Introduction
The adoption of new technology is often pioneered by private organizations incentivized by the need to attract customers and grow profits. In contrast, public entities may change their processes slower due to established rules and traditions. As a result, such new advancements as blockchain are not used by many governments, and the knowledge of its potential benefits is not discussed. The following investigation explains what blockchain is and offers some reasons for using this technology to improve government administration.
What Is Blockchain?
To investigate how blockchain can be implemented into the public administration system, it is vital to understand what it is. According to Berryhill et al. (2018), blockchain is “a form of distributed ledger technology” – a list of recorded transactions stored in a peer-to-peer network. This definition implies that the information contained in the system is shared among its “nodes” – the participating actors running the necessary software (Berryhill et al., 2018). This data is sent to all nodes when a transaction is created or updated. Furthermore, this information can be encrypted, meaning that it will be accessible only to users with permission to read it.
Based on these descriptions, blockchain presents several benefits – first of all, in theory, it prevents the recorded transactions from being deleted, altered, or otherwise tampered with without alerting other users. As each new ledger change is shared across the chain, an authentic version of the information is always available. Therefore, blockchain can provide transparency to all parties and record data changes. Furthermore, the existence of a peer-to-peer network removes the third party from any transaction, leaving only people or organizations involved in the transaction. For example, banks that transfer money between two people are no longer needed if the transaction is performed in a blockchain.
Blockchain and Government Administration
As discussed above, blockchain technology is often linked to such concepts as transparency, immutability, and sharing. In government administration, these ideas are often underdeveloped, especially in areas where paper-based documentation and information storage are still used. Blockchain can make many processes in the public sector more efficient, safe, and quick. First, government administration can utilize the blockchain to create a unified system of identification for residents, organizations, and other entities (Moura et al., 2020). For example, many people have records of their birth certificates, marriage licenses, passports, and other documents in different departments, cities, and even countries. With blockchain, the system can hold all documents and track their changes regardless of one’s physical location. Moreover, government employees may be able to access this data without the need to send requests to other authorities. Other records can be kept in similar networks, improving information sharing in healthcare, financial services, insurance, and more,
Another potential application is a system for tracking financial transactions, including benefits, aid, contracts, and bids. In this case, blockchain can ensure transparency as all authorized users see every operation. Moreover, as these operations require significant information and have strict eligibility requirements, they take a long time to complete (Tan et al., 2022). The implementation of blockchain technology can streamline all processes and help the government approve or reject applications quicker, record all information about payments, and share it across agencies automatically.
Conclusion
Blockchain is an interesting technological advancement that offers many opportunities to the public administration segment. It can become a system of shared information storage and transfer. Government administration should use blockchain to increase efficiency, overcome the issue of slow interagency cooperation, and become more transparent. Among the many uses of this technology, the two most notable are the creation of a system for resident identification and a record of all financial transactions.
References
Berryhill, J., Bourgery, T., & Hanson, A. (2018). Blockchains unchained: Blockchain technology and its use in the public sector. Web.
Moura, L. M. F. D., Brauner, D. F., & Janissek-Muniz, R. (2020). Blockchain and a technological perspective for public administration: A systematic review. Revista de Administração Contemporânea, 24, 259-274. Web.
Tan, E., Mahula, S., & Crompvoets, J. (2022). Blockchain governance in the public sector: A conceptual framework for public management. Government Information Quarterly, 39(1), 101625. Web.