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The Potential of Blockchain: How Will It Improve Services and Processes in the Public Sector

Blockchain technology has brought improvements to public sector services, primarily in the form of record keeping and informational transactions. With record keeping, blockchain is useful for information such as personal identity management and government records, while the transacting aspect is useful for information such as government activities and entitlements.

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Blockchain technology has brought improvements to public sector services, primarily in the form of record keeping and informational transactions. With record keeping, blockchain is useful for information such as personal identity management and government records, while the transacting aspect is useful for information such as government activities and entitlements.

Blockchain technology has brought improvements to public sector services, primarily in the form of record keeping and informational transactions. With record keeping, blockchain is useful for information such as personal identity management and government records, while the transacting aspect is useful for information such as government activities and entitlements. 

How Will Blockchain Technology Impact Record Keeping in the Public Sector?

With record keeping, the issue is the preservation, organization, and authorized distribution of documented information. According to an article published on Medium, personal identity management (such as name, birthdate, SSN) in the public sector creates a self-contained secure identity, allowing for a more efficient and effective transacting process across different countries and asset classes. Also, it allows individuals to have significantly enhanced control over which specific personal identity information is shared.  

Moreover, record keeping pertaining specifically to government records (such as land titles, corporation registrations, marriage records, vehicle registrations and more) would be substantially impacted by the implementation of blockchain technology. Specifically, there would be a significant increase in efficiency in extracting or obtaining the relevant documentation or information from the immutable ledger—as well as an enhanced trust of the underlying documentation or information as a result of the operations of the consensus algorithm.   

A significant challenge that will affect the implementation of electronic record keeping is the ongoing transition of paper documents into digital form. 

Blockchain technology improves record keeping in the following ways 

  • Security of the information, as the ledger utilizes a 256-bit military grade encryption 
  • Authentication of digital identity is the starting point for all electronic transactions; blockchain technology will increase the efficiency and validity of this process 
  • Less risk of documentation destruction/loss/theft because of the digital form of the content preserved within multiple copies of the distributed ledger 
  • Enhanced security and validity to the accuracy of the information, as forgery or corruption of blockchain-based government records is almost impossible

How Will Blockchain Technology Impact Transacting in The Public Sector?

Transacting pertains to the consumption and tracking of government entitlements and conducting of government activities. Government entitlements (such as Social Security, Medicaid and Medicare) could be tracked and organized using blockchain technology, through what are commonly referred to as e-government services.  

Blockchain technology implementation within the public sector would allow for a more automated servicing process, where manual reconciliations and payment authorizations could be handled within the blockchain via smart contracts. A smart contract, simply put, is a paper contract that has been converted into computer coding language, allowing the functions of the contract to operate autonomously in the background after it has been established. Also, the blockchain technology will allow for more accurate and trusted record keeping with regard to used and available entitlements by reducing manual reconciliation work and enhancing overall trust of the information in the ledger by all participants. 

What’s more, transacting pertaining to government activities such as voting would be substantially impacted by the implementation of blockchain technology. The technology would allow for data and transactions to be stored on the blockchain in a highly secure immutable format, where each transaction contains a personalized digital signature. As a result, validity of the data is enhanced significantly as the vote is immutably logged into the ledger permanently, and cannot be adjusted or altered later. Also, the information is perpetually preserved amongst the multiple copies of the distributed ledger, reducing risk of loss or tampering. As a result, the government receives a trustworthy and unbiased tallying of virtual votes, with no manipulation of the underlying data in the background. 

Blockchain technology improves transacting in the following ways 

  • Security of the information, as the ledger utilizes a 256-bit military grade encryption 
  • Decreased potential for fraudulent activities, because of the personalized digital signature that contains a unique private key 
  • Increased scalability and speed of government entitlements and activities 
  • Reduction in uncertainty of business contract language 

The underlying result of blockchain technology implementation within the public sector is decreased costs, increased technological security and an increased ability to successfully achieve governmental objectives at scale. These beneficial outcomes are derived from the decentralized and distributed ledger, the immutable nature of the ledger, and its near real-time updates. As a result, the improvement within the public sector as a result of blockchain implementation is enhanced trust, security, efficiency, transparency and traceability.  

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