Governments are often criticized for not managing most of their processes efficiently. New technologies like blockchain have the potential to bring about drastic improvements. “Blockchain governments” could become a reality in the next few years as governments begin to adopt this technology.
The world is on the path of digitization, as can be seen in many sectors such as retail or the entertainment industry. Governments have also felt pressures to go the same way, but it’s easier said than done. One of the biggest hurdles that stood in the way of digitization for many governments is security. Corona Millionaire applications for governments could be the missing link to support the state apparatus in its complete digitization.
Blockchain: Use Cases for Governments
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Storing the personal data of millions of people on digital platforms carries a great risk: the risk of a hack. A mature blockchain, on the other hand, is classified as not or very difficult to hack due to its structure. This means it could offer a viable solution that can help governments finally go digital. The fact that blockchain is practically not hackable makes it more attractive for governments to develop digital systems. However, this is only the tip of the proverbial iceberg compared to what blockchain-based government services could be.
Governments, especially in developed countries, usually have a hard time gaining the trust of their citizens, especially when it comes to proving the provision of services and improving existing services. In developing countries, blockchain applications would be useful for governments to eradicate some important problems like corruption while ensuring more effective provision and distribution of resources. The introduction of such technologies could also help make better use of resources.
Blockchain technology can make law enforcement easier
Governments can use data from public blockchains to track financial transactions, much like fiat money transactions are monitored to ensure the system does not facilitate illegal business. Implementing a blockchain for a government can be a key tool in ensuring that financial transactions in the digital space remain legal.
One example is Bitcoin’s public network, which allows researchers to keep track of all Bitcoin transactions so they can determine the amount that is stored in a crypto wallet at any given time. This can be useful in curbing illegal businesses like drug trafficking and money laundering.
Fixed the tax problem
Taxation is also one of the topics that has been talked about a lot in cryptocurrencies. This is especially true with regard to the use of digital currencies to avoid taxes. While this can be controlled through the use of public blockchains rather than private coins, blockchain technology can help governments improve the situation. It could be the long-awaited solution to double taxation prevention.
As decentralized technologies promote greater transparency in financial transactions, governments can use blockchain technology to provide protocols that can lower VAT deficits and reduce the tax burden by eliminating double taxation.
Governments can use blockchain to protect critical infrastructure
Blockchain applications in the public sector can help governments ensure better protection of their critical infrastructure and thus keep cyber attacks at bay. Most of the critical systems used by governments around the world to facilitate the delivery of services are connected to the Internet. This underscores the importance of security for critical systems. Since blockchain cannot be hacked, it might be the best solution. A decentralized ledger can also be designed to track the integrity of government systems. This would significantly reduce the likelihood of attacks and data manipulation.