Summary
- Blockchain technology enhances data integrity and information security in government operations. It also acts as a robust platform for record-keeping and data management.
- There are several examples of successful implementation of blockchain technology in governments including Estonia, the UAE, Georgia, Singapore, Sweden and Australia.
- Despite the benefits, there are still some challenges to be aware of when implementing blockchain technology at a governmental level.
- Regulatory complexities require clear, comprehensive, and adaptive regulations through engagement with industry experts and stakeholders.
- Effective implementation of blockchain technology requires deep understanding and practical application.
Blockchain technology, with its transparent and immutable nature, stands as a powerful public infrastructure tool that can significantly enhance data integrity and information security in government operations.
This is the view of Bryan Daugherty, Global Public Policy Director for BSV Blockchain Association, who was recently speaking in an interview with the Evening Standard. At its core, blockchain can act as a robust and reliable platform for record-keeping and data management, he said.
‘Given its distributed nature and cryptographic security, it ensures that public data, from land registries and identity records to voting data, is securely stored and remains unaltered, enhancing data integrity and the delivery of public services.’
Blockchain as a robust and reliable platform for record-keeping and data management
Daugherty pointed to several governments which have already successfully implemented blockchain technology, and are starting to see the benefits over legacy systems:
- Estonia: Estonia is a pioneer in implementing blockchain technology at the national level. They have integrated blockchain to secure health records, and judicial, legislative, security, and commercial code systems, amongst others. This has significantly improved data integrity, reduced bureaucracy, and increased the efficiency of public services.
- United Arab Emirates (UAE): The UAE government launched the Emirates Blockchain Strategy 2021 with the goal of capitalising on blockchain technology to transform 50% of government transactions into the blockchain platform by 2021. The implementation has reduced paperwork, led to cost savings, and improved efficiency in government transactions.
- Georgia: Georgia has leveraged blockchain technology to validate property-related government transactions, enhancing the security and speed of services related to property transactions. The public ledger of the blockchain ensures transparency and significantly reduces fraud.
- Singapore: Through its initiative called Project Ubin, the Monetary Authority of Singapore has been exploring the use of blockchain and distributed ledger technology for the clearing and settlement of payments and securities. This initiative has the potential to increase efficiency and reduce risks in financial processes.
- Sweden: Sweden’s land-ownership authority, Lantmäteriet, has completed a trial of a system that uses blockchain for land registration. The system increases the security and efficiency of land transactions by providing a single, reliable source of truth.
- Australia: The Australian Securities Exchange (ASX) is implementing a blockchain-based system to replace its current system for recording shareholdings and managing the clearing and settlement of equity transactions. This will simplify the process, reduce costs, and improve security.
Challenges and expectations of using blockchain
Understanding and implementing blockchain technology certainly presents a challenge given its complexity, said Daugherty.
‘To tackle this, a practical, hands-on approach, similar to the sandbox method employed by the European Union, can be highly effective. In such a setup, a controlled environment is created where policies, ideas, and technologies can be tested and refined before a full-scale implementation.
‘This allows for experiential learning, helping government staff gain a deep and practical understanding of blockchain workings, ultimately facilitating a more effective and informed application of the technology.’
Daugherty added that regulatory complexities also represent a significant challenge in the implementation of blockchain technology.
‘To navigate this, it’s crucial to craft clear, comprehensive, and adaptive regulations that provide a firm legal foundation for blockchain use,’ he said. This can be achieved through active engagement with industry experts and stakeholders to ensure that regulations are not only enforceable but also foster innovation and growth within the sector.’
