April 6, 2018
The world we are living is changing with an incredible speed that we have never imagined. Technology has ruled and regulated everything involved in our daily life. And far from a short-term trend, blockchain is a revolutionary approach that businesses are racing for. However, when it comes to government’s attitude toward this disruptive technology, there are still non-transparent evaluations from World powers.
Blockchain, understood in the simplest way, is a decentralized distributed ledger technology which allows creation, validation and encrypted transaction of digital assets to happen and get recorded in an incorruptible way. At its heart, it is a database of groups of transactions (blocks) that are linked to the previous group of transactions (the chain) and is replicated and distributed to everyone who participates in the network so that all copies of the database are identical. Blockchain records every transaction that ever happens, and no records are ever deleted.
Sooner or later, this disruptive technology will catch the eye of government all over the world as no one wants to left behind in the innovation and technological advancement theatre.
Many governments are either studying numerous potential blockchain-based applications for affairs of state or already in the process of testing such applications if only on a small-scale. Blockchains have the potential to revolutionize the activities of government.
Major interest of the US Federal Government is concentrated in the area of national security. The Pentagon and DARPA are believed to be seriously working toward adopting blockchain-based protocols in improving the security across the country’s border. Both the Pentagon and DARPA are reportedly focusing their attention on the theoretical immutability of the blockchain and how it can be applied to designing robust security protocols. Top of their agenda is the use of blockchain in sending and receiving encrypted intelligence information without the threat of interception or hacking.
On the other side of the globe, Singapore — a booming and potential Asian city-state with a government that favors tax-friendly regulations and strong support of financial technology — has embarked on an ambitious plan that seeks to leverage the benefits of blockchain technology. Recently, the Monetary Authority of Singapore announced plans to tokenize the Singaporean Dollar on the Ethereum Network, while also allocating over $225 million dollars to blockchain research and development, all part of its Project Ubin initiative to integrate blockchain tech into the governmental and financial apparatus of Singapore.
Dreaming of becoming a “future country”, Dubai is in an attempt to speed up in the technology marathon. The government even establishes a ministry dedicated to the adoption and implementation of artificial intelligence. By the year of 2020, Dubai aims to become the first-ever blockchain-powered government. The main aim of the plan is to leverage the power of blockchain technology in facilitating license renewals, payment of bills, and visa applications.
Currently, Dubai is well-known as a prominent holiday destination which attracts millions of tourists and visitors per year. In the near future, by using blockchain technology supporting for this promising industry, a large percentage of those manhours can be saved. And by making the move to a paperless transaction system that is hosted entirely on the blockchain, the Dubai government could potentially save up to $1.5 billion per year.
Initially, Russian President Vladimir Putin was totally distrust on blockchain and cryptocurrency, however, it seems he’s had a change of heart and gone full crypto since meeting Ethereum progenitor Vitalik Buterin in June 2017.
Since then, the Russian government has launched into full-blown crypto-mania. Russia’s two largest banks have collaborated on their own distributed ledger — Masterchain — while the Ethereum Foundation has launched a Russia-based wing, and even airlines and fast-food chains have hopped on the blockchain hype wave. The Russian government has also signaled plans for investment in digital currency mining, and a host of regulations are said to be forthcoming.
Widespread acceptance of blockchain and cryptocurrencies depends on policy execution of every country, which is only likely to happen if there is friendly and open vision from the governments all over the world. And with the current reality, blockchain can really become the next big thing in the digitized world.
Infinity Blockchain Labs is a visionary R&D company engaged in intermediary and RegTech services employing blockchain technology. We focus on forming alliances with established businesses and regulatory institutions across various industries, as well as providing collaborative incubation for early stage blockchain projects.
IBL aspires to empower Vietnam to become a global leader in blockchain development and therefore are committed to sharing information to nurture a passionate, educated blockchain community. One of the ways we maintain our role as ecosystem pioneer is by helping create educated blockchain enthusiasts. We are committed to sharing information and resources to help Vietnam become a blockchain hub through conferences, courses, contests, alliances, workshops, speaking engagements and incubations. Information regarding topics like blockchain regulation helps people become more familiar with key blockchain concepts and thus able to adopt the technology.
LinkedIn: Infinity Blockchain Labs
Blockchain 101 for Governments, prepared by the WU Global Tax Policy Center (WU GTPC).
Blockchain Adoption in Government, www.medium.com
5 Governments That Actually Support Blockchain Innovation, www.medium.com