Blockchain and governance

Blockchain has had a significant impact on governance systems. Whether that’s voting, identity management, or enhancing safety and participatory governance, the technology has positively affected a huge amount of sectors today. Below we’ve listed some of the biggest contributions the blockchain has made to any vertical that requires safer, more efficient governance protocols. 

Voting

One of the most popular applications of blockchain technology in the field of governance is around voting systems. Traditional voting methods are becoming increasingly cumbersome and mistrustful. Paper-based or in-personal electronic voting methods often face challenges of voter fraud and manipulation, and both real-life cases and unfounded conspiracy theories have significantly impacted public trust. The blockchain, however, promises a decentralized, immutable ledger that ensures transparency and undeniable security. 

A blockchain-based voting system is also auditable. Every vote made is traceable, which allows for real-time verification. It is also much easier, and more accurate, for a post-election audit.

Blockchain-based systems also promised increased participation in voting. Blockchain voting can be done remotely, which enables greater physical accessibility. And it has the potential to cut down on voter disenfranchisement. It is not up to individual humans to make decisions on whether a person can vote or not, which can happen at in-person voting booths for either administrative or discriminatory reasons.  

Estonia is one of the first countries to use blockchain technology as part of e-governance, which includes voting. In fact, Estonia has become a world leader in digital voting and e-governance. Since 2005, the government has allowed people to vote digitally, and the last election saw more than half of the nation use e-voting. Now, there are only a few services - such as filing for divorce - that can't be done online. 
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Identity management 

Identity verification is essential, but also a lengthy and difficult process. Identity management is key to the safe and smooth running of most services, whether private or public. With centralized systems and old-fashioned safety protocols, identity management can become risky and prone to malicious attacks. 

Individuals, organizations, and government bodies can utilize the blockchain to store identities safely and in a decentralized manner that enhances security, streamlines the process, and offers better empowerment to the users themselves, who can retain ownership of their data more autonomously. Without accurate and secure identity management in either the private or public sector, processes become slower and data is much more compromised. 

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Corruption and accountability 

Governance isn’t always ethical. Corruption of governing bodies is sadly a part of human nature. Whether that’s a board in a private company, a representative group in a public corporation, or a governmental department, trust can be eroded if corruption and fraud are allowed to run unchecked. Blockchain’s benefit is its inherent transparency and immutability, making it an effective tool for combating these issues. 

The blockchain can be used to track expenditures in real-time, as publicly or as privately as is needed. Funds are safe and immutable, and the data is not held centrally, meaning not just one entity or person has sole responsibility. 

A number of governments around the world have seen the benefit of blockchain ledgers for land and asset registration, an area in which fraud can cost millions and waste resources on expensive legal battles. Sweden, for example, has been testing a blockchain-based land registry for all property in the country. This has been ongoing since 2017, after issues of security and inequalities were raised at the time. The Lantmäteriet, a Swedish government agency, is one of the leading users of blockchain as a land registry in the world. 

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Participatory governance 

Governance is also about allowing democratic access to engagement. Decentralized Autonomous Organizations (DAOs) are one example of how blockchain fosters a greater engagement in participatory governance by individuals outside of the normal ‘leadership’. DAOs increase transparency and democracy, allowing communities to vote on policies and initiatives that affect them in a way that cannot be tampered with and is open to all. 

DAOs have no central governing body, relying on the members to have an equal say and vote in issues that arise. It was popularized as blockchain evolved, and as user education has grown so has the trust and understanding of DAOs. 

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