Blockchain refers to a range of general purpose technologies to exchange information and transact digital assets in distributed networks. The core question addressed in this paper is whether blockchain technology will lead to innovation and transformation of governmental processes. To address this questions we present a critical assessment of the often exaggerated benefits of blockchain technology found in the literature and discuss their implications for governmental organizations and processes. We plea for a shift from a technology-driven to need-driven approach in which blockchain applications are customized to ensure a fit with requirements of administrative processes and in which the administrative processes are changed to benefit from the technology. Having sound governance models are found to be a conditions for realizing benefits. Based on a critical assessment we offer directions for further research into the potential benefits of BC applications in e-government and the role of governance of BC architectures and applications to comply with societal needs and public values. Highlights • Blockchain implications and the need for institutional changes and transformations are not well-understood • Potential benefits of blockchain range from technical to economic and strategic • Implementation and adoption determines if the possible benefits can be realized • Governments has a dual responsibility: governance by BC and BC governance • Blockchain changes information stewardship
Part 4: Smart InnovationsInternational audienceThe new technology Bitcoin has got a lot of attention since it was presented in late 2008 and implemented early 2009. However, the main attention has been to the currency and not so much the underlying blockchain technology. This paper argues that we need to look beyond the currency and investigate the potential use of the blockchain technology to enable smarter governments by utilizing the secure, distributed, open, and inexpensive database technology. The technology is discussed in the perspective of an information infrastructure to investigate its full potential. After a literature review of Bitcoin publications, with a special emphasis on eGovernment literature, the paper presents a relevant use case highlighting the innovation potential of the new technology. The literature review shows that Bitcoin is absent from the e-Government literature. The use case presented shows that Bitcoin could be a promising technology for validating many types of persistent documents in public sector
The blockchain technology, including Bitcoin and other crypto currencies, has been adopted in many application areas during recent years. However, the main attention has been on the currency and not so much on the underlying blockchain technology, including peer-to-peer networking, security and consensus mechanisms. This paper argues that we need to look beyond the currency applications and investigate the potential use of the blockchain technology in governmental tasks such as digital ID management and secure document handling. The paper discusses the use of blockchain technology as a platform for various applications in e-Government and furthermore as an emerging support infrastructure by showing that blockchain technology demonstrates a potential for authenticating many types of persistent documents.
The blockchain technology has evolved beyond traditional payment solutions in the finance sector and offers a potential for transforming many sectors including the public sector. The novel integration of technology and economy that open public blockchains have brought represents both challenges to and opportunities for enhancing digital public services. So far, the public sector has lagged behind other sectors in both research and exploration of this technology, but pilot cases show that there is a great potential for reforming and even transforming public service delivery. We argue that the open blockchain technology is best understood as a possible information infrastructure, given its universal, evolving, open and transparent nature. A comparison with Internet is meaningful despite obvious differences between the two. Based on some case studies, we have developed an analytical framework for better understanding the potential benefits as well as the existing challenges when introducing blockchain technology in the public sector.
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