In this article, we have prepared a list of ideas on how, in our opinion, blockchain technology can change society and the life of citizens of the state in the future.
At present, the government keeps records in many areas, for example, there is a database of property owners and land plots, there is a database of people who have graduated from schools and universities, there is a database of those who received a license, there is a database of those who own a car and etc.
New paradigm in data storage
The current version of the database is centralized databases, where all data is stored on a single server, and periodically stored on external media for safekeeping.
Problems of the current architecture:
Problem number 1. The data can be faked by hacking the server and that way they are recorded in the archive already distorted.
Problem number 2. In case of heavy loads, the server may stop working and the entire data exchange process will stop.
Problem number 3. The data on the media that is being backed up can be lost in the event of physical damage of the media (for example, a fire incident indoors).
Imagine what chaos will begin if the main archive in which the data on the owners of real estate and land is burned?
Even if the data is likely to be stored on multiple servers, then with a targeted planned attack, it is theoretically possible.
To solve these problems, the old paradigm is replaced by the new one by keeping registers and storing them using blockchain technology.
What are the key advantages of maintaining the registry based on blockchain technology:
- Clients interact directly with the servers (databases) they need, bypassing intermediaries.
- The data that is written into the blockchain cannot be faked, because as soon as it enters the database it is updated in real time in tens / thousands of other copies of this database.
- There is no central link in the form of a main server that can be hacked.
How to set up interactions between government structures?
In the current realities, it can be very difficult, and sometimes it is impossible to achieve effective interaction between departments that do not interact with each other in a hierarchy.
For example, there is a common database between commercial banks and the national bank, because commercial banks are hierarchically subordinate to the national bank.
But if the database of the national bank wants to refer to the database, say, of the customs service, then they may simply not have a connection.
In the new paradigm with the use of blockchain technologies, the databases of departments are blockchain networks that can easily interact with the same networks from other departments using a single protocol. And it remains only to correctly distribute access rights.
Citizens of the state will also be able to interact directly with the state blockchain network, notably, in the process of voting in elections.
5 examples where blockchain technology is used by governments
Land registry on blockchain
Maintaining the land registry on blockchain allows, firstly, to protect the data from loss and hacking, and secondly, to make every transaction transparent, because the transaction has a unique identifier (hash function of the transaction), in which any transaction can be found in the database. And when the system becomes transparent, there is no room for disputes and corruption.
An example of countries that have transferred or are testing the transfer of a land registry database to blockchain:
- India, Uttar Pradesh – population of over 220 million people
- Ukraine – population of 42 million people
- Zambia – population of 17,8 million people
- Georgia – population of 3,8 million people
The judicial system on blockchain
The introduction of blockchain technology into the judicial system will make it more transparent and immune to changing past data, and the smart contract technology will avoid the routine work of duplicating documents and sending them between departments.
Currently the implementation of blockchain technology and smart contracts is being tested in Dubai.
Bond issuance on blockchain
The Thai Bond Market Association (TBMA) plans to record data on bond issuance in the database that is running on blockchain technology, besides the fact that it will increase data security, it will also shorten the issue from 15 days to 3-4 days.
And the faster the bonds appear on the account of the investor, the faster he can start trading with them – and this is an additional plus to the market liquidity.
Register of bank creditors on blockchain
Blockchain technology will allow banks to establish a common database of clients to whom they have issued loans and guarantees, that have already participated in the pledge. This registry will be protected from data spoofing and loss due to distributed database storage.
Also, each transaction, each borrower and each pledged item will have its own unique identifier that allows them to be quickly found in the general database.
One of the largest Chinese banks, The Agricultural Bank of China (ABC), has tested issuing a loan on the security of land, and recorded this information in the database that was running on blockchain technology.
Register of issued diplomas on blockchain
With the help of blockchain technology, you can forget about the problem of fake diplomas, certificates, etc. Since, if the data on each diploma or certificate issued will be recorded in a distributed database, then it cannot be forged.
After all, each diploma will have its own unique digital number, and the operation of issuing a diploma will be transparent and searchable.
The University of Business and Technology based in Tbilisi (Georgia), has introduced a system for storing data of issued diplomas on the blockchain platform “Trusted Diploma”.
Blockchain technology is capable of changing the world, it can make it more transparent and honest, get rid of corruption, and protect important data from hacking and loss. Read more about new examples of blockchain implementation in our monthly magazine.