As graduate of Old Dominion University (BS, Physics), Virginia Tech (Msc, Software Engineering), and Harvard Extension School (Graduate Certificate, Business Communication), Ernesto has always had a passion about technology and teaching. It has been a cornerstone of Ernesto’s career.
1. Blockchain And Government Use Cases
Ever since blockchain technology branched from being the technology that underpins Bitcoin
and cryptocurrencies, the disruptive technology has found many uses outside the financial
sector. Further research into the technology has shown that it can be used by governments to
reduce inefficiencies and increase productivity. This article looks at various ways that blockchain
technology can be used by governments.
Areas where blockchain technology can be used by
governments
Listed below are the various use cases of blockchain technology by governments:
Healthcare
The healthcare industry has been known to be rigid to change. And this is so because of the
number of stakeholders involved in the industry. From patients to insurance companies, none of
them is willing to share data with others.
As a result, patient data has been recorded manually leading to redundancies, inefficiencies,
and unnecessary stationary costs.
However, blockchain allows the digitization of patient data. This allows governments, through
health care institutions, to record and collect patient data from several sources such as
wearable devices. Governments are then better able to deliver customized and better care.
Most importantly, public healthcare institutions do not have to worry about duplicating patient
data. With blockchain, patient data is entered in records and cannot be altered or duplicated.
Many countries, particularly those in developing countries, are the victims of counterfeit drugs.
Blockchain technology can reduce or eliminate fake drugs by tracking drugs from the point of
manufacture, ingredients used, and the transport used to get them to their final destination.
According to Reuters, fake drugs account for $30 billion in trade per year.
2. Elections
Free, fair, and credible elections are the cornerstone of any democratic society. However, many
countries are still living in the times of stolen and rigged elections. This is mainly rampant in
developing nations. This trend has also been seen in developed nations such as the U.S.
America's 2016 elections were never short of drama and it is believed that some people voted
several times in different states. In 2000, the U.S. elections were dogged by miscounting.
Blockchain technology can be used to track voters and the votes. This eliminates the potential
for fraud and presents transparent results that are satisfactory to all participants.
Supply chain and procurement
Transactions between governments and citizens rely on the trust between the two parties. The
majority of these transactions are based on manual processes that are prone to errors.
Blockchain has the potential to change all that. The new technology increases transparency and
adds security and efficiency to transactions. All the transactions from the development or
manufacturing to the final stages are recorded and tracked on the blockchain.
Tender Bids
Blockchain technology and smart contracts can be used to reduce fraud in the tendering
process. Smart contracts can be used to level the ground for all tender competitors by:
● providing them with the same amount of information
● Automating the opening, reviewing, analysis of tendered bids, and closing the bid.
Smart contracts remove the need for third parties who control the bidding process. There are
fewer risks involved during the bidding process.
Food safety
Food security and safety are a major role of any government. Dubai is one nation that wants to
utilize blockchain technology and the internet of things to track and monitor food products from
3. the farm to the store. This data has to be easily accessible to consumers so that they can have
an idea of the kind of food they will be eating. This reduces cases of food poisoning.
tracking food from farm to store using blockchain technology.
Source: ibm.com (https://www.ibm.com/blogs/blockchain/2018/02/one-nations-move-to-
increase-food-safety-with-blockchain/)[/caption]
Data management
A government is entitled to the role of monitoring and managing national data for individuals,
companies, organizations, etc at various levels such as provincial or regional. Some of this
information includes motor vehicle registration, names of citizens and their social security
numbers, criminal activities, business licensing, etc.
4. Managing all this data is a complex process and some of this data is stored in paper format.
This makes it difficult for governmental departments to share and link this data together. For
example, it is difficult to link people's driving and health records together.
Moreover, it is difficult to make this data available across several departments without
compromising its security.
Blockchain technology can effectively solve this dilemma. It simplifies how governments record,
store, and distribute data among its departments. At the same time, it allows government
agencies to do this without compromising security.
What are governments doing?
Some governments are already utilizing blockchain to manage and store its data. Those that
have not yet made full use of blockchain technology are already considering using it one way or
the other.
Switzerland
Switzerland is trying to have a 'Silicon Valley' geared for blockchain technology and
cryptocurrencies. It is known as 'Crypto Valley.' The country has relaxed the regulation of
cryptocurrencies and thus attracting huge foreign investments in the traditionally neutral country.
United Kingdom
The United Kingdom unveiled its plans in 2016 to use blockchain technology to reduce
inefficiencies and fraud.
Bahrain
The Kingdom which has set its sights on becoming the Crypto Valley of the Middle East has
made plans to use blockchain technology to store motor vehicle data.
What is the way forward
5. According to research and rate of adoption, it can suffice to say that blockchain is the
technology of tomorrow. Many governments and private organizations are finding ways of
leveraging the disruptive technology.
It has already been established that blockchain technology's reach will be as wide as that of the
internet. If this true, then any government or organization that uses the internet must migrate to
the blockchain.
Meta description
Blockchain technology is now being utilized by governments to store and monitor data
across several departments without compromising on security.