BLOCKCHAIN AND GOVERNMENTS

Ever since the emergence of the Internet, the Blockchain has been the biggest and most game-changing innovation ever made. The emergence of blockchain has brought forward the need of a decentralized future, where there would be no central authority and governing bodies, the community can make decisions and economical changes. Essentially creating a micro government ruled by the community.

The reason why the blockchain can be adopted by the government, is that it not only holds the capability to record transactions, but can replace the ‘SPOF’ (single point of failure) problem and the problem of trust.

Blockchains can be more useful when they enable the platform to run Smart Contracts upon it, given it’s turing-complete nature, it is able to execute anything within the code. Be it ownership or a cryptocurrency.

Smart Contracts can help governments in a way, that it can automate what is already automated or not. A good example of this can be audits. Audits written in Smart Contracts can be executed and can remove the dependency of third parties, which would also be recorded to the blockchain, which in turn would save money and time and would be useful in trust-based systems.

According to Kevin Werbach, systems of the government are at an all time low and are less efficient due to the constraints. This is also beneficial that when maintaining a blockchain or operating them, the system has to be secure in order to record a transaction or a hash.

Werbach said using blockchain makes sense for the government because much of what it does is actually record-keeping. “These can be put on a blockchain to make them more secure and more accessible.” For example, Cook County in Illinois put its title registration on a blockchain. Once it is recorded, no one can change it. This can be the foundation for smart contracts to handle liens on properties or the need for additional information.

There is much more to be seen in the future.