Blockchain against Big Brother. Why the public sector will never be the same.

Blockchain against Big Brother. Why the public sector will never be the same.

The development of the blockchain technology restrains the state from their desire for total control and authority. So, sooner or later, decentralization will come to the government and will gradually replace rigid centralization. It is already obvious that countries that will become pioneers in adoption of the blockchain will receive a powerful advantage.

According to the results of the report prepared by TFH-AI Ratings analysts, at least 26 countries have already adopted or are planning to adopt the blockchain into the public sector. The most active countries are: China, Estonia, the USA, Russia and the United Arab Emirates.

The greatest interest in blockchain technology comes mainly from central banks, because that technology gives you a fresh look at classical financial institutions and make their work more open and reliable. But blockchain is popular not only in financial services. Besides central banks, the blockchain has found it’s place in logistics, state document circulation, electronic voting, protection of property rights, healthcare, digital identification and energy sector.

There already exists a project of a single state electronic system (e-Government) in Estonia - one of the most successful in the world. The project owes its success to a special infrastructure: instead of a single central system, a decentralized open system was created to combine various services and databases. Thanks to this structure, the integration of new services and applications has become extremely simple, and their adoption to blockchain runs at lower costs and tensions than with centralized state interference.

The adoption of blockchain technologies in the sphere of public services will be expanding. Substantial advantages of technology introduction will be seen in the operating costs reduction, settlement time and protection against risks. In addition, the possibility of additional income will grow. The blockchain technology can help the state to become modern and convenient. The intermediaries between the state and the population will disappear, which will make public services cheaper and more convenient. Openness and transparency of blockchain technology can restore people's trust in government authority. But for this purpose, states need to develop a unified regulations for cryptocurrency and blockchain, since the legal status of blockchain technology is only being formed.

TFH AI Analysts