Blockchain is, perhaps, the only technology in recent times where governments, rather than taking a wait and watch approach, are leading this space in many innovative ways. There are two main reasons for this,
- Governments today are more open to adopting new state of the art technology solu-tions that have a profound effect on the welfare of its citizens.
- Government departments and public-sector entities have enough sweet spots and value maximization opportunities by using blockchain technology.
The very aspect of immutability that blockchain brings to the table is attractive to governments all over the world as it fixes the problem of accountability at the protocol level itself.
The Need for Blockchain in Government and the Public Sector
The government can use blockchain for many different purposes both with Government-to-Consumer and Government-to-Government processes. One very simple, but ground-breaking use case is in the UAE - by 2020 the UAE want to store all of their documents on the blockchain.
The UK is also exploring the use of blockchain to manage the distribution of grants. Monitoring and controlling the use of grants is incredibly complex, and subject to potential fraud or abuse. A blockchain, accessible to all the parties involved, is a better way of solving that problem.
In fact, governments around the world are coming to realize that blockchain could lay the foundation for a modern, 21st-century operating system that enables flexible, secure, and high-performing government functions. Blockchain-based government is a promising solution that enables the following:
- Secure storage of citizen and business data
- Reduction of labor-intensive processes and excessive costs
- Reduced opportunities for corruption and abuse
- Increased trust in government and online civil systems
ElevenO1 protocol for India
In India today, blockchain is extremely visible and highly talked about at various levels of bureaucracy and government departments. The interest and drive come from the very top itself from the PM of India, Mr. Narendra Modi, who is an ardent believer of this technology that can help improve governance and create a positive and sustainable impact.
Given the stable political climate in the country, a keenness to adopt the latest and best tech-nology and a genuine effort by the likes of NITI Aayog, places India in an ideal position to look at blockchain aggressively.
GovChain01 -Concept
In Figure GovChain01 is a common ledger where all data specific to a citizen of India or an entity resides. As a person is born an entry is created on the chain along with the person’s unique decentralized identity. This identity can be Aadhaar or can have a link to Aad-haar. As the person grows up, his or her education profile, health data, employment data, social data, benefits information etc. are all built on the ledger. While some data is public and accessible by government authorities, a person has the capability to selectively share his or her information with third parties in a safe and time-bound manner.
A blockchain-based digital government can protect data, streamline processes, and reduce fraud, waste, and abuse while simultaneously increasing trust. On a blockchain-based governmental model, individuals, businesses, and governments share resources over a distributed ledger secured using cryptography, eliminating a single point of failure and inherently protecting sensitive citizen and government data.
The GovChain Stack
On top of GovChain, ElevenO1 is building out a core set of functional elements that allow for an initial set of common government functions.
- Identity Management: Enable citizens to register their identities on the blockchain, send and request credentials, authorize transactions, and securely manage data
- Smart Regulation: Design of a regulatory engine for the creation and execution of legal agreements with tamper-proof blockchain-based smart contracts
- Process Management:Use of a distributed ledger platform to model and facilitate government processes and track public sector assets
- Budgeting and Financial Management: Use of distributed ledger technology to track and reconcile government transactions immediately and transparently.
The interoperability of the platform will allow for additional applications as more public sector functions transition to blockchain based-solutions.
Blockchain Use Cases for Government and the Public Sector
- Smart cities :A smart city uses data and information technology to integrate and manage physical, social, and business infrastructures to streamline services to its inhabitants while ensuring efficient and optimal utilization of available resources. In combination with technologies, IoT, cloud computing, and blockchain technology, governments can deliver innovative services and solutions to the citizens and local municipalities.
- Validation of Education and Professional Qualifications :Keeping academic and professional attainment data on an encrypted identity wallet empowers individuals to control access to their data. It also enables schools, universities, and employers to validate “attestations” for courses and work achieved.
- Tracking Vaccinations :Recording vaccination data on the blockchain enables schools, insurance, and medical providers to validate vaccinations quickly. This process automatically triggers corresponding micropayments and delegates access to benefits based on medical status.
- Tracking Loans and Student Grants:Smart contracts can be programmed to manage loan and grant applications, dispense loans, and track compliance with the terms and conditions. This automated performance tracking enables real-time data, and increased transparency, compliance, and security.
- Payroll Tax Collection :Smart contracts can streamline the tax collection process by matching tax data with income transactions, and calculating tax and social security deductions. This blockchain-based system automatically transfers net salary and tax payments to their respective recipients. This makes tax collection faster as well as more transparent, efficient and secure.