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Key facts:
According to the IDB, the evidence of use of blockchains in public sector Latin america are isolated.The study suggests that the adoption of blockchains could remove some of the functions of the government.The inter-American Development Bank (IDB) published this month a study on the adoption of solutions based on blockchains on the part of government agencies. According to the international organization, few governments globally have implemented pilot projects that use blockchains in the public administration.The study of 96 pages, which was called the Blockchain in the public administration: does a Lot of noise and a few blocks?, explores the current status of adoption of the technology on the part of governments of Latin America and the Caribbean. It also explains that it is intended to provide a guide to facilitate the understanding of the topic and the identification of use cases for the public sector in the region.IDB found that, despite the fact that several Latin american governments are beginning to explore the adoption of solutions based on blockchains, few projects pass “to a stage of deployment at scale.” According to the report, the low adoption could be due to that this technology is still in nascent state.
It is possible that due to the low level of maturity of the technology, the majority of the projects reviewed, have raised the question: can I do this with blockchain? (…) However, the question that needs to be done when you are thinking about a deployment designed to scale: what is the best technology that can help me to solve this problem?Report of the inter-American Development Bank
The IDB argues that several of the Latin american experiences of adoption network blockchain in the public sector, consisting of pilots implemented in isolation. That is to say, projects that are detached from the rest of the institutions and of the public policies of the State.However, the financial institution international believes that some of these pilots have stimulated innovation in the public administration. “Under certain conditions the technology blockchain you can add value to solving public problems”, explains the IDB.
Challenges of adoption
The document outlines the government could divest some of the functions through the use of networks blockchain. Tasks such as records of vehicles and real estate, to verify payment of taxes or granting education credentials, could be realized using contracts smart scheduled on a blockchain.To this end, they would have to face organizational challenges such as designing the governance of the processes and mechanisms of consensus, the type of blockchain to use (public, private, permisionada, open), among other considerations. The IDB explained that several of the cases analyzed in Latin america, have begun to build networks based on the model of governance of the network Alastria, developed in Spain.Among other challenges, the report cites the type of technology, including the digitization of all information, the automation of the processes, the implementation of data storage solutions, among others.“To implement a solution based on blockchain, governments should have the right combination of hardware, software, security policies and procedures to conduct electronic transactions safely,” reads the report.In addition, public bodies will need to address the regulatory aspects. In this sense, the IDB noted that the requirements of the legal framework of government, could complicate the use of network blockchain, or to avoid that the solution is scalable.
Blockchains for the public role
The report of the IDB identifies four areas where the implementation of solutions blockchain could make more effective the public administration. Among them, the disintermediation of information, the tokenization of assets, the automation of processes and interoperability of the institutions.To make progress in these areas, the report recommends a group of actions. Encourage experimentation with new technologies, as the solutions used blockchains, designing models that are scalable and train talent within the public administration, are among the recommendations of the international body.The IADB suggests in addition to recommended the review of the Principles of Digital, recently adopted by the institution,
as a general guide the use of technology in development projects, such as the implementation of blockchains in the public administration.