The benefits of more excellent connectivity, though, are not to be taken for granted, and the increasing convergence of technologies that enable a more seamless exchange of information, process automation, data, and calls for the decision will result in a marked increase in the power wielded by governments. Read more about interesting crypto news in https://chesworkshop.org/.
The prognosis for cyberspace is that it will become increasingly important to assure transparency, integrity, and accountability by creating trusted digital infrastructures. It is arguably where blockchain technology can play a role as it supports more secure transactions between parties without the risk of fraud, counterfeiting, or accounting errors. Blockchain’s disruptive potential cannot be understated.
It removed the role of trust in transaction execution on the internet by creating a decentralized ledger where every transaction is permanently stored on all participants’ computers, an ability that has redefined trust and information sharing. In addition, if a blockchain-based payment system such as Bitcoin were to be released in Australia, it would offer an inherent advantage over current systems as it would not need a government to issue currency for it to work.
Similarly, we already see the disruption to government institutions where blockchain-based applications are being used to store data securely, transfer value, track assets, and verify identity. So let’s discuss whether governments should buy into blockchain-based infrastructure.
The incapability of Traditional Government Backing:
Blockchain technology promises to improve the legitimacy and integrity of government-led transactions. A transparent and tamper-proof ledger will ensure that data remains trustworthy, with every action recorded, verified, and stored in chronological order. Furthermore, the combination of this decentralized ledger with real-time data analysis creates a powerful tool for auditing any transaction.
However, these changes to how governments operate are unlikely to be adopted without significant resistance. There are three main reasons for this:
1) The shift from a centralized system to a decentralized one requires the implementation of new technologies and processes, which most governments don’t have the budget or expertise to manage and implement themselves.
2) A blockchain-based system will reduce transaction costs and provide greater efficiency in the delivery of services, undermining the ability of the government to levy taxes – a central source of government revenue. In theory, citizens would also be able to choose which level of government should perform a specific transaction instead of being mandated by central authorities.
3) The lack of centralized authority in charge of records will change how we define an identity for citizens and businesses. It could lead to an age where there are no longer any borders or restrictions imposed by governments, allowing for more fluid migration between states and improved global trade. It would require radical cultural changes from governments’ vested interests in the sovereign territory and national identity. While these are valid concerns, governments have time to overcome these issues if they choose to do so. It is unlikely that users will implement blockchain-based systems overnight, and most government systems will continue to be maintained traditionally while blockchain technology is being tested and developed. If adoption occurs, it will come from a centralized authority that would likely set the standards for implementation but otherwise leave the execution up to the party executing the transaction.
We could also see governments opening up contracts for blockchain-related development to foster innovation in this space and create a vibrant industry in their economy. It would allow governments to remain relevant as innovators and give them access to new technologies and processes at a reduced cost.
The permanence of hyperstructure:
Blockchain technology allows for an indelible record to be made of any transaction, ensuring that there is no way to change the record afterward. It is a valuable attribute in a world where central authorities can be pressured or coerced into modifying or removing past transactions. Unfortunately, governments too come under pressure from time to time and do not always act to preserve their citizens’ best interests but rather the best interests of their officials. As a result, they are often accused of financial mismanagement.
The permanence of blockchain transactions could go a long way in increasing transparency and public accountability. Government institutions will likely feel the pressure to use blockchain-based systems if they want to be seen as transparent, reliable, and trustworthy.
NFTs and Government:
Since NFTs are the future of intelligent digital assets and blockchain is the future of decentralized, distributed ledgers, there should be some strong synergies in developing and adopting blockchain technology.
Governments are in a unique position to take advantage of this. They can access a broader range of populations than other industries. They can use their centralized power to negotiate more favorable trade deals than smaller competitors and benefit from the potential for cheaper, faster transactions. Governments worldwide are already looking into bringing greater transparency and accountability into their operations through blockchain technology.
