States can benefit from the use of blockchain in their government infrastructure, according to Cointelegraph. Storing sensitive public information while trying to maintain data privacy can be complex and sensitive, and blockchain can help with those kinds of challenges. While centralized government systems are considered inefficient, costly and insecure, governments around the world have sought to find technological solutions for improved public services that are cost-effective. Reasons why governments should try to inculcate blockchain are mentioned below:
Blockchain prevents government corruption
Blockchain has the ability to eliminate intermediaries in many e-government services. It helps with record keeping and allows states to adopt a decentralized approach where necessary, for real-time transparency, auditability and smart contract functionality. Public information shared through blockchain follows the principles of being standard, accessible, understandable and interoperable. Incorporating blockchain into the public sector can help with efficiency and citizen governance.
Blockchains enable secure identity management, or e-identity
Blockchain helps solve identity and access management issues. Distributed ledger technology allows states to record each person’s identity to ensure protection against breaches, removing reliance on a central authority.
Blockchains reduce costs and improve efficiency
Public sectors can turn to blockchain to help government actors with budgeting and financial information. A blockchain-based accounting system can provide faster, permanent and controllable reconciliation. Blockchains have the potential to streamline processes and reduce redundancy.
Blockchains promote transparency in grant payments
Blockchains have the potential to reduce corruption and ensure the building of public trust, as the technology can help remove the number of parties involved in grant payments and administration. As a result, government agencies can reduce costs and eliminate opportunities for illegal financial siphoning.
Blockchains can be used for electronic voting, or e-voting
As electronic security is a growing concern, blockchain-oriented voting solutions can improve democratic processes through decentralization, transparency, encryption and immutability. These factors can play an important role in eliminating election tampering while increasing the accessibility of opinion polls. Also, a blockchain-based voting system can help reduce voter manipulation and maintain election integrity.
(With insight from Cointelegraph)
Also read: Blockchain-based Web3.0 news platform Wortheum is unveiled
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