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How Blockchain Technology Bolsters Government Ecosystem?

December 2, 2022

Blockchain technology is dramatically improving legacy data management and streamlining government operations delivering visibility to the citizens.  

Let’s dive into deep to explore more: 

Digital Identity

The problem in the Existing System: 

  • The current system is prone to identity theft, where hackers copy the identities of others. 

  • For KYC onboarding, the users have to carry and submit heavy Identity documents. 

  • Also, the ID holders lack control over the way their identity can be used by the government. 

  • In addition, the probability of the user’s privacy being at risk is high. 

Solution by Blockchain Technology: 

  • Blockchain offers a secure solution to identity theft, where the users can store their IDs in a decentralized system. The system eliminates the need to submit IDs on an open website, rather users can authorize the agencies to retrieve a specific piece of information from the decentralized storage.  

  • Blockchain-based identity management allows citizens to take ownership of their identity by creating a global ID to serve multiple purposes. This also eliminates the need to carry multiple documents for KYC onboarding. 


Problems in the existing system: 

  • The legal branches of government maintain records of heavy documents of land titles, criminal records, corporate documents, marriage entries, etc. 

  • This includes a lot of paperwork which is difficult to manage and time-consuming to retrieve the details.

  • Since the entries are managed manually there is a high probability of errors and documents being misplaced.  

Solution by Blockchain: 

  • The registries based on Blockchain-supported distributed ledgers offer transparency and visibility to the entire system. 

  • Since the entire process is automated there are low chances of errors or corruption due to the absence of human intervention. 

  • Also, Blockchain technology stores the records on a distributed system, eliminating the heavy paperwork and leading to seamless management of registries. 

  • In addition, Blockchain-based registries allow adding correct multiparty digital signatures to the documents and transferring them within a fraction of a second. 

Central Bank Digital Currency (CBDC) 

The problem in the existing system:

  • The cross-border transactions through the current system incur heavy costs. 

  • The traditional system is prone to crimes like money laundering and financial terrorism. 

  • In the case of fiats, the costs of printing cash, importing the note paper, and circulating fiats across the nation is high. 

Solution by CBDC:  

  • Blockchain-based CBDCs offer low domestic as well as cross-border transaction costs. 

  • CBDCs assist in preventing crime, money laundering, and financial terrorism by tracing and monitoring transactions. 

  • CBDCs also eliminate the risks associated with bank failure as all the transactions are recorded on a digital ledger. 

  • CBDCs are more secure, transparent, and cost-effective. 

Voting System 

The problem in the existing system:

  • The possibility of data being hacked and votes being tampered is high. 

  • There is a high risk of voting ballots being delayed, waylaid, or even lost on the route. 

  • The current voting system requires huge management and thus is expensive. 

Solution by Blockchain: 

  • The blockchain-based voting system is a cost-effective and highly secure solution, where the possibility of votes being tampered is negligible. 

  • The decision tokens can be issued to the voters and they can cast votes through their own devices by logging onto an immutable Blockchain. 

  • This system also reduces the time and cost of verifying the election. 


Problems in the existing system: 

  • The traditional system experiences difficulties in tracking and monitoring drugs leading to emerging possibilities of counterfeit drugs.

  • The manual intervention led to the mishandling of data which at times resulted in a shipment of expired products, mislabelling of medicines, or even delivery of contaminated drugs. 

  • No system can prevent the privacy of drug manufacturers by securing their drug production formula. 

  • Inappropriate inventory management leads to stockout or overstock scenarios. 

  • There have been increasing cases of clinical trial data being breached and information is at risk.

Solution by Blockchain: 

  • Blockchain-enabled supply chain offers transparency and visibility across the network, enabling easier tracking of drugs. This reduces the possibility of counterfeit medicines reaching consumers. 

  • The smart contracts in the blockchain automate the process that offers appropriate handling of data which reduces manual errors. 

  • With Blockchain solutions, the manufacturers can secure their confidential information like drug formulas by storing it in the blocks in an encrypted form. 

  • Blockchain solution offers appropriate inventory management ensuring the demand and supply of drugs are in sync. 

  • Blockchain is a distributed system and has the potential to secure the data of the clinical trial, where accessing the research information becomes next to impossible. 


Problems in the existing system: 

  • For the seed distribution scheme by the government, there is no system to monitor the process leading to uneven distribution of seeds. 

  • The current system is not able to verify the products at every phase of the supply chain, which ultimately leads to the delivery of damaged food products to the hands of consumers. 

  • Insurance claim settlement is a tedious task for farmers. 

Solution by Blockchain: 

  • The blockchain-based solution has laid a foundation for modern agriculture by enabling transparency in the seed distribution system. 

  • Also, a Blockchain-based supply chain monitors the farm produce at every stage and the information is recorded into the blocks in an encrypted form. This ensures the high quality of farm produce and also traces down the errors in the products. 

  • Blockchain has automated the insurance claim settlement for farmers eliminating the heavy documentation and delays. 

Wrap Up

Hopefully, you have understood how Blockchain can bolster government processes and operations.
RWaltz is a Blockchain development company that offers customized solutions based on your demands. If you are looking forward to taking your government on a Blockchain journey, connect with us now.

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