Blockchain in the Public Sector Enabling Better Citizen Service
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Governments across the globe are realising the true potential of emerging technologies to provide better citizen services and to ensure transparency and accountability. Blockchain is one of the emerging technologies that is helping and will continue to help governments to achieve transformation. Government departments and agencies are being increasingly pushed to be collaborative and share data across agencies, while at the same time maintain the security of the data in their care. A distributed ledger that can share information based on agreed-upon protocols helps governments immensely in collaborating without losing accountability.

What are the key priorities of public sector organisations? The global Ecosystm CX study finds that citizens and employees are the top priorities for government agencies and departments.

Top Business Priorities of Public Sector Organisations

Blockchain can help the public sector achieve many of its goals –

Improving Citizen Services

As more countries aim to be eGovernments, there is a need for real-time data access, information management, and fraud prevention. Blockchain is enabling governments to provide innovative services to citizens. It is possible now to decentralise the citizen database, reducing the time and cost of fetching records. Moreover, Blockchain enhances transparency and makes the highly regulated public sector audit-ready by creating a single source of truth for all connected devices and stakeholders.

One of the earliest use cases we see is in records management. Population records are useful for several agencies from healthcare to civil services to welfare departments.  In Myanmar, UNICEF has collaborated with the industry to introduce a mobile birth and death registration system based on Blockchain. This digital mobile recording system is maintained on an integrated platform controlled by several parties who maintain birth and death records of Myanmar’s citizens and is a step towards achieving universal registration.

Citizen services such as notarisation, recording and time-stamping events, transactional real-estate contracts, online storing and verification of academic degrees, identity management and so on are benefiting from Blockchain deployment.

In Georgia, the government department of Land, Property and Housing Management is using Blockchain to maintain land and property records. The blockchain-based land registry allows speedier approvals with no involvement of paperwork or multi-party signatures on physical documents. This is enhancing service quality while offering better security measures as the data is digitally stored in the National Agency of Public Registry’s land title database.

 

Improving Employee Experience

Maintaining massive records about individuals, organisations, assets, activities, location and national information by the government department employees is a time-consuming process. In addition to this, managing and updating the ever-growing records is made more difficult by data silos and information management protocols and of course errors creep in.

Blockchain is streamlining the workflow and information management system at an individual as well as at a departmental level. In government departments, Blockchain can redefine processes by including events and agents in a block-based system where each activity can be easily managed and accounted for. This prevents issues such as miscounts, delayed processes and slipped deadlines.

The Chilean National Energy Commission has piloted a Blockchain platform to regulate the energy sector such as installed capacity, average market price, marginal costs, hydrocarbons and more. To implement this, first the energy data was stored on an Open Energy database which was then distributed across hundreds of secure servers countrywide. Later the employees verified anomalies which minimised their workload and made it convenient to edit the central database. The information added to open ledger is readily available to employees and citizens.

 

Compliance with Regulations

One of the primary benefits of Blockchain technology in the public sector is compliance. The transactions recorded on distributed ledgers are documented in a central ledger providing a comprehensive, precise, irreversible, permanent and secure trail. For instance, Blockchain is used to streamline cross-border compliance adherence by matching the data with the actual trade transactions. This creates an efficient and secure system ensuring real-time compliance, significant reduction of transaction costs, elimination of customs evasion and fraud from the outset.

In June, the Chinese Customs deployed its cross-border Blockchain compliance solution. The platform aims to increase efficiency by monitoring the flow of imports and exports and helping with risk assessments and document management. As transaction information can be stored safely and transparently on a Blockchain, the platform enables easy identification of documents to be checked, making compliance easier.

 

Data Management and Privacy

Blockchain acts as a default record keeper for society and governments and prevents the data from being misused by criminals and hackers. Through the responsible deployment of Blockchain data structures, governments can strengthen network security by reducing risks of single points-of-failure and preventing data breaches.

Democracy Earth – a Blockchain-based community has established a decentralised online governance platform, entirely built on open source technologies. The website helps users to cast votes on various policies based on tokens assigned to the users. This also minimises expenses and creates a secure information flow in a Blockchain-based voting system.

Government agencies, such as the U.S. Department of Homeland Security (DHS), are also getting serious about Blockchain applications in data management and privacy. DHS is funding R&D in Blockchain start-ups to explore new approaches to cybersecurity. The U.S. military is also utilising Blockchain (SIMBA Chain) to secure its military communication, messaging and applications. Blockchain is used for communication between ground troops and their headquarters. In addition to securing communications, the US Airforce is using Blockchain to track 3D printed components throughout their life cycle. With SIMBA, the top-secret printing blueprints are shared without much surveillance – this has enabled the Department of Defense to maintain a digital library of parts.

 

Cost Reductions

The government has clear citizen responsibilities and fulfilling them with a limited set of resources is one of the prime challenges for public departments. Reconciling expenditure with the budget is a time-consuming, and expensive procedure. Blockchain-based payment and accounting systems can help governments to reduce process costs by removing redundancies, streamlining processes, decreasing audit burden and ensuring systems integrity. By removing the requirement for third-party agencies to handle operations and maintain records, Blockchain technology is helping governments to reduce costs.

 

Blockchain is still an emerging concept with significant benefits. The Ecosystm IoT study finds that only 20% of public sector IT decision-makers are fully aware of the capabilities and limitations of Blockchain.  Adopters and developers are still resolving the challenges. On the technology side, there are concerns on platform scalability, integration, standardisation and validation methods. On the management side, there are concerns about business models, transaction scale, maturity, and structure. However, government agencies will benefit immensely from the technology in the near future.

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Team Ecosystm is Ecosystm’s inhouse content generation team, which is a part of our Marketing team. The content is generated through secondary research, and inputs from our analysts and advisors. The data findings mentioned in all Team Ecosystm posts are drawn from Ecosystm’s live and ongoing studies available on the Ecosystm platform.


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