Role of Blockchain technology in governance & industry

Recent media attention on blockchain has mostly focused on the technology's applications in the finance industry or on the numerous coins (eg Bitcoins) being generated on its platform. But the extent of its utility goes beyond immediate headlines. Blockchain's distributed ledger can be used to store, maintain and prosecute a wide variety of services.

Blockchain technology-concept:
A blockchain is a public ledger of all transactions that have ever been executed. It is constantly growing as ‘completed’ blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order through cryptography, ensuring that they remain meddle-proof. The blockchain thus stands as a tamper-proof record of all transactions on the network, distributed to all participants.

Thus the validation of any recording on the blockchain isn’t centralized, eliminating the need of a third-party to an intermediate. To put it to better use, these distributed ledgers can be open or permissioned, or restricted or unpermissioned, in terms of the number of people who can access the information. There is an irrevocable trail of all the transactions that have ever been made, which makes attempts of hacking or fraud unsuccessful. Thus, blockchain offers a chance to work at lower costs with greater regulatory compliance, reduced risk and enhanced efficiency.

Blockchain in governance:
Governments in particular are keen to use blockchain to streamline services. According to an IBM survey (conducted by the Economist Intelligence Unit) of 200 government leaders in 16 countries, nine in 10 government organizations plan to use the technology for "financial transaction management, asset management, contract management and regulatory compliance by 2018."

Governments around the world have established pilot projects to integrate blockchain technology into their operations. In developed countries, blockchain will help streamline government functions to make them more efficient.For example, The Illinois government is conducting five focused pilots for blockchain across multiple government departments. The range of functions envisaged for the technology include record keeping (for properties and births) and an energy credit marketplace to track renewable energy credits.

In emerging economies, blockchain has the potential to help governments achieve policy goals by leapfrogging intermediate layers of technology. For example, it can help in social welfare objectives by eliminating the need for credit cards or bank accounts to disburse funds to those who are unbanked.

Blockchain in industries:
While the Bitcoin currency has earned a somewhat shady reputation, the blockchain ledger infrastructure behind it has huge potential to simplify transactions in a variety of industries. Because each transaction is verified by a network, it takes out the middleman, putting the power back in consumers’ hands. This could not only save you money, but make your personal data more secure.

There is a clear application for financial industries. Fewer hands involved in a stock trade, or a money transfer, could mean a faster transaction and lower fees. Mainstream companies like IBM and Goldman Sachs are investing in blockchain research. Nasdaq is already experimenting with a private blockchain-powered stock exchange. According to a survey report by the World Economic Forum, “10% of global gross domestic product [will be] stored on blockchain technology by 2025.”

By: Dr. Vivek Rana