Hello Xillion community!
With Governments around the world racing to fund and deploy various Crypto project solutions across sectors, this overview will outline how blockchain technology is making its way in building the Web 3.0 layer for both public and private institutional giants. This “Crypto Space Race” will shape the long term mass adoption trajectory of Crypto, being that regulated institutions ranging from Central Banks, Schools, Legal, Real Estate, and Government Departments are all interconnected.
Blockchain technology has the potential to restore trust in governance processes and institutions. Various experiments across several industries (finance, supply chain, corporate governance, etc.) have already demonstrated its ability to record data in a secure, immutable, and distributed manner as well as to automate and certify certain processes with self-executing smart contracts. The
technology could help increase confidence between parties without the risks and costs of centralization in terms of control, privacy and security.
While global interdependencies provide many opportunities for cultural and economic growth, they also introduce multiple points of failure that might propagate errors across multiple social
and economic systems. The most appropriate solution lies in resilient and trustworthy governance systems which actually embrace interdependence and encourage cooperation amongst multiple
With existing multilateral organizations (such as United Nations, the G20, the World Trade Organization, and the World Health Organization) not properly integrated with the present financial and technology giants, there is crucial data and value that has not yet been activated. The current efforts being made will help to integrate between the two scopes of influential institutions and will help solve some of the most pressing macro and micro-level issues.
Current Blockchain Use-Cases Among Institutions:
- Major banks have been experimenting with blockchains and distributed ledger technologies to bring more security and efficiency in the settlement of inter-banks transactions. For example, Nasdaq was one of the first to launch a blockchain-based trading system for private company shares, and securities brokers are currently exploring the technology’s potential to expedite the trading of securities by reconciling settlement and clearing into one single step.
- The Blockchain Insurance Industry Initiative is exploring the use of blockchains in the insurance industry to guarantee more transparency, accountability, and auditability to the multiple actors involved in the complex insurance value chain. In the public sector, Estonia is among the first to deploy blockchains and distributed ledger technology for securing the operations of governmental agencies. The same technology could be deployed as a global and decentralized database where relevant authorities could log and trace the spread of the pandemic in different countries.
- In April 2016, Georgia’s National Agency of Public Registry (NAPR) collaborated with Bitfuri Group to implement Blockchain in the land title registry. The project supplements the traditional land registry protocol with Blockchain. In turn, this enhances public confidence in property records. Land registration processing time reduced from about 3 days to a matter of a few minutes, with Around 90% reduction in the overall land registry cost.
- In Malta, the Ministry for Education and Employment (MEDE) adopted the Blockcerts platform to manage the nation’s academic records. On this blockchain framework, it is possible to create, issue, view and verify academic credentials of the Maltese citizen. The risks of academic data falsification are significantly reduced, with an enhanced means of storage and shareability of academic information.
- In the Swiss city of Zug, the government is using the Ethereum blockchain to issue decentralized IDs, known as uPort. The project was launched in November 2017 and was limited to residential proof in its first phase. Presently, the ID can be used for several municipal services, including the casting of votes. The uPort app is the users’ point of interaction with the system. To ensure the validity of the identity, as well as, for protection in case of loss of the mobile device hosting the app, the protocol uses two smart contracts. One, a controller contract and two, an identity contract.
- While the Federal Reserve has made no final decision to pursue or implement a central bank digital currency (CBDC), they have been exploring the potential benefits and risks of CBDCs from a variety of angles. Like existing forms of money, a CBDC would enable the general public to make digital payments. As a liability of the Federal Reserve, however, a CBDC would be the safest digital asset available to the general public, with no associated credit or liquidity risk.
What Institutional Deployment Means For You:
Institutional deployment of crypto solutions aims to fix some of the major weak points which these institutions experience, which in turn create massive downstream inefficiencies for civilians. Some of these major weaknesses include the general lack of digital integration across borders, outdated networks, extensive corruption, privacy issues, and globally stressed supply chains.
Implementing blockchain in government would rule out the need for intermediary institutions and third-parties. Consequently, we would benefit from a significant reduction in the overall governance cost. Taxes can be reduced manifold and governments can invest in the betterment of welfare services. The blockchain government initiatives that can leverage these benefits will help in restoring citizens’ trust in their governments. Moreover, the mathematical basis of Blockchain verification makes institutions more inherently credible and reliable.
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