Why some government agencies have been investigating blockchain

Government agencies around the world are researching and employing distributed ledger technology to support various public administration needs.

Legal Blockchain
Blockchain for Law
2 min readDec 19, 2017

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At its core, blockchain offers the potential to increase transparency and accountability, two essential elements to modern democracies.

The exact ways in which technologies like blockchain may help increase transparency and accountability in government are varied and diverse, but numerous government operations share some common features that make employing a technology like blockchain a viable and serviceable option. As such, government agencies around the world are already investigating blockchain’s potential to increase efficiency and improve the democratic process in several ways.

Broadly, blockchain may improve the function and functionality of government agency operations. In particular, it would mean a digital record is accessible surrounding a variety of government operations, and accordingly reduce, if not remove, the risk of loss or damage that can otherwise occur with paper records, and other modes of data storage, thereby ensuring that the information is accessible in perpetuity. This could transform citizens’ personal interactions with their respective government agencies and even change citizen engagement on the whole.

The following provides an overview of various governments’ use of distributed ledger technology to support public administration at every level.

Global and local applications for blockchain technology in governance

Many government agencies have begun in-depth explorations of blockchain’s potential. The U.S Postal Service employs over 7.5 million people, and is central to the generation of $1.4 trillion annually. With such a large budget, employing technology to increase efficiency and reduce costs would have significant impact.

The USPS has begun investigating how blockchain could improve on these services, with a particular focus on its potential to improve back-end services such as money orders, and international money transfers.

Blockchain research has also been seen in government agencies at the state level. Delaware is widely known as the go-to state for new company registrations due to its business-friendly state regulations.

The state has been utilizing distributed ledger technology in various capacities, including employing smart contracts at the Delaware Public Archives to ensure record-keeping compliance (i.e., adhering to laws regarding the destruction and retention of record) as well as streamline UCC filings. The potential for blockchain to ultimately provide a quicker and more streamlined process has interested many in the state’s public and private sectors.

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Legal Blockchain
Blockchain for Law

The Global Legal Blockchain Consortium. Building the next generation infrastructure for law. Privacy. Security. Data integrity. Interoperability. #blockchain