An article published on the World Economic Forum website makes the case for blockchain implementation to combat corruption in government activities. Some of the areas ideal for blockchain disruption in public governance include transparency, justice, and the efficiency of government institutions.
Matthew Van Niekerk, co-founder and CEO of blockchain service firm SettleMint, wrote for the WEF Global Agenda section about how blockchain adoption may enhance public procurement and property registries. According to Van Niekerk,
One of the primary routes of corruption and waste in government is public procurement, the closed-off structure of the process fosters illegal interaction between public officials and private enterprises.
The process through which governments acquire products, services, and works is known as public procurement. It accounts for a sizable component of public budgets, accounting for 29% of general government expenditure in OECD nations in 2013, totaling €4.2 trillion. With so much money at risk, it is predictable that the OECD estimates roughly 10-30% of publicly sponsored building projects may be lost to corruption.
The government blockchain initiatives are only a handful of the many pilot or in-production blockchain applications. This demonstrates that governments are serious about improving inefficient and unjust systems.
The potential benefits of blockchain are significant, but being a new technology, there are several obstacles in creating and deploying blockchain-based applications. On a positive note, some countries are already seeing good outcomes. Georgia recorded almost 1.5 million land titles using its blockchain-based system in 2018.
New to Crypto? Enroll in Cryptocurrency Course at Todayq Education