If we take a look at recent years, we’ll see how the blockchain evolved into a technology that’s being praised across many industries as the solution for problems that have been around for decades. Its cross-cutting applicability was also recognized by governments around the world where the blockchain working groups were created to share use cases and best practices among them.
Blockchain enhances many processes such as online payments, supply chain, secure data sharing, and identity management, so there’s no question about its potential in the public sector, however, there is still a long way to go with this new technology.
Being aware of the unknown that this new technology brings, we cannot ignore the many benefits governments that are applying blockchain are reporting. To provide you with a clear overview of the recent accomplishments within the public sector, take a look at the examples below which might inspire you to start implementing blockchain technology tomorrow.
Building Trust Among Citizens
It’s no secret that trust in governments is decreasing in countries around the world. Finding the ways to rebuild that trust and maintain strong relationships with its citizens is quite complicated, yet not impossible. One of the key features of blockchain-supported solutions is the high level of transparency which is achieved through decentralization. In other words, parties that are participating in the process are able to see and verify data.
One of such examples is governments in countries like Estonia, Sweden, and Georgia which are experimenting with blockchain-supported land registries that allow parties to have their own copies of the registry in a secure way. This is just one of the examples where the trust is being restored by citizens and governments sharing access to records.
Also, with blockchain voting systems citizens are restoring their trust in their governments. By ensuring a more transparent voting process, governments are eliminating all assumptions or questions citizens might have about the trustworthiness of such an important moment in any democratic country.
Protecting Sensitive Data
One of the biggest concerns of a digital world is definitely the breach of personal data. Having your full name, social security number, address or any other personal information exposed to someone else will affect how a citizen feels about the institution where the breach happened. That’s why it’s crucial to protect sensitive data, and blockchain technology provides solutions for that as well.
Through the responsible deployment of blockchain data structures, governments are able to protect their citizens’ sensitive data. This decreases significantly single-point-of-failure risks and makes it quite difficult for hackers to access any personal data. With the increase of hacker attacks, government agencies across the world are starting to implement blockchain applications in their cybersecurity.
Lowering Costs & Improving Efficiency
Governments are struggling to fulfill their mission while also being responsible for managing scarce resources. Blockchain-based solutions help government leaders to reduce redundancy, streamline processes, lower audit burden, enhance security, and provide data integrity. Many governments are also struggling with reconciling intragovernmental transfers and implementing blockchain solutions would increase efficiency tremendously.
With systems for payment and accounting being based on blockchain, governments would be able to have permanent audit trails and simplify faster reconciliation. For instance, the blockchain education system might provide a clearer insight into the funds needed for the ongoing year, so the planning for each government sector would be more on track for the next year.
Wrap Up
There is no doubt that blockchain technology will continue helping evolve the public sector. Governments have been facing some challenges for years without efficient solutions, and being able to tackle multiple problems with just one solution will help them focus on what’s actually important – building citizens’ trust.
Each government depends on its citizens to be successful, so having technology that facilitates so much of it will inevitably lead to better life quality and further development across many fields.
Of course, implementing such technology is not as easy as it sounds. That’s why all governments work with a blockchain consulting firm of their choice to ensure that the implemented solution actually solves the issues it was supposed to solve. After all, being able to implement excellent technology means nothing if it’s not implemented correctly.