What if there was a platform that does not allow for changes to be made to one’s information, once entered, verified and uploaded? This would mean greater online security as personal financial, educational, career information etc cannot be tampered with nor erased by nefarious persons.
Blockchain, a term often associated with the elusive cryptocurrency world, may have the answer to national problems where large sums of money spent by the government for citizen’s welfare are lost due to leakages in the system, thereby causing a select few to benefit from the public purse. The encryption-based technology can change that by bringing in transparency and creating a money trail. This is more than mere possibilities, several countries have already started testing it out.
One can argue that there is no benefit to investing in a new, slowly adopted technology to fight corruption. However, unlike traditional transaction mechanism where one central authority maintains a record of transactions, data on the blockchain is stored in encrypted blocks that are managed by a decentralised global computer network. Essentially, this structure renders the data unalterable.
Corruption takes place when power is concentrated in the hands of a few and when there is a lack of accountability. Once things are transparent and there is no scope for altering transaction records, it will become practically impossible for someone to manipulate the system without getting caught.
Blockchain not only elevates transparency between the government, research organisations, and the public but also increases security. The permanent record of the flow of funds created through blockchain can easily be audited from anywhere by anyone. Additionally, with blockchain technology, citizens will know that what they are seeing is accurate and not fake messaging which is often spread through digital channels.
Some countries have already begun using blockchain to promote transparency towards their citizens. Australia has started using blockchain to clear and settle trades on its stock exchange, becoming the first nation to have a blockchain-based stock exchange. Meanwhile, Estonia is exploring ways to use blockchain to support its e-residency programme and is even considering the possibility of creating its own cryptocurrency.
Despite the newness of blockchain’s adoption, it is certain that in today’s social climate of anarchism and corruption awareness, blockchain’s features are a welcome change to database distribution.
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