A study by the IBM Business Value Institute, titled “Creating Trust in Government,” found that most government officials who participated in the study are likely to follow the development of blockchain technology in 2017 and 2018. The survey covered 200 government leaders from 16 countries.
It was learned from this study that government agencies will seek the applicability of blockchain technology in the fields of financial transaction management, asset management, contract management and regulatory compliance, focusing on the immutable and transparent features of blockchain technology.
Ninety percent of government leaders believe that the block chain will have the most impact on legislative compliance as current systems and infrastructure established to enforce laws are inefficient in terms of time, cost, and labor.
Replacement of government regulatory and IT systems are being prioritized by US government organizations and leaders at the national level. By 2018, governments expect to cut the costs of enforcing regulations with autonomous and efficient block platforms.
One of the problems that government agencies are facing due to inefficient data-processing systems and servers is the provision of information between multiple parties. Most government agencies interact with organizations or companies in the private sector, transmitting large amounts of data.
Officials consulted in this study believe that the implementation of blockchain technology, smart contracts and timestamps can significantly reduce the risks and costs involved in maintaining shared databases.
For the time being, the US government’s focus on blockchain technology revolves around four key issues: citizen services, regulatory compliance, identity management, and contract management that require immutability and transparency.
That means that the United States government has to study the development of a decentralized block chain that prioritizes security and immutability. The formation of a centralized block chain or an authorized ledger will simply reproduce the structure of the databases that government agencies already have in place.
For the US government to see the development and implementation of block-based systems, it must follow the path of the UK’s Financial Behavior Authority (FCA) and offer local businesses the ability to Test their technologies on a commercial scale.
BTCManager, on 9 February, approved the approval of Tramonex, a London block branch, which allows the company to operate as a small issuer and facilitator of electronic money.
Government officials must collaborate with start-ups and developers to overcome obstacles such as security, transparency and immutability to ensure a path to more open and efficient government, driven by blockchain technology.