Government Authorities Are Praising Blockchain Technology
Blockchain technology has recently started to receive kudos from governments worldwide, and blockchain companies are slowly beginning to make their way into mainstream society.
Author:Camilo WoodReviewer:James PierceDec 21, 202219 Shares670 Views
Blockchain technology has recently started to receive kudos from governments worldwide, and blockchain companies are slowly beginning to make their way into mainstream society. A website like BitQSis a wholly automated cryptocurrency trading platform offering the best features like liquidity, trading tools, and customer support. It's not hard to understand why governments have been wary of the technology.
After all, the blockchain decentralized model is based on removing central control. And at the same time, it's changing how people around the globe approach transactions. As a result, people are more willing to trust strangers across borders — this is slowly but surely being manifested into real-world business applications.
The pace at which blockchain companies evolve is creating novel regulatory challenges for industry and government entities. But as blockchain continues to grow in popularity, government agencies seem to be warming up to it more each day - as evidenced by some new comments by U.S. officials. It's not just the U.S., as others are keen to develop blockchain technologies for their use cases, or regulators are already showing interest in the developments it continues to bring about. Let's discuss how government can make use of blockchain.
Secure storage of government, citizen, and business data
Several government agencies are looking to blockchain to help solve problems that have been on their minds for some time. The data provided by blockchain is not only secure and incorruptible, but also it's impossible to tamper with. As a result, it could prove invaluable in storing the multitude of sensitive information that governments have been collecting from citizens (for example, personal data submitted by voters when applying for a new passport or voter ID card).
It should be noted that the U.S. Department of Homeland Security (DHS) already has plans to utilize blockchain technologies as part of a pilot program involving blockchain signatures as part of its border security efforts. However, how this will be implemented is still under wraps. On top of this, the U.S. Department of State is also looking to integrate blockchain in its standards for country-specific information (SGI) so that all diplomatic documents can utilize the same standards, which would help to prevent them from being tampered with and potentially causing damage to other nations.
Better border management
High-tech customs and border security efforts have been ongoing, with many governments now developing their state-of-the-art surveillance technologies to keep track of their borders at all times. As a result, existing border management systems are becoming increasingly cumbersome and difficult to use by both the public and private sectors.
While blockchain technology has yet to be fully integrated into current infrastructure, it could play a significant role in providing a more efficient way of managing border security in the future. However, it's important to note that many aspects of blockchain technology still need to be prepared for use by authorities. Still, it may be prudent for government agencies to start making plans anyway.
In terms of why governments should consider incorporating blockchain into their current efforts, there are several reasons behind it. First, some countries have already started using blockchain systems to help control the flow of goods and services within their borders.
Reduction of labour-intensive processes
As we move into a more IoT-focused world, there will be fewer jobs in the global workforce. Transaction costs could rise as workers become less necessary and are instead entirely replaced by machines. Blockchain technology could reduce labour-intensive processes and see the spread of automation.
According to experts, a financial sector is a crucial place where blockchain technology can positively impact day-to-day operations. One way that this could happen is through bank settlement. Unfortunately, it's increasingly common for banks to settle transactions within days of them taking place — one or two business days — resulting in high costs that may not be justified based on time spent on transaction processing alone.
Reduction of excessive costs associated with managing accountability
Over the last few years, several banks have been dealing with the high cost of managing their corporate accountability. In particular, multiple instances of money laundering have occurred in Australia and Malaysia, leading to stricter regulations for financial institutions. The FBI estimated that bank failures in Australia and Malaysia totalled US$1.25 billion and US$50 million, respectively — giving a clear example of where blockchain technology could help to reduce cost and enhance transparency.
As such, many financial institutions have already started working with blockchain technology to improve their operations over the long term.
Improving disaster relief efforts
Governments can quickly use blockchain to distribute welfare payments, food, and supplies to natural disaster victims. It's also envisioned that blockchain technology could help the government provide the public with more information during a disaster, such as when and where the relief effort takes place, who receives aid, and who doesn't.
All in all, blockchain technology can be beneficial to many aspects of government. For example, it may be used by people before elections to ensure that votes aren't tampered with; it might help make tax collection easier for businesses with international operations; it can increase security when tracking access details at airports; and it may streamline border management systems.
Camilo Wood
Author
James Pierce
Reviewer
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