APPLICATION OF BLOCKCHAIN TECHNOLOGY IN GOVERNMENT SERVICES

There have been several changes in law regarding the use of blockchain applications across the globe. Governments are embracing the benefits and the efficiency that comes with blockchain technology. As we look forward to 2023, we should brainstorm on how best we can push for reform in our respective countries.

Governments have started implementing blockchain technology in phases in different sectors such as health and land registry by verification of identities and certification of transactions. This changes the use of centralised and insecure systems to more tamper proof and decentralised systems. Eventually, public blockchains have the potential to reshape service delivery in the public sector.

See some of the examples below:

1. Denmark’s Ministry of Foreign Affairs teamed up with Coinify, which is a virtual currency platform. The objective of the partnership is to apply blockchain in disbursing foreign aid. This has eliminated the use of third parties, that is, financial institutions thus saving time and allowing foreign aid to be sent directly to beneficiaries receiving aid via cryptocurrency.
2. In the United Arab Emirates, Dubai shifted its judicial system to operate on blockchain technology. This is very interesting noting Kenya’s judicial system automated court processes and embraced virtual courts in 2020 amidst the covid-19 pandemic. Popularly known as the “Court of Blockchain,” the system applies smart contracts and the government believes that it will save costs estimated at $1.5 billion annually.
3. The UK partnered with GovCoin to develop blockchain that could assist in making welfare payments. The application divides the cryptocurrency into different accounts to cater for rent, utilities and groceries. GovCoin eliminates the need for third party intervention, that is, financial institutions, thus creating efficiency. Further, GovCoin can hold the welfare funds for a longer period of time.
4. For record keeping, Australia partnered with IBM to apply blockchain technology in combining passport and birth certificate databases into one. This has increased the level of data security in public records.
5. Georgia currently applies blockchain in the land registry. The application is considered to have reduced costs by over 90% and increased the turnaround time for land related transactions. The shift got rid of illegal tampering of land records and corruption. I believe Kenya would benefit in the application of a blockchain register, by streamlining services through the application and safeguarding land records for both the government and end users.

More countries not mentioned here, have implemented blockchain technology in various ways, with the most common being the digital economy. It is important to note that its application also goes hand in hand with policy reform to regulate the related operations and safeguard end users from associated risks. It will be very interesting to see how 2023 unfolds regarding blockchain application in the public sector. Blockchain is the future!

Disclaimer: This article is meant for general use only and should not be relied upon solely without seeking legal advice first.