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Blockchain in Government: Improving the Public Sector

Having deep expertise and several years of experience in delivering blockchain-based solutions, we keep discovering the opportunities this technology has for different industries. Here are the spheres we have already written about: logistics, healthcare, and gambling. The public sector also has a number of challenges blockchain can address, for example, data insecurity, corruption, lack of trust, and others. In this blog post, we will see how they can be solved.

The Benefits Of The Blockchain Technology

Let us first shortly remind you what is blockchain. It is a decentralized network (chain) of nodes (block) storing and sharing some data. All the actions within the network are approved by all the blocks before being performed. Due to these principles, here is what blockchain has to offer the public sector:

Data security

Blockchain allows keeping all the data about government, businesses, and citizens protected. Since the network is decentralized, there is no particular server or official’s computer to be hacked. All the accesses to particular information can also be regulated and tracked which helps to prevent fraud or any other illegal activity.

Information validation

The information within the blockchain-based system is immutable. It cannot be changed or deleted just because someone wants to. It ensures that the identity or other important documents (passports, driving license) will not be faked or lost without the ability to restore them. It also closes the door for corruption as it is impossible to bribe a decentralized network.

Increased trust

People tend to doubt government actions and speeches as well as to avoid participation in social and political life as it may seem useless and time-wasting. The blockchain-empowered increase in transparency and accountability of the processes will help to solve these problems.

Improved efficiency

The introduction of e-government and the ease of information validation will allow reducing the time and money spent on processing citizens’ appeals and other public sector operations as well as eliminating the necessity to go to the offices in person.

Smart contracts

Blockchain also introduces smart contracts — the programs performing determined actions as soon as specific requirements are met. This opportunity is especially welcomed in taxation and all kind of social payments: student grants, retirement pensions, unemployment benefits, etc.

How Can Blockchain Help The Public Sector

All the mentioned benefits can be successfully used in a variety of spheres in the public sector. Here are some of the examples:

Healthcare

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The implementation of the blockchain-based system in public healthcare allows creating a single database for monitoring and validating vaccination of the population. It is easy to see the number of vaccinated and unvaccinated people in schools, kindergartens, hospitals, working places in order to have the full picture and make predictions about the possible disease outbreak.

Voting

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One of the first things coming to mind when speaking of government is the political elections or other voting processes. Blockchain allows digitizing and simplifying the voting process as well as ensuring the reliability and transparency of the results.

Real estate

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All the operations with real estate and land have always been full of papers and attractive for fraud. The blockchain technology makes it possible to accelerate and ensure the property ownership, to simplify the land registration process, and to reduce time spent on the transfer of the assets from several months to several hours.

Customs

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Blockchain empowers the security systems on the country border ensuring safe and encrypted data storage and sharing (videos from security cameras, data from sensors, records about border crossings). Since data in a blockchain-based system is immutable and thus reliable, it is easy to validate the certificates of the quality and origin of the goods being imported.

Education

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As was mentioned before, blockchain allows using smart contracts to pay grants as well as professors’ salaries. One more scenario of utilizing blockchain in the education sector is the opportunity to validate all the certificates, diplomas, and other documents confirming knowledge and skills. This can also be used for the acknowledgment of a candidate’s previous working experience when hiring.

Taxation

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Calculating and paying taxes can also be optimized with the help of blockchain. The system can count everything automatically and use smart contracts in order to perform transactions. This makes taxation simpler and eliminates mistakes.

The Bottom Line

These are just some of the scenarios of how can the public sector benefit from blockchain implementation. What unites them all is the enhanced data security, reduction of expenses, elimination of fraud and corruption, increase in transparency and efficiency of procedures.

At SCAND, we believe that the blockchain is one of the key technologies changing the world for the better. That is why we keep gaining expertise and delivering robust blockchain-based solutions. If you are also inspired by this technology and want to take full advantage of it, let us know. Looking forward to working on your project!

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