Why is blockchain needed for public governance?

Why is blockchain needed for public governance?

Not only business but also governance is moving to the virtual space. Data digitization saves from the red tape. More precisely, the latter is going online and nationals can collect all documents and statements in the comfort of their homes instead of standing in long queues in different public agencies.

Talking about electronic registers, one thinks about data security and safety as well as guarantees against hacking attacks. Blockchain successfully solves these tasks, as capabilities of decentralized databases ensure confidentiality, integrity, and accessibility of information.

Let’s see how distributed ledgers cope with current problems in public governance.

Bureaucracy and electronic document management

Bureaucracy is an irreplaceable part of the public governance, but its efficiency is usually constrained by the human factor, corruption, and waste of time. Electronic ledgers solve these problems.

Estonia has been the best in facing the challenge of public database synchronization in real time. The authorities have built a unified decentralized ecosystem that allows setting up and synchronizing new services and bases seamlessly.

Results of blockchain infrastructure implementation have proven its efficiency:

  • 94% of nationals have е-IDs required for using e-services;
  • 2% of GDP has been saved thanks to the digital transformation of documents;
  • > 4 thousand services are available via the Internet.

Authorities of the UAE are also planning to move the public document management to blockchain. It is planned to establish a scalable public blockchain ecosystem and a single standard for databases intended for smart city management.


Let's get back to Estonia. The country has launched the e-Residency program. It gives access to electronic public services to citizens of other countries that register and run business in the EU.

One of the services that e-Residency provides is an e-notary. It was developed in collaboration with Bitnation and certifies any statements and documents on blockchain. It substantially simplifies the process of obtaining an extract from the register and saves time spent on visits to notaries.


Voting is an attribute of democracy, but ballot rigging and the illicit use of votes does not bring legitimate results.

voting with biometric authentification solves these problems. Recently, a pilot e-voting project based on blockchain with the use of electronic IDs has started in Zug. The test will help to determine whether distributed ledgers are able to preserve the integrity of data and privacy of voters.

Earlier, a test of the mobile blockchain-based voting application was launched in West Virginia, the USA. The project was developed for citizens that serve in the armed forces and cannot attend election wards.

Property registration

People do not have trust in the Ukrainian land market, mildly speaking. The biggest number of fraudulent schemes are found in the records of land registries. Decentralized systems eliminate manipulations and unauthorized operations with data.

has already tested a public geo-cadastre based on blockchain and the authority has moved its operations to decentralized databases.

Last year, Georgia set on a course for blockchain implementation in the land cadastre. The step will allow for secure online transferring of property rights to land, eliminating any corrupt practices.


Ukrainian Ministry of Justice signed a memorandum with BitFury aimed to move the blockchain auctions of seized property to the new OpenMarket system. It eliminates manipulations with data and conducts fully transparent auctions. It is expected that real estate and natural resources will be traded at blockchain auctions in the future.

Blockchain facilitates the interaction between citizens and public agencies, contributing to the democracy in all senses and at all levels. The technology may be used in any area where data transparency, privacy, and integrity is vital, from presidential elections to transfer of ownership.

Blockchain also helps the private business. The technology can be integrated using special platforms that are available in a great quantity. Here is the ranking of the most efficient public systems that can help you to launch a blockchain project.

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