Blockchain technology improves public services and generates administrative efficiency, study finds
Blockchain technology has emerged as a disruptive application across all sectors. Blockchain is a distributed ledger that tracks a set of transactions in a decentralized, secure, and transparent manner in the form of a chain of blocks. It is often used as a broad term for a set of technologies. Previous studies have shown that blockchain technologies are a powerful, essential, and effective lever for transforming government processes and procedures and improving public management and policies. Thus, Blockchain brings valuable opportunities to organizations: transparency, privacy, security, risk control, democratization, and reliability.
To investigate the effects of using blockchain on key government functions, FGV EAESP researcher Maciel M. Queiroz , together with Samuel Fosso Wamba, Serge-Lopez Wamba-Taguimdje and Qihui Lu , published a study in Government Information Quarterly in February 2024. To this end, 167 cases of blockchain-focused projects in the public sector were selected from a mapping of the “Innovative Public Services Observatory” (IPSO). In this way, an exploratory analysis was carried out, that is, an in-depth analysis of the project indicators to maximize the obtaining of information from the data. In addition, an fsQCA approach was applied, a method that identifies complex causal relationships between variables and, consequently, identifies the conditions that lead to achieving the operational and administrative performance of open government.
The results provide concrete evidence on how blockchain enhances key functions of government and its subsectors, influencing the governance of public services, administrative efficiency and open government capacity, while driving innovation and improving operational and administrative performance. The research highlights that the effects of blockchain are: reducing bureaucracy, discretion and corruption; increasing automation, transparency, auditing and accountability of information for the benefit of citizens and stakeholders; and increasing citizen and business trust in government processes.
A crucial contribution of blockchain is its ability to promote a citizen-centric agenda, transparent governance, and a decentralized approach to development.
Despite the benefits, the research acknowledges the challenges of blockchain, such as integration with existing systems, employee training, and regulatory issues. The technology in the public sector is in its early stages, but its transformative potential is clear, as demonstrated by systematic analyses and tangible examples in the study. In terms of administrative efficiency, blockchain reduces costs, improves the management of public resources, promotes the quality of processes, communication and collaboration, and reduces or eliminates corruption risks, promoting justice and equality.
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