Blockchain for Government Services

Blockchain for Government Services
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C O N T E N T S:


  • Riyadh Municipality, Saudi Arabia, has partnered with IBM to jointly develop a strategy to streamline government services and transactions on ? blockchain, news outlet reported July 11.(More...)
  • Blockchains have the potential to revolutionize the activities of government.(More...)
  • In the past two years, another wave of states started to shift attention to blockchain technology and explore the potential roles of the technology in public and private services.(More...)
  • Under terms of the partnership, early blockchain-tech mover IBM will work with Elm Company, the municipality?s technology partner, to develop an implementation strategy to plug government transactions and commercial services to citizens and residents on a blockchain, reports.(More...)
  • It also launched the U.S. Federal Blockchain Forum and "Emerging Tech and Open Data for a More Open Government," a workshop to draft the first potential national goals for Blockchain through Open Government, as well as this U.S. Emerging Citizen Technology Atlas.(More...)
  • The major drivers of the market include the growing interest in the blockchain technology adoption by the government sector, increasing instances of fraudulent activities in the public sector, need to provide protection against data tempering, upswing in the usage of blockchain technology to create transparent and decentralized government, and focus on increasing efficiency and speed in public sector transactions.(More...)
  • Several federal agencies -- including the General Services Administration, the Department of Homeland Security, and the Health and Human Services Department -- have announced blockchain pilot programs.(More...)


  • Excitement around the technology is building as agencies begin piloting and testing blockchain applications for payments, supply chain, identity management, secure data sharing, and more.(More...)
  • Although blockchain is often discussed in the context of Bitcoin, it is in fact a stand-alone technology that secures distributed transactional data.(More...)
  • The State of Delaware announced an initiative to embrace the emerging blockchain and smart contract technology industry, which can help the public and enterprises lower their transactional costs, speed up and automate manual processes, and reduce fraud.(More...)
  • As a digital ledger that records transactions, blockchain can encode information from a particular source, at a specific time.(More...)



Riyadh Municipality, Saudi Arabia, has partnered with IBM to jointly develop a strategy to streamline government services and transactions on ? blockchain, news outlet reported July 11. [1] Here are a few examples of local governments in the United States and the United Kingdom that are using blockchain to provide government services. [2] Wouldn't want a scenario wherein BlockChain BETA as Governance Platform has issues and then fixing bugs/errors takes toll on Government Services. [3] Similar to Delaware, the state of Illinois aims to utilize blockchain and distributed ledger technologies to "transform the delivery of public and private services, redefine the relationship between government and the citizen in terms of data sharing, transparency and trust, and make a leading contribution to the State?s digital transformation." [4] The Government through the Gibraltar Financial Services Commission (GFSC) issued a ruling that effectively grants licenses which allow blockchains to be used as conduits for the storage and transfer of digital assets. [5] Governments in particular are keen to use blockchain to streamline services. [2] Backed by main government departments, Riyadh Municipality, IBM, and Saudi tech firm Elm Company will arrange workshops to determine which services can be upgraded using blockchain. [1] Estonia has been heralded as the first government to embrace blockchain, initially with a focus on cybersecurity, but now also for citizen services like e-voting. [6] Realizing the cross-cutting applicability of blockchain, hundreds of leaders in government have joined the General Services Administration?s (GSA) blockchain working group to share use cases and best practices. [7]

Blockchain can bring digital government services to citizens in secure and instantaneous ways. [8] The digital disruption of government services through emerging technologies like blockchain is just beginning. [8]

Various industry services firms and vendors have expanded certain of their services on the use of blockchain by the federal government. [9] IBM will subsequently develop the first blockchain solution at the municipal level, while Elm will implement the technology into services provided by the government. [1] The Riyadh municipality in Saudi Arabia has partnered with IBM to design blockchain solutions to improve services in the government sector. [1]

ID-kaarts has been able to reduce bureaucratic red-tape and improve the timeliness and quality of government service delivery to Estonian citizens. [5]

While some have called for caution in pursuing such broad-stroke initiatives due to the highly disruptive nature of the technology, some states have started to explore the use of blockchain in specific applications in government functions. [4] Active Engagement : Seven states have gone beyond cryptocurrencies and examined the governmental use of blockchain, either as isolated applications in specific government functions, or as integration across different government functions. [4]

"At bottom, blockchain is not about money, even though this is the technology underlying Bitcoin and other cryptocurrencies and it?s not fundamentally about destroying governments and replacing them with purely private, decentralized systems, even though it is a system that creates a new kind of decentralized infrastructure," Werbach said. [3] In emerging economies, blockchain has the potential to help governments achieve policy goals by leapfrogging intermediate layers of technology. [2] Government agencies usually aren?t the first to try new technology, but the momentum around the blockchain industry has spurred adoption. [10] The U.S. has convened a summit on the subject of blockchain, and the recent approval of the defense spending bill includes provisions for modernizing government technology specifically allowing for the exploration of blockchain. [6] Dubai has set the ambitious goal of running its entire government on blockchain by 2020, digitizing all public documents onto this ledger to speed and increase capacity for new transactions. [6] Using blockchain, governments can address the dual challenges of trust and transparency, and the need for data protection and privacy. [6] This amplifies the notion of open government initiatives as an area where blockchain is particularly well suited, such as protecting sensitive data while facilitating approved access where needed. [6] Government agencies, like the Department of Homeland Security, are getting serious about blockchain applications in cybersecurity. [7] In May, the government of Saudi Arabia conducted a "blockchain bootcamp" session focused on building Ethereum smart contracts and decentralized applications (DApps). [1] Another use of the blockchain by government is for distribution of benefits. [3] Government using the blockchain platform for all types of functionalities could yield "new kinds of innovation," he said. [3] Werbach said using blockchain makes sense for the government because much of what it does is actually record-keeping. [3] Compliance is another area where governments using the blockchain can boost efficiency by eliminating some of the intermediaries, Werbach said. [3] Government borrowing also can be transformed by the blockchain, Werbach said, citing the example of Berkeley, Calif. In May, city officials voted to issue "micro-bonds? in denominations of $10 to $25 to raise money for community projects. [3]

IBM fellow Jerry Cuomo told the House Committee on Science, Space and Technology on Wednesday that blockchain is "transformative" and said his company has engaged in more than 400 blockchain projects across a number of industries, including supply chain, financial services, healthcare and government. [11] Microsoft and IBM already offer blockchain as a service, and in interviews with GCN, company executives confirmed that they are already working with government agencies directly on blockchain projects. [12]

With a blockchain based identity registry, governments have the opportunity to issue e-identities to the population, making the frictionless digital use of a variety of national and municipal services a reality. [13] Blockchain use in government will disrupt the services citizens experience. [8] While adoption remains low, he said that is true for virtually every other sector and that globally, governments are among the leaders in blockchain adoption behind the financial services industry. [14] Blockchain enabled smart contracts can help governments and industry deliver more efficient services, but it can also supercharge government and industry in their fight against money laundering and terrorist financing. [13] Governments that embrace blockchain and distributed ledger technologies to reform civil services will get rewarded with a robust and agile digital infrastructure that enables the cultivation of productive ecosystems, better public services, lower costs, and improves sustainable outcomes for all. [13] Jose Arrieta, former director of the General Services Administration's IT Schedule 70 Contract Operations, told FCW in a November 2017 interview that GSA's use of blockchain to automate and speed up contracts review for its FAStLane program was -- as far as he knew -- the only actual proof of concept of a blockchain enabled system in the federal government. [14]

Blockchains have the potential to revolutionize the activities of government. [5] The Illinois government is conducting five focused pilots for blockchain across multiple government departments. [2] The government has used blockchain to disburse student loan grants and track welfare checks. [2] The blockchain cuts those costs because it lets the government deal directly with the buyer. [3] In developed countries, blockchain will help streamline government functions to make them more efficient. [2] Governments around the world are already exploring blockchain. [6] Estimates vary as to when blockchain will have an impact in government. [10] Colorado, for example, saw a bipartisan bill introduced recently to promote the use of blockchain specifically for government record keeping. [4]

Dubai identified 21 uses for blockchain, including charging electric vehicles, obtaining notary services and ensuring food safety. [10] One example of how the blockchain can improve operations is in supply chains where goods and services flow among many different organizations around the world. [3] For blockchain to emerge as the technological imperative for public services, states will have to change existing regulations. [4]

MongoDB has already found extensive adoption in the U.S. federal government, and its platform provides the assistance layer for blockchain technologies. [9] The U.S. federal government has interest in the application of blockchain for various purposes. [9] Watch for increased and publicly noticeable implementations of blockchain by the U.S. federal government in 2018. [9] For government leaders walking this budget tightrope, blockchain may be a much-needed lifeline. [7] In one of the first contract awards for blockchain technology implementation for the U.S. government, the Department of Homeland Security awarded a blockchain contract to " Prove Integrity of Captured Data From Border Devices." [9] While the U.S. government was late to embrace cloud computing due to challenges with deciphering the model, lack of suitable procurement options and slow adoption, it appears to be engaging actively with the potential use of blockchain technology. [9] In 2017, more than 200 government agencies around the world, including the Department of Homeland Security, were exploring the use of blockchain, according to the Blockchain in Government Tracker compiled by the Illinois Blockchain Initiative. [10] Even cryptocurrencies do become extinct over time, blockchain technology is definitely here to stay and governments are most likely going to be trying to outdo one another in the hopes of creating superior blockchain applications. [5] By using blockchain technology for these tasks, a large percentage of those manhours can be saved which translates into huge government savings. [5] Governments around the world have established pilot projects to integrate blockchain technology into their operations. [2] From the year 2012, it began to implement blockchain technology in a number of government activities. [5] It is this robust functionality of blockchain technology that has caught the eye of government all over the world. [5] While cryptocurrencies continue to be shrouded in a lot of controversies and the desire by some governments to ban them, blockchain technology continues to be an interesting proposition for many governments. [5]

The municipality of Saudi Arabia?s capital city Riyadh has partnered IBM to facilitate government services and transactions on a blockchain. [15] The decision to integrate government services and transactions onto a blockchain is part of the broader Saudi Vision 2030 program, an initiative enacted by Saudi Arabia?s Crown Prince Mohammad bin Salman in 2016. [15] Riyadh City Picks IBM to Integrate Blockchain in Government Services You are using an outdated browser. [15] "For the long term, our goal is to ensure a smooth transition of Islamic banking solutions and government services to blockchain, in addition to maintaining an impressive list of clients." [16] Blockchain and distributed ledger technology has the potential to transform the delivery of public and private services, redefine the relationship between government and the citizen in terms of data sharing, transparency and trust, and make a leading contribution to the State?s digital transformation. [17]

"Through the collaboration between Riyadh Municipality, Elm and IBM, we will be able to help the Saudi government reimagine and transform the way in which services are provided to citizens, residents, businesses, and visitors. [1] The move was made in accordance with an authoritative decision of the Government of Saudi Arabia to work on improving the quality of municipal services for customers and integrate leading technologies into services as part of the Saudi Vision 2030 program. [1] Now U.S. state governments have recognized the technology?s potential for the delivery of public services, and are at various stages of implementation. [4] Whether ensuring citizen safety, security, and well-being or boosting our national competitiveness, we work shoulder-to-shoulder with civil government clients to help them deliver on their public service missions. [7]

Limitations in digital identity verification have made transacting and interfacing with government services frustrating for citizens who are demanding seamless online experiences. [13] Again, these are examples of applying tech tools made for consumer and industry applications to government services. [18] The conveniences that online retailers have built -- websites that remember who we are, what we did before, our preferences -- may be uncommon experiences when we try to access government services. [18] The rewrites happening in government services aren?t always in the most obvious places. [18] Delivering efficient, sustainable and affordable government services to the world?s aging population and emerging middle class will become increasingly difficult without profound and substantive changes to current systems. [13] By eliminating excessive intermediary costs and redundancies, government services become more efficient. [13]

Blockchain technology can also transform civil services by enabling the direct and automatic transfer of payments and other assets between government agencies and citizens for services rendered. [13] While the day-to-day changes in the price of bitcoin (a decentralized currency with roots in libertarian ideals) and other alternative blockchain-based tokens will not ultimately determine the future potential and application of this emerging technology, the China ban did bring into focus the relationship and tension between government and blockchain technologies. [19] In the private sector, banking institutions are looking at the technology as a way to get rid of administrative hurdles, hence the IBM blockchain for such banks as Deutsche Bank and HSBC. In the public sector, governments in Asia and Europe have jumped at the notion of consolidating and linking their records. [20] While the technology around blockchain is maturing, the opportunity to use it in government is already being realized, giving us the opportunity to create a roadmap for adoption. [8] Wendy Henry, specialist leader and federal blockchain expert for Deloitte, said the government will likely move more quickly to adopt the technology in areas like supply chain management and identity management. [14] While the U.S. is leading the world in blockchain development, he called for more government efforts to promote and deploy the technology itself. [11] Today, governments use blockchain for secure citizen identification, or to transmit documents of value such as property deeds, which is in progress in Illinois. [8] Although Estonia has scaled back plans on implementing blockchain to create a national cryptocurrency, the government still has plans to use blockchain to create an improved identity management system. [21] The government land titles office, for example, has the potential to become far more efficient, as new blockchain powered registries immutably record property transactions, ownership, and track provenance. [13] The Dubai Government is working on a city-wide blockchain pilot with IBM and ConsenSys to streamline ID verification to reduce business registration times, and is digitizing and tracking citizens' health records, wills and contracts, among other assets, Zsigri said. [11] "Since Hyperledger is an open source platform, our work involves hosting the nodes in the cloud and adding security configurations and governance capabilities associated with a government platform," IBM Public Sector Blockchain Lead Mark Fisk said. [12] Nations that redesign their governance systems based on blockchain and distributed ledger technologies will be rewarded with a resilient and antifragile digital infrastructure that enables the implementation of more potent government policies which meet the evolving demands of their citizens and deliver stability in a rapidly changing world. [13] Governments must ask how they can balance the potential wealth and job creation blockchain tech represents with public safety and order. [19] Some 200 government leaders in 16 countries were asked about potential blockchain applications. [22] Blockchain reduces or even eliminates the need for manual verification, allowing businesses to optimize their operations while also ensuring governments don?t lose potential tax revenue in the process. [21] Blockchain in government has the potential to give real meaning to overly-used political buzzwords like "transparency" and create noticeable improvements in efficiency overall. [21] California company velox.RE, along with the International Blockchain Real Estate Association, has been working with the government of Cook County, Illinois, to create a legal blockchain version of a property deed. [18] "With artificial intelligence and blockchain, the is exploring a whole range of forward-leaning capabilities that might be helpful to government," Margie Graves, acting federal CIO at the Office of Management and Budget, told the audience at the Data Transparency 2017 conference. [22] Microsoft announced Blockchain for Azure Government in October 2017 to give government customers the ability to use Ethereum, Hyperledger, Corda and Quorum in their cloud environment. [12] Governments themselves have the opportunity to use blockchain to improve their own efficiency and reduce costs. [19] As shared in the IBM " Building Trust in Government " whitepaper, there are several ways blockchain can trim time, cost, and risk, and provide a high impact. [8] Governments that embrace blockchain and find optimal ways for it to be applied and channeled for societally beneficial effect stand to gain a great deal. [19] Since votes on the blockchain are immutable and can be tracked in real-time, governments have the potential to determine election winners in a more efficient manner. [21] "And now, government could harness the potential of blockchain to leapfrog the public?s perception of efficiency, transparency and trust." [18] "Just think if you could put all of your required information into one government portal, into the blockchain," Stark said. [18] The Venezuelan Petro, Russian Cryptoruble, and Estonian Estcoin are all examples of governments utilizing blockchain to create cryptocurrencies. [21] Even though competition between blockchain projects and government institutions could be an issue to watch out for, looking only at this possibility doesn?t show the bigger picture. [21] In the early years of blockchain, many governments have been skeptical and even somewhat resistant to the public?s adoption. [21] While 2017 was the year everyone in government talked about blockchain, 2018 may finally mark the year of action. [14] Even the government is voicing support for blockchain implementations. [22] At the surface, blockchain in government operations doesn?t appear to be a likely match. [21] Blockchain has been on a stealth course in government circles in recent months. [20] NASCIO's Sweden predicts that in a decade blockchain in government will be routine. [20] The manner in which governments engage with it will determine if blockchain serves as a boon or bust for their nation. [19] Entire government departments could potentially be replaced by blockchain based registries saving billions of dollars of taxpayer funds. [13]

In the past two years, another wave of states started to shift attention to blockchain technology and explore the potential roles of the technology in public and private services. [4] Not surprisingly, states across the U.S. have shown interests in leveraging blockchain technology to stimulate local economies and improve various aspects of public service. [4]

A blockchain solution for some citizen services could allow for independent verification of governmental claims. [7] Blockchain's distributed ledger can be used to store, maintain and prosecute a wide variety of services. [2]

Their tough stance on the crypto market doesn?t stop them from recognizing the potential benefits that are inherent in the successful implementation of blockchain technology for government applications. [5] The government of the Eastern European nation of Estonia was one of the first to adopt blockchain technology for government use. [5]

Under terms of the partnership, early blockchain-tech mover IBM will work with Elm Company, the municipality?s technology partner, to develop an implementation strategy to plug government transactions and commercial services to citizens and residents on a blockchain, reports. [15] The city administration, IBM and Elm will further sync with key government departments and private and semi-government sectors over a number of workshops to determine the services that can be transformed by blockchain. [15] "Blockchain can play a key role in creating a highly efficient, hyper-connected and secure government, which translates into better services for our citizens. [23]

The municipality of Riyadh (capital and most populous city in Saudi Arabia) has decided to partner the U.S. electronics giant IBM to jointly develop and implement blockchain technology for government services and transactions. [24] There are heightened and even inflated expectations about the potential of blockchain to improve the delivery of public services and strengthen integrity in government. [25]

The U.S. Federal government has created a tool called Atlas through its Emerging Citizen Technology program to track potential use cases, collaborate, promote hackathons, and share information on the adoption of blockchain. [8] Blockchain use cases include the sharing of medical records, processing internet of things transactions and record keeping -- all of which are extremely important to the government's current and future IT initiatives. [22]

Senior Reporter Lucas Mearian covers financial services IT (including blockchain), healthcare IT and enterprise mobile issues (including mobility management, security, hardware and apps). [11] Amazon Web Services recently launched new offering to help users build blockchain applications. [12] "We always want to start with framing the business opportunities to figure out the mission and the current friction points that prevent that mission from being delivered efficiently," Matt Kerner, partner and general manager of financial services and blockchain at Microsoft Azure, said. [12]

In developing nations, an emerging middle-class demand for government services and high population growth have placed acute pressures on civil service. [13] By creating a digital ledger for all traded goods and services, governments can create a system for verified transactions, tying all the information in one, immutable chain. [21] With the Federal Risk and Authorization Management Program recently reaching 100 authorizations of cloud service offerings, cloud services are increasingly central to IT operations at most government agencies. [12] Governments today are running blind, unable to meaningfully assess the effectiveness of their services or deal with the changing demands of their citizens. [13] The ability to send money anonymously, peer-to-peer, for example, makes taxation and service fees that government and financial institutions rely on, much more difficult to enforce. [19] Outdated and disparate governance systems, widespread corruption and budgetary constraints have led governments to be unable to deliver essential services like healthcare and education to large swathes of the population. [13] Digital ID?s that act as a digital watermark to every transaction will help government agencies check identities in real-time, reducing the rate of fraud and other criminal activities and decreasing the costs associated with the provision of many public services. [13] Rather it is the fragmented, siloed and disparate identity systems utilized by governments that have led to inefficient public services and unsecured data. [13] Identity verification has become the central challenge in recent years as governments attempt to digitize public services. [13]

In looking at the possible advantages of the technology to governments, Jennifer O'Rourke, business liaison for the Illinois Blockchain Initiative, notes that many folks in both business and government spend a lot of time making sure that every copy of a document in users' hands is identical. [20] "Blockchain is ready for government, now let's get government ready for blockchain," Cuomo said. [11] By providing governments and industry with a pseudonymously transparent, unchangeable and tamper-proof platform to store and record all transactions, blockchain technology creates an audit trail that regulators and industry alike can view and act upon in real time. [13] Blockchain technology can create the resilient digital infrastructure necessary to enable the mass transformation of government administration to occur. [13] When it comes to the third prong -- government adoption of blockchain technology -- the initiative has already gained some insights. [20] Ironically, blockchain technology was devised as a way to avoid central governments. [18]

Even as enthusiasts stand behind blockchain's vast potential over the long term, application in government over the next year will likely be confined to smaller, more isolated instances as agencies continue to experiment and build viable use cases to support broader adoption in the future. [14] Blockchain's immutable record is natively auditable, allowing members to follow and adhere to existing government regulations like HIPAA and General Data Protection Regulations (GDPR), Cuomo explained. [11] While many governments are starting to tax cryptocurrency earnings, blockchain technology itself could also make taxation systems more efficient. [21]

Government Technology reports that the task force endorses using blockchain for secure digital identities, providing access to government services and fueling greater economic participation. [26] The Digital Transformation Agency of Australia gets the green light to investigate getting government services on the blockchain with a budget allocation of 700,000 AUD (approx. 521,000 USD) by the Australian government. [27]

According to the report, the database, which looks at blockchain uses from governments all over the world, is an overview of how public sector entities are "employing blockchain technology in their efforts to govern, improve the competitiveness of their economy and also deliver high-quality services in a more efficient manner." [23] Governments have traditionally taken advantage of business partners -- including suppliers, local social services agencies and community-based organizations -- for their expertise, and to extend the reach of government services. [28] There are a multitude of government service providers that each person works with depending on their needs -- medical services, education, community services, courts and law enforcement, just to name a few. [28]

In developed nations, demographic stresses and aging populations are intensifying pressures on government budgets, forcing civil services to do more with less. [13] The technology's ability to simplify the management of trusted information and make it easier for government to access and use public sector data while ensuring high levels of security hold profound benefits for civil services. [13] In developed nations, an aging population presents a real challenge for governments that must find ways to provide an expanded level of services at lower costs. [13]

As more experiments are conducted, organizations interested in blockchain technology would do well to understand its security issues - especially in the creation and storage of cryptographic keys that are vital to making the technology viable for government use. [22] Overall, by improving the capacity to analyze sovereign data and conduct instant digital asset transfers, blockchain technology can deliver game-changing improvements for governments and their citizenry. [13] While interest in blockchain technology isn't expected to produce large returns for government until 2025, according to Gartner, work is already underway to add blockchain-as-a-service capabilities into the cloud marketplace. [12]

Blockchain's native immutability as a distributed ledger can also create an automatic audit trail for regulators, something with which many industries, including financial services, have struggled. [11]

It also launched the U.S. Federal Blockchain Forum and "Emerging Tech and Open Data for a More Open Government," a workshop to draft the first potential national goals for Blockchain through Open Government, as well as this U.S. Emerging Citizen Technology Atlas. [17] The task force concluded that "blockchain technology and its built-in encryption can facilitate highly-secure methods for interacting with government and keeping paperless records, increasing data accuracy and providing better cybersecurity protections for Illinois residents." [23] Although few governments have used the technology for elections at a national level, Sierra Leone being the first, Ukraine conducted a few blockchain pilots for regional elections. [29] We are in the early days for blockchain and most governments are just beginning to understand and explore the technology. [28] A third set of blockchain experiments to combat government corruption focus on automating and tracking high-risk transactions, such as public contracts, cash transfers, and aid funds. [25] Governments deploying blockchain to protect public data and registrars should first address the weaknesses of underlying institutions. [25] The reason why blockchain is generating so much hype is because of the potential it holds to transform the way government works and to overcome the need for legacy institutions whose primary function is to create trust between parties. [25] For all its current uncertainties and risks, blockchain has the potential to alter the backbone of government, and key functions such as the verification of identity, the registry of assets, and the certification of transactions. [25] The blockchain government market study aims at estimating the market size and future growth potential of the market across different segments, such as provider, application, and region. [30] The smart contracts segment is expected to dominate the application segment in terms of contribution to the overall market, as government agencies are deploying blockchain based smart contracts to reduce costs of verification, execution, arbitration and fraud prevention. [30] In May, the government teamed up with Ethereum decentralized application (Dapp) development studio ConsenSys to organize a "blockchain bootcamp" in Riyadh, which focused on creating smart contracts and Dapps. [24]

"Government CIOs transitioning to digital government and considering use of blockchain should look beyond the hype to the incentives for participation," says Holgate. [29] Founded by Alsehli and Walid Messaoudi in February 2016, ArabianChain, aims "to revolutionize how governments, businesses and people perceive and deal with economy, e-services and digital transformation by leading the way in entrepreneurial thinking and innovation in blockchain technology." [16] Detailed analysis was performed to get detailed information regarding the competitors in the blockchain government market, on the basis of their solutions offerings and business strategies. [30] Before deploying blockchain, it is important that governments are clear about what problems they want to address, the feasibility of blockchain-based solutions, and the value these can add. [25] According to Smart Dubai, a government entity charged with exploiting smart technologies to "empower, delivery and promote an efficient, seamless, safe and impactful city experience for residents and visitors", Dubai's blockchain strategy could save 25.1 million man hours, akin to 5.5bn dirhams, or $1.5bn, in savings per year. [16] Michael Pisa and Matt Juden warn that governments opting for a public, permission-less blockchain would have to accept "that it will have virtually no control over how that system is governed." [25] Blockchain can make a critical contribution by strengthening public integrity and restoring trust in government. [25] Now, Argentina will have its own distributed ledger, also known as a blockchain, created in conjunction with various government agencies. [31] Many governments have announced an intent to store and manage government records on blockchain. [29] Lastly, the reliability of records, especially for first entries, is critical for the successful implementation of blockchain in government. [25] The objective of the report is to define, describe, and forecast the blockchain government market by provider, application, and region. [30] The blockchain government market has been segmented on the basis of providers into 3 categories: application providers, middleware providers, and infrastructure providers. [30] Using blockchain for voting capabilities is of interest to many governments. [29] FIT believes Blockchain should be explored and applied to government challenges just as they have in the commercial sector. [17] With native platforms, bold government targets and major multi-nationals all actively working in this space, it's clear that Dubai's blockchain aspirations are being taken seriously. [16] Government CIOs must look beyond the hype and evaluate blockchain based on innovative and emerging real-life use cases. [29] Holgate has identified a number of promising and practical blockchain use cases that show evidence of broad government interest. [29] Gartner?s survey of CIOs in government indicates that while 66% are interested in blockchain, only 20% have any action planned. [29] The government of Saudi Arabia?s IT and communications ministry partnered Ethereum development studio ConsenSys to host a " blockchain bootcamp ? in Riyadh. [15] The global blockchain government market size was USD 104.5 Million in 2017 and is projected to reach USD 3,458.8 Million by 2023, at a Compound Annual Growth Rate (CAGR) of 84.5% during the forecast period. [30] In terms of geographic coverage, the blockchain government market has been segmented into 5 regions, namely, North America, Asia Pacific (APAC), Europe, the Middle East and Africa (MEA), and Latin America. [30] In 2016, more than 30 government entities and international companies came together to launch the Global Blockchain Council. [16] Big companies are well aware of its capabilities, and many governments already have a roadmap to meet their objectives through blockchain, according to Alsehli. [16]

The goal of the initiative is to determine if this groundbreaking technology can be leveraged to create more efficient, integrated and trusted state services, while providing a welcoming environment for the Blockchain community. [17] Blockchain could add critical value to public contracting up to the delivery of the goods and services, by locking in critical information at every step of the procurement chain that can be monitored, tracked, and audited. [25] Start a small blockchain pilot project to acquire hands on experience of the technology?s transformation value -- beginning with one or two service providers and a limited set of data. [28] The end goal of the partnership is quite ambitious to relocate governmental transactions and services to citizens on a blockchain, according to local news outlets. [24] The new blockchain endeavor is in accordance with Vision 2030?s directives, Al Riyadh secretary Tariq bin Abdul said, underlining decentralized blockchain tech as the chosen solution to improve municipal operations and services to citizens. [15] Even though the exact scope of the operation is yet to be fully determined, numerous workshops to determine what services can be reformed via blockchain are already scheduled. [24] "As blockchain adoption increases, we hope to make it a cloud service to benefit's businesses in the Middle East," Adly says. [16]

The U.S. states of Vermont and Delaware, as well as the city of Dubai, have shown some of the most visible and ambitious efforts on the use of blockchain for government records primarily property ownership records but also utility bills and permits. [29]

The Scottish Government published a report that underscores the benefits of blockchain or distributed ledger technology (DLT) in public services laying the ground for a push in using the technology. [32] In a report, the official website for of the public sector UKAuthority, titled "Distributed Ledger Technologies in Public Services" the government described blockchain as creating opportunity on "natively digital" services and also presented several suggestions to build on the possibilities. [32]

The 2018-2019 budget document by the Australian government mentions that, "the Government will provide 0.7 million AUD in 2018-2019 for the Digital Transformation Agency to investigate areas where blockchain technology could offer the most value for Government services". [27] A report published by the Scottish Government provided details of how to utilize blockchain in public services. [32]

Blockchain will eventually provide a consistent, transparent and open view of activities, information and decisions, fueling the open innovation and reinvention of many government services. [33] Having said that, the blockchain and decentralized applications definitely have the ability to streamline government services, which could result in less government and a more decentralized public sector. [34]

The major drivers of the market include the growing interest in the blockchain technology adoption by the government sector, increasing instances of fraudulent activities in the public sector, need to provide protection against data tempering, upswing in the usage of blockchain technology to create transparent and decentralized government, and focus on increasing efficiency and speed in public sector transactions. [30] APAC is expected to grow at the highest growth rate during the forecast period, due to the increase in government expenditure on blockchain technology solutions to change the business processes in the government sector. [30] The stakeholders include government agencies, blockchain technology vendors, independent software vendors, consulting firms, system integrators, Value-added Resellers (VARs), and Information Technology (IT) agencies. [30]

Social service agencies have a network of government and business partners, or ecosystems, which administer assistance to the most vulnerable in a nation?s population. [28] Carlos Santiso heads the Innovation in Citizen Services Division of the Inter-American Development Bank, which supports data-driven digital government innovations in Latin America and the Caribbean. [25] Digital citizens are expecting more from their governments, demanding better services and greater accountability. [25] IBM Saudi Arabia General Manager Tarek Zarg El Aioun commented on the exciting news, saying that, "Through the collaboration between Riyadh Municipality, Elm and IBM, we will be able to help the Saudi government reimagine and transform the way in which services are provided to citizens, residents, businesses, and visitors. [24] Delivering services more effectively to poorly documented populations in need has been a global motivator for many governments. [29]

In late 2016, a number of state and county agencies convened to create the Illinois Blockchain Initiative, a group with the stated goal of determining "if this groundbreaking technology can be leveraged to create more efficient, integrated and trusted state services, while providing a welcoming environment for the blockchain community." [23] For the past several months, the CDC?s Center for Surveillance, Epidemiology, and Laboratory Services has worked on several proofs of concept based on blockchain technology, with an eye toward building real applications next year. [17] The U.S. Postal Service Office of Inspector General (OIG) contracted with Swiss Economics, a consulting firm with interest and expertise in blockchain technology, to better understand the technology and its features, as well as identify areas of potential interest for the Postal Service. [17] The report reviews the major players offering blockchain technology solutions and services. [30]

The Estonian government is one of the early adopters of the blockchain technology in the European region. [30] Blockchain technology will not solve all government problems, but it can help curb corruption and instill trust in government. [25] Will blockchain technology be the next disrupting technology to revolutionize government? Probably not. [25] Governments in this region are moving toward the adoption of the blockchain technology. [30] Lack of awareness and technical understanding about the blockchain technology can act as a restraining factor for the blockchain government market growth across regions. [30] The introduction of technologically advanced blockchain solutions has witnessed a certain level of adoption in government agencies thereby fueling the overall market growth. [30] Blockchain technology continues to be the subject of intense interest, especially for governments. [29]

"It also urges that the Scottish Government looks at promoting the use of the technology through channels such as the CivTech programme, the CodeClan digital skills academy and the University of Edinburgh's new AI and blockchain accelerator," UKAuthority said. [32] At a congressional hearing in February, experts expressed security concerns around the technology and called for the creation of standards and regulations around blockchain use in government. [26] Most government agencies will use a private blockchain to house vital data like voting records and real-estate transactions, according to Sirodot. [35] As a decentralized system of records, blockchain offers a potentially low-cost and highly secure method of supporting transactions for state and local governments. [26]

Blockchain, known mostly for its relationship to cryptocurrencies, could offer public entities safety, efficiency and speed, which explains why so many IT leaders are actively exploring its use in government. [35] The government revealed their plans in the latter part of 2017, for the provision of over 8 million AUD (approx. 5.9 million USD) worth of grants to a pilot project connected to smart utilities running on the blockchain platform. [27] The government of Saudi Arabia is one of the most dynamic and confident countries regarding using blockchains to promote its development. [36] He argued that instead of relying on one government agency?s computers, blockchain could decentralize the whole infrastructure for these sales, making them faster and cheaper, compared to what would normally be a slow, complicated trudge through bureaucracy. [26]

Other countries -- Canada, the United Kingdom, Brazil, China, India, the United Arab Emirates and Estonia -- are running pilots, tests and trials to examine both the architecture's broad utility as a basis for government service provision and procurement, and developing individual blockchain-based applications for internal use. [35] With a population of only 1.3 million, the Eastern European country is actively pursuing the implementation of blockchain technology across a variety of government services. [37] Blockchain has the potential to help government to reduce fraud, errors and the cost of paper-intensive processes, speed procurement processes, while enabling collaboration across multiple divisions and agencies to provide more efficient and effective services to citizens. [38] Governments are still trailing behind the private sector, but Blockchain has a lot of potential for enabling the government sector to deliver citizen services in a more efficient, cost effective, and trusted manner. [39] The potential and market for the adoption of Blockchain services in government are enormous. [33] Microsoft isn't the only company to offer blockchain platform services to government agencies. [40] For instance, today, October 17, 2017, tech giant Microsoft announced a suite of services powered by its Azure Government blockchain platform designed to cater to the needs of government entities. [40] This empowers government agencies to experiment, build, and provide services which tie in to Blockchain. [39] Blockchain will smooth out many friction or pain points of government processes, systems and services. [33] In order for agencies to understand the technology and its use cases within federal government, in May 2017, the General Services Administration requested ACT-IAC to assemble a government and industry working group and create a primer in blockchain. [38] Blockchain based solutions can be applied by government entities to make their operations more seamless, while also improving the delivery of public services. [39]

Several federal agencies -- including the General Services Administration, the Department of Homeland Security, and the Health and Human Services Department -- have announced blockchain pilot programs. [35] For e.g. decentralized identity or decentralized ownership is a horizontal blockchain service, but it can be applied to any other vertical segment, such as for videos, music, or photography, just to name a few simple examples. [41] Pegged services to the blockchain represent an interesting segment, because these Apps utilize the blockchain?s atomic unit which is a "value store" capability, but they also build on top of that with their unique off-chain services. [41]

Colorado CIO Suma Nallapati backs the bill and the use of blockchain technology to secure government data, saying it would improve government efficiency, Nallapati tells StateScoop. [26] On Jan. 31, Illinois issued a report from its Illinois Blockchain Task Force, saying, "This Task Force believes that blockchain technology and its built-in encryption can facilitate highly-secure methods for interacting with government and keeping paperless records, increasing data accuracy and providing better cybersecurity protections for Illinois residents. [26]

There are initiatives taken in the past by the Australian government allocating resources to investigate on blockchain solutions. [27]

Governing bodies have choices for how to deploy blockchain technology, be they projects that are incubated internally or provided to the government as a service. [40] Officials report that their online government services boost GDP by 2 percent each year and eliminate huge loads of paperwork. [42]

It remains early in the process, but from Estonia to the UK to the United States, government agencies have been recognizing the potential value of blockchain and distributed ledger technology, and even implemented it in a number of areas. [37] "There is a very large movement in the UK government to move towards blockchain and distributed ledger technology," said Galvin. [40] The exact ways in which technologies like blockchain may help increase transparency and accountability in government are varied and diverse, but numerous government operations share some common features that make employing a technology like blockchain a viable and serviceable option. [37] Just like how a banking transaction will record a transaction amount and date, so too could blockchain be used to record precise information surrounding government business. [37] Sweden's government, for instance, is experimenting with blockchain to record land transactions without the need for paper documents, physical signatures, and multiple in-person interactions. [43]

Fairer elections on the blockchain, a more transparent financial system and the use of smart contracts, for example, has the potential to reduce government spending. [34] ACT-IAC plans to follow-up with a blockchain playbook on approaches to use blockchain within the government. [38] As government organizations deal with disparate systems, duplicate information, data siloes and redundant processes, it?s important to understand blockchain and the benefits it delivers. [44] This study found that many groups of government organizations are readily embracing Blockchain technologies to reduce frictions to innovation and information flow and to facilitate more extensive collaboration. [33] As part of a collaborative ecosystem enabled by Blockchain technologies, governments will become a more trusted partner and reinvent existing processes to enable more collaboration across agencies and with citizens. [33] In addition to an inbuilt inflationary mechanism, the blockchain could be used to align the interests of the public with those of the government, ensuring that citizens do not have to bear the brunt of loss in value of the currency. [34] From procurement processes at GSA to cybersecurity prototypes at DHS and CDC?s focus on accelerating response time of public health workers, blockchain is already making a difference in government. [44] Blockchain offers the potential to deliver aid one-to-one from the U.S government to an individual in need. [37] What we especially need are more use cases or successful pilot programs to demonstrate to business executives and government officials of all stripes, that Blockchain is effective and now a reality. [33] The IBM Institute for Business Value surveyed 200 government leaders in 16 countries on their experiences and expectations with Blockchain (2017). [33] Recent surveys undertaken by leading names such as IBM and the Economic Intelligence Unit have indicated that there is a relatively high overall government interest in Blockchain. [39] The Maltese government has recently announced that it will be launching a pilot project which will allow government agencies to issue educational certificates on Blockchain. [39] Governments are developing blockchain platforms to integrate with various offices and agencies for a variety of reasons. [40] There are over a dozen Working Groups with the common goal of reaching out to government officials with a platform of education, awareness, use cases and Blockchain adoption assistance. [33] Sapient Director Aleks Zelenovic and project partner David Nguyen, CEO of United Solutions, talk through lessons learned from the first blockchain proof of concept developed in government. [44] Factom had also been involved in a project with the Honduran government to settle land titles by way of a blockchain system, but that project stalled before going beyond proof-of-concept stages. [40] There's a better way for the government to save money and improve operations: Embrace the blockchain. [42] Blockchain technologies are both open source and very secure - two factors driving the current rapid pace of adoption in industry and government. [38] Blockchain would enable the government to securely collect, store, process, and utilize the massive amounts of information it collects, thereby boosting cost effectiveness and transparency. [43] There are other countries, governments and agencies that are slowly moving out of the shadows and waking up and smelling the Blockchain roses. [33] The UK has also made some inroads into the adoption of blockchain in government agencies. [37] Much so that there are many private global blockchain industry groups and associations positioning themselves to influence government and citizens alike. [33] Government organizations don?t just stand to benefit from the greater trust promised by blockchains; they are uniquely charged to create it for the benefit of all. [33] Despite their focus on innovation, government executives - including those from the Trailblazer organizations - aren?t particularly concerned that Blockchain will be disruptive because it really isn't. [33] He is also a member of the Government Blockchain Association (GBA) and the Leader of GBA's Land Titling Working Group, which is dedicated to developing best practices and communication tools for educational outreach to land registry offices on a global basis. [33] Unique to government, of course, is the dynamic, Government Blockchain Association (GBA ). [33] The reality is that a few governments are more proactive than others while many others are still lurking in the shadows of the Blockchain movement waiting for someone to lead them to the Blockchain fountain of transparency, immutability and disruption. [33] One result of the study shows that while virtually all government organizations surveyed intend to invest in Blockchain by 2018, a small group of pioneers (14%) is setting a faster pace and a new direction with Blockchain today. [33] Blockchain will unleash and amplify the power of open government. [33] Larimer expands the concept of a government blockchain further: " If you have a Universal Basic Income where everybody received a fixed quantity of tokens - not a guaranteed purchasing power, but a guaranteed share - you could replace all the welfare and all those systems. [34] If the government is serious about nixing inefficiencies and finally reducing our national deficit, it'll embrace blockchain. [43] While it may be the dream of many cypherpunks, crypto-anarchists, and libertarians, it is difficult to imagine a scenario where the blockchain could replace governments in their entirety. [34] To better understand the underlying factors of blockchain adoption in the UK government, ETHNews reached out to founder and CEO of Invotra, Fintan Galvin. [40] He spoke with Sapient Director Aleks Zelenovic among others, and notes that the movement toward blockchain in government and elsewhere "could be the start of something big." [44] Government organizations, like those in any industry, are wise to take the long view on Blockchain. [33] Estonia conducts virtually all government operations online with the help of blockchain. [42] Broadly, blockchain may improve the function and functionality of government agency operations. [37]

Federal technology news website GCN describes how the U.S. General Services Administration is looking to speed the procurement process for IT contracts using blockchain. [44] Blockchain ledgers also enable the creation of "smart contracts," which can automatically process transactions or information from Party A to Party B once the locked blocks show that Party B has performed a requested service for Party A. Blockchain would preserve a transparent record of every aspect of such transactions -- with full auditability and traceability. [43] The USPS has begun investigating how blockchain could improve on these services, with a particular focus on its potential to improve back-end services such as money orders, and international money transfers. [37] In his Federal News Radio column, Tom Temin discusses blockchain and highlights Sapient and the proof-of-concept project at the U.S. General Services Administration. [44] Kicking off the event focused on how blockchain is reshaping business foundations, Aleks Zelenovic will be providing an understanding of what blockchain is, the ecosystem and how it will impact shared services in both the private and public sector. [44] The adoption of blockchain may also allow governmental agencies to provide new value-added services to businesses and others which can generate new sources of revenue for these agencies. [38]

Here in the United States, there are plenty of ways the federal government can utilize blockchain. [43] What is blockchain and how can it be used in the federal government? A publication hosted by ACT IAC in collaboration with both industry and government, this primer provides a foundational tool to understand blockchain and its safe and secure application across the U.S. federal government. [44] Blockchain is a powerful emerging framework that can drive innovation in the federal government based on business value. [44] Blockchain can be a foundation for digital transformation in the federal government. [44] Public Sector supported the first proof of concept that brought blockchain to the federal government. [44] The playbook serves as a guide for government organizations looking to determine if blockchain is appropriate for their business processes with key insights on assessment, readiness and selection. [44] The innovation of blockchain also has implications for government agency work on an international scale. [37]

The Estonian government currently uses a blockchain technology known as Keyless Signature Infrastructure to protect its sensitive public-sector data from tampering or theft. [43] One of the first entities to make use of this was the Delaware Public Archives, which applied the Blockchain technology to archive and encrypt government files. [39] The use of blockchain technology by government agencies is moving at a fast pace. [38] Larimer added that the use of blockchain technology could result in a greater degree of privacy for citizens while reducing the amount needed to ensure the government machine keeps working efficiently. [34] Let?s take a look at how different governments have been, or are planning to use Blockchain technology in their jurisdictions. [39] Whether it involves financial transactions or contract management, as little as 14% of government organisations expect to have Blockchain technology implemented by the end of 2017. [39] In recent months, different government entities around the world have started to explore the possibility of using Blockchain technology to improve their performance. [39] While blockchain technology might be disruptive to certain elements of the private sector, governments are also looking at it to develop modern infrastructures. [40] Galvin asserts that governments are hungry for blockchain technology. [40] A core component of GBA's commitment to government education and eventual Blockchain technology adoption is its Working Group s forum. [33] Many governments around the world are already embracing public and private blockchain solutions. [43] Many government agencies have begun in-depth explorations of blockchain's potential. [37] Given the potentially revolutionizing impact on governments at every level, it is of course necessary to ensure that blockchain's implementation and development adheres to privacy and security standards, and takes other relevant factors into consideration when unrolling it. [37]

Internet Protocol address -- an IP address is a numerical label that is unique for your computer system on the internet and usually tells us who your Internet service provider is, what government agency you are from, and often lets us know your general geographical location. [38] Citizens and e-residents of this country are provided with a cryptographically secure digital identity card which is powered by Blockchain technology, giving them access to several public services. [39]


Excitement around the technology is building as agencies begin piloting and testing blockchain applications for payments, supply chain, identity management, secure data sharing, and more. [7] The technology of blockchain has many applications to secure transactions and activities outside of the financial sector, including in healthcare and other industries. [9]

In several cases involving Bitcoin and Ethereum, two major uses of blockchain, hackers pinpointed a vulnerability of the digital wallet technology to steal large sums of virtual funds. [9] The blockchain is one of the most significant, fundamental advances in digital platforms since the internet and also probably the most overhyped technology in current times, according to Kevin Werbach, Wharton professor of legal studies and business ethics, at the inaugural annual Penn Wharton Budget Model Spring Policy Forum, held recently in Washington. [3] Sweden is using the technology to test a land registry where property buyers and sellers, their banks and land registry authorities can all view and approve transactions on a blockchain in real time. [6] Being a relatively new technology in practice, but more importantly, a new tradecraft, the blockchain ecosystem is quickly evolving to narrow in on use cases and collaborate to test and explore its potential. [7]

The term blockchain was first used to describe the public record that exists for every transaction on the Bitcoin network, copies of which are kept by thousands of entities around the world. [10] The blockchain is a ledger record of transactions in a database distributed to people in a network. [3]

In his post-mortem, Mr. Mirkovic pointed to Iowa, where land records were accurate, title insurance was cheap, and citizens could look up information in a statewide online database that did not use blockchain. [10] "The question is, where is the real challenge? Is the problem of information security in elections the core record, or all the things around the edges?" The blockchain might be secure, but if there?s malware on a voter?s mobile phone that is used to cast a ballot, maybe it could change the vote. [3] Blockchains tend to be "incredibly secure systems because they decentralize out this process of security and create an alignment of incentives to secure the network," he added. [3] For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. [3] The primary use of blockchains today is as a distributed ledger for cryptocurrencies, most notably bitcoin. [3] The best-known example of the use of blockchain is for securing and recording of Bitcoin transactions. [9] Blockchain was invented by Satoshi Nakamoto in 2008 to serve as the public transaction ledgerof the cryptocurrency bitcoin. [3] Blockchain is a data structure popularized by the digital currency Bitcoin. [10] The invention of the blockchain for bitcoin made it the first digital currency to solve the double-spending problem without the need of a trusted authority or central server. [3]

The blockchain is the technology that supports the operation of cryptocurrencies. [5] The appeal of blockchain may center on the decentralized nature of the technology along with interoperability and reduced cost outcomes. [9]

According to a DHS official "blockchain technologies have the potential to revolutionize the way we manage online identity and access the internet; this R&D project will help bring this potential closer to reality." [7] The other potential value of the blockchain is that once a network is set up, it can be a platform for " smart contracts ? to run on top of it, Werbach said. [3] Recognizing Innovation Potential : States that envision a broader role for blockchain in their economies. [4] The state hired a vendor to create a system that lets overseas military securely vote using a mobile device and it?s all recorded on a blockchain. [3] Illinois, which ran six blockchain pilots, promised to create a " welcoming regulatory environment " to draw companies to the state. [10] In addition to Delaware and Illinois, Arizona has introduced or passed regulations ranging from making signatures, transactions, and contracts on a blockchain legally valid to allowing residents to pay their income tax in cryptocurrencies. [4] To be sure, one doesn?t need the blockchain to keep a record of transactions. [3] Once a transaction is committed to the blockchain, the record cannot be easily reverted by a single stakeholder, regardless of their social, economic, and political power. [4] Blockchain provides an immutable, transparent record of the truth, and it is changing how organizations carry out trusted transactions. [6] Blockchain can also enable seamless transactions with people outside the jurisdiction and give residents greater control over their data, advocates say. [10] Rather than accept such attacks as the cost of doing business in the information era, they could be mitigated or avoided through the responsible deployment of blockchain data structures. [7] IBM believes that one day, just as the internet became the business standard of communication, blockchain will be how all of us share and verify data. [6] By storing data across its peer-to-peer network, the blockchain eliminates a number of risks that come with data being held centrally. [3] The FDA requirements noted that "Implementation of the blockchain connection between FDA RAPID and USCIITG/Discovery network is being created in order to exchange influenza patient data at clinical sites administered by USCIITG." [9]

"This potentially uses the immutability of the blockchain as well as native digital accessibility," he said. [3] Blockchain security methods include the use of public-key cryptography. [3] Top of their agenda is the use of blockchain in sending and receiving encrypted intelligence information without the threat of interception or hacking. [5] The decentralized blockchain may use ad-hoc message passing and distributed networking. [3] For another example, an organization can use blockchain to analyze whether a mobile device is valid for use inside its corporate systems using various internal identifiers for the device. [9] While most people use the terms Bitcoin and blockchain interchangeably, they are very different things. [3] The U.S. Department of Defense Transportation Command also showed a recent interest in blockchain centered on an innovative use of distributed ledger capabilities. [9] Werbach pointed to Walmart?s use of blockchain to track its produce. [3] West Virginia just did a pilot test to use the blockchain for voting in its recent primary. [3] Blockchains use various time-stamping schemes, such as proof-of-work, to serialize changes. [3]

Another way to think of blockchain is as a trusted ledger of transactions. [9] Blockchain is a distributed "chain" of validated transactions secured through cryptographic hashing. [9] Though blockchain records are not unalterable, blockchains may be considered secure by designand exemplify a distributed computing system with high Byzantine fault tolerance. [3] In theory, blockchain can save money and reduce errors by replacing workers, while adding accountability by generating a public record of all activity. [10] A blockchain, originally block chain, is a growing list of records, called blocks, which are linked using cryptography. [3] The U.S. state of Delaware is using blockchain to help companies incorporate. [6] In a blockchain using the proof-of-work system, the chain with the most cumulative proof-of-work is always considered the valid one by the network. [3]

While the list of potential public sector blockchain applications continues to grow, here are three compelling benefits within the public sector today. [7] The NoSQL database platform provides the right database back end for blockchain to achieve scalability, performance and low latency for distributed applications. [9] Recent media attention on blockchain has mostly focused on the technology's applications in the finance industry or on the numerous coins being generated on its platform. [2]

There are potential security vulnerabilities when it comes to blockchain. [9] IBM has mustered full support for blockchain, including potential client interest in permissioned blockchain. [9] Reasons for this distrust are numerous and complex, but there?s potential for blockchain to contribute to a reversal of this trend. [7]

Second-generation blockchains such as Ethereum have also introduced a feature called "smart contracts"--software code stored on the blockchain that will execute a transaction automatically when certain conditions are met. [4] "The transactional data can be readily available on the blockchain itself, including to regulators." [3] By design, a blockchain is resistant to modification of the data. [3] Data stored on the blockchain is generally considered incorruptible. [3] Growth of a decentralized blockchain is accompanied by the risk of node centralization because the computer resources required to process larger amounts of data become more expensive. [3] Vermont, for example, recognizes data stored on a blockchain as admissible in the court system. [4]

When the original blockchain arrived in 2009, it was a ledger for Bitcoins. [10] With the rise of Bitcoin, one of the underlying supportive technologies that makes it possible has gained more awareness -- blockchain. [9] The terms Bitcoin and blockchain are often used interchangeably, but there are differences among the groups comprising this innovation, Wharton professor Kevin Werbach says. [3] They were interested in using blockchain to increase collaboration and innovation. [6] Werbach said two broad approaches comprise the blockchain innovation. [3] Blockchain is now the source of a great deal of fraud, of illegal activity and regulatory arbitrage, but it is also sparking innovation across the world in all sorts of areas." [3] Blockchains which are readable by the public are widely used by cryptocurrencies. [3] A public key (a long, random-looking string of numbers) is an address on the blockchain. [3]

In the United States, some of the momentum around blockchain comes from a desire to attract blockchain businesses, investment and high-tech jobs. [10] The National Electoral Commission denounced the reports as " fake news," and Agora acknowledged that it had merely been allowed to record some votes in its presidential election on a blockchain as a demonstration. [10] The Food & Drug Administration issued a " sources sought " notice late in 2017 for an application of blockchain. [9] SAP also announced a blockchain co-innovation program "which aims to provide an opportunity for participants to explore the applications of blockchain technologies." [9]

A private key is like a password that gives its owner access to their digital assets or the means to otherwise interact with the various capabilities that blockchains now support. [3] CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. [6]

Both the Pentagon and DARPA are reportedly focusing their attention on the theoretical immutability of the blockchain and how it can be applied to designing robust security protocols. [5] Questions that bring up the most pushback on adoption of blockchain revolve around security, some open source aversion, possible performance issues and reporting/analytics. [9]

The block time is the average time it takes for the network to generate one extra block in the blockchain. [3] The pilot made it clear that some foundational work is needed before Illinois can move to a blockchain land registry, Mr. Mirkovic said. [10] Cook County in Illinois put its title registration on a blockchain. [3] Illinois voters recently decided to merge the Cook County Recorder of Deeds and the Cook County Clerk?s office, which would delay any decision on blockchains until 2020. [10]

After using the blockchain, "Walmart got it down to 2.2 seconds," he said. [3] With many possibilities for ledger-based solutions, the first step is to responsibly identify viable blockchain challenges, then test and develop the corresponding solution. [7] For many blockchain enthusiasts, one of the most promising aspects is the "trustless" nature of a blockchain - no need for a trusted third party such as a bank, credit card company, or real estate title company in the transfer of assets from one party to another. [4] When Bitcoin leaves the blockchain vault and goes to an exchange and the exchange gets hacked. [3] The unprecedented growth in the price of Bitcoin, as well as the success of Ethereum, Ripple, Bitcoin Cash and other cryptocurrencies, may make some think that blockchains are basically just about cryptocurrencies. [5] It was this realization that made Vitalik Buterin design a new blockchain protocol (Ethereum) that offered more robust functionality than the Bitcoin Blockchain. [5] Cointelegraph covers fintech, blockchain and Bitcoin bringing you the latest news and analyses on the future of money. [1]

Developing a blocking from a blockchain development company is a smart move. [3] Some blockchains create a new block as frequently as every five seconds. [3] The MongoDB platform is supporting various commercial blockchain implementations now. [9] The SAP Leonardo innovation system provides early-stage blockchain capabilities. [9] SAP is providing access to blockchain augmented SAP products through its innovation program known as Leonardo. [9]

"These can be put on a blockchain to make them more secure and more accessible." [3] Isle of Man?s plan to secure internet-connected devices with blockchain halted after the start-up behind it shut down because of a founder spat. [10]

He also cited figures from Gartner projecting that the blockchain is expected to add $176 billion in business value by 2025 and $3.1 trillion by 2030. [3] China put a ban on initial coin offerings (ICOs) and has been questioning the use of blockchain with respect to cryptocurrencies, but is more positive about its other, non-currency, use cases. [6] The basic idea behind blockchain is that one can trust the system as a whole without necessarily trusting any of the participants, Werbach said. [3]

Now, a new technology is emerging that supports open government initiatives focused on unleashing innovation in the public sector. [6] Our commercial team links leading cyber strategy and technology expertise from decades of government experience with the needs of the private sector for advanced cyber defense. [7] Most governments and other organizations clearly need a permissioned system that requires consent for use of the information on the network. [6]

Many governments are either studying numerous potential blockchain-based applications for affairs of state or already in the process of testing such applications if only on a small-scale. [5] Dubai aims to become " the first blockchain-powered government," weaving the technology into many vital systems. [10] When citizens and governments share access to records, potential for distrust decreases. [7] Around the same time, government officials from over ten states (e.g. California, New Mexico) issued public warnings about investing in cryptocurrencies. [4] The project is as a result of the collaboration between Evernym and the Illinois state government. [5]

Governments are custodians of their citizens' most precious information - their Social Security numbers, their tax information, their votes, their identities. [6] Our homeland security teams work to address some of the most difficult issues facing government leaders. [7]

Just 2 years earlier, more than 20 million records of past and present government employees were stolen from databases maintained by the Office of Personnel Management. [7] As the default record keeper for society, governments are large targets for hackers. [7]

These are just a few examples of some of the blockchain-based applications being pursued or implemented by various governments from around the world. [5] Government resources are constrained and so blockchain-based solutions that wring costs out of the system are helpful. [3] Right from 2008, the Estonian government has actively been trying to develop sustainable blockchain-based solutions for many government activities. [5] The government also created ID-kaarts, a blockchain-based national identity management system. [5] The governments of Sweden, Estonia, and Georgia are experimenting with blockchain-based land registries, enabling multiple parties to securely hold copies of the registry. [7] The government of Gibraltar stole a march of many other countries in the race to be the global hub for blockchain-based fintech companies. [5]

It?s also one of the biggest buzzwords in Silicon Valley, finance and government, where proponents say it can save money and increase trust in public institutions. [10] This is revealed in a survey conducted by the IBM Institute for Business Value of more than 200 regulators in 16 countries focused on building trust in government and reducing bureaucracy. [6] This has even greater implications for countries with low trust in government, said Emin Gun Sirer, a Cornell professor who specializes in distributed systems. [10] We help clients in industry and government agencies improve operations, mitigate risk, and enhance compliance in an increasingly complex landscape. [7] Government agencies must fulfill their mission while responsibly managing scarce resources. [7]

The city government hopes to become the first-ever blockchain-powered government by the year 2020. [5] For the government, smart contracts can have implications on how it can regulate more efficiently. [3] Werbach said at a time when trust in the government is "at an all-time low," systems that don?t rely on trust have "tremendous potential." [3]

In 2017, the state of Illinois announced the Illinois Blockchain Initiative, which calls for a consortium of state and county agencies to "collaborate to explore innovations presented by Blockchain and distributed ledger technology". [4] Then Governor Jack Markell noted that "Smart contracts offer a powerful and innovative way to streamline cumbersome back-office procedures, lower transactional costs for consumers and businesses, and manage and reduce risk," and suggested that the state will "lead the way in promoting blockchain technology and its growing role in digital commerce." [4] Tarek Zarg El Aioun, Country General Manager at IBM Saudi Arabia, told ITP that IBM "believes" that blockchain technology "has the ability to change the world in the same way the Internet while redefining how business and transactions happen." [1]

Most of the questions on which blockchain technology to use center on a debate of whether they are public or private blockchains. [6]

"We want you to buy a house while you?re lying on a couch somewhere," said Zeina El Kaissi, head of emerging technology at Smart Dubai, which is leading the city?s blockchain initiative. [10] The state of Delaware announced in 2016 the Delaware Blockchain Initiative, a comprehensive program intended to spur adoption and development of blockchain and smart contract technologies in both private and public sectors in the state. [4] On a state level, Illinois recently launched a trial of their proposed birth registry and identification system that will be powered by blockchain technology. [5] Several bills favorable to the blockchain technology are also processing through the Wyoming state legislature. [4]

Definitely, blockchain has too many advantages but the best thing of Blockchain technology is that it offers an advanced level of transparency to the network after all the blockchain ledger is being shared with all the nodes. [3] Most recently, in the 2018 Joint Economic Report submitted by the Joint Economic Committee of the U.S. Congress provides several recommendations to policymakers, regulators, and entrepreneurs regarding applications of the blockchain technology. [4] The main aim of the plan is to leverage the power of blockchain technology in facilitating license renewals, payment of bills, and visa applications. [5]

Top projects included asset management, digital identity services and reducing the costs of regulatory compliance and citizen services like e-voting. [6] As the nation's military services take on new missions, adopt innovative technologies, tackle acquisition and budgeting challenges, and address warfighters' medical needs, our experts are there to help. [7] About 12 blockchain-based services are being built, Ms. El Kaissi said. [10] Booz Allen invests in industry leaders, incubators and accelerators, VCs, startups, academia, and nonprofits to create and deliver capabilities, products, and services. [7] The services we offer in UAE, Qatar, Saudi Arabia, Egypt, Turkey, Kuwait, Morocco, Jordan, and other regional countries build on our consulting legacy. [7]

Citizens increasingly expect the same ease, efficiency and innovation from public services that they currently enjoy in the private sector. [6]

Conflicting data formats, longstanding interoperability challenges and a need to balance the benefits of openness against a need to protect privacy have made it difficult for governments to unleash the full potential of their data - until now. [6] Blockchain's potential to support trust and transparency, data protection and privacy has been well established in 2017. [6] In the right context, blockchain solutions could reduce redundancy, streamline processes, decrease audit burden, increase security, and ensure data integrity. [7] Bitcoin "miners? expend plenty of electricity and computing power to secure and validate blocks of transactions in a blockchain network. [3] There is only one ledger in any given blockchain network and everyone works off that record. [3] Even though there is no central intermediary like Equifax, a bank or the Federal Reserve all the players in the blockchain network can trust the information. [3]

According to a spokesperson for the Illinois Blockchain Initiative (IBI), the agency is providing regulatory support for the projects to ensure that the use cases translate into commercial endeavors. [2] Marie Wieck is general manager at IBM Blockchain, where she focuses on driving ecosystem growth around the Hyperledger Project and delivering enterprise blockchain solutions. [6] To further illustrate how blockchain solutions could increase efficiency, consider the federal government?s ongoing challenge with reconciling intragovernmental transfers. [7]

On a national level, the major interest of the U.S. Federal Government is in the area of national security. [5] In facing challenges of modernization, our Middle East and North Africa clients have complex requirements that benefit from our proven experience in guiding major programs and projects for governments and private-sector organizations. [7]

Although blockchain is often discussed in the context of Bitcoin, it is in fact a stand-alone technology that secures distributed transactional data. [22] Blockchain is particularly interesting because of the way the technology secures identity and data. [22]

Blockchain is a type of distributed ledger technology (although many people now use the terms interchangeably). [20] This year, Nevada took steps to encourage use of the technology by banning blockchain taxes. [20] Largely because of the resurgence of interest in Bitcoin, blockchain has become a headline buzzword in the last year, prompting organizations to jump on the bandwagon without fully understanding either the technology or the security risks. [22] What makes the technology appealing compared to traditional security approaches is that blockchain doesn't need centralized control. [22] Officials are coming around to the idea that "while technology is driving the transformation around what blockchain is and can be, there are a ton of other things that need to work together for a solution to drive the value it can drive." [14] The Department of the Treasury has engaged with a contractor in a pilot project to develop a prototype blockchain to manage physical assets (such as computers and cell phones), noting the technology has "great potential for streamlining burdensome reconciliation operations that are involved in many financial transactions." [14] For blockchain to fulfill its potential, it must be "open," Cuomo emphasized, and based on non-proprietary technology that will encourage widespread industry adoption by ensuring compatibility and interoperability. [11] A blockchain is a distributed ledger technology, preserving a continuous chain of records or "blocks," each of which is timestamped and linked to previous blocks. [22] Before agencies put all their eggs in the blockchain basket, however, it's important to make sure the technology is as secure as it's made out to be. [22] Only the Bitcoin stack and Ethereum platform are actually proven, Gartner said, warning CIOs that most blockchain platforms have 24 months or more experimenting to do, especially where open source technology also is at play. [22] As we approach 2018, we are even closer to digital disruption from technology like blockchain. [8] The decentralized ledger technology at the core of blockchain tech is becoming very popular for a reason. [19] They're both here-and-now developments using an underlying technology called blockchain. [20] The open-source blockchain Ethereum Foundation is exploring ways to fix native performance issues associated with the technology. [11] Among the reasons cited were that blockchain was just not quite ready for prime time, even though some companies have been marketing it as a mature technology. [22] A combination of blockchain and biometric technology (i.e. facial recognition or retina scans) could be part of the answer. [21] "I think that the key with blockchain is not to reimagine how you can redesign your entire technology infrastructure," said Arrieta. [14]

Among the former Soviet bloc countries, Estonia has long used blockchain-like technologies to secure health records, while Georgia's National Agency of Public Registry recently moved its land registry onto the blockchain. [20] Blockchains can be encrypted or unencrypted, depending on the level of security required, but records are auditable because the data in the database cannot be changed and is tied to each authorized participant in the chain. [11] Michael White, former president of Maersk Line in North America and CEO of the new venture with IBM, said blockchain significantly increases efficiency and security because, while the network is open to participants, its used of double encryption and immutability make it a record users can trust. [11] IBM is also working with SecureKey and the Sovrin Foundation to build a global ecosystem of blockchain identity networks backed by industry standards that ensure only the information that needs to be shared is. [11] The blockchain cryptographically binds products to an identity at manufacturing and creates a ledger containing information about device permissions, approved usage and deployment and manufacturing or firmware revisions. [22] Utilizing distributed ledger technologies like a blockchain can create a cost-effective, decentralized, transparent and incorruptible digital identity ledger that can solve most of the problems faced nations today. [13] By assigning digital identities, also known as certificates, to both the people and the devices that use permissioned blockchains, agencies can ensure that the identities of all members are known. [22] Zsigri noted that Estonia has been using blockchain for its e-Estonia program, which enables online tax payments, digital ID, i-voting, and electronic health records platforms. [11] Record-keeping using a blockchain -- a single "golden record" -- could eliminate inaccuracy. [18] Delaware is testing blockchain internally to organize the Delaware Public Archives, which contain everything from historic photos to mountains of public records. [18]

The Center for Disease Control spent much of 2017 working on proofs of concept to use blockchain to better manage and automate the interplay between its fragmented and labor-intensive data systems. [14] In a Dec. 22 post on Hacker Noon, Kai Stinchcombe, CEO and co-founder of True Link Financial, argued that proponents are unable to point to viable examples of blockchain at scale in the private or public sectors because no one has yet been able to translate the technology's potential into an actual use that is measurably better or more efficient than the status quo. [14] He acknowledged that there remains an education gap among federal decision-makers around blockchain, but believes the enduring confusion is less about the technical details and more about its potential to upend established business and bureaucratic processes. [14]

Henry said roadblocks, such as how agencies work out payment and budget responsibility as well as the lack of ownership inherent in the blockchain, create regulatory and policy implications that will need to be fleshed out before moving on to wider applications. [14] "If agencies have requirements where the information in the chain needs to be stored in a private cloud, then we have the ability to design the blockchain in a hybrid model depending on who is accessing the data." [12] At the 2016 conference of the National Association of State Chief Information Officers, nobody had blockchain on their priority list. [20] The Congressional Blockchain Caucus, launched in 2016, is working to collect information on blockchain projects that could help individuals securely establish their identity, enable online payments - such as tax payments - and revamp supply chains. [11] The IBM Blockchain Platform runs through the IBM Cloud and uses Hyperledger fabric as the foundational framework for all blockchain use cases and projects. [12] IBM is among a group of 180 industry vendors participating in the Hyperledger Project, an open-source blockchain platform backed by the Linux Foundation. [11]

While blockchain's potential for industry change is still emerging, there remains a great deal of industry hype around it; as a result, many enterprises are rolling out projects without first identifying a real need for blockchain or accounting for costs. [11] IBM's Cuomo also cautioned Congress that the need for security continues to be highlighted by blockchain "breaches in the news every month. [11] Blockchain is touted as an inherently secure solution, but there are a few underlying weak spots that could benefit from an extra layer of security. [22] Blockchain can be used to secure much more than financial transactions. [22] Both of these protocols help manage authentication and exchange messages, which secures the integrity of the blockchain transactions. [22] Transactions are decentralized and verified by the blockchain database itself in the distributed ledger. [22]

A new blockchain based, distributed electronic ledger could save the shipping industry billions of dollars a year by replacing a current EDI and paper-based system for tracking cargo and attaining approval from customs and port authorities. [11] A blockchain in the simplest terms is a shared database, distributed across a network of multiple sites or institutions. [18] AWS Blockchain Templates allow customers to quickly deploy Ethereum or Hyperledger Fabric frameworks so they can focus on the application itself, rather than the network it runs on. [12]

In this series, we share thought leadership about emerging technologies such as blockchain, chatbots, and big data. [8] By default, all data that is on chain is in the clear, even when it's a permissioned and non-public blockchain like bitcoin. [11] In addition to opening up a new avenue of investigations for the FBI's cyber division, bitcoin gave us something else: It introduced blockchain as a way of conducting business. [20]

The conversation around blockchain transitioned from why to use blockchain to how to use blockchain. [8] The department envisions a system where individual parts and products are digitally shared, and believes that blockchain ledgers will help protect this new solution from cyber attacks. [14] At the center of a blockchain is this notion of a shared immutable ledger. [11] Although large financial institutions like Goldman-Sachs have invested in blockchain businesses, the underlying organizational methodology of a decentralized ledger is a direct threat to the status quo. [19]

Blockchains could create a universal record of who owns what and allow unified access to it. [18] "Blockchain enthusiasts often act as if the hard part is getting money from A to B or keeping a record of what happened. [14] These focus on putting academic credentials, birth records, health provider registries and an energy credit marketplace on a blockchain. [20] Records in the blockchain can be any asset, including physical property. [18]

A blockchain log/ledger can attest to the integrity of this data. [22] Arrieta said this shift is in large part due to the immutability of data stored on the blockchain. [14]

Follow My Vote and Polys are a few examples of blockchain projects working on such technologies. [21] Back in February 2017, a blog from the analyst firm Gartner predicted that 90 percent of "enterprise blockchain projects launched in 2015 will fail" within two years. [22] Before joining the project last year, the Cook County Recorder of Deeds' office had already begun its own blockchain pilot program. [20] This year, a NASCIO survey found that a majority of CIOs had begun investigating blockchain through informal discussions. [20]

The decentralized organizing principles around blockchain have the potential to alter how we organize our societies and institutions. [19]

Governments were early adopters of computer technology, and the potential now exists to use public information in transformative ways. [18] Alex Benay, Canada?s Chief Information Officer, sat down with @gov to discuss his plans to disrupt the way the government buys and uses technology. [18]

In testimony before a congressional committee, IBM's Jerry Cuomo warned against over-regulation because of cryptocurrency volatility, said the government should embrace the distributed ledger technology and encouraged its use in the enterprise. [11] Arrieta is one of a handful of government officials who spent much of 2017 educating the public -- and federal agencies -- on how the technology works and how it could be applied. [14] While Illinois' initiative stands out, it's not the only state that recognizes the role government can play in fostering the technology. [20] Sweden is similarly testing a blockchain-based land registry, and Dubai plans to run its entire government on distributed ledger technology by 2020. [20] Government management and administrative systems at the national and regional levels remain relatively untouched by technology and stand ill-equipped to serve the current and future needs of their target populations. [13] The ways in which governments regulate, apply, and integrate them into their nations will contribute to a culture around the technology that will play a large role in determining its effects. [19] There's a common perception that technology and governments are competing against one another. [21] In May, the group released a report calling it the "next big transformational technology" in government. [20] Pioneers in government are embracing emerging technology to deliver their missions more efficiently and effectively. [18]

That reliability and accuracy not only allows agencies to confidently share and use the same data, but also facilitates a level of automation that can drastically shrink the paperwork and bureaucratic red tape involved in government projects that go through multiple and complex layers of interagency review. [14] Government agencies must be able to trace the products they use to authentic manufacturing locations, to make sure they aren't using counterfeit or grey market products. [22] Individual agencies tend to build their own silos of data and information-management protocols, which preclude other parts of the government from using them. [13] This has created data silos across government leaving valuable data left unused and wasting away in proprietary applications, personal network drives, spreadsheets, databases and emails." [13] "Up until now, data in government has been held in isolated line of business applications and used for internal reports. [13] They are doing this by redefining the relationship between the government and its citizen in terms of data sharing, transparency, and trust - all of which are part of the State?s digital transformation. [8] The anonymous inventors of the digital cryptocurrency bitcoin created the methodology as a way for the community at large to maintain an agreed-upon, immutable record of who owns how much, without having to entrust record-keeping to a single authority such as a government central bank. [18]

Have you heard of Bitcoin? It is an electronic currency based on Blockchain. [8] A plethora of Real Estate Investment organizations are emerging as blockchain applications. [19] "You can think of blockchain as the second generation of the Internet - a transformation from an Internet of information to an Internet of value." [8] Some corporations have expressed interest in using blockchain for that, in part to avoid record-keeping errors. [18] Cuomo said IBM is currently working with the U.S. Food and Drug Administration, the Centers for Disease Control and Prevention and the Office of Personnel Management to explore how blockchain can reduce complexity. [11] Seven of Europe's largest banks are buying into a blockchain that IBM is putting together for financial institutions. [20]

Land title insurers, for instance, would have some objections to being made obsolete in Illinois by blockchain. [20] In terms of attracting talent, the initiative recently launched the Blockchain Center in Chicago. [20] In this example, identity management with blockchain makes it easier for e-residents to sign official documents and set up companies remotely. [21] With blockchain, identity theft and fraud can be significantly reduced while the effectiveness of government-mandated Know-Your-Customer and Anti-Money Laundering rules is enhanced. [11]

Some blockchain advocates say this creates a major roadblock here that is stalling the technology's development. [20] Regulators looking to reign in cryptocurrency, should ensure "that there will not be unintended consequences that stymie the innovation and development surrounding blockchain," Cuomo said. [11] "Carefully evaluate policies established regarding cryptocurrencies to ensure that there will not be unintended consequences that stymie the innovation and development surrounding blockchain. [11]

A key to understanding blockchain is that each distributed ledger isn't maintained or stored by any one entity, but is accessed and cultivated by a number of users. [20] Arizona passed a law legally recognizing signatures recorded on a blockchain and smart contracts. [20]

The Office of Personnel Management put out a Request for Information in September 2017 for a new Federal Employee Digital Record System to house all federal employee data that includes a preference for solutions that leverage blockchain technology. [14] In the simplest terms, Blockchain technology uses a distributed or decentralized digital ledger across a network of computers. [8]

Other governments around the world could use this example to transform their identity management systems and reduce barriers to voter participation, government-provided benefits, and more. [21] The government plans to use Estcoin as a part of Estonia?s e-residency, a program that simplifies the process for foreigners looking to establish residency in the country. [21]

"Today as citizens we expect to deal with government the way we deal with every other part of our life," said Lorna Stark, national advisory industry leader for state and local government at KPMG. [18] Governments could also create blockchain-based taxation systems that automatically check for Missing Trader Intra-Community (MTIC) fraud, commonly known as "carousel fraud?, across EU member states. [21]

Perhaps most importantly, with increased levels of data integrity, the relationship between citizens and their governments regarding transparency and trust could be redefined. [13] Similar back-office jobs in government, such as data entry work, could be rendered obsolete. [20]

Old world record keeping systems used by governments need replacing. [13] The inability of governments to administer, manage and store official identity records in many developing nations has led to approximately 2.4 billion people today lacking an official identity. [13]

Now, the private sector and a number of governments have been experimenting with DLT in relation to smart contracts, which help two parties directly exchange money, property, shares, or anything of value in a transparent way. [20] With hyper-efficiency brought about by smart contract automation in concert with greater accuracy and security, governments gain the agility and robustness needed to overcome an array of serious threats. [13]

One model for where things may be headed is the little nation of Estonia, which became newly independent in 1991 and built its new government to leverage digital technologies. [18] With enhanced capabilities, governments raise their nation?s attractiveness and amplify their competitiveness in the new digital economy where human capital and industry are vital to success. [13]

The Illinois initiative is kicking off four other government pilot programs. [20] In this post, we explore blockchain?s potential impact on government. [8] Governments must ask how to best integrate existing methods of business and societal organizing with this innovation. [19] Scammers have been taking advantage of the fact that information about properties that had been seized by the city for nonpayment of back taxes are scattered among five government offices and therefore vulnerable to misuse. [20] Imagine that world where you only have to give the government your information one time." [18]

When we interact with government agencies -- in person, by mail, on the phone -- we brace ourselves and anticipate aggravation. [18] A technologically accelerating and globalized world means government agencies must tackle increasingly complex issues from economic volatility and pandemics to mass migration, money laundering, and terrorism. [13]

They are eating away at the ability of governments to react to crisis?, fight against money laundering and terrorist financing and deliver cost-effective programs to their citizens. [13] Pioneers in governments are embracing emerging tools from the private sector to transform how they achieve their goals. [18] Pioneers in governments are beginning to rewrite the way things get done. [18] Many governments throughout the world have criticized this project. [21] Oftentimes, identity management requires in-person verification, which can lead to long waiting times at government offices, polling places, and many other locations. [21] Data breaches and identity theft is an additional area of concern for governments as the centralized record keeping servers which have been utilized for decades struggle to defend against sophisticated cyber attacks. [13] The technology?s decentralized, open & cryptographic nature makes it easier for governments to share data between government institutions and use sovereign data securely. [13]

Elsewhere, there's been much discussion in the financial services industry about the processing and verification jobs the technology would kill. [20] The State of Illinois is embarking on five projects in hopes of creating more efficient, integrated, and trusted State services. [8] The templates allow users to take advantage of the Amazon Elastic Container Service within a virtual private cloud or to use Docker's containers in the Amazon Elastic Compute Cloud. [12] The rapid verification of licenses, permits, transactions, and identities can be achieved with far greater accuracy, enabling the complete digitization of services and unprecedented efficiencies. [13] "The ability to prove your identity is critical to ensure access to educational opportunities, financial services, health and social welfare benefits, economic development, and the right to vote." [13] "There's a way to organize this to give taxpayers a higher level of service," he says. [20]

Despite significant leaps in technology, the fundamental transformation of civil services has not yet happened. [13] Siloed record keeping systems that lack basic levels of interoperability and transparency have left civil services with a lack of actionable data available for economic, behavioral and infrastructure purposes. [13] Real-time analysis of pseudonymous data in transport, security, city planning, health, crime and future proofing give civil service the ability to utilize resources in areas that will have a profound impact on society. [13]

In a recent Webinar, Bennett described blockchain technology as a write-once, append-many store of records; a record could be just the hash or a transaction that lives elsewhere, or it could be all of the transaction data or an image file. [11] They?re embracing the same tools that have enabled transformations in private sector: more sophisticated web portals, mobile apps to crowdsource public concerns, cloud computing, data analytics and the potentially revolutionary record-keeping method of blockchain technology. [18]

Delaware, where two-thirds of Fortune 500 companies are incorporated, passed a law allowing companies to use blockchain technology to store and transfer securities and communicate with shareholders. [20] There's little doubt that blockchain technology will be gaining ground quickly in federal IT. Before it's ready, however, we all must make sure that the security of the technology is up to the hype that surrounds it. [22] Beyond that, in the wake of questions about the security of voting systems during the 2016 presidential election, many believe blockchain technology will be the answer to securing future elections, allowing them to be audited in real time. [20]

As its security foundation, the blockchain network uses public-key cryptography. [22]

Blockchain technology applications have only just started to enter the mainstream. [19] Smart contracts, one of the more attractive aspects of blockchain technology, are a form of business automation where rules can be created to automatically execute actions, such as transferring funds once certain conditions between two business parties are met. [11] Like all technologies, blockchain technology is morally neutral. [19] KPMG and Forbes explore how blockchain technology can build smart cities in this chapter of "The Great Rewrite." [18]

The State of Delaware embraced blockchain in 2016 when then-Governor Jack Markell launched the Delaware Blockchain Initiative. [18] "The more we learned about it, the more we thought there?s something here for the state," said Andrea Tinianow, director of the Delaware Blockchain Initiative. [18]

All participants in a blockchain network can access identical copies of the ledger, and updates happen almost instantly. [18] An enterprise blockchain network must implement algorithms like crash and byzantine fault tolerance, which allow a network to continue to operate even in the presence of "bad actors or carelessness" - something that is delivered today in Hyperledger Fabric, one of the frameworks from the Hyperledger project, Cuomo explained. [11]

The Estonia ID card, a digital identity card pegged to a blockchain-like infrastructure, gives citizens access to a broad range of public services, acting as a driver?s license, passport, credit card, transportation pass and more. [18] A nation?s successful transition into the digital economy and its future competitiveness will depend on a streamlined civil service with renewed and supercharged capabilities. [13] As governing becomes more challenging and public servants are placed under greater public scrutiny, the transformation of civil services must be a top priority for all nations. [13] We know the challenges are complicated, however, there is now a promising solution that can tackle these complexities and transform civil services forever. [13]

The gap between hype and adoption in the federal government remains large, and not everyone is sold on the technology's transformational potential. [14]

The State of Delaware announced an initiative to embrace the emerging blockchain and smart contract technology industry, which can help the public and enterprises lower their transactional costs, speed up and automate manual processes, and reduce fraud. [17] The initiative published an RFI in late 2016 to gather public knowledge and insight about the technology and appointed Jennifer O? Rourke, deputy director at the Office of Entrepreneurship Innovation & Technology, as leader of the initiative and the state?s first blockchain liaison. [23]

The State of Illinois has released its first report about blockchain, just over a year after it first announced its intention to investigate the distributed ledger technology. [23] Based on distributed ledger technology, blockchain is a framework for sharing, replicating and updating data on a network that comprises thousands of devices, he says. [16] When you encounter a data sharing challenge with consent and authorization requirements, be sure to reach out to a blockchain expert and explore how distributed ledger technology can resolve those challenges and accelerate time to value. [28] In addition to producing the report, the task force also compiled a database of more than 200 "blockchain and distributed ledger technology pilots, projects and strategies announced by public sector entities." [23] In early 2018, a subcommittee on blockchain and distribution ledger technology in the Illinois House of Representatives was also announced. [23] Office of Information Technology Category: GSA hosted a Blockchain Training Day (5.5 CLP) was delivered by subject matter experts to meet the objectives outlined in the Blockchain training curriculum. [17] Therefore, blockchains can simplify information management by streamlining access to and use of "critical public-sector data while maintaining the security of this information." [31] According to the upcoming ACT-IAC Blockchain Primer resource, "this includes the exchange of electronic medical records (EMRs) and other information such as genomic data, clinical trial information, and data collected from IOT devices and wearables. [17] Most are geared toward better public health surveillance, which could include using a blockchain to more efficiently manage data during a crisis or to better track opioid abuse. [17]

ArabianChain Technology CEO Mohammed Alsehli says the blockchain strategy fits with the emirate's goal of becoming a global leader in the smart economy, fueling entrepreneurship and competitiveness. [16] It was unveiled the plan during a keynote address at Consensus 2016, a technology conference in New York focused on blockchain innovation. [17] A distributed ledger technology like blockchain addresses these compliance and consent challenges. [28] While hype around blockchain is high, much of the technology remains immature and untested and best practices are hard to come by. [29] Argentine technology entrepreneur Federico Ast even signals that Argentina is becoming the "Silicon Valley" for blockchain, "a global reference on blockchain. [31] Samburaj is the Editor for CCN, among the earliest and foremost publications covering blockchain, cryptocurrency and financial technology news. [15]

"Blockchain's decentralized nature and the immutability of its records make it a powerful tool in the fight against the worst crimes, such as illicit trades, human trafficking and money laundering," says Mariana Dahan, founder of the World Identity Network, which launched a pilot that uses blockchain to help prevent child trafficking in Moldova. [25] In a statement released by Cabase, the chamber explains that those organizations and agencies willing to use the blockchain will improve their procedures--on account of transparency and crowdsourcing--and will increase productivity and security. [31] Some countries are moving forward aggressively to use blockchain as a fundamental tool in public administration. [25]

"Blockchain offers Illinois the opportunity to advance the state?s overall digital transformation and continue the establishment of Illinois as the nation?s first "Smart State"," Lonbom said. [23] Officials also emphasized the Illinois Blockchain Initiative's connection to the industry, noting that the initiative had become members or participated with blockchain companies and organizations including the Chamber of Digital Commerce, R3, Hyperledger, Enterprise Ethereum Alliance and the Chicago Blockchain Center. [23]

The USAID Primer on Blockchain, published April 2018, equips USAID staff, implementing partners, and others to better understand if and how distributed ledger technology-based applications and/or digital currency (e.g. a cryptocurrency like Bitcoin) could help address development challenges--whether in health, agriculture, governance, finance, trade, humanitarian assistance, or energy. [17]

It is exploring the utility of open-access platforms and emerging technologies such as blockchain to enable secure exchange of health data at scale. [17] A key reason for adopting blockchain, argues Ahmed Adly, senior cloud computing director at Oracle, is the technology's ability to keep data secure and optimize business decisions. [16] A blockchain combines private-key cryptography, common protocols, and peer-to-peer networks that are extremely resistant to data modification. [31] Blockchain can provide an audit trail by tracking changes to the EMR as well as help track and control access to the EMR. Blockchain can provide healthcare providers with the longitudinal data about a patient without having the actual protected health information (PHI) reside on the actual ledger." [17]

For all its uncertainties and risks, blockchain could add a layer of security to records and transactions that are particularly exposed to corruption. [25] Blockchain provides a transparent and decentralised system to record a sequence of transactions, or "blocks." [25] Blockchain creates an immutable trail of transactions, allowing for the full traceability of every transaction. [25] One reason why this type of partnership is potentially well placed to succeed, Adly suggests, can be found in the way "blockchain can streamline transactions, supply-chain management, and manufacturing. [16]

Gartner predicts that, through 2022, only 10% of organizations will achieve any radical transformation with the use of blockchain technologies. [29] Regulatory uncertainty is an important consideration when deciding whether to use blockchain. [25]

For New America, a think tank, "a public blockchain provides regulators and law enforcement with a roadmap to identify illicit activity or malfeasance by leaving enough digital clues to identify bad actors." [25] "ArabianChain is the first company in the region to develop a public and decentralized platform for smart contracts on Blockchain," he says. [16] "Blockchain as a platform could safeguard against one of IoT's biggest threats -- security," he says. [16] New America's Michael Graglia points out that the main reason why Georgia is making progress is because blockchain is added onto an existing land registry system that is already relatively efficient, bringing additional security and reliability. [25]

In the United States, Delaware launched an initiative in 2016 that will enable corporations to utilize blockchain for the registration and transfer of ownership of stock. [25] Initiatives such as by New York University's Governance Lab are starting to look closer at whether and how blockchain technologies can be used for social change. [25]

"By securing data, blockchain can reduce costs associated with fraud, compliance and financial reporting. [16] There will always be the need for a gatekeeper to ensure the veracity of the information entered into individual blockchains. [25] There are two main types of blockchains, those that are completely open (or permission-less) and those that are private (or permissioned) with a central entity acting as a gatekeeper to certify that the information that is uploaded onto a blockchain is accurate. [25]

The report offers eight proposals for blockchain legislation, all of which are focused on property law and public recording. [23] Honduras, however, sought, but failed to create a decentralized database of land titles using blockchain. [25] In Jordan, the UN World Food Program recently conducted a pilot project using blockchain to manage cash-based transfers to Syrian refugees so as to increase transparency, eliminate leakages, and reduce transfer costs. [25] In a world scarred by recurrent corruption scandals, the potential of blockchain is enormous and the promise it holds to eliminate fraud is simply too great to ignore. [25] Some of these successful organizations are Zeppelin, an internationally prominent code auditor ; Decentraland, a decentralized virtual-reality space; RSK, a potential competitor of ethereum; and Kleros, an arbitration firm recently recognized as one of the top five blockchain startups in France. [31]

Blockchain is particularly suited to fight corruption in the registry of assets and the tracking of transactions such as procurement processes. [25] According to Michael Mainelli, "blockchain will help prove our identities in the digital world." [25] SAMA will conduct a large-scale blockchain pilot that plugs a number of regional participating banks on a ledger to power end-to-end tracking of instant settlements, fundamentally enabling real-time retail money transfers, in the country. [15] GSA is positioned to advise and assist the development of Blockchain proof-of-concepts and to assist agencies to prepare the procurement plans for proof-of-concepts. [17] Blockchain provides a point-to-point consent solution to establish trust between a consenting party and a receiving party. [28] "Without a clear view of the motivation for blockchain adoption, a promising technical solution may well end up failing due to a lack of users." [29]

Blockchain itself does not preclude the need to strengthen underlying systems. [25] Blockchain also needs to grow in terms of scalability, privacy and confidentiality. [16]

Blockchain could be a more cost-effective alternative to more disruptive and intrusive technologies. [29] We are excited to further explore the value-add capabilities that blockchain technologies could provide." [23]

Blockchain has emerged first in the financial industry, building on cryptocurrencies such as Bitcoin. [25] Dubai has created an ambitious Dubai Blockchain Strategy, led by the Smart Dubai Office and the Dubai Future Foundation. [25] Blockchain is also being tested to create tamper-proof company registries, making it a potentially powerful tool to ascertain a company's beneficial owners. [25] The blockchain, first announced on June 29 by the Argentine Internet Chamber of Commerce ( Cabase ), is called the Federal Blockchain of Argentina ( BFA ). [31] People call blockchain the 'Fourth Industrial Revolution' and I believe it will change our daily lives in the coming years and we will have the front row seats to witness it. [24] " smart contracts," which are still at the experimental stage, would allow the automatic exchange of real assets to be programmed into an inalterable blockchain, that would execute itself autonomously based on programmed conditions. [25] Blockchain also enables smart contracts to adhere to regulatory statutes, governing when and how consent should be applied. [28]

The requirements and implications of blockchain in the public sector, however, are yet to be fully understood. [25] The governing system of any blockchain in the public sector will require rules, regulations, and oversight. [25] Key financial hubs and massive shipping and trading markets, including Hong Kong and Singapore, provide large users of the blockchain in the public sector. [30] Oracle's Ahmed Adly says it's imperative that private and public sectors work together to make blockchain the norm. [16]

Multiple use cases for blockchain were identified in the report. [23] This finding suggests that the value of introducing blockchain in a weak land registry system is questionable and therefore resources would be better spent fixing the legacy institutions. [25]

The report identifies use cases and potential legislative proposals for deploying the technology to improve existing government processes. [23] Government visionaries and leaders are recognizing the potential of this transformative technology and beginning that journey. [28] Technology is changing how governments are expected to meet the rising expectations of citizens in terms of quality, speed, and integrity. [25] The report continues: "Though the technology still needs refinement, government has an opportunity to help shape and adopt innovative solutions." [23]

A group of 13 top statewide CDOs wrote in support for the Federal Data Strategy initiatives, but is asking for closer collaboration with state and local government stakeholders. [23] Government leaders are beginning to recognize blockchain?s potential to address the challenges of sharing data. [28] Governments around the world have started pilot testing a variety of blockchain-based applications to strengthen public integrity. [25] Governments around the world are going digital, embracing digital innovations to modernize their bureaucracies and recast their relations with citizens. [25] Much of this enhanced productivity will stem from moving to paperless government, with electronic document processing removing around 100 million paper transactions a year. [16] Earlier this year, Dubai announced its intention to turn itself into the first blockchain-powered government in the world by 2020. [16]

The FAStlane program ensures government customer agencies have quicker access to emerging technologies and innovative suppliers. [17] New technologies are disrupting our lives and transforming government. [25]

The ability to derive process efficiency from automated acquisition involves the creative application of smart contracts in government. [29] McKinsey & Co., for example, explains that a key function of governments is storage of trusted information for individuals, organizations, and other entities operating within their territories. [31] Sponsored Content: A new briefing report advises government IT leaders on how to gain an upper hand against cyberthreats by leaning on timely, accurate and relevant information. [23]

Therefore, the hope for the BFA is that it will be a means for citizens to generate accountable government and to facilitate the implementation of digital-economy alternatives. [31] Plans are taking shape to transform the city and emirate of Dubai into the first blockchain-based government. [16] "We want to make Dubai the first blockchain-powered government in the world by 2020," says Aisha Bin Bishr, director general of Smart Dubai. [25] Governments have shown interest in facilitating and encouraging exchange of non-monetary assets -- including carbon credits and energy consumption or production -- as a way of achieving societal benefits, enabling and inspiring desired behaviors, or reducing friction. [29] This site is also protected by an SSL (Secure Sockets Layer) certificate that?s been signed by the U.S. government. [17] "While many of the use cases are still nascent, they are the closest to demonstrating some level of maturity and offer government CIOs a tangible opportunity to start small and scale up." [29]

The Bureau of the Fiscal Service?s Office of Financial Innovation and Transformation (FIT) has launched two pilot projects exploring innovative technologies - Robotic Process Automation and Distributed Ledger Technology - that can boost efficiency, strengthen accountability, and cut paperwork for the Federal government. [17] The State of Illinois recently announced a consortium of Illinois state and county agencies, known as the Illinois Blockchain Initiative, who will collaborate to explore innovations presented by Blockchain and distributed ledger technology. [17]

Schedule 70: The General Services Administration (GSA) is using distributed ledger technology to automate the FASt Lane process for IT Schedule 70 contracts. [17] ArabianChain Technology's Alsehli urges both sectors to "prioritize the services that can be enhanced by the application of this technology". [16] If it proves to be successful, the technology will then be further integrated across other citizen services. [24] Initially, IBM will design the first blockchain-based solution within the municipality before Elm integrates the tech through the government?s citizen services in phase two, the report added. [15] Traditionally, those working within these service networks have not shared data due to agency silos, where there is a tendency or culture to not share information and expertise. [28] In practice, each agency has multiple ecosystems (similar to business networks) to deliver services and many of these networks are very complex. [28] They include Ripio, a bitcoin wallet for service payments and trading Argentine pesos; Wayniloans, a platform for peer-to-peer loans in bitcoin; and Signatura, a blockchain-based signature and certifications provider. [31] The Republic of Georgia's initiative with Bitfury is just one of several efforts aimed at creating blockchain-based land-registry services. [29] In their paper, the OIG outlines three other areas of potential interest to the Postal Service: identity services, device management, and supply chain management. [17] The U.S. General Services Administration (GSA) has announced acquisition proofs of concept using smart contracts to streamline simplified contracting activities. [29] You agree to receive updates, alerts and promotions from CBS and that CBS may share information about you with our marketing partners so that they may contact you by email or otherwise about their products or services. [16] There also needs to exist sufficient connectivity, a tech-aware population, and existing tech support services. [25] This is a way to accumulate and spend credits for social or humanitarian services, with the promise of more securely and reliably administering assistance and benefit programs while counteracting fraud, theft or loss. [29]

This summer the Naval Innovation Advisory Council is conducting a series of experiments (including a proof of concept) using blockchain technology to both securely share data between Additive Manufacturing sites, as well as help secure the digital thread of design and production. [17] Following Deputy Secretary of State John Sullivan?s opening remarks underscoring the importance of innovation in diplomacy and development, participants engaged in dialogue with private sector partners currently using blockchain technology in the field with a focus on current use cases. [17]

Its members later announced various proof-of-concept projects, covering everything from health records and shipping, to business registrations and efforts to use blockchain technology to try and reduce the spread of conflict diamonds. [16] He then also went on to add that, "IBM believes that blockchain technology has the ability to change the world in the same way the Internet while redefining how business and transactions happen." [24]

The United States Agency for International Development (USAID) has published a report on the potential of blockchain technology. [17] The National Institute of Standards and Technology has conducted numerous reports on the potential of Blockchain technology, including Introduction to Blockchain,, Blockchain and Distributed Ledger Technologies: Opportunities, Challenges and Future Work,, and host a Github repo for early Blockchain prototypes. [17]

Although most blockchain initiatives are still in their early phases, Gartner's annual Hype Cycle for Emerging Technologies report, predicts that in the "long-term. this technology will lead to a reformation of whole industries". [16] The Delaware Blockchain Initiative is a comprehensive program to provide an enabling regulatory and legal environment for the development of blockchain technology and to welcome blockchain companies to locate in the state. [17] On October 10, the State Department welcomed over 250 participants at the [email protected] forum --a one-day, discovery workshop for the State Department, interagency partners, and private sector stakeholders to explore how blockchain technology could strengthen our capacity and improve our efficiency in meeting the United States? diplomacy and development goals. [17] Adoption of blockchain technology by multiple sectors is essential if it's to be a success. [16]

The apparent incompatibility of blockchain technology with General Data Protection Regulation (GDPR), marks the entering the age of post-industrial proactive regulation that some identify with the age of Web 3.0. [28] The recent RFI for the EDR places a preference on solutions that include Blockchain technology and other emerging technologies. [17] The report will outline the findings and analysis on how well each blockchain technology solution provider performs within the MarketsandMarkets criteria. [30] The wide presence of key industry players of blockchain technology solutions in this region is the main driving factor responsible for the growth of the market. [30] These players have majorly adopted partnerships and new product launches as the key growth strategies to offer feature-rich blockchain technology solutions to their customers and enter new regional markets. [30]

Interestingly, each of these three systems encrypt identity information but not (yet) through blockchain technology. [25] As discussed in previous articles, a blockchain network built on The Linux Foundation?s Hyperledger Fabric, hosted on a high assurance platform, is well suited for secure information exchanges across network security domains -- for example, exchanging unclassified information between an unclassified network and a classified network. [28]

Fascinated by the potential of blockchain technology I've started to dig deeper and that's how I ended up meeting the Toshi Times team. [24] In the long-term, the Postal Service?s experimentation with blockchain technology in financial applications could naturally expand into other applications enabled by the technology. [17] Much of Oracle's focus, Ahmed Adly says, involves using blockchain technology to help underpin the continued growth of the Internet of Things. [16] The company is also in talks to join Hyperledger, an industry-wide open-source initiative to advance blockchain technology, governed by The Linux Foundation. [16] Potentially, blockchain technology can make a critical contribution to fighting corruption and anchoring integrity in the public sector; but we must be mindful of its requirements and limitations. [25]

While many of the early blockchain solutions are still being tested, its disruptive potential cannot be overstated. [25]

The question then becomes whether the potential benefits outweigh the costs, which will be particularly high for governments that have not yet digitalised their records. [25] Federal government websites always use domain. [17]

In February 2018, the Saudi Arabian Monetary Authority (SAMA) - the central bank for the Kingdom of Saudi Arabia - became the first central bank in the world to join FinTech giant Ripple?s enterprise blockchain network RippleNet. [15]

It noted that DLT makes it unclear who is the data processor when used for citizen data, however, there are blockchain applications that credit the technology with 'privacy by design' as it allows the data subject to retain control of who has access to the information. [32] BlockChain is a digital technology for recording and verifying transactions. [41] A blockchain facilitates secure online transactions; it is a decentralized and distributed digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the cooperation of the network. [35] Blockchain is a public ledger, an ordered and time stamped record of transactions. [41] Decentralized consensus: This breaks the old method where one central database used to rule transaction validity, it transfers authority and trust to a decentralized virtual network and enables its nodes (entity) to continuously and sequentially record transactions on a public "block," creating a unique "chain": the blockchain. [41] Working with a company called Symbiont, the state planned to move its public records for corporate franchising to blockchain. [26] At the other end of the spectrum, Brookings says eight states are "unaware" of blockchain, meaning they have considered no executive or legislative measures on blockchain, although the technology is actively used within their jurisdictions. [26] Currently, the state of Delaware is piloting a blockchain-based corporate registry system in addition to exploring share issuance, a use affirmed by the July 2017 passage of state legislation approving the trade and maintenance of corporate stock on a blockchain. [35] In the results of a survey published in April, Brookings designates seven of the 50 U.S. states as "actively engaged," or examining the governmental use of blockchain. [26] New York, Illinois and Texas are among states that are piloting and testing blockchain applications. [35] Concerns raised by Illinois in its Blockchain Task Force report may well resonate with other states: Open and decentralized governance is not automatically equitable, and decentralized market structures remain untested. [26] Speaking to Illinois House members at a hearing in late February, George Chikovani, an executive at the Innovation and Development Foundation, said new blockchain systems could focus on other kinds of transactions, such as exchanging titles for houses, cars and more. [26] Blockchain advocates argue that moving the state?s incorporation records to blockchain would give Delaware a competitive edge in the business of incorporation, speeding transactions and increasing transparency. [26] In Vermont, for example, the court system recognizes blockchain data as legal records, according to [26] In 2016, the DAO triggered a crisis that has sparked doubts about the security of blockchain data. [35] "Private blockchain will have a finite number of nodes, and they will be housed within your department, so you will not need the same security as a public node." [35]

It also suggests implementing a measure that would embed implant applicable skills and knowledge around "fundamental disruptive technologies" in the public sector, as well as to work with other economies and collaborate on how to best use blockchain. [32] Last week, several business consultants and several leaders from the California Department of Transportation (Caltrans) discussed blockchain and its uses. [35]

This is the advantage of the data on blockchain, the data can be decentralized within the entities on the network and cant be tampered with as soon as its been accessed by any unknown entity the other nodes (entities) would be notified and the modified data wont be updated in the data base and will be rejected. [41] "Currently there are no agreed on standards in blockchain," said David Law, principal solutions architect at Dimension Data. [35] The report recommended more studies whether blockchain is capable of supporting or undermining compliance with the latest General Data Protection Regulation. [32]

Look for further developments as states tiptoe into blockchain over the next several years. [26] Delaware Deputy Secretary of State Kristopher Knight tells The News Journal that the state must carefully assess how blockchain will impact this valuable source of revenue. [26] The use case is built on SAP Cloud Platform and demonstrates how a Blockchain integration can reduce the manual workload for document authentication and trustful information sharing. [45] "There are several issues for blockchain that must be worked out," said Karl Kopper, chief information security officer at Caltrans. "There are some security challenges that must be looked at." [35]

Distributed Autonomous Organization is "kind of" incorporated on the blockchain, because its governance is very dependent on the end-users who are part-owners, part-users, and part-nodes on that decentralized network. [41] The bitcoin blockchain is actually managed by distributed nodes. [41]

Where exactly is this chain located ? Due to the open nature of crypto currencies, and the importance of the public having access to other blocks, the blockchain isn?t located on just one guy?s large computer. [41] On July 11, 2018, the ITP news portal reported that the municipality of Riyadh had partnered with IBM to implement a series of blockchain technologies in various administrative and economic areas. [36] "(Blockchain) is more widely adopted in developing countries," said Bertrand Sirodot, an advisory system engineer at Dell EMC. "Many developing countries have an incentive to develop these technologies because they do not have a stable, financial infrastructure in place." [35]

Analytical companies Big Innovation Centre, DAG Global and Deep Knowledge published a separate report last month, suggesting the United Kingdom is ready to become a global hub for blockchain and cryptocurrencies over the next years. [32] After much controversy over the theft, the Ethereum community decided to hard-fork the Ethereum blockchain to restore virtually all funds to the original contract. [35] Smart contracts are small programs or scripts that run on a blockchain and govern legal or contractual terms on their own. [41] Lastly, the report advised the creation of a group of leaders from the public sector to determine how blockchain could be used to solve common concerns. [32]

As a leader of information and communication technology (ICT) solution provider for the nation since its inauguration in 2015, the Digital Transformation Agency supports various departments connected to the government "undergo digital transformation". [27] Governments that have mature financial infrastructure and trust institutions, such as the United States, are lagging on this technology, he added. [35] In addition to IBM, the Riyadh government will work with Elm, a local company that will be responsible for integrating the technology developed by IBM into the governmental system as a subsequent phase of IBM's work. [36] Though the technology still needs refinement, government has an opportunity to help shape and adopt innovative solutions." [26] Kevin Cucuel is a Sr. Business Development Strategist for State and Local Government at CDW-G. With a passion for aligning CDW?s strengths to our customer?s needs, Kevin focuses on the insertion of IT solutions into segment sub verticals and leads emerging market discussions. [26] Our annual list of top blogs covering relevant trends, news, analysis and general information on state and local government IT is here. [26]

The distributed digital ledger system could have a big impact on existing government programs, but the lack of standards remains a problem. [35] The government of Saudi Arabia remains steadfast in its determination to rely on Distributed Ledger Technologies to strengthen the progress of its economy. [36] They need for approvals from 46 different government agencies, for instance, delayed the setting up of each base station/cell site. [41] The Australian government also made a budget allocation of 9 million AUD to fund the cyber-security operations centre associated with the parliamentary computing network. [27] Taking this into consideration, government of India has come with a "Startup India" initiative, it is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage start-ups with jobs creation. [41]

Elizabeth Zima is a former staff writer for Government Technology. [35]

In Colorado, the legislature is weighing a bill that would require state entities to annually assess the benefits and costs of implementing blockchain technology and consider secure encryption methods to improve data security, as Governing reports. [26] With the noble intentions of Startup India and Digital India, BlockChain technology can be an effective way to achieve the goals of the initiatives and ease the business in India. [41] The BlockChain technology has been proven and provides all the required security features to implement the solution quickly. [41]

"We are proud of the partnership that will significantly enhance the methods and procedures of the services provided by the Municipality The expertise of Elm will contribute to enriching customer experience, to build the best solutions for both public and private sectors and to contribute to the transformation towards an e-Government model, in line with the Saudi Vision 2030". [36] An example provided by a telecom entrepreneur; it took them 11 months after the award of their first licenses to roll out networks and cellular services. [41] Contracts Service Provider, Web apps, or end-user with self-service tools. [41]

Last year, Illinois began assessing six pilot cases for blockchain use, including a health provider database and tracking continuing education credentials, as part of the Illinois Blockchain Initiative. [26] The combination of cryptography and blockchain technology together ensures there is never a duplicate recording of the same transaction. [41] States like Delaware are justifiably cautious with rolling out their blockchain initiatives. [26]

Vendors may be able to build use cases that are very attractive" for government agencies. [35]

As a digital ledger that records transactions, blockchain can encode information from a particular source, at a specific time. [37] One of its chief successes has been within the medical sphere, already making use of blockchain to digitise and secure the medical records of over a million citizens. [37] Dan Larimer, the creator of blockchain-powered social media platform Steemit and decentralized application platform EOS explained his views on how the blockchain can affect the creation and management of currency stating : "You use a blockchain to create and manage a currency of a country in a transparent way. [34]

This is a collaboration which explores innovations presented by Blockchain and distributed ledger technology. [33] The immature technology issue though is rapidly changing as Blockchain technologies continuously adapt and mature to market conditions. [33] Blockchain is best known as the technology underlying cryptocurrencies like Bitcoin or Ether. [43] Sapient Director Aleks Zelenovic shares eight tips for an organization to keep in mind when exploring blockchain -- from understanding that blockchain is about the business, not just technology, to the correct development approach to take. [44]

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4. (31) The Next Big Technology to Transform Government

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9. (26) 3 Potential Benefits of Blockchain for Government

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13. (23) Its Time for Governments to Embrace Blockchain - CoinDesk

14. (21) Governments Explore Using Blockchains to Improve Service - The New York Times

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20. (19) Blockchain in Government: Making Operations More Efficient

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23. (17) Illinois issues promising first report on blockchain in government

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27. (14) Blockchain and Government: The Balancing Act | HuffPost

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30. (11) Bringing blockchain as a service to government -- GCN

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32. (10) Blockchain Is Helping Change Government Services | Investopedia

33. (10) Argentina Launches Blockchain for Public Services | blockchain

34. (10) Blockchain in the government sector

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38. (9) Blockchain Services For Governments -

39. (8) Blockchain could save federal agencies billions

40. (7) Could centralized government become obsolete with blockchain? Brave New Coin

41. (7) Blockchain Technology: A Primer for Government - DLT Blog

42. (6) Australian Government allocates 500,000 USD to Explore Blockchain Applications - cryptona

43. (5) Saudi Arabia Partners with IBM to Use Blockchain for Better Government Services - Ethereum World News

44. (3) Here's Why the Federal Government Ought to Embrace the Blockchain - Nextgov

45. (1) Digitizing Government with Blockchain and SAP

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