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Is Blockchain The Key To An Efficient E-Government?

Daily Legal Briefing by Daily Legal Briefing
July 26, 2022
in Legal Tech
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BlockchainBlockchain is a technology that’s transforming the world and revolutionizing how people exchange money, goods, and ideas. There are also many ways it can revolutionize government.

Blockchain creates trust between two parties who don’t know or trust each other by providing proof of ownership for digital assets in the form of cryptographic keys. This tamper-proof system makes it ideal for managing sensitive data.

E-government is the use of electronic communications to provide public services to citizens and businesses. It’s a convenient way for government agencies to offer services online, and it can make it easier for citizens to access government services.

Check out the Blockchain Value Season 2, Episode 7 podcast — How Can Blockchain and Law be Used for Social Good? with Michele Neitz.

However, e-government systems are often complex, resulting in slow and cumbersome services. They’re also vulnerable to hacking and data breaches. Blockchain can help e-government systems address these issues, making them more efficient and secure.

Blockchain can make e-governments more efficient in a number of ways:

1. By Automating Processes

Smart contracts can automate e-government processes such as benefits claims and tax returns. Smart contracts are self-executing contracts that use blockchain technology to function. This means they can automatically verify and enforce the terms of the contract.

This could save government agencies a lot of time and money by removing the need to manually process claims or applications. It would also reduce the risk of human error.

2. By Improving Security

Blockchain can help to improve the security of e-government systems in a number of ways. It can make data more tamper-proof and help secure communications between government agencies and citizens.

Additionally, it can be used to create digital identities that can’t be forged. This would be especially useful for government services that require identity verification, such as passport applications or voting.

3. By Reducing Costs

Blockchain can also reduce the costs of e-government. For example, it could be used to create a single, tamper-proof database of all government records, eliminating the need for duplicate records, which would save time and money.

Blockchain could also streamline the process of issuing passports. Currently, each country has its own passport-issuing system, which is costly and inefficient. If every country used a blockchain-based system, however, it would be much cheaper and easier to issue passports.

4. By Increasing Transparency

Blockchain can also help increase e-government transparency. For example, it could be used to create a public register of all the government’s contracts, making it easier for citizens to hold their government accountable.

It could also track how government money is spent. This would assist in detecting and preventing corruption.

5. By Empowering Citizens

Blockchain can empower citizens by giving them more control over their personal data. For example, someone could use blockchain to create a digital identity, which would then be used to access government services.

They could also use blockchain to store and manage their personal data (e.g., health records and tax returns) and to create a secure online voting system.

6. By Improving Interactions Between Government Agencies

Blockchain can also improve interactions between government agencies. For example, if it is used to create a shared database of all government contracts, agencies would have a much easier time finding and managing contracts.

Using blockchain to create a shared government record database would make it easier for different agencies to access and share data.

7. By Creating A Single Source Of Truth

Blockchain can also help create a single source of truth for government data. If it is used to create a tamper-proof register of all government contracts, for example, it would be much harder for a corrupt government official to change or delete a contract that is stored on a blockchain.

8. By Enhancing Collaboration

Blockchain can also facilitate and enhance collaboration between government agencies. For example, creating a shared database of all government records would make it easier for agencies to access and share data.

Let’s say that a natural disaster strikes a city. The police, fire department, and hospital would all need to access the same data to coordinate their responses. If each agency is using its own separate database, however, it would be very difficult to share data quickly and accurately. However, if they are all using a blockchain-based system, it would be much easier to share data and coordinate their responses.

9. By Improving Cybersecurity

Blockchain can play a role in improving cybersecurity for e-government. It would be much harder for hackers to change or delete contracts thanks to the blockchain’s tamper-proof register of all government contracts.

It could also be used to create a digital identification system for government employees, making it much harder for hackers to impersonate them.

10. By Improving Access To Government Services

Blockchain can also help to improve access to government services. For example, it could be used to create digital identities that citizens could use to access government services.

Even if a citizen doesn’t have a physical ID, they would still be able to access government services thanks to their digital ID on a blockchain.

Conclusion

Blockchain has the potential to transform e-government in terms of efficiency, transparency, and security. It could also empower citizens and improve the interactions between government agencies. However, it is important to note that blockchain technology is still in the early stages, and there are many challenges to address before it can be widely adopted. Nonetheless, blockchain’s potential e-government applications are very exciting and worth exploring further.


Olga MackOlga V. Mack is the CEO of Parley Pro, a next-generation contract management company that has pioneered online negotiation technology. Olga embraces legal innovation and had dedicated her career to improving and shaping the future of law. She is convinced that the legal profession will emerge even stronger, more resilient, and more inclusive than before by embracing technology. Olga is also an award-winning general counsel, operations professional, startup advisor, public speaker, adjunct professor, and entrepreneur. She founded the Women Serve on Boards movement that advocates for women to participate on corporate boards of Fortune 500 companies. She authored Get on Board: Earning Your Ticket to a Corporate Board Seat and Fundamentals of Smart Contract Security. You can follow Olga on Twitter @olgavmack.





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