Blockchain has often been called a disruptive technology, that is due to the fact that it provides the fundamental change that industries have required to keep pace with the ever-evolving expectations of its consumers. From the many potential beneficiaries of blockchain technology, the public sector stands out as the most significant.
Blockchain-based digital government can protect data, streamline processes, and reduce fraud, waste, and abuse while elevating trust and accountability. Public institutions are responsible for a vast number of trust-related functions and services, which makes blockchain a practical tool for government. Indeed, governments across all continents except Antarctica have taken note of this fact and are examining how they may be able to leverage blockchain technology in their services.
Throughout this article, we will explore how blockchain could benefit the public sector and how it could compensate for existing deficiencies. We will also be going through the use-cases of blockchain in the public sector. During the study of these use-cases, we will gain a more comprehensive insight into how Blockchain could transform and enhance the public sector.
Benefits of Blockchain in Public Sector
The public sector is suffering from several shortcomings. Blockchain can benefit the telecom industry in overcoming these shortcomings. Some of the most notable benefits are:
- Gaining Lost Trust of the Citizens
OECD research found that only 45% of citizens trusted their government in 2019, and the recent covid pandemic has most likely contributed further to this decline. It’s clearly visible that the trust of citizens in their respective governments is deteriorating more than ever. Governments should be wary of this situation, as a lack of trust will compromise citizens’ willingness to cooperate and coordinate with the government on various public policies. The reasons for this distrust are numerous and complex, but blockchain technology has the potential to reverse this trend.
Major values that build and preserve trust are considered to be high levels of integrity, fairness, and openness. These values are synonymous and at the core of blockchain technology. Blockchain provides for transparency, accountability, and immutability of the system by allowing the participants on the network to view and verify the data. The update of the data on the network is done in real-time and as a result, all the participants of the network are updated of transactions taking place on the network at the same time they occur. In addition, blockchain enables peer-to-peer transactions, eliminating the need for intermediaries between transactions and increasing trust.