Benefits of Blockchain in Government services
The possibility of deploying blockchain technology for government services plays an important role in making government bodies efficient, speedy, secure and trustworthy. Blockchain-based digital government services will certainly be visible in all interactions that the citizens have with the decentralized government system. Companies providing blockchain development services will play an important role in this transformation.
How Blockchain Can Transform Government?
The hyper-connectivity that is visible in the world has resulted in trillions of data bytes and has also significantly transformed the way our economies operate and interact with their citizens.
This development is pushing governments to become more efficient, transparent and
cost-conscious, thus becoming a government that is truly citizen-centric and offers excellent business opportunities for a blockchain development company.
Governments are fast moving towards making their departments more efficient, in not just their operational framework but also their score in terms of public loyalty, with help of blockchain development organizations.
The benefits of blockchain in government services are focussed on three of the technology’s core areas:
Value Transfer in domestic and international remittance, internal payments settlement, clearing and settlement of securities and exchange of low liquidity assets.
Smart Contracts such as digital cheques and IOUs, automatic financial instruments, parametric insurance contracts, and automated market-making.
Record-Keeping without reliance on a third party, such as digital certificate of ownership of physical assets, transaction validation of digital assets and financial accounts.
The role of blockchain for government services, when the above areas are used individually or in combination, further impacts these three critical areas:
Building trust with citizens
Given the fact that the trust that citizens have in their government is now at an all-time low, there is an imminent need to reverse this trend of distrust with the power of blockchain technology by engaging companies providing blockchain development services.
The transparency that blockchain technology offers alters the sentiments of citizens by allowing them to view and verify data. Blockchain solutions let perform personal verification on the different claims of the government, thus expediting the process of resolving issues, with the help of a blockchain development company.
Protection of sensitive data
Stolen identities and personal data theft have sadly become a part of today’s reality. Being the default data custodians of the citizens, governments have indeed become the main target of hackers worldwide.
The immutability feature of blockchain-based solutions enables a nation to become completely hack-proof. By significantly strengthening the network’s security, blockchain technology successfully eliminates the possibility of single-point failure errors and makes the entire system hack-proof.
Improvement in efficiency and reduction of costs
Another benefit of blockchain technology for government services is that it cannot only lower the operating costs but also reduce redundancy, streamline all processes, increase security, reduce the burden of audit and ensure the integrity of all stored data.
These tangible benefits of blockchain technology have caught the attention of governments worldwide, who have either begun planning for immediate deployment of blockchain data structures or are already using them.
As per the NASSCOM 2019 Blockchain Report, nearly half of the Indian states reaping the benefits of this technology by rapidly driving its adoption. The number of projects successfully built and implemented by blockchain development services providers has already crossed more than $20 billion in value cross across multiple government sectors.
The report highlights how the state governments of Kerala, Andhra Pradesh Telangana, Maharashtra and Karnataka are aggressively working with blockchain companies to harness the benefits of blockchain technology.
According to the World Intellectual Property Organization, India is among the top countries featuring in the list of blockchain patents and is home to many blockchain development organizations.
To leverage the immense benefits of decentralization, countries are continuously exploring the role of blockchain applications in the government and public sectors. We can confidently say that the time has now come for governments of all countries to adopt and reap the many benefits of a blockchain-based government model.