Blockchain promises to trigger significant changes to several public and business sectors, revolutionizing the digital practices as we know them. In addition to enabling the emergence of cryptocurrencies and supporting healthcare processes, blockchain also appears to have the potential to counteract unhealthy corruption practices at all levels and channels successfully. How this is possible, where it has already been applied, and what the future perspectives are? Learn more in the following paragraphs.
Blockchain is a way to store and transfer of information in a decentralized manner, by using "blocks" of data that cannot be manipulated or modified. Logically, this technology can be used to improve transparency, accountability, and legal integrity in various state and government processes.
The possibilities for realizing this potential are virtually endless, including authorized access to authentic information about companies, procurement contracts, and transaction history. The combination of guaranteed authenticity and an unprecedented level of security suggests that abuses of power and positions will invariably leave visible traces. Traces that can neither be deleted, nor reformatted.
Implementing blockchain technology as a tool to fight corruption is not a revolutionary concept from the distant future, but an objective reality in many places around the world.
- According to its latest blockchain strategy, Dubai plans on having its first blockchain-powered government in 2020. The aim is to streamline not only administrative processes, but also public transaction transparency and increased government efficiency
- The UN World Food Program also uses blockchain as the basis for its pilot project in Jordan. The aim is to manage cash transfers for Syrian refugees and minimize the financial leakage that currently costs millions.
- The first blockchain-based voting platforms have already been launched in Japan, Switzerland, and some US states. Practically, this means zero chance of manipulating the electoral vote – a possibility that could lead to radical changes in countries where these abuses are widespread.
- Sweden, Georgia, and Ukraine have also taken the first steps towards introducing blockchain technology as the basis of their property registers. The ultimate goal is improved transparency of the history and current legal condition of the land, along with minimizing the prerequisites for property fraud.
While not a panacea for corrupt practices, blockchain technology can guarantee three particularly essential things: identity verification, asset registration, and transaction tracking.
Toshev & Boteva Law Firm is actively involved in the process of development and implementation of blockchain technologies, as well as in the preparation of working legal frameworks in which they can function in the long run.