Blockchain-a-threat-to-bureaucracy

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? 

Blockchain as a Word of the Future 

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?

  • A key feature of blockchain-based services is transparency through decentralization. It allows participants to see and verify data. For example, using blockchain can facilitate independent verification of governmental claims. The potential for distrust will reduce when both citizens and government agencies share access to records.
  • Another potential advantage of blockchain-based services is sensitive data protection. Social Security numbers, addresses, birth dates, and driver’s license numbers can be a target for attackers. 
  • The third possible benefit is reducing costs and improving efficiency. Blockchain technology can reduce streamline processes, redundancy, bolster security, decrease audit burdens, and ensure data integrity. Besides, due to blockchain speed and efficiency, a payment and accounting system will be able to provide a permanent audit trail and facilitate faster reconciliation.

Blockchain Use-cases to Eliminate 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.

To learn more about Novem, visit: https://novemgold.com

Join the discussion in our Telegram channels and follow our progress on social:

Novem Research