Anyone who has been reading my stuff or has worked with me will know, I am a massive proponent of blockchain technology in Government and Construction services, something to do with my work on the EBSI platform at the European Commission. Now my single issue view of the world boils down to this: creating trust in digital processes increases efficiency exponentially. That is a mouthful but the simplistic point is that blockchain helps cut out lots of time and effort to do anything.
Really? Yes really. OK, give me a simple example you say. OK, audit. Say you manage any type of transaction or process between separated entities, say issuing licenses or importing goods from a foreign supply chain partner. To ensure trust you have to carry out audits, sometimes on every transaction. This is because the parties in the transaction own their own databases that are talking to each other but are under their control. As such they can be altered by one party without the others’ knowledge. Hence, a lot of effort is expended in auditing, validating, permissions, approvals, and the list goes on.
Blockchain can bake in trust by setting in digital stone the agreed ways the given process should work (consensus) and operating it in an automated way with full transparency to all parties involved. I call that really time audit.
But this lovely idea means little without concrete examples. Now I have given some in the past, and indeed actually delivered government use cases like digital identity, committee decision-making, death register, licenses and citizen incentives. I have also built construction use cases like digital twin automation, notarisation of key decisions, supply chain efficiencies and safety auditing. However there are others who do detail perhaps better than I, so I thought a good look at a recent report might be apt.
So my current spiel consists of excerpts from a 2024 European Commission report titled “Public Sector Tech Watch: Adoption of AI, Blockchain and other emerging technologies within the European public sector,” which provides a detailed analysis of how emerging technologies are being used to improve public services across the European Union.
The report on emerging technologies in the public sector identifies several key benefits derived from the implementation of these technologies across various government functions and services. These benefits can be categorized into two main areas: enhanced public services and improved administrative processes.
Public services are becoming more responsive, efficient, and cost-effective as a result of these new technologies. This means that citizens and businesses are experiencing faster response times from government agencies, more streamlined service delivery, and a reduction in the overall costs associated with accessing public services. The report also notes that these technologies are making public services more citizen-centric, meaning that services are being tailored to the specific needs and preferences of individual citizens. This shift towards citizen-centricity is further supported by the enhancement of public sector information quality, resulting in more accessible, reliable, and transparent information for the public.
The adoption of emerging technologies is also leading to higher quality internal processes and systems within government agencies. This translates to improvements in the way government agencies operate, leading to more efficient use of resources, better coordination between departments, and a reduction in bureaucratic bottlenecks. These internal improvements contribute to the more effective management of public resources and faster responsiveness of government operations overall.
While the report covers many technologies, I’ll look specifically at the spread of blockchain in Government services through the lens of the types and numbers of use cases being tested ans deployed in Europe.
Though blockchain technology has not seen the same widespread adoption as artificial intelligence in the EU public sector, the sources show that blockchain is proving to be a valuable tool for improving services for citizens. The sources, which analyze 1,617 cases of emerging technology adoption in the public sector, reveal that the majority of blockchain applications (77%) focus on improving public services, particularly in general public services, economic affairs, and education.
The report highlights three key areas where blockchain technology is having a significant impact:
- Certification and Validation: Blockchain is particularly well-suited for creating secure and tamper-proof records, making it ideal for applications like verifying university degrees or other official certifications.
- Payments and International Transactions: Blockchain’s decentralized and secure nature makes it a powerful tool for facilitating payments, especially across borders.
- Data-Sharing Management: Blockchain can provide a secure and transparent platform for managing the sharing of sensitive data, such as medical records, ensuring data privacy and compliance with regulations.
The sources also note that blockchain is playing a key role in enhancing interoperability at the EU level. The European Blockchain Services Infrastructure (EBSI) is a notable example of this, providing a common platform for blockchain-based services across different EU countries. This can lead to more efficient and seamless delivery of cross-border public services.
So I repeat, “Blockchain is particularly well-suited for creating secure and tamper-proof records”. Now what could be the uses of that?!
Moving into further detail on the use case actually being used in Government in Europe, the report discusses the types of interaction and the most common application types for blockchain technology.
The report uses the term “e-government interaction type” to describe the relationship between the government agency using a given technology and the recipient of the service. The report analyzes blockchain use cases in terms of three main e-government interaction types:
- Government-to-Citizen (G2C): This refers to interactions where the government provides services directly to citizens. Examples of blockchain-based G2C services include the issuance of digital identity cards, the distribution of welfare benefits, and the provision of educational certifications.
- Government-to-Government (G2G): This encompasses interactions between different government agencies, often across different levels of government (local, regional, national). Blockchain is being used to improve G2G processes such as procurement, data sharing, and identity management.
- Government-to-Business (G2B): This describes interactions between government agencies and businesses. Blockchain is finding applications in G2B interactions such as supply chain management, tax compliance, and the issuance of business licenses.
Based on the analysis of 270 blockchain use cases in the public sector, the sources identify the five most common blockchain application types as follows:
1. Certification and Validation Processes
Blockchain technology’s ability to create secure and tamper-proof records makes it ideal for verifying the authenticity of documents and data. This is particularly relevant for applications such as:
Educational Credentials: Blockchain is being used to issue and verify digital diplomas, certificates, and transcripts, making it easier for students to share their credentials with employers and educational institutions. This application is especially prevalent in the education sector.
Legally Binding e-Signatures: Blockchain can provide a secure and trusted platform for electronic signatures, ensuring their validity and reducing the risk of fraud.
Healthcare Certificates: Blockchain is being used to issue and manage digital health certificates, such as COVID-19 vaccination certificates or medical records, improving data security and facilitating cross-border healthcare.
2. Payments and International Transactions
Blockchain’s decentralized and secure nature makes it suitable for managing financial transactions, especially those that involve multiple parties or cross-border payments. Key applications include:
Incentive Programs: Governments are experimenting with blockchain-based systems to reward citizens for environmentally friendly behavior, such as reducing carbon emissions.
Welfare Benefit Payments: Blockchain can streamline the distribution of welfare benefits, reducing administrative costs and ensuring that funds reach the intended recipients securely and efficiently.
3. Data Sharing Management
Blockchain enables secure and transparent data sharing between different organizations and individuals, while ensuring data privacy and compliance with regulations. Applications in this area include:
eHealth Record Sharing: Blockchain is being used to create secure and interoperable platforms for sharing medical records between healthcare providers, improving patient care and facilitating research.
Data Sharing Between Government Agencies: Blockchain can streamline data sharing between different government departments, improving coordination and efficiency.
4. Registration and Data Notarization Processes
Blockchain can simplify and secure registration and notarization processes by creating tamper-proof records of transactions and agreements. Examples include:
Land Registry Digitization: Blockchain is being used to create digital records of land ownership, making it easier to track property transactions and reduce the risk of fraud.
Vehicle and Property Transactions: Blockchain can be used to record vehicle and property sales, creating a secure and transparent history of ownership.
5. Self-Sovereign Identity Authentication
Blockchain can empower individuals to control their own digital identities, reducing reliance on centralized authorities and enhancing privacy. Applications in this area include:
National Blockchain-Based IDs: Several European countries are exploring the use of blockchain to create secure and tamper-proof digital identity cards.
European Self-Sovereign Identity Framework (ESSIF): The EU is developing a blockchain-based identity framework to enable citizens to control and share their digital identities across different services and borders.
While these are the five most common blockchain application types identified in the report, it is worth noting that the technology is still in its early stages of adoption in the public sector. As blockchain technology continues to mature and public administrations gain more experience with its applications, we can expect to see even more innovative use cases emerge in the future.
If you want to read the whole report, please do see it here.
So the next time someone asks you “but can we trust the system?”, think about blockchain services if your use case is in government or construction. Maybe even send me a message, I’ll be delighted to give you some hints.