The blockchain is a decentralized and transparent digital ledger that records every single transaction ever made. It is also safe against fraud and hacking so you don’t have to worry about your information being stolen. There’s a lot of stored government records on the blockchain, including land titles, birth certificates and marriage licenses.
Blockchain’s unique features allow for a tamper-proof ledger of transactions that cannot be altered and governments, citizens and businesses can all agree on. Many countries hope that blockchain will be the solution to their security & operational issues. It has the potential to make improvements in several areas, including making transactions faster.
Prompted by the success of global agencies & government bodies using blockchain technology, we have defined five use cases that illustrate how governments can unlock its full potential. Given that blockchain relies on consent from the stakeholders, government agencies can leverage the economic incentive of reducing transaction rates by offering access to certain government data for free or reducing transaction fees by providing federal credits.
Government Use Cases
Governments need to define specific use cases for blockchain in order to achieve any real benefits. These five use cases show how governments can apply blockchain to real-world problems.
Proof of ownership and transfers
Land and other bureaucratic tasks can affect a country’s agencies negatively. Blockchain can be used to store transactions and ownership publicly, making it easier for land, vehicles and other property to be tracked in the future.
One example of Blockchain’s use in governance is the Georgian government’s land registry department. They came up with a land registry tool to help track ownership and transactions within their borders. As a result, the government has greater transparency in land dealings, and interested citizens can look up any property’s sale information. Having a distributed ledger means no-one can change the information once it’s been recorded, which improves data integrity and reduces corruption.
It’s always best when contracts are self-executing and don’t need any third parties to verify them. This is what smart contracts do, and they are well worth the investment. As a government, you can save on costs while still holding all parties accountable. These contracts are public & secure.
For example, Swedish land title transfers are now saved on a blockchain-based solution. This has reduced the transaction time by more than 90%. Some countries are looking into setting up smart, self-executing trade contracts on blockchain. That way they can improve the supply chain of goods for their industries.
As more and more of people’s records are being made public, it has become easier for cyberattacks and other nefarious individuals to misuse or hack into government systems. However, blockchain can manage administrative records in a secure way, providing protection against these threats. The biggest issue with blockchain is not the security measures themselves, but rather users’ privacy concerns about how much information should be
It’s often necessary to store anonymized IDs and other data in employer databases, but the solution is to encrypt the hash key and place it in the blockchain. For example, the Netherlands have been developing a blockchain-based pension system. Not only will this save them money in management costs, it will also make things easier to manage.
Validation of documents
Governments are looking for centralized solutions to validate the documents of their citizens. Blockchain could be a possible solution. Technology like blockchain enables governments to save hash values of citizens’ documents. This allows them to provide electronic attested copies of those documents anytime, which guarantees there is no resubmitting or double-submitting.
As an example, MIT have created the Blockcerts open standard. Using this means anyone developing a software app can issue a certificate or any other type of document thanks to blockchain technology. Malta’s government can now verify any academic credentials since it implemented a system that uses blockchain.
Blockchain records can automatically show the date on which a transaction was completed without the need for filing. This allows you to quickly and efficiently submit patents. Filing for a patent immediately allows us to verify it, however the time stamp associated with the filing can be used to help solve any disputes.
For example, a company could time-stamp an idea document before it undergoes the full patent application and filing process. This means that if a competitor tries to register a similar patent, it is easy to prove which party came up with the idea first. In addition, patent documents are also given a transaction hash, providing protection via encryption.
How Chapter247 can be your go-to partner for Blockchain Government Project?
blockchain software development company
Blockchain is an excellent tool that governments can use to build systems that are open and trustworthy and protect the citizens of their country. At Chapter247, we understand the systems, processes and structures which are essential in building the entire platform for a smooth execution. We have worked with Government Blockchain projects and understand the key basics. If you too are looking to get technology and AI into the government process, then get in touch with us, click here to know more!