Blockchain in Government and
the Public Sector

The Need for Blockchain in Government and the Public Sector

Blockchain technology has an enormous potential to modernize the government and public sector. With increasing public pressure for improved performance, transparency, and accountability, as well as reduced costs, many governments are turning to blockchain as a solution to some of their most vexing challenges.

In fact, governments around the world are coming to realize that blockchain could lay the foundation for a modern, 21st-century operating system that enables flexible, secure, and high-performing government functions. Blockchain-based government is a promising solution that enables the following:

• Secure storage of citizen and business data
• Reduction of labor-intensive processes and excessive costs
• Reduced opportunities for corruption and abuse
• Increased trust in government and online civil systems

A blockchain-based digital government can protect data, streamline processes, and reduce fraud, waste, and abuse while simultaneously increasing trust. On a blockchain-based governmental model, individuals, businesses, and governments share resources over a distributed ledger secured using cryptography, eliminating a single point of failure and inherently protecting sensitive citizen and government data.

The Future of Government

GovChain: The Enterprise Ethereum Solution

ConsenSys is building a blockchain operating system for government and the public sector that utilizes smart contracts and process automation from Pantheon and Kaleido. The private government chain will be accessible to all authorized government actors and will link to other state-level chains. This setup will enable citizens, residents, and businesses to participate and manage their own data in line with current information protection and privacy mandates. The resulting distributed ledger system will help manage various government transactions, streamline government-citizen interaction, and secure information against hack and fraud.

The GovChain Stack

On top of GovChain, ConsenSys is building out a core set of functional elements that allow for an initial set of common government functions.

• Identity Management: Enable citizens to register their identities on the blockchain, send and request credentials, authorize transactions, and securely manage data
• Smart Regulation: Design of a regulatory engine for the creation and execution of legal agreements with tamper-proof blockchain-based smart contracts
• Process Management: Use of a distributed ledger platform to model and facilitate government processes and track public sector assets
• Budgeting and Financial Management: Use of distributed ledger technology to track and reconcile government transactions immediately and transparently.

The interoperability of the platform will allow for additional applications as more public sector functions transition to blockchain based-solutions.

Blockchain Use Cases for Government and the Public Sector

Smart Cities

A smart city uses data and information technology to integrate and manage physical, social, and business infrastructures to streamline services to its inhabitants while ensuring efficient and optimal utilization of available resources. In combination with technologies, IoT, cloud computing, and blockchain technology, governments can deliver innovative services and solutions to the citizens and local municipalities. Read about ConsenSys’ role in realizing smart city initiatives in Dubai and Zug.

Validation of Education and Professional Qualifications

Keeping academic and professional attainment data on an encrypted identity wallet empowers individuals to control access to their data. It also enables schools, universities, and employers to validate “attestations” for courses and work achieved.

Tracking Vaccinations

Recording vaccination data on the blockchain enables schools, insurance, and medical providers to validate vaccinations quickly. This process automatically triggers corresponding micropayments and delegates access to benefits based on medical status.

Tracking Loans and Student Grants

Smart contracts can be programmed to manage loan and grant applications, dispense loans, and track compliance with the terms and conditions. This automated performance tracking enables real-time data, and increased transparency, compliance, and security.

Payroll Tax Collection

Smart contracts can streamline the tax collection process by matching tax data with income transactions, and calculating tax and social security deductions. This blockchain-based system automatically transfers net salary and tax payments to their respective recipients. This makes tax collection faster as well as more transparent, efficient and secure.

Enterprise Ethereum is the foundation for many industry blockchain use cases and case studies. Find out more about blockchain applications in banking, energy, supply chain, real estate, healthcare, and sports.