and no foreign people are roaming about illegally within the country. Thus, identity management is one of the crucial issues that fall into the category.
The problem is, many bad players steal other people’s identity and leaves no room for them to prove their own existence. Not to mention, any criminals commit various crimes using those fake identities. Thus, it’s necessary for strong security when creating or storing citizens’ identities in the database.
With help from blockchain government use cases, citizens can have portable identities. So, with one identity, they can use it in any governmental offices and get access.
Obviously, you would need the rank to access certain services; however, it becomes really convenient. Another great benefit is that citizens would get access to their own data. Moreover, there would be nor identity thefts with multiple layer security protocols.
Justice is a big part of the government. Without proper justification or law, no country can develop into a greater nation. Thus, there’s always needs to be strict outcomes when someone commits a crime. A liberal justice sector can’t accomplish any peace within a country.
However, the justice sector is overly corrupted, as well. Furthermore, many tend to tamper with the courtroom evidence and convict innocent peoples and let guilty ones lose. In many cases, the jury is also responsible for making bad decisions.
That’s why to preserve all the evidence properly a timestamped entry in the blockchain for government platform would be very much useful. Furthermore, any decision of the jury or judge will get timestamps as well.
Authenticating the evidence can also be a great blockchain government use cases. Moreover, the use of technology keeps the corrupt persons out, so proper justice is served. So, no biasing can happen.
Offering better citizen healthcare is one of the major promises of any government. If one fails to do so, the government-citizen relationship perishes. However, many patients do not have the right to even ask for their privacy.
In many cases, the patients don’t have access to their own data, and doctors can’t diagnose them with preserving their privacy.
That’s why blockchain government use cases would be a great fit here. Furthermore, it can help to reduce healthcare deliveries along with preserving the privacy of the patients.
Moreover, updating any healthcare information on the blockchain would be an easy task. The patient can also control their data management while getting treatment. They can also connect with their insurance coverages and pay for the treatment with that.
Energy management is also another one of the great blockchain government use cases. A government of a country always needs to maintain a good flow of energy for powering every single building and roads. However, due to mismanagement in the public energy chain, too many energy is needed to covering every ground.
This gives rise to a power outage and many other issues. To reduce this problem, blockchain for government can really help out. Furthermore, with the proper management, the citizens can get energy with less expense. Moreover, they can also start to buy and sell their solar panel power and give rise to a completely new business.
Governments always have the budget for welfare organizations. Moreover, every year, many people donate millions in these governing welfare organizations. However, it’s unknown whether the money actually helps the people in need or not.
Thus, introducing blockchain for donating and tracking the donation would increase more transparency in the matter. Moreover, it can also boost efficiency in welfare distribution. Furthermore, in case of disasters, it can automate donations in the affected areas. Another cool use case would be to allocate funds in these organizations when needed.
So, in short, the government is getting a fully automated and solid technology to manage this sector.
Tourism is an extremely important sector for any government. It’s one of the big income sources of the government. However, this sector also needs some changes. With the changing trend, if the tourism sites aren’t technologically updated enough, people could lose interest in the visit.
Thus, introducing blockchain for government solutions here could spice up tourism. One possible example could be using digital currencies to pay for the attractions or hotel fees instead of fiat money. Furthermore, using blockchain in the hotel management system can also open up a lot of liquidity.
Therefore, it would bring in more revenues with the help from the blockchain for government system.
There needs to be a good amount of social security assurance from the government to the citizens. However, due to the lack of proper surveillance, social security isn’t always available. That’s why many fear of getting out late at night or avoid using any quiet or less crowded place.
As for the government, they have to offer the security, but if a nation fears for their life in inconvenient situations, then the government certainly failed to do so. Here, blockchain for government can truly shine as it can offer real ID based firearm licenses for protection.
It can also track just when and where the firearm is being used. Also, a distributed registry of the criminal activities or warnings can help alert the people nearby to be careful.
Well, we do use our vehicles to travel internationally, don’t we? Even though international travel is much easier now, still the regulations relating to the vehicles remain a country-specific option. Thus, many people or organizations dealing with vehicles face the issue for this.
Specifically, when it comes to car manufacturers, they would have to ship all parts from different regions with different rules.
However, the question is, can you share the vehicle information or driver identification internationally without breaking any country specific rules?
Well, yes, you can. Blockchain government use cases are the best solution for this issue. Using blockchain for government, you can register vehicles, have better maintenance, and track parts. Also, with verified driver identities and pay as you go policy, you’re international journey experience would be outstanding.
Chapter-5: How Governments around the World Are Using Blockchain
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China is one of the examples of government blockchain projects. In reality, the government of China is embracing the blockchain for government scheme for a long time now. Furthermore, the country is hoping to become the blockchain powerhouse that would utilize both private and public blockchains.
One of the examples includes the collaboration of the city of Changzhou and Alibaba for securing healthcare information on the blockchain for government platform. Additionally, the China Federation of Logistics and Purchasing is also working on blockchain applications for government with Tencent for logistics platform.
Recently in 2019, the government introduced some federal regulations for the blockchain providers to ensure that they don’t bypass the internet censorship regulations. Moreover, many cities such as Hangzhou, Guiyang Guangzhou, Henan, Shanxi, and Shanghai are working on government blockchain projects. Furthermore, the Xiong’an New Area is now on the verge of being a blockchain hub.
However, cryptocurrencies didn’t have that much support as the distributed ledger technology itself.
Isle of Man
The government in the Isle of Man is working its way to becoming a blockchain hub and working with many government blockchain projects at the moment. Moreover, using blockchain applications for government, they are promoting new business in their island.
The British Crown dependency is forming a Blockchain sandbox and Blockchain Office using regulations in the blockchain for government scheme.
Furthermore, the blockchain offices will ensure more businesses and promote regulation and also help other companies on the island to design their very own blockchain for government projects.
Moreover, they would also help promote those blockchain solutions so that their government can benefit from it.
In reality, the blockchain Sandbox is mainly for offering these applicants a good environment to develop and even test out their platforms. Another great example would be the development of their e-gaming sectors.
The country’s e-gaming sector is blooming, and with the help of blockchain applications for government, they want to promote more efficiency.
Venezuela is using government blockchain projects to revive their country’s economy. Moreover, their blockchain for government scheme is rather different than usual. They are using blockchain to launch their very own national digital currency.
In reality, Venezuela is facing a great issue with its revamped currency. That’s why using blockchain applications for government they plan to use the digital currency as the alternative. At present, the currency is called petro and is backed by the country’s oil, gold, diamond, and iron resources.
This, in turn, could help to reduce the excessive printing of money that ultimately devalued their paper-based fiat money.
However, using an alternative isn’t the only benefits of the blockchain for government scheme. If they start to use digital currencies, they can open their doors to new possibilities of business. On the other hand, it would be far easier to keep track of their digital money.
The United Kingdom isn’t that far behind when it comes to using government blockchain projects. On 2018, the Food Standards Agency of the UK used the blockchain to track down their meat distribution from the slaughterhouses.
According to them, this is the first time any government used the technology for adding efficiency in the food department. However, the good news is that the blockchain applications for government actually did a fine job.
Other sectors or government departments are also looking into the technology. Sectors such as land registry, food traceability, work, and pension, and many more are considering blockchain.
Furthermore, the United Kingdom is planning to invest £10 million pounds for researching and innovating the technology to better suit their applications.
Even though they already have multiple companies already using blockchain, still they want to use it in voting systems, energy, and charitable agencies to expand their reach. Anyhow blockchain for government did become a very great solution for all their sectors.
The European Union
Another great example of blockchain applications for government is the European Union’s scheme. At present, their European Union Intellectual Property Office wants to use blockchain for government for combating counterfeit products.
In reality, the counterfeit is rampaging the economy of the EU, and each year, they lose €60 billion, which is a huge amount.
To help escalate the solution, they held a competition named “Blockathon” where 11 teams created multiple solutions to deal with counterfeiting. A team won the competition and sent out to the people for proper verification before rolling out the final product.
Furthermore, the EUIPO is now negotiating with other private sectors to turn their vision to real working products.
According to the EU, the objective is to have a product or app on blockchain for government that can stop or at least tone down the number of counterfeit products.
To accomplish the e-Estonia Program, Estonia is using blockchain applications for government to fuel their developments. What they intend to do is to connect all of their government blockchain projects under a single platform.
Furthermore, the project plans to have a platform where sensitive information such as the legislature, judiciary, healthcare, code registries, security, etc. are stored. In reality, they want to keep all the information in one place and make it as much as secure as possible.
Another blockchain technology called KSI helps to secure the country’s systems, data, and networks.
This KSI system can offer governments the protection in times of contract cyber-attacks and now is available in 180 countries.
Moreover, they began their blockchain testing back from when bitcoin first came to be. So, you see, just when a new concept of technology began to emerge the Estonian government seized the opportunity right there. Thus, Estonia is slowly going forward to full decentralized country.
Next is the USA, that’s also exploring a lot of blockchain technologies. Well, most of the technology companies do reside in Silicon Valley, so it’s not a surprise that the country would be interested in it too.
In reality, the most active government blockchain projects would be the collaboration of Food and Drug Administrations with IBM. IBM is a great BAAS provider that offers Hyperledger blockchain solutions for many sectors.
Together with IBM, the FDA is exploring blockchain applications for government in the healthcare sector. Furthermore, with the help, they want to share all the patient data by keeping patient confidentiality securely.
Creating more transparency and security in this sector is a must for the government, and the FDA is using the best technology for that. At present, they are on trial with oncology-related data.
Another example of blockchain for government would be the Department of Homeland Security to use it for collecting and protecting Broder Patrol sensors and cameras.
Denmark is using blockchain for government schemes in many sectors now. On 2014, the government used a blockchain based voting system to cast a vote. However, till date, the government is using blockchain applications for government to power their internal elections.
Other than these, they also have the use of blockchain is healthcare, digital identity, the welfare system, business support, and many more. In reality, they are also proudly offering environments for the growth of testing of blockchain and developing high-quality solutions. Also, to make sure that confidentiality and security is the priority.
Their welfare sectors are also blooming quite nicely. With help from the tech, they want to establish human rights safer and faster.
So, government blockchain projects can transfer donation in hot spots in the world. This is how Denmark’s government is utilizing the tech for now. Furthermore, in the future, they hope to expand their responsibilities as well.
Well, you would be pleased to know that Dubai is transforming into a blockchain powered government by the end of 2020. Yes, the government of Dubai is more than eager to become the city of the future with the help from both blockchain and AI.
In reality, all of Dubai’s services such as bill payments, visa applications, licenses renewals would use blockchain for government scheme.
Usually, all these services account for their 100 million documentation every year. So, blockchain applications for government would not only safeguard these but also give digital storage.
According to them, this one step would save them $1.5 billion and 25.1 million working hours every year! Not to mention the enhanced efficiency they would get due to paperless government. That’s why government blockchain projects are changing Dubai to achieve their goals fast.
Another great example is the Dubai land registry that uses blockchain and government to transform how the people buy and sell real estate.
Switzerland is also on the list of exploring government blockchain projects to support blockchain development. Some of the cities in the country already accept crypto payments for many public services.
On the other hand, they also digitized their ID system based on blockchain for government scheme. Furthermore, they recently completed a trial on e-voting too.
Zug partnering up with Luxoft, they created a customizable e-voting system that integrates all the digital identification of the citizens. To help safeguard the voting results, every citizen will anonymously vote, and the results would be fully tampering proof.
Furthermore, the system goes up to three different data centers, which help to reduce data loss and security risks geographically.
Other than that, many other government organizations are looking into the integration of the system with their public network. Thus, the changes in Switzerland is already on its way to many sectors already.
Georgia’s government is using blockchain and government projects to power its land registry scheme. Mainly the National Agency of Public Registry is the one leading the project.
Along with Bitfury, the NAPR made a blockchain system, which is custom designed. However, the system is now integrated with their internal digital records system.
Furthermore, the network is permissioned and private and uses timestamps to sign and verify the citizen documentations for land registry. Using the timestamps, they can also proof the ownership of land rights easily.
But what is the true potential of using blockchain for government scheme in the land registry? Well, according to them, now the citizen’s would get the ability to make land titles. Usually, property rights are something that not all people have access to easily.
Also, the process of obtaining land is quite complicated. However, with the help of the blockchain and government solution, they can easily register their lands.
On the other hand, the use of blockchain for government ensures saving money and time in the process.
Gibraltar launched its first blockchain based product back in 2016. In reality, the Gibraltar Stock Exchange got permission to launch a cryptocurrency called BitcoinETI. Moreover, the company also introduced a licensing method for companies that would work with the stock exchange.
Another cool blockchain and government solution is the blockchain law firm. Now they are using law firms to advice for blockchain regulations and assist new developments in following the rules accordingly. Obviously, with the government involved, the solution needs to have regulation.
However, in many cases, many companies don’t have the proper knowledge or support to back them up. As a result, no matter how innovative their blockchain for government solution is, it gets shut down, or they have to pay a huge fine.
That’s why the use of a law firm that specializes in the blockchain would really help the country to bloom.
Australia is taking the blockchain for government scheme pretty seriously. The government of Australia is backing up its blockchain sugar sustainability project. According to the PM, they invested more than two million Australian dollars for the sugar industry.
Furthermore, they want to make sure that the profitability, productivity, and sustainability would massively increase if they use blockchain for government scheme. Thus, it will lower the costs and bring more transparency to the activities.
Another great initiative of WWF Australia is to use blockchain for tackling human rights abuse and reduce illegal fishing. Due to illegal fishing, many consumers buy tuna from illegal persons. However, with the help of blockchain, they can track these operators and bring them under justice.
Another great initiative is the digitization of the real estate sector that can streamline the sale of lands with ease.
Another cool nickname for Malta is now “Blockchain Island.” Moreover, it’s also looking forward to starting their very own crypto bank. After the Binance office in the country, the government experienced huge growth in blockchain projects.
Moreover, the parliament of Malta even approved a regulatory framework for the sake of blockchain project deployment. Another legal blockchain technology got the green signal later in 2018.
Another great example is the government being liberal for the blockchain startup companies. They also promote this adoption to ensure their economic growth as well.
Anyhow, the regulations and freedom make Malta the perfect place where any blockchain player can start their business.
Singapore is another one of the leading blockchain examples at present. A possible example of it would be the collaboration between the Monetary Authority of Singapore and a financial consortium for a new interbank system within the country.
Not to mention, the government is already working on another blockchain for government plans to transform their fiat into digital tokens. Furthermore, the government also declared to spend $225 million just for the development and deployment of blockchain schemes.
So, you see the Singaporean government is really taking great measures to ramp up their technological advances.
Moreover, there’s a craze going on within the country over blockchain, and many investors are eager to invest here. That’s why you’ll see multiple successful blockchain startups on the rise.
Nevertheless, the government also uses some of the world’s best blockchain researchers. In reality, they are also exploring global trade platform to increase their trading efficiency.
Sweden is another country that wants to eliminate cash for a very long time now. However, now Sweden government is using blockchain and government scheme for their property title processing.
The Swedish Financial Supervisory Authority even made multiple cryptocurrencies as the means of payment within the country. However, anyone that wants to interact with the fiat would need to file for a licensee from beforehand.
In reality, they already had a paperless land registry system. But that was prone to hacks and needed more transparency. Thus, now they are looking into blockchain for government schemes.
At present, they are still testing the blockchain platform and moved on to the next stage. The first stage was a huge success with deployments of smart contracts. Furthermore, the project would not benefit only the citizens but other players as well.
Players such as government, banks, buyers, brokers, and sellers can track the process on the network.
For a very long time, Chile is on track for a strong economic growth mainly because of their mining industry. In fact, in 2014, the government earned 20% juts from their Copper mines. Moreover, 45% of their national exports are Copper!
So, as you can see, Copper really plays a huge role when it comes to the Chilean economy, and the government now wants to ramp up the industry even more. But it requires a lot of electricity and needs good maintaining technology to increase efficiency. That’s why they are searching for a developed technology that can help them.
In reality, now they use blockchain and government scheme project to meet up with their increasing energy demands. Primarily the project is Ethereum based and on trial for storage and data entry for energy.
Another great blockchain for government project is the blockchain platform for tax collection. The Chilean General Treasury of the Republic is overseeing the tax collection platform so that the citizens have a great way to pay their taxes.
The National Research Council of Canada is taking a different approach to blockchain and government scheme. Recently they announced an Ethereum blockchain explorer that they designed.
Furthermore, they added that the Industrial Research Assistance Program would host the explorer on their IPFS or InterPlanetary File system. But why, though? Well, using the IPFS, the web applications would remain unalterable, and people can access them even in the future. Moreover, it won’t matter if the host is online or offline.
Another cool aspect of the explorer is to use it to search it for any contribution data and published grants.
Canada also did a live trial of another blockchain for government scheme. There they build a transparent administrative network for the government contracts. However, after the launch, the program is exploring more features that could benefit the government.
To protect the data from falling into the wrong hands or get deleted, they are storing multiple copies of the data throughout the web. And that’s how people will access it, even though the host may be down.
Thailand’s government is using blockchain and government scheme to develop a voting system for the country. In reality, the National Electronics and Computer Technology Center (NECTEC) of the country already completed the project.
But it’s still on trial period to see whether it’s capable of offering all the benefits for their country or not.
However, it’s still looking for more trial partners to launch the project perfectly. The voting system they developed is for provincial, national, and community elections. Furthermore, the business votes such as broad of director can also use the platform to cast their votes.
Moreover, the primary goal is to promote data integrity and reduce fraud on the blockchain for government platform.
This might be just a small step towards the blockchain revolution. However, now the country only wants to look into small scale integrations. If these interactions bear fruitful, then they would go for more large scale integrations.
The government of South Korea is also catching up on the blockchain train. At present, they are using ICON to process all their information, conduct administrative tasks, and issue new documents. Moreover, the Seoul Metropolitan Government is also moving forward to creating their very own blockchain ecosystem.
In the ecosystem, they will use the people of Seoul to lead the blockchain evolution. At present, the Governance team includes college students, blockchain developers, normal residents, and industry experts. In reality, the team will develop new technologies and test them out. If they look promising, the project will get deployed.
Ultimately the blockchain and government scheme will take over the city-wide services including their core IT operating network. Furthermore, it would also help them to administrate any negative outcomes throughout the entire city without invading privacy.
In any case, the use of ICON for documents is the first case of blockchain for government in South Korea and a step towards a brighter future.
Kenya’s government is using blockchain and government scheme for deploying a housing project. In that project, the government plans to develop 500,000 units. Furthermore, the housing program is really affordable and will get done by 2022.
Moreover, the assist contributors will get $992 because they can’t afford mortgages. However, the sad reality is that 2.48 million Kenyans have worked since 2016. Still, only 3.1% of that number could earn more than $992.
However, with the help of blockchain for government, the housing project will have a proper distribution. Mainly the most deserving and participating applicants would get the solution. Thus, the Kenyan government is using blockchain for government to establish beneficences and legislation.
The main purpose of using blockchain is its track record of housing initiatives. Many corrupted personals tend to loot the granted money for their sake. That’s why blockchain will track everything to make sure no one can steal the money for themselves.
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Chapter-6: Enterprise Blockchains Suitable For Government
Primarily using enterprise blockchain for government projects is a big change. However, you’d need to know which blockchain solutions to go for. Here, we will tell you about the top five enterprise blockchain suitable for the government sector.
Hyperledger is a leading enterprise blockchain platform that can be used for many kinds of applications. And government sectors is one of the major ones among them. But why is Hyperledger suitable for the government?
Well, there are some possible reasons, such as their advance collaboration with multiple parties. Not to mention their capability of offering blockchain solutions designed specifically for different industries.
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Anyhow, let’s see what the Hyperledger actually offers the government sector.
What Are The Feature?
- Permissioned blockchain system to protect privacy in the blockchain for government scheme. No participants can enter the network without proper identification. Furthermore, this can really change the way government services work.
- High scalability will ensure a perfect performance even if there are more nodes on the network. It will also increase the performance to a great extent.
- To make sure no one else can get access to the sensitive governmental information, that’s why the platform offers need-to-know data availability. Furthermore, it helps to keep confidentiality and away from the bad players.
- Rich queries languages will help the government personals to understand the network better. They won’t need to know coding language for that.
- The modular architecture will let you plug in any feature and use them in blockchain in government.
- Safety measurement for sensitive data will add a multi-layer security protocol that is nor prone to hacks.
2. Ethereum Enterprise
Ethereum Enterprise Alliance is another great enterprise blockchain platform. Furthermore, enterprise blockchain is widely used in many countries in blockchain for government projects. But why should governments consider this?
Well, EEA does offer customization of the platform in any way to suit the better needs. Another fun fact is the enormous amount of collaborations it did with multiple companies and all being a huge success.
However, let’s see what the platform can truly offer in blockchain for government scheme.
What Are The Feature?
- It offers an open source platform. So, any governmental institute is free to use it. However, it’s not a single product, and neither should anyone consider it like that.
- In any case, the governmental services want to use blockchain in government scheme; they can seek help from Enterprise Ethereum Alliance. In reality, the Alliance overseas any Ethereum based projects with an authoritative figure.
- Support for governmental enterprise development comes with the technological support that every new project needs. On the other hand, if any other company already created a similar project, then EE will make sure other parties can use that.
- Evolving from the existing public platform creates more scope. Typically the public platform is already advanced in every way, and if any good feature gets added in the public one, the private one will also get it.
- Utilizing standards from the previous deployment will ensure proper market value and performance analysis in the blockchain for government scheme.
Corda happens to have two different version – Corda and Corda Enterprise. In reality, the enterprise is mostly suited for multi-functions industries. Corda enterprise is also open source, and any governmental organization can ask for customized blockchain for government platform.
If any government wants a quality of service, then they should definitely consider Corda. At present, Corda is the product of a consortium called R3, and they have more than 200 members.
Not to mention they have advanced level of developers and tech support for customizations. However, now we’ll see what the capabilities of Corda for the government are.
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Abilities of the Corda Enterprise
- Blockchain Application Firewall is an important feature that creates a powerful firewall for any company.
- Promotes a greater level of security and transparency for the blockchain in government projects.
- Permissioned blockchain system to protect privacy in the blockchain for government scheme. No participants can enter the network without proper identification. Furthermore, this can really change the way government services work.
- Offers access management scheme with various applications for the platform. All of the applications are capable of handling different governmental needs.
- The disaster monitoring scheme can alert the authorities whenever there’s an issue on the platform.
- All of the nodes have high-availability. Furthermore, it performs the same under pressure as it would do with fewer nodes.
- Interoperability makes sure that the network can access multiple applications at a time. In reality, it creates exponential growth in the economy.
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Ripple started their journey back in 2012. But after a few years, it renamed as Ripple. In reality, the primary aim of Ripple is to connect banks, corporations, asset exchanges, and many more. Mostly suitable for financial services.
However, now that everyone knows about the potential it brings, other sectors are also using the platform. In fact, many governments are also lining up to utilize the platform in blockchain for government scheme.
What Are The Feature?
- The enterprise blockchain would help out in figuring out new marketplaces and streamlining more business form that. In reality, the government needs to meet up with citizen demands. For that, Ripple would make sure that the blockchain in government project matches with citizen expectations.
- Ripple comes with the RippleNet that makes any consumer able to connect with the network easily. So, the simplicity and ease of usage will ensure more efficiency in the long run. Furthermore, the use of fiat money also increases more fluidity on the project.
- Security protocols are one of the best so far in this one. Furthermore, governments need additional security, and Ripple will ensure just that. Thus, it gets rid of any safety issues in the blockchain for government scheme as well.
- Governmental services need to deal with a lot of payments. With Ripple, they can simplify the process to a great extent. Furthermore, tracking payments, transferring data is just a cherry on the top.
Quorum is one of the best blockchain platforms for the government on the market. In fact, J.P. Morgan designed the network to blend with any kind of environment it wants. So, when it comes to high-speed transaction or high-throughput, Quorum is definitely a great catch.
That’s why in blockchain for government scheme Quorum can really offer a lot of lucrative features.
What Are The Feature?
- Node managing authority will help you manage all the nodes accordingly. It means that it’s a permissioned platform, so only authorized nodes can enter the network. So, any person without a proper authorization can’t get in any way.
- Private transactions are a great feature because it enables two nodes to transact privately. It means that they can use a private chain to transact, which will only be visible to them and no one else on the platform.
- Agreement through voting is different than other consensus algorithms. Quorum does not follow other methods as they are most energy consuming. So, when it comes to a large government project, it would be best to stick with energy saving blockchain in government platforms.
- All of the nodes have high-availability. Furthermore, it performs the same under pressure as it would do with fewer nodes.
- The performance of Quorum is out of the world. If you compare it with other platforms, it’s much more superior. So, for any governmental process, the platform suits best.
Is There Any Risk In Blockchain For Government Projects?
At present, there are massive benefits of using blockchain for government. However, with benefits, there come some risks.
Firsts of all, the issue could be a possible elimination of many governmental services. In reality, the adoption of blockchain for government does increase efficiency — risks such as losing potential job titles. As the blockchain can streamline a lot of services that were previously done manually, it would reduce the workforce needed.
As a result, people may lose their jobs. However, blockchain creates a different kind of job sectors as well.
Secondly, this one is not more of a risk but somewhat a thing of concern. The government always deals with sensitive information. Yes, blockchain for government does offer greater security. But many governments are still not sure whether it’s enough or not. Also, the news of crypto hacks isn’t increasing their confidence in any way.
Lastly, in today’s world, governments till running on legacy networks. It’s a vast level of the network, and changing the full network would be a difficult issue. Not to mention the costing it would take to alter every single sector. Thus, the best approach would be to change one sector at a time.
If you want to learn more about blockchain adoption challenges, Read this article: Top 10 Blockchain Adoption Challenges
Even though political or governmental structures remain centralized, there’s still a lot of scope for adding decentralization in the mix. Blockchain technology can help to streamline just that. Due to the lack of governmental inefficiencies, citizens are losing their faith.
In turn, it’s hurting the government-citizen relationship. But with the help from the blockchain for government scheme government can reestablish the lost trust.
Not only that, but other benefits such as added efficiency, economic growth, transparency will help any government lead the country to a more digitized version.
At present, we can only speculate what the blockchain can do and offer what changes it already brought. However, we would have to wait to see can it really offer what it promised when large scale adaptation happens.
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