NFTs (Non-Fungible Tokens) are primarily known for their use in the digital art and collectables space, but their unique properties could potentially be applied to various fields, including identity management by governments.
The most obvious use case is storing important documents, such as birth certificates, on the blockchain. However, governments which harness the technology effectively can significantly boost digital citizenship. This includes social security services, health services and even property rights.
Government applications of NFTs
Some key examples include:
- Digital identity cards: Governments could issue digital identity cards as NFTs on a blockchain. These NFTs would represent an individual’s identity, containing verified personal information such as name, photo, address, and biometric data. This could potentially reduce identity fraud and provide individuals with greater control over their personal information.
- Authentication and access control: NFTs could serve as a form of digital signature or authentication token. Individuals could use their NFTs to securely access online services, sign documents, or participate in online transactions, providing a higher level of security and reducing the need for traditional username/password authentication.
- Secure records and certificates: Governments could issue NFTs to represent official records and certificates, such as birth certificates, marriage licences, diplomas, and professional licences. These NFTs could be tamper-proof and easily shareable, providing a more efficient way to verify qualifications and credentials.
- Health records and vaccination passports: NFTs could be used to securely store and share health records, including vaccination status. This could be particularly relevant during times of health crises, enabling individuals to prove their health status without revealing sensitive medical details.
- Ownership and property rights: NFTs could be used to represent ownership of physical assets, such as land titles and property deeds. This could streamline property transactions and reduce the risk of fraudulent land claims.
- Personal data management: Individuals could have ownership and control over their data stored in NFTs. They could grant permission to organisations or services to access specific pieces of their data, maintaining control over how their information is used.
- Travel documents and visas: NFTs could be used for secure and verifiable digital travel documents, such as passports and visas. This could expedite border control processes and enhance security.
NFTs for immutable record-keeping
While there are numerous ways that NFTs can be used to advance digital citizenship, ultimately these are based on the fact that they are minted and stored on a tamper-resistant ledger such as the BSV blockchain.
Government agencies can use blockchain to record and store information related to any financial transactions, procurement processes, voting records, and more. This immutable record-keeping ensures transparency as the data cannot be altered or manipulated without leaving a trace, thereby reducing the risk of fraud or corruption.
Similarly, NFTs can play a role in government transparency by providing a transparent way to broadly manage any property or information. Governments can tokenise important documents, certificates, licences, or artwork as NFTs, which are unique and can be easily verified on the blockchain. This increases the transparency and immutability of such assets, preventing fraud or unauthorised modifications.
