The UK government is analyzing the blockchain technology that underpins the crypto currency to boost the performance in the distribution of citizen’s money. A blockchain works as a decentralized ledger that is established and shared by a network of mainframes, and can be apply to record data as well as to protect and verify an exchange of assets, such as currencies or stocks.
Banks and other financial institutions are increasingly investing in blockchain technology, reckoning it could cut their costs and make their operations faster and more transparent. UK has had a inconsistent record with government IT systems. Past IT problems have hit the passport agency, the tax credit system and most notably the National Health Service which was forced in 2011 to announce the abandonment of a multi-billion pound scheme to computerize every patient data.
It is still early days for blockchain. The original Bitcoin blockchain was started just over seven years ago, and most financiers and technologists reckon the technology will not be adopted broadly for another five to 10. Many compare the current level of development to the early days of the Internet. The government’s chief scientific adviser urged the government earlier this year to explore how it could apply blockchain.