There is simply no denying at this stage just how much of an impact blockchain technology has had on our planet. While it’s true that the programming innovation in and of itself is an older system of coding than many people realise, the reality is that the 21st Century has seen the adoption of blockchain technology taking off as never before.
With the bulk of this blockchain technology deployment happening within the realm of cryptocurrencies – secure and immutable ledgers of payment, which use decentralisation and blockchain technology to function as a true digital form of cash – the truth is that the innovation and potential for digital transformation inherent to the blockchain is being keenly felt in almost every area of life.
Cast your eyes over the headlines of today, and you are likely to find stories of regulation and suspicion being the order of the day in many governmental policy makers.
However, it’s important to remember that this caginess in government is often related to cryptocurrencies – not blockchain technology itself. In fact, as we will explore in today’s article, countless governments worldwide are embracing the capabilities of blockchain technology in regulatory frameworks, smart contracts, documentation management and plenty more.
Governments embracing blockchain technology for more than just publicity
Perhaps the most vocal and famous of governmental entities that have made headlines in embracing the blockchain has been the government of El Salvador in South America.
El Salvador made history in adopting Bitcoin as legal currency within its borders – as welcome and readily tradable as fiat currency – in late 2021. As time has gone on, the success of that notion has been brought into question by some, in circumstances not entirely undivorced from the brutal cryptocurrency crash that took place months previously.
However, one can easily pick apart why adoption of Bitcoin in El Salvador has proven so sluggish – especially when taking the advice we have already given of thinking of cryptocurrency adoption in governments separately from blockchain technology adoption by governments.
Firstly, and perhaps most apparently, El Salvador’s adoption of Bitcoin as legal tender took place during an especially bullish – perhaps overconfident – period in modern cryptocurrency history.
Yet secondly, and more aptly, El Salvador’s lukewarm reception to Bitcoin as legal and official governmental tender stems from the fact that it was arguably introduced to solve problems that did not altogether exist. Citizens and businesses, although aware of cryptocurrency, were content enough using fiat dollars for most transactions – their financial lives did not need such a massive shakeup.
Compare this with the potential offered by utilising blockchain technology for governmental functions such as documentation management and cybersecurity – where mistakes and maladministration can have serious ramifications on people’s lives – and a far more exciting realm of practical applications begins to open up to us all.
More than just eastern promise
We would not blame any readers who rolled their eyes at notions like governmental mistakes in bureaucracy, or the dreaded term of maladministration. Mistakes in governments – from nation states to local authorities – are costly and highly damaging, and many hope that blockchain technology can do much to reverse the grievances caused by human error.
With this in mind, ought smart contracts and blockchain technologies completely supersede human control in the functions of government? This much is an ongoing debate – one we will continue exploring in today’s article.
However, explorations of blockchain technology in governments are happening all the time today. In Japan, local authorities demonstrating excellence in digital transformation to solve citizens’ problems have been awarded unique NFTs on the Ethereum blockchain to commemorate their excellence, for example.
Elsewhere in Asia, far more comprehensive governmental applications for blockchain technology are under active exploration. India’s Ministry of Electronics and Information Technology is just one of the institutions of that country deeply involved in gauging how effective such a digital transformation of innovation can prove – with extensive whitepaper analysis backing that goal up.
Of chief interest to India’s Ministry of Electronics and Information Technology are the capabilities that the blockchain demonstrates in security and absolute moral integrity without room for corruption – and this is an entirely correct assertion.
To quote the whitepaper: “In the e-governance domain, usage of Blockchain technology ensures vigilance, transparency and possibly avoids insider attacks on the crucial data related to governance matters.”
Critically, the lack of third party potential interference or intervention is noted as a key strength of blockchain innovation being put to use in governmental functions. Naturally, technology giants such as IBM are active supporters of the use of the blockchain to secure and facilitate governmental functions – yet the true rate of adoption and openness to this kind of digital transformation is at different levels of willingness around the world.
The view from Europe
While many call Europe the Old World, that does not mean that the continent is infused inherently with old fashioned thinking. In fact, many of the key incentives that are spearheading not only blockchain technology, but innovation in digital citizenship of all kinds, are being invested in heavily in the manifold countries of this formative continent.
Naturally, the always interesting Great British government continues to proclaim its commitments to blockchain technology, not least in the fintech space and in the potential for stablecoins that can sidestep the inherent volatility of the cryptocurrency market.
However, more intensive insights into the digital transformation of governmental processes are taking place in Italy. It is perhaps befitting that the birthplace of the Renaissance should prove so open to the notion of blockchain technology in official regulatory functions – yet these are still measures that are being undertaken with the utmost care.
Blockchain technology innovator Mangrovia Solutions has been working closely with the local governmental authority of the Municipality of Chieti in creating blockchain documentation management solutions that lean on the immutable accuracy of this technology to safeguard the most vulnerable aspects of citizens’ lives.
Utilising distributed technology to ensure the decentralisation inherent to a trustless blockchain network, Mangrovia’s work alongside the Municipality of Chieti is a pioneering experiment in safely and considerately introducing a digital transformation to documentation management in key areas of citizens’ bureaucratic processes.
Wholly transparent and entirely resistant to tampering or corruption, this blockchain documentation management solution is being utilised in such areas as applications for home assistance for disabled and elderly citizens, access to disabled transportation services, as well as maternity allowances and educational services for individuals with sensory handicaps.
The aspects of governance chosen for blockchain integration were selected due to their high demand for security and transparency, as well as their social utility in ensuring safe and satisfying lives for the citizens.
Active since April 2022, the incentive has proven fruitful and secure at the time of writing – and could well lead to more widespread governmental adoption of blockchain technology in security, administration and documentation management in the future.
Will the governments of tomorrow be little more than blockchain ledgers?
Any among us who has had to wrestle with red tape and governmental processes cannot help but daydream every so often about the idea of all the petty little paper pushers behind their desks being replaced by a sweeping change in society.
Of course, the reality is that no such vast change is likely, or even conscionable – yet the advent of intelligent experimentation with blockchain technology is doing a great deal to help improve not only the levels of efficiency inherent to governmental functions worldwide – but also the ease with which their advantages can be accessed by citizens.
There are so many ways in which smart contracts and documentation management on the blockchain can enhance governmental processes, without sacrificing the control of the nation state or local authority. There are so many examples of where this kind of technology can help us all.
Throughout the world, individuals suffering a disability or in need of temporary support during intervals of unemployment or hardship seem to need to jump through ever more hoops to feel supported.
Rather than having to provide medical or bank records to governmental bodies time and time again, as though a criminal protesting innocence against a sceptical courtroom, citizens can instead rely on blockchain smart contracts to have their full medical and financial records securely in place.
A governmental official can trust any such information they check when processing a claim for financial support, and release the funds people so desperately need accordingly – safe in the knowledge that fraudulent applications cannot make it through such a system to exploit taxpayers’ money.
Naturally, the blockchain can function as a way to stop embezzlement and corruption too – perhaps lending politics a level of trustworthiness in the public eye that it certainly could do with in today’s world. With everything transparent and impossible to tamper with, fraud is eliminated on each side of the conversation between officials and citizenry.
How far will governments take blockchain technology? That much remains to be seen. However, at Mangrovia Solutions, we remain excited in participating in the experiments and innovation pushing these possibilities forward.
Will you join us?
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