“Blocking” the “Chain” of Inefficiency in the Government
What does an ideal government look like? While different people have their own unique takes on such a broad question, it’s safe to say most people want a government that is honest and transparent, quick in its procedures, frugal in its spending, and in this day and age, it must have the capacity to function online. These characteristics may seem out of reach for many governments in the world right now, it is a working reality in the small European country of Estonia.
The Estonian government took the opportunity to start fresh after the country declared its independence from the Soviet Union in 1991. It began to take major strides towards launching the world’s first digital society in 1997, which was no small feat considering it was in 1998 that google, currently the most-used search engine, was launched. Estonia’s government recognized the importance of technological education and by 1998, most schools in the country had internet access. They continued with the same momentum till 2007 when the government suffered a cyber-attack that leaked a large chunk of citizen data. With this in mind, the government employed blockchain technology in 2012 and it has remained secure and effective ever since. As of 2022, 99% of public services can be carried out online except marriages, divorces, and real estate transactions. Estonia boasts the highest rate of trust in government in the European Union. It also saves 1400+ years of working time and 2% of its annual GDP all through its smart implementation of blockchain technology. Some of the neat privileges its citizens enjoy are time saved in filing for taxes as that takes no more than 5 minutes, and e-voting. This gives them the option to vote online whenever, wherever and as many times as they want as only their last recorded vote before elections end counts. All financial information, hospital records, degrees, and many more important details, are securely stored in the blockchain allowing for quick transfer or retrieval of records, easy background checks, “once-only” entry of information, and years’ worth of time and money saved.
In May 2022, California governor Gavin Newsom passed legislation that could result in the incorporation of blockchain technology in some of the state’s legal procedures. He highlighted blockchain’s transparency and stated some specific use cases for the technology that could revolutionize business transaction, investor protection, and energy consumption. He mentioned how blockchain could “remove middlemen from transactions involving real estate or even automobiles”, “protect people’s identity”, and make sure that the same carbon offsets are not duplicated and resold. The order hopes to connect the state’s business and economic development office with its Business, Consumer Services and Housing Agency. This should lead to regulations placed on blockchain tech, its companies, investors, miners, and members for their protection as well.
California is not the only state beginning to show interest in implementing blockchain technology. The governments of Arizona, Delaware, and Illinois are also partaking in this upward trend.
Blockchain is also being seriously considered as a new mode to provide humanitarian aid. The United Nations World Food Programme has already employed it in three relief projects in Bangladesh, Lebanon, and Jordan, cleverly dubbing the technology “Building Blocks”. It aims to eliminate the overlap of aid reaching those in need by allowing similar departments to collaborate on a single blockchain. This will also increase transparency in aid and its whereabouts, thus eliciting more trust from donors and subsequently more funding. Since blockchains can transfer currency without external transaction fees, more money can be used in helping underserved communities. The government of Denmark recognized the same untapped potential of blockchain and is working with Coinify to become “the first donor country to move money using cryptocurrencies”. Its ambitious goal is to have citizens control exactly where their aid is going in a transparent system using smart contracts. It will not be long before this method becomes the standard for humanitarian aid across the globe.
There were a few use cases for blockchain in the government that are currently in the works. Because of its security, transparency, decentralization, and efficiency, blockchain technology is ideal, at least on paper, for government purposes and the sooner it is adopted into mainstream government, the better for citizens everywhere.
References
Estonia — the Digital Republic secured by Blockchain — PWC. (n.d.). Retrieved July 12, 2022, from https://www.pwc.com/gx/en/services/legal/tech/assets/estonia-the-digital-republic-secured-by-blockchain.pdf
Khorram, Y. (2022, May 4). California governor issues executive order on crypto as state embraces blockchain technology. CNBC. Retrieved July 13, 2022, from https://www.cnbc.com/2022/05/04/california-governor-signs-executive-order-on-cryptocurrencies.html
Thomson Reuters. (2017, December 14). Denmark considers using cryptocurrencies for humanitarian aid. Reuters. Retrieved July 14, 2022, from https://www.reuters.com/article/us-cryptocurrencies-aid-idINKBN1E81R1
