In recent news, Brazil has disclosed that a digital government strategy includes the concept of a distributed ledger system and blockchain technology to make amendments to major parts of Brazil’s economy. Blockchain technology is a structure that stores blocks in several chains in a network connected through peer to peer nodes where blocks are the transactional records and chains are databases.
Use of Technology
Typically this is a distributed ledger technology that allows data to be stored globally on thousands of servers while letting anyone go through data in a real-time entry. This blockchain technology is typically referred to as a digital ledger. This technology makes the user gain control of the overall network difficult. Blockchain technology is decentralized in nature. Using blockchain technology helpful in making process or operation more transparent, easily traceable, and enhance security.
The main characteristic of blockchain is that the record stored using blockchain open to view by the public. Adding this technology to the industry makes the company responsible for acting with integrity towards its growth, community, and customers. As mentioned above, blockchain uses a decentralized process, and then there is no need for or middle party in any process such as payments or asset transfer.
Use in real estate
This makes the property management more efficient, and with a unified system of ownership records, tenant land-ownership is automated by smart contracts itself. In blockchain technology, each record stored is well encrypted and linked to previous transactions. These records are immutable and tamper protected in nature, which makes it safer. Using blockchain ledger, one can easily trace the origin of any transactions. This technology improves the integrity of a particular industry that uses it.
The advantages of blockchain technology make the industry advance digital transformation, which can lead to a new solution.
Government’s Goals with Blockchain
With this in mind, Brazil wanted to digitalize the government using blockchain technology, which vests the vast innovation potential.
The goals of the digital government strategy of Brazil are as follows
- Promoting the integration and interoperability of databases of its government.
- Offering in her it and the simple public digital services combined in a single platform.
- Implementing general data law.
- Optimising the information technology infrastructure of the government.
- Make the identification of citizens digitally.
These above goals can be achieved using the blockchain structure. Brazil’s government added a goal of using blockchain for achieving the digitalization of government services in Brazil.
The degree noted, ” initiate 8.3 points make at least nine data sets available in federal public administration via blockchain solution until 2022″. It is a document of initiation of sources for creating interoperable federal government blockchain network with applicable digital identification software and secured algorithms. The act is to make sure the privacy of the citizen with no lapse in it. Brazil’s government set pointers for transforming digital products and services and unification of digital channels, and advances in interoperability between techniques used in it. The goals are compatible with blockchain construction, making it easy to implement digitalization using blockchain technology.
Benefits of using blockchain infrastructure:
The blockchain structures help solve or reduce the pending issues that arise during the transfer of assets or in other cases. In a double-spending issue, if someone wants to buy an asset through the internet. There is a risk that the Seller may keep the original copy and send a fake or duplicate copy to the buyer.
Resolve this issue traditionally, third party or tested administrators are used for validation of such transactions. But using blockchain technology, the responsibility of validating the transaction of assets by centralized authority or other traditional trust validators in the process of transaction is replaced by mathematical algorithms that are referred to as consensus protocols.
This process eliminates the necessity of third-party intermediaries or centralized authorities for the transactions of assets. The transfer of asset using blockchain technology uses consensus protocols which allows the user for p2p network to validate the transaction and update the records in the entire network. In this, the protocols ensure of trusted asset transaction in a network that is authentic and precise.
Using blockchain in public administration helps grow trust from both civilians and companies that work with the government. The public administration sectors using blockchain technology are immutable, transparent trustworthy traceable, which makes it impossible for corruption and reduces bureaucracy.
The public administration uses blockchain structure as an essential tool for stopping fraudulent activities from voting hire automation in programming security of information and reducing verification and network maintenance costs. Usually, a normal traditional verification process of particular transactions is a little expensive than the verification process using blockchain architecture.
This also reduces the overall work or tasks that the public administration needs to perform daily and only needs to supervise the maintenance of transactions happening in the infrastructure.
The areas where public or civilian can benefit using blockchain infrastructure is less or even no benefits in some cases. If I wanted to buy a product, the paid bill for that product might be higher than the customary price in the Market. The customer doesn’t have the information related to search services of products the product consumer buy is different from the product consumer wanted to buy. Such problems can be solved using blockchain technology where the consumer can get enough information so that they can buy the service or product they wanted
- Risk in using blockchain technology:
Personal and sensitive data security:
As mentioned, the information is open for the public to view. The information regarding the public or consumers’ details and users should be stored outside of the blockchain network. The sensitive data that others shouldn’t know should also store outside the blockchain network to systemize such data’s security.
Still developing technology:
Blockchain technology is still under development, and the lack of international standards for blockchain structure leads to the risk of organizational and technological interoperability. There should be some guidelines for the usage of technology for particular functions and blockchain structures. Research and surveys all conducting by different countries to make blockchain technology more beneficial to use.
Complex algorithms:
as mentioned above, in the place of third-party intermediaries, smart contracts and protocols are used, which may be risked as the contracts and algorithms depend on the designer’s choice, leading to monitoring over the software code designers.
Conclusion:
Many countries are interested in using blockchain as a tool for digitalizing their government products and services. With a distributed system that reduces bureaucracy and corruption while protecting important and sensitive information and promoting trust between all sectors involved in it can improve the overall Market’s efficiency by reducing verification costs , network costs, and transaction costs. This infrastructure expands the interactions and deals in which consumers can participate; you are willing to do.
The basic benefit of using blockchain structures is improved public services and information exchange processes. Blockchain technology and the internet and artificial intelligence can impact the industry, governments, companies, the global economy, and the relations between them and the citizens and community.
The main feature of blockchain technology is typically different from the normal system. Instead of depending on centralized authorities, each node in the blockchain system consists of a copy of the digital ledger that can be used to update new transactions at every node and view the record.
