Forward the Original Title: How governments use blockchain for public services

Key takeaways

• Blockchain’s decentralized and secure features enhance public services by streamlining processes and reducing corruption.
• Implementation in countries like Sweden and Georgia demonstrates how blockchain can increase transparency and accountability in land registries.
• Governments are leveraging blockchain for efficient supply chain management, as seen in the UN’s initiatives to ensure food aid reaches intended recipients.
• Blockchain improves voting systems and digital identity management, exemplified by Estonia’s secure voting and service access.

Blockchain’s capabilities are more than being a tool to empower cryptocurrencies. Its inherent features — decentralization, transparency, security, and immutability — offer promising solutions to long-standing challenges in public administration. These issues include corruption, lack of trust and inefficient operations, so governments worldwide are exploring blockchain technology to enhance public services.

This article explores the practical applications of blockchain technology in the public sector, using real-world examples to illustrate its potential.

Blockchain’s role in improving public services

By creating a decentralized and transparent ledger, blockchain can help streamline government processes, eliminate bureaucratic hurdles and reduce administrative costs. For instance, governments can use blockchain to automate tasks such as:

Supply chain management: Tracking the origin and movement of goods can enhance supply chain efficiency and prevent counterfeiting.

Land registry: Implementing blockchain-based land registries can streamline property transactions, reduce fraud and improve transparency.

Voting systems: Secure and transparent voting systems can increase voter confidence and reduce the risk of electoral fraud.

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Enhancing transparency and reducing corruption

Improving transparency and reducing corruption are among the most essential uses of blockchain in government services. Opacity issues in traditional systems frequently result in fraud and a lack of responsibility. The transparency that comes with blockchain technology may offer a solution.

For instance, in 2022, the Swedish government investigated blockchain’s use case for the Land Registry Authority to register property transactions and provide real-time information to all stakeholders, including buyers, sellers and banks. This transparency may reduce the chances of fraud and increase trust in the transaction process.

In 2016, Georgia introduced a blockchain-based land registry, letting the public securely verify property ownership. The system registered about 100,000 land titles.

Similarly, to encourage financial inclusion, the government of El Salvador, where Bitcoin is accepted as a legal tender, has incorporated blockchain technology into several public services. Chivo is a government-backed digital wallet that enables Salvadorans to send and receive BTC and dollars commission-free, and to exchange BTC for dollars and vice versa at no cost.

Additionally, Chivo integrates with El Salvador’s banking network, allowing users to deposit and withdraw dollars directly, and includes access to Chivo ATMs for cash deposits and withdrawals. It supports both Bitcoin onchain and Lightning wallets, providing flexibility.

Through blockchain technology, El Salvador hopes to reduce corruption and improve financial transaction transparency by integrating the unbanked population into the financial system.

Did you know? Property disputes have historically plagued Georgia due to record-keeping gaps from the post-Soviet era and early corruption issues. Conflicting land claims remain common, especially in popular Black Sea tourist areas.

Streamlining voting processes

Despite being a vital component of democratic administrations, voting is frequently hampered by problems like lengthy wait periods, voter fraud and complicated processes. Blockchain technology provides an effective and safe substitute for conventional voting procedures.

Here are some countries that have experimented with blockchain technology for voting or election-related processes:

United States: In 2020, Utah County, in the US state of Utah, successfully implemented a blockchain-based voting pilot program. The method ensured safe and verifiable transactions by enabling voters to cast their ballots through a mobile app. The results were encouraging, with a significant portion of overseas voters participating, which streamlined the procedure and increased voter turnout.

Romania: Romania has pioneered blockchain technology in national elections within the EU. While not a full-fledged blockchain-based voting system, the technology was employed to enhance the transparency and security of the electoral process by verifying voter turnout and election results.

India: Blockchain technology has been the subject of research and experimentation in India for several uses, including voting systems. Even though there hasn’t been any widespread adoption yet, research into the possible advantages of blockchain technology in the political process is ongoing.

Did you know? Research shows that election fraud in the United States is extremely rare. In Pennsylvania, data spanning 30 years reveals only 39 cases among over 100 million votes. In Arizona, just 36 cases were found out of 42 million ballots over 25 years, a rate of 0.0000845%. These isolated cases have never impacted an election outcome.

Improving supply chain management and empowering social services

Managing complex supply chains also presents challenges for governments, especially in public procurement and service delivery. Blockchain technology can improve their accountability and traceability.

For instance, the United Nations World Food Programme (WFP) has tested using blockchain technology to provide refugees with food aid. The WFP’s “Building Blocks” initiative uses a privately managed blockchain network to track food vouchers given to recipients, ensuring that help reaches needy people without corruption or loss. Governments may improve service delivery and cut waste by simplifying supply chain procedures, benefiting their citizens.

The Ghanaian government has explored a blockchain approach to track the allocation of public funds, particularly in the health-care sector, to ensure that funds set aside for medical products get to their appropriate locations without being misdirected or mishandled.

Digital identity management

Digital identity management is a crucial area where blockchain could improve access to government services requiring a safe and reliable digital identity, particularly in developing nations where many citizens lack official identification.

The immutable nature of the blockchain makes it difficult to manipulate or falsify identity information, making it an ideal candidate for implementation in digital identity management services.

Examples of countries that have explored or implemented blockchain for digital identity management include:

Estonia: The government of Estonia has implemented a digital identity system based on blockchain technology, which enables citizens to safely access a range of online services. While keeping control over their personal information, citizens can vote, sign documents and access health-care services using their digital identities. This strategy has greatly increased citizen engagement, decreased bureaucracy, and improved public service efficiency.

Switzerland: In 2017, Zug partnered with uPort to launch the world’s first self-sovereign, government-issued digital identity on the Ethereum blockchain. Residents used the uPort app to create their own secure digital IDs, verified by the city and stored on Ethereum. The digital IDs enabled residents to access services, including voting, without intermediaries. During the pilot, 350 residents registered for Zug IDs, and 70 voted in a local event using the app.

Did you know? Estonia launched its digital society in 1997 by developing an e-governance system to deliver public services online.

Improving educational services

By safely storing and confirming academic credentials, blockchain technology helps improve educational services. For example, Malta’s Ministry of Education uses blockchain to provide tamper-proof certificates, enabling students to show legitimate credentials to prospective employers or educational institutions worldwide.

The UAE also uses blockchain to safely store student data across its educational system, making it easier for companies and colleges to check records. Moreover, countries like South Korea are further investigating blockchain to lower bureaucratic overhead by automating record-keeping and reducing administrative costs. This has the potential to make education systems more adaptable and flexible amid changing requirements of students.

The future of blockchain in public services

The future of blockchain in public services offers transformative potential. By enabling secure, decentralized digital identities, blockchain can improve data-sharing among government agencies, helping to streamline service delivery and build public trust.

As digital ID systems evolve, blockchain is expected to support more streamlined benefit distribution, fraud-resistant public health care and personalized services while safeguarding privacy.

High data integrity, smooth cross-border service integration and the growing need for open governance can be met by blockchain technology. By streamlining processes and safeguarding citizen data, blockchain’s cross-sector integration can simplify access to public services and set the stage for a widespread digital transformation.

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1. This article is reprinted from [cointelegraph)]. Forward the Original Title: How governments use blockchain for public services. All copyrights belong to the original author [Guneet Kaur]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
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