People always associate bureaucracy with something that is frustrating, time-consuming, and costly. A person who has ever had to wait months to resolve some personal issue or get a needed document, or had to spend hours waiting in lines to sign a paper, can relate to the problem of bureaucracy. What can help solve the issue? Is the most-talked technology blockchain a threat to bureaucracy?
Due to its decentralized nature and the absence of the “third” parties or intermediaries, blockchain facilitates trust. Blockchain’s immutability ensures that nobody can change once written data there. Apart from that, blockchain’s speed makes it the best solution for getting data efficiently in just seconds.
What makes us think that blockchain can be a threat to bureaucracy?
Let’s take traditional painful processes of permitting and registration. Sharing of information among government systems and the private sectors, for insurance claims, assistance services, medical trials, and acquisition actions may considerably improve experiences for citizens.
Blockchain-based services can replace some of these functions by recording transactions. Governments have already started experimenting with using the software to record property ownership. It is administratively easy because the blockchain automatically documents it. So, it may skip the need for people to use central registers to access information.
The concept of smart contracts on blockchain may also help improve performance. These contracts automatically perform certain functions if pre-defined conditions are met. For example, businesses can set-up real-time tax payments when they receive income – and automatically receive rebates where appropriate. Similarly, individuals can set up automatic self-assessment returns, skipping the need to interact with HMRC officials.