The advantages and challenges of Blockchain in Public Administration

What began as an unknown way to manage digital assets and cryptocurrencies, year after year continues to reach increasing levels of application in several processes and industries, among which we highlight the administration. But how does it apply and what benefits can the blockchain bring to this sector?

Before delving into the usefulness of this technology, it is essential to reflect on the role that administration must play. In the following lines we present our vision on this matter, in addition to sharing our experience and deepening the differential value provided by this technology.

The role of public administration in debate

In this new paradigm in which intermediaries and trusted third parties are disappearing, the administration must take another position. Providing mechanisms and systems that promote the adoption of the blockchain with the appropriate support of the institutions must become the goal to be achieved. However, despite the many advantages arising from its application, we cannot ignore that problems and challenges abound, among which, the priority to certify the activity registered in these systems.

• It is required to guarantee the validity and force of the implemented operations. And it is in this line where administrations have to position themselves. Government agencies must ensure the validity of these systems, ensuring compliance with the corresponding regulations. At the same time, they should also provide mechanisms to audit them. The involvement of the institutions will provide the endorsement required by these systems, in order to grant enough trust to favour their adoption.
• It is necessary to address the challenge of user identification and authentication. With this we managed all activity regulated. The administration has to guarantee a correct management of the identities, certifying the identity of those who operate on these systems. Today, this user identification and authentication component is a critical point on which the administration could shed some light.
• Government agencies must work on their own projects and cases of use. In this line, it is necessary to consider the paradigm of Smart Cities or Ciudades 4.0 towards which we are moving. In this context, the application of the blockchain is essential. We are not talking about a mere enabler but about the driving technology that will orchestrate this transformation. Blockchain will allow to manage and govern these complex metropolis in an agile and safe way.

Benefits for the AAPP

Once solved the different challenges raised by the blockchain in the Public Administration, it is time to take advantage of the numerous advantages offered by the implementation of blockchain technology, both for public employees and for citizens. We present you only some of its multiple benefits

• Goodbye to the paper. Many of the public procedures are still recorded in writing and filed on paper, which takes up space and can deteriorate. In addition, in order to carry out procedures involving some other agency or organization, citizens are generally obliged to provide additional printed documentation. Thanks to the blockchain it will be possible to build multi-organizational solutions that allows us to free ourselves from paper, which implies both an economic and ecological benefit.
• Agility and security in procedures. The integration of multiple organizations in the same system will also provide agility in operations. On the other hand, the disappearance of intermediaries will allow citizens to carry out their efforts telematically, with total security and speed. This automation of bureaucratic processes may also have its application, for example, when communicating public tenders, which would significantly reduce processing times.
• Transparency. Thanks to the decentralization of information, it cannot be modified, thus avoiding possible fraud. In addition, the information may be available to citizens on a permanent and up-to-date basis, thus guaranteeing its accuracy. In some countries, this technology is beginning to be used in electoral processes, because, we cannot forget that in addition to providing transparency, the blockchain is also an agile and secure communication system
• Data protection. Finally, it is worth mentioning its contribution in this age in which the concern for sensitive data is growing. Proof of this, the intensification of the legislation in this regard. In this sense, it is essential to implement systems that guarantee the privacy of users and the confidentiality of their data, which is possible thanks to the blockchain. On the other hand, it should be remembered that, thanks to the application of this technology, the sovereignty of the data can be guaranteed to users.

Success story: Blockchain in the Diputación de Bizkaia

In Izertis, we understand that training people and implementing these systems is not easy, and we know it better than anyone thanks to our journey with Lantik. Together, we have managed to implement a Blockchain that covers the needs of the Diputación de Bizkaia, including launching a public platform so that the citizens can experiment and test their applications in the Blockchain system of the Diputación.

Conclusion

Blockchain can greatly benefit public institutions, making them more transparent, close and secure. However, administrations also have to take a new position in this new scenario, since, it is not only about its benefit, but the commitment to boost this technology that will have an impact on the entire economy.

If you are interested in knowing more about how this technology can improve the procedures and demarches in your institution, you can contact our team of experts in Blockchain.