Yusuf Kelo

Figure 1 shows this model. As can be seen, resources (e.g., data, taxes, fees and payments to government) are given to governmental authorities by individuals and businesses. These are received by a series of siloed, hierarchical organizations until a decision is made and resources and attestation are returned to the appropriate party. Due to the need for oversight in public sector organizations, multiple layers of oversight are necessary to validate transactions between government and citizens and business. This can lead to: (1) excessive costs from bureaucracy; (2) slow decision making; (3) rule-driven inflexibility; (3) opportunities for corruption, graft, and bribery; and (4) increase perceived distance between government and the public

Collision resistance of the hash functions are important because if 2 people generate the same address (a collision) then either could spend the money sent to that address.

Addresses on a blockchain are derived by a process of hashing public keys. An Ethereum account is computed by hashing a public key with Keccak-256 (developers should read the crucial distinction with SHA3–256). A Bitcoin address is computed by hashing a public key with SHA2–256 and RIPEMD160.