The blockchain technology first emerged in the financial sector, which, it is anticipated, shall be revolutionized from its physical form to a virtual presence in the coming future. These expectations have further been strengthened during the ongoing coronavirus pandemic which has led to a steady downfall of the traditional businesses.
However, there is something else that the COVID-19 crisis had brought under the scrutiny of people once again. Presently, as countries struggle to cope with the human and economic consequences of the pandemic, faults in the structure of governments around the world have come out into the open.
In many nations, where corruption is widespread and the allocation of budget for people’s welfare is dubious, a need for a more transparent system is felt throughout the globe. But is it going too far by saying that blockchain can eliminate the malaise of corruption from governance and politics? Let us take a look.
How Can Blockchain Help Eliminate Corruption in Governance?
Blockchain technology is a decentralized ledger technology that seeks to address the problems related to the security and integrity of data. This is of critical importance in a world that has serious concerns about data privacy and trust in governments. The technology has the potential of a game-changer in such a scenario because it allows a record, transfer, and track of assets in a decentralized manner, thus ensuring trust, transparency, and security without a central authority. It is a system of shared databases that works with a consensus mechanism amongst trusted parties without giving the lead to any single entity.
Given this nature of blockchain, it has a huge potential of eliminating corruption because it can certify transactions without a central database in a way that they cannot be tampered with. The technology removes the risk of a single point of failure by providing the highest levels of security and integrity.
Furthermore, the technology has rendered useless the role of third parties or intermediaries—a point of great importance because it can lead to the total destruction of red-tapism and arbitrary decisions. Every party on the ledger would be accountable for each transaction carried out on it. Since it also allows tracking of the transactions, the work of the auditors and law enforcement bodies would be made much easier and precise.
Other than these general potentials of blockchain, the technology is also being used to create a highly reliable registry of companies so that their rightful owners can be traced directly. This kind of solution can prevent money laundering to a great extent. Furthermore, it is also being used to track high-risk government transactions in order to prevent fraud. Other than this, blockchain-based solutions are increasingly being used for land titling and public contracting.
Times When Blockchain Proved Its Mettle in Combating Fraud and Corruption
It is not that these potentials of blockchain technology are speculated only for the future. Many a time, startups and even governments have successfully implemented the use of blockchain for combating fraud and corruption.
● Delaware is a company that allows blockchain-based solutions to corporations for the registration and transfer of ownership. If adopted on a larger scale, this can bring down money-laundering to a great extent.
● Mexico has started a blockchain-based solution for public contracting. This could eliminate arbitrary decisions in the process of contracting.
Expanse: Stepping Up the Revolution
Time and again, technologies have revolutionized politics and the working of government institutions for better or for worse. Be it the press or modes of transport, the making of a global geopolitical thought is unimaginable without technology. Blockchain offers another chance to positively change the way governments deal with public money. This can not only change the economic working of countries but can also step-up social welfare and well-being. Ideas have been put forward in the past, and even today, blockchain technology is steadily offering its benefits to help the world recover from a healthcare crisis of unprecedented scale. It is also time now for us to think of a corruption-free world so that sectors like healthcare and agriculture get more leverage. Expanse offers you a platform to give shape to these beautiful changes. Based on Ethereum, it provides you the scalability and reliability you need to build a system that would be strong enough to fight the problems in the existing systems today.