On the other hand, blockchain is a decentralized ledger technology system that creates a more secure way for supply chains to operate internationally. A collaboration with blockchain would provide increased efficiency and traceability to disrupt conventional systems. For example, the bitcoin code website is known to provide instantaneous deposits, withdrawals, and trading strategies to bitcoin traders.
Government authorities could see the benefits of blockchain and begin to examine it. In addition, it would lead them to begin funding blockchain research as a new way for business chain transparency, potentially impacting government operations.
However, there is an increasing number of governmental agencies and private companies exploring how this technology could optimize their operations by recording exchanges between suppliers and consumers in a digital ledger that cannot be manipulated or falsified by humans or computers. For voting and identity management, blockchain, when combined with biometrics like digital fingerprints and facial recognition software, will have a far-reaching influence on potential governmental processes.
Authorities that are interested in blockchain technology:
The most common government agency that has jumped on the blockchain bandwagon is the US Food and Drug Administration (FDA). The FDA is examining how people could use blockchain to establish and verify potentially harmful food and drug ingredients. By using “smart contracts” to track ingredients and their movement through supply chains, FDA officials plan to create an electronic record of ownership that cannot be tampered with.
This system would allow inspectors an increased level of transparency and assurance in food production, which could aid in discovering potential health hazards while simultaneously preventing identity theft.
The United States Department of Homeland Security (DHS) is also interested in blockchain technology. For example, DHS examines how blockchain could assist in data storage and record-keeping for the department’s Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP).
Companies could use blockchain to register immigrants for entry into the country and track their movements throughout the country. In addition, it would allow regulators to address issues like illegal labor or human trafficking through electronic tracking.
Of course, governmental agencies are just some of the ones interested in this new technology. Private corporations see how it could help their consumer operations by verifying product authenticity, but that’s only some of what they stand to gain by incorporating blockchain into their business models. So let’s explore how the government is considering using blockchain technology.
- Identity management:
Blockchain can secure and validate personal information from identity theft, which is possible because blockchain is decentralized, unlike conventional data storage. Once a piece of information is entered, people cannot alter it without triggering a “broken chain” validation that notifies users of attempted forgery. This technology would allow regulators to minimize the risk of identity theft and the ability to track registrants accurately.
With blockchain come voting day problems like tampering and voter fraud. The lack of central authority, like a government agency or political entity, allows votes to be available in real time while being fully transparent to all parties involved in the election process. Additionally, people could use blockchain to prevent voter fraud by limiting the number of votes a single person can submit and creating a “paper trail” that can be traced by people back to each voter. These features guarantee honesty and validity in the voting process.
- Supply chain management:
Business supply chains are one of the most common use cases for blockchain because it allows companies to record exchanges between suppliers and consumers in a digital ledger that cannot be manipulated or falsified by humans or computers. In addition, companies could track their products’ movements throughout the supply chain while reducing the time and money necessary.
- Reduce Terrorism:
According to a report by the International Monetary Fund (IMF), terrorist groups are using cryptocurrencies like bitcoin to finance their movements, which means they could be easier to trace and identify. It is just one of many reasons why tech companies continue developing “digital currencies” targeted at terrorists. However, blockchain technology could help regulators crack down on terrorist financing while improving asset tracking and banking security.
So why would government agencies be interested?
Areas of application – how blockchain will positively impact: This technology is decidedly new and has not been fully explored by the general public, but its potential uses are vast. Government agencies and other organizations stand to benefit significantly from blockchain if they do not ignore it now. But, unfortunately, it will occur because of technology immaturity, insufficient use cases, unrealistic scope and expectations, and inadequate governance.”
Blockchain is well suited for:
Regulatory compliance: government regulators expect businesses to record their activities in conventional databases. By using blockchain to track those same actions (with the difference being blockchain can’t be manipulated), business owners could reduce regulatory oversight while increasing efficiency. Businesses have already started adopting this technology with great success. Government authorities have also adopted this tech as an alternative to current enforcement methods. It increases traceability and provides more accurate information, which helps prevent fraud or accidental mistakes in the process.