Governments and public sector can leverage on blockchain to offer:
- improved efficiency,
- automation of processes,
- auditability,
- transparency and
- trust.
Using blockchain in this sector can bring about a number of opportunities for the provision of public services.
For allocation of public benefits (like pensions, grants, subsidies or vouchers), blockchain systems can allow for more efficiency, transparency and programmability.
A decentralised network can be put in place to manage transactions without relying on additional third parties or intermediaries.
![Municipality of Groningen smart vouchers Image: example: Municipality of Groningen smart vouchers](/sites/default/files/styles/oe_theme_medium_no_crop/public/2019-09/fig21-blockchain.png?itok=SkzJmUNB)
In education, blockchain can be used to register digital credentials or certificates, and enable their immediate verification and validation.
It can also reduce bureaucratic procedures for education institutions, employers, graduates and jobseekers.
![Blockcerts certificate Image: Example: Blockcerts certificate](/sites/default/files/styles/oe_theme_medium_no_crop/public/2019-09/fig22-blockchain.png?itok=rrEil1t2)
However, so far blockchain has offered incremental rather than radical innovations.
Challenges for its use in the public sector include:
- inputs from centralised or government-owned systems,
- high volume, complexity and fragmentation of public services, and
- ability to set up and scale up stakeholder collaboration
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Blockchain Now And Tomorrow - Assessing Multidimensional Impacts of Distributed Ledger Technologies
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Report: Blockchain Now And Tomorrow - Assessing Multidimensional Impacts of Distributed Ledger Technologies
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