Enterprise Ethereum

Blockchain in

Government and

the Public Sector

Governments and public sector organizations leverage blockchain technology to move away from siloed and inefficient centralized systems. Current systems are inherently insecure and costly, while blockchain networks offer more secure, agile, and cost-effective structures.

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What are the Benefits of Blockchain in Government and the Public Sector?

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

A blockchain-based government has the potential to solve legacy pain points and enable the following advantages:

  • Secure storage of government, citizen, and business data
  • Reduction of labor-intensive processes 
  • Reduction of excessive costs associated with managing accountability
  • Reduced potential for corruption and abuse
  • Increased trust in government and online civil systems

 

Enterprise Blockchain Solutions for Government

An Enterprise Ethereum Solution for Government

Using our full stack of enterprise tools, ConsenSys is building the blockchain operating system for public sector organizations. Our government enterprise solution utilizes OpenLaw smart contracts, Treum asset management solution, the uPort identity management solution, and process automation from Pantheon and Kaleido

Our solution provides a private, enterprise chain developed specifically for government. It features the ability to assign different levels of access to authorized users, ensuring independent validation of transactions and operations that establish full security and accountability while complying with relevant privacy standards. 

Our solution enables citizens, residents, and businesses to participate and manage their data, creating a secure system that will streamline government-citizen interaction, while securing information against hacking and fraud.

The ConsenSys Government Stack

On top of our secure blockchain architecture, ConsenSys is building out a core set of functional elements that will allow for an initial set of typical government functions.

  • Identity Management: Sotara will enable government workers and citizens to register their identities on the blockchain, manage assets and security, send and request credentials, authorize transactions, and securely manage data
  • Smart Regulation: Sotara will allow agencies to design and create legal documents and regulations with tamper-proof blockchain-based smart contracts
  • Asset Management and Process Tracking: Sotara will model and facilitate government processes and increase the ability to track digital and physical assets
  • Budgeting and Financial Management: Sotara will track and reconcile government transactions immediately and transparently dramatically reducing costs and increasing efficiency.

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

Spotlight Initiative

The Brooklyn Project

An industry-wide initiative led by Consensys to promote token-powered economic growth and consumer protection. The Brooklyn Project is dedicated to blockchain law, regulation, and policy.

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Government Case Study

EU Blockchain Observatory & Forum: Accelerating blockchain innovation in Europe

Blockchain in the European Union. An initiative led by the European Commission aiming to support and accelerate the development of the blockchain ecosystem in the EU.

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What are the Blockchain Use Cases in Government and the Public Sector?

  • Smart Cities
  • Central Banking
  • Validation of Education and Professional Qualifications
  • Tracking Vaccinations
  • Tracking Loans and Student Grants
  • Payroll Tax Collection

 

How will blockchain impact smart cities?

A smart city uses information technology and data 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. 

Blockchain can provide the mechanism to create a secure infrastructure to manage these functions. Specifically, it can provide a secure interoperable infrastructure that allows all smart city services and functions to operate beyond currently envisioned levels. ConsenSys has worked toward realizing smart city initiatives in Dubai and Zug.

Government Case Study

Smart Dubai: Using blockchain to forge a seamless city experience in the UAE

Blockchain for Smart Cities. Smart Dubai is an initiative spearheaded by His Highness Sheikh Mohammad bin Rashid Al Maktoum, seeking to make Dubai the happiest city on earth by leveraging blockchain, AI and IoT technology.

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Government & Identity Case Study

Zug Digital ID: Introducing civil identity on the blockchain

Blockchain for Government. The Zug ID is an initiative pioneered by the Zug government that grants a digital, decentralized, sovereign identity to each of its citizens, to enable them to partake in government-related activities like getting verified by city officials, casting votes, and accessing government services. 

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How will blockchain impact central banking?

Real-time gross settlement is the continuous process of settling interbank payments in central bank records as opposed to settlement at the end of each day. Blockchain enables a significant increase in transaction volume and network resilience which enables central banks to process RTGS at a faster pace, with heightened security. 

Banking & Finance Case Study

Project Ubin: Exploring the potential of Distributed Ledger Technology in central banking

Blockchain for Banking. Project Ubin is a consortium blockchain effort led by the Monetary Authority of Singapore reimagining institutional infrastructure by implementing real-time gross settlement systems with full transaction privacy, settlement finality, and no single point of failure.

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Banking & Finance Case Study

Project Khokha: Pushing the limits of RTGS with blockchain

Blockchain for Central Banking. Project Khokha is an Enterprise Ethereum solution pioneered by the South African Reserve Bank, increasing transaction volume and network resilience while maintaining confidentiality requirements for real-time gross settlement.

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How will blockchain streamline the validation of educational 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. 

How will blockchain technology impact vaccination tracking?

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.

How will blockchain technology manage tracking student loans and 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.

How will blockchain technology impact the collection of payroll tax?

Smart contracts can streamline the tax collection process by matching tax data with income transactions and calculating tax and social security deductions. A blockchain-based system automatically transfers net salary and tax payments to their respective recipients. Coordinated automation brings efficiency, speed, and security to tax collection.

Want to learn more about how blockchain is transforming government and the public sector?

How are Governments Using Blockchain?

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

 

How are governments using blockchain in the United States? 

The U.S. Federal Government has launched numerous initiatives to explore the potential of blockchain.

  • The U.S. Treasury piloted the use of blockchain in tracking and managing government equipment
  • The 2018 National Defense Authorization Act (NDAA) has required that blockchain be assessed for military employment
  • The U.S. Air Force is exploring a cloud-based, blockchain-as-a-service platform to improve its logistics and supply chain capabilities
  • The Department of Homeland Security issued small grants to explore the uses of blockchain in identity management
  • The Naval Air Systems Command is investigating the effectiveness of blockchain in tracing aviation parts through their life-cycle
  • The U.S. Department of Health and Human Services (HHS) is using blockchain, machine learning, and AI to streamline acquisition
  • The Food and Drug Administration’s Office of Translation is exploring the utility of blockchain in the secure sharing of information between the FDA, health care providers, and hospitals
  • Delaware is using blockchain to streamline a new business registry. The Uniform Commercial Code (UCC) blockchain automates the release and renewal of UCC filings and associated collateral. The result includes increased search speeds, reduced manual errors, and lower associated costs. UCC filings are liable to become a critical tool for credit risk management.
  • Arizona establishes legitimate guidelines for using blockchain for government records. Arizona has classified a signature, record, or contract secured through blockchain technology as an electronic form of consent in proper legal standing. This denotation can be used to enforce rights of ownership, asset sales, documents of title and more.

 

How are governments using blockchain in the European Union? 

 

How are governments using blockchain in Africa, the Middle East, and South Asia?

 

How are governments using blockchain in Australia? 

"We, as a company and an industry, have a unique opportunity to restore trust between people and institutions. By acting responsibly today, we can help make sure we are collectively able to reap the benefits of this powerful technology tomorrow.”

Joe Lubin

Cofounder of Ethereum and Founder of ConsenSys

Enterprise Ethereum is the foundation for many industry blockchain use cases and case studies. Find out more about blockchain applications in banking and finance, digital identity, energy, healthcare, law, real estate, sports and supply chain management.  And read our other case studies: