Blockchain in many cases is associated with cryptocurrencies, mostly with Bitcoin. While cryptocurrencies run on blockchain, blockchain is more than that.
Blockchain is the technology capable of supporting different applications. These applications can be related to a variety of industries like manufacturing, finance, supply chain, healthcare, you name it.
Why blockchain technology you may ask. The answer is very simple. Because it's a decentralized system, it's highly secure and has automation capabilities.
Reality In Many Countries
The other day I was looking into what I have to do in order to get some utility service contracts transcribed to my name. The process should be simple, basically change the contract from one owner to the other but reality says otherwise.
In order to do that, I need to prove ownership of the property, so I have to go to the Cadastral Office or Bureau of Land Management (BLM) if you are from the US in person and hand in a land ownership request and pay a certain fee, then wait four days in order for the document to be released. And I have to go in person again to pick it up, not to mention the lines I have to stay in, in case there are people waiting in line.
This document simply certifies the state of the property and what comes with it, mortgage, debts etc. All they have to do is print it out, sign it and hand it over but for some unknown reason I have to wait 3 days. There's an option to get it faster but you have to pay 5 times the normal fee. There's a third option to get it online in case you need it for information but there's high chance these platform are not working.
Bureaucracy is king in many countries and doesn't seem to go away any time soon for a very good reason. Not long ago I saw in the local news something the local administration introduced recently to simplify some processes. There are two institutions in the same building but up until now you had to go in person to ask for documents if you needed both services. Now that is changed, the two institutions are connected digitally, so they can do the job themselves, request information on your behalf, sparing you from the trouble. All this in 2021, in the digital era. Why couldn't have this be implemented sooner?
Apart from that, there's another problem you face day by day and that's the lack of data security. There was another case not long ago, when we needed a document released by a state institution to certify certain revenue which happened in the past. After putting in the request and waiting for 2 weeks, we got a reply saying there's no document to support the claim. This happens a lot, they are lazy and instead of looking for the documents in the archives, it's easier to say there's no document. Who is going to hold them accountable? No one.
How Could Blockchain Technology Change That
Very soon everything will be digitalized, that's inevitable, we all know that. All documents also have to be scanned and stored digitally for future generations. This should have already happened by the way. This is all nice and good but still doesn't lead far, if all the data is stored in certain servers, controlled by one or just a few people, who could excess and modify any data any time, without consequences.
Distributed ledger technology is different. Once data is registered on the blockchain, it can't be deleted. This would stop abuse that can happen in many institutions, can also prevent documents to be deleted accidentally.
Transparency is another thing that must be taken into consideration. Public auctions that are required for government contracts could not be rigged anymore. Tracing public funds could be possible, which could slow down or stop corruption.
Blockchain technology is working with keys, which makes possible accessing accounts using different keys. Institutions could work together, allowing parties to access certain databases based on keys.
Imagine all those public funds that are directed to certain influential individuals abusively worldwide making them richer, reaching the proper destination and helping those in need.
Imagine people going to one single office instead of going to a couple of offices or more, in order to resolve a single issue. Sparing people of standing in line for days could increase productivity. Time is money and wasting time standing in line foolishly multiple times is waste of time and money. I need two days at least to resolve my problem and I'm not even sure that would be enough.
These systems will still be centralized though, controlled by one institution or a couple, but at least there would be some benefits, like reducing economic costs, time, bureaucracy, corruption, auditability and accountability, just to name a few but let's not forget the trust citizens may gain in these institutions if they see some changes.
How Likely Is That To Happen
The right answer to this question is it depends on what country we are talking about. In developed countries where people are happy to pay taxes as they know their contribution is used for a good cause that benefits them (healthcare, infrastructure, education etc.) it is very likely for blockchain technology to be implemented in administration.
In less developed countries there will be decades till we can see some changes. Those who have the power to decide and change things are the ones to blame for the state the country is in, so I don't think they would want to kill the golden goose.
Institutions controlled by government usually use infrastructures and apps that are rarely efficient but are developed and set up by companies associated with government officials, so quality is not the first to think about, never is. There's always the middlemen, milking funds.
Factors That Could Speed Up The Process
One factor that could speed up the adoption process of blockchain technology in some countries is the implementation of digital currencies. Quite a few countries are working on introducing a digital currency and even going cashless. These systems would use distributed ledger technology (DLT). As I said in my previous posts, there's still a few years till digital currency can take over but till then I hope governments can see the benefits of DLT and use it in different fields, like healthcare and administration for example. Private companies are using it already, why can't governments do the same?