How can governments make use of blockchain oriented solutions

According to Cointelegraph, blockchain has the capability of eliminating intermediaries in e-government services

How can governments make use of blockchain oriented solutions
Blockchain helps to solve identity and access management issues

States can gain benefits from the use of blockchain in their governmental infrastructure, according to Cointelegraph. Storing sensitive public information while trying to maintain data privacy can be complex and sensitive, and blockchain can help with those sort of challenges. While centralised government systems are considered inefficient, costly, and insecure, governments around the world have been trying to seek technological solutions for improved public services which are cost effective. Reasons why governments should try to inculcate blockchain are mentioned below:

Blockchain prevents government corruption

Blockchain has the capability of eliminating intermediaries in many e-government services. It helps in record keeping and allows states to adopt a decentralised approach wherever necessary, for real-time transparency, auditability, and smart-contract functionality. Public information shared through blockchain adheres to the principles of being default, accessible, comprehensible, and interoperable. Incorporation of blockchain into public sector can help with efficiency and citizen management.

Blockchains enable secure identity management, or e-identity

Blockchain helps to solve identity and access management issues. Distributed ledger technology allows states to register each person’s identity to ensure protection against breaches, and removes the reliance on a central authority.

Blockchains reduce costs and improve efficiency 

Government sectors can resort to blockchain for helping state actors with budgeting and financial information. A blockchain based accounting system can provide faster, permanent and auditable reconciliation. Blockchains have the potential to streamline processes and reduce redundancy.

Blockchains promote transparency in grant disbursements

Blockchains carry the potential to reduce corruption and ensure the build-upof public trust, as the technology can help with the removal of number of parties involved in grant disbursements and management. As a result, government agencies can reduce costs and eliminate opportunities for illicit financial siphoning.

Blockchains can be used for electronic voting, or e-voting 

As electronic security is a growing concern, blockchain oriented voting solutions can improve democratic processes through its decentralisation, transparency, encryption, and immutability. These factors could play an important role in eliminating election tampering while increasing poll accessibility. Moreover, a blockchain based voting system could help reduce voter manipulation and sustain electoral integrity. 

(With insights from Cointelegraph)

Also read: Blockchain based Web3.0 news platform Wortheum gets unveiled

Follow us on TwitterFacebookLinkedIn

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos