As governments constantly undergo evolution to adapt to changes in society and finance, they also adopt different methods to keep up with such changes. What are such methods adopted by different governments to address changes that come up? Is Blockchain one of the technology-driven innovations that can be adopted by governments? How can it be helpful to Governments worldwide? There are many questions to be answered here, and rest assured you will find them all.
But first, what is the current economic landscape like? These days people buy Litecoin and other cryptocurrency variants for payments and transactions. Such trade methods transcend government intervention and control, as it is built on one of the most innovative pieces of technology to be created in the last decade: Blockchain. Since the introduction of blockchain, a lot has changed in the technological landscape. Transparency and efficiency has been introduced to many systems and sectors.
So how do we unlock the transformative power of blockchain in government? The answer isn’t only a matter of adopting the technology but various institutional and human factors.
What is Blockchain Technology and How Does It Differ from Other Technologies?
Blockchain is simply a digital record of all transactions carried out on any platform; it works how a physical ledger works except that you don’t need paper files and shelves. Its name is derived from the storage structure, which are like blocks linked together on a single chain or list. Although it is chiefly used for digital recording transactions made with various cryptocurrencies like Bitcoin, Dogecoin, or Ethereum, it has several other applications.
It can be used in agriculture, healthcare, government, education, and many more. We are particularly interested in its applications in government and what digital transformations it could offer. Thus, let’s take a quick look at what blockchain in government should be like.
Possible Blockchain Applications in Government
One of the many challenges faced by different governments globally is that of transparency. The governed continue to clamor for transparency in government policies and activities. Interestingly, from the way blockchain is designed, it appears to be the transparent solution needed by governments.
Blockchain can be applied in both the local and executive tiers through several methods. As the technology evolves, so will the governments’ blockchain structure. This will prevent the constant change in dynamics to adopt innovations and create evolution. With all these considered, here are some ways the government can utilize blockchain;
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Tax payments
As a result of the covenanting pandemic, services like filing permits and tax payments have shifted too largely to a digital format. It is assumed that after this pandemic scourge, constituents will recommend the convenience of digital payments from the comfort of their home.
Hence, governments can implement payment acceptance with cryptocurrencies like Ethereum and Bitcoin using a decentralized digital infrastructure in the blockchain. This will enable people to pay their taxes and other levies via cryptocurrency.
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Payments for real estate
The government can also allow individuals to pay for their homes purchased in online real estate auctions using cryptocurrencies like Litecoin. These sorts of transactions or contracts between government and individuals can provide a win-win situation because of the immutable nature of the records of blockchain transactions.
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Public record security
Blockchain can also be applied in the security of public records due to the completely secure and safe nature of blockchain storage. The risk of hacking or theft of public records can be significantly reduced and create efficiency in public services along with crime reduction.
How Will the Government Benefit from Blockchain?
A blockchain-based government can drastically reduce fraud, theft, and data abuse while simultaneously increasing accountability, transparency, and trust. In an ideal blockchain-based government model, governments and businesses can share resources and information over a distributed ledger secured with cryptographic technology.
Utilizing this blockchain technology will remove points of failure and easily safeguard sensitive transactions, information, and government data. Here are some outlined ways the government can benefit from blockchain.
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Building Citizen Trust
One of the most important characteristics of a successful government is citizenship trust. The more your citizens trust in your policies, services, and directions as a government, the more your resources and vision thrive. Reasons for distrust in government are numerous and most times complex.
A key feature of a blockchain-based government is transparency through decentralization, which allows participants to access and verify different data. Citizens can know what the government is doing, especially regarding finances via blockchain. This will go a long way to improve and build citizens’ trust and also it may help them in finding a job.
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Cost Reduction
With blockchain, government agencies can better manage scarce resources while efficiently carrying out their duties. Blockchain can be an important lifeline that mitigates redundancy, decreases auditing burden, and simultaneously ensures valuable data integrity. Resources and how they are used can be accessed on blockchain allowing for the government to know what resources have been used and what is left.
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Data Security
Blockchain can upgrade government data security exponentially through its decentralized system. Records can be easily protected from theft, tampering, and even destruction by implementing a blockchain-based foundation for data storage.
There are several benefits blockchain can bring to the government upon implementation. Whether governments worldwide will easily adopt this technology is yet to be seen due to many underlying factors. But still, it is obvious that blockchain is a technology for the future and the future of the government.
