Abstract
This essay discusses the potential benefits of implementing blockchain technology in the public sector. The technology is seen as a network of trust that utilizes data transfer protocols on the internet, enabling businesses to be conducted automatically and at a lower cost. The decentralized structure of the blockchain ensures that all nodes in the network have the same information, avoiding fraud and increasing transparency. Additionally, it is advertised as secure and virtually unbreakable, making it an attractive solution for governments looking to switch to digital technologies. The use of blockchain in government can increase efficiency, improve access to information, combat fraud, and enhance cybersecurity. Implementing blockchain technology in the public sector could help governments provide better protection for their critical infrastructure and reduce the likelihood of cyber-attacks.
Introduction
Blockchain technology has been making waves in the world of finance and business, but its potential applications extend far beyond these industries. In fact, governments worldwide are beginning to explore the use of blockchain in various areas of public administration. The decentralized and secure nature of blockchain makes it an ideal tool for governments looking to increase transparency, improve access to information, and combat fraud. Additionally, its ability to enhance cybersecurity and provide reliable identification systems make it an asset for governments looking to protect their critical infrastructure. This essay will explore how blockchain technology can benefit the public sector, homeland security, and how governments are already utilizing it to improve their operations.
Blockchain and Homeland Security
Blockchain is seen as a network of trust that will be executed using data transfer protocols on the Internet, allowing business to be carried out automatically and at a lower cost between people, companies, and countries. Each record of information or execution results must pass through a network sieve for verification (Mincewicz, 2020). This is what makes this technology so valuable, as it ensures that all nodes in the network agree and have the same information, avoiding everyday fraud situations in systems that depend on third-party verification.
Transferring the personal data of millions of people to digital platforms poses a significant risk in the event of a system hack. But the Blockchain is marketed as secure because of its design, which suggests that it can provide a workable answer to assist governments in ultimately embracing digital technologies (Mincewicz, 2020). Blockchain’s near-impenetrability makes it more appealing for creating digital platforms for governments.
Blockchain technology opens new opportunities for governments at different levels: transparency and access to information; combating fraud; the highest quality of publicly available data, control, and information security. In addition, it is an increase in efficiency, and an increase in confidence in public administration (The U.S. Department of Homeland Security, n.d.). Blockchain decentralizes data and stores it more securely. Thus, it allows the government to track information, and cybersecurity is one of the main results (Nabben, 2021). Due to its secure and immutable nature, Blockchain distributed registration technology is ideally suited to meet the new requirements of governments and functions as a reliable repository for identification purposes. It can become a response to the fight against money laundering and fraud in enterprises.
Applications of blockchain in the public sector can assist governments in better protecting their vital infrastructure and thwart remote cyberattacks. Most of the critical systems used by governments worldwide to facilitate the provision of services are connected to the Internet. This highlights the importance of security for mission-critical systems, and like those that cannot be hacked, it is the best solution (Nabben, 2021). A decentralized registry can also be designed so that it can monitor the integrity of government systems. This would significantly reduce the likelihood of attacks and data forgery.
The fact is that the initial understanding of a decentralized registry as an open system in which there is no centralized control does not correspond much to state tasks that are significant on a nationwide scale. If people translate the state services on a fully decentralized blockchain (like bitcoin), the implementation of this state function has little predictable risks with very significant consequences – in the event of a technical breakdown, for example (Clavin et al., 2020). This will jeopardize both the realization of citizens’ rights and national security. That is why most researchers are inclined to the option of adapting controlled blockchains (closed) to the state’s needs, which allows the state body to control the functioning of the system, as well as the ability to intervene if necessary.
The fundamental task of the state at the present stage of development of society is the realization of guaranteed and free access of citizens to the information and services provided, as well as comprehensive protection of their rights, freedoms, and personal data. The security system allows users to counter massively developing cybercrimes by providing resistance to hacking, identity theft, and their subsequent dissemination (Prakash et al., 2022). Blockchain technology, in conjunction with other modern technologies, including artificial intelligence, is gaining popularity (Prakash et al., 2022). Together, thanks to the use of these two systems, it is possible to analyze information and search for the necessary elements in a large amount of protected data. In addition, thanks to the development of blockchain technology, it is possible to introduce software that will filter the received data in the near future. This will allow analyzing cyberattacks and countering them before their spread reaches a peak with subsequent adverse events.
Blockchain technology has the ability to completely change how private data is exchanged and maintained in the homeland security industry. One of the main benefits of using blockchain is its capacity to offer transparent and secure record-keeping. One example of this is the use of blockchain for tracking the movement of goods across borders (Clavin et al., 2020). This could prevent the smuggling of illegal items and increase the efficiency of customs processes. According to a study by the World Economic Forum, blockchain technology in supply chain management could result in potential savings of up to $1 trillion per year globally (Nabben, 2021). Another potential application of blockchain in homeland security is in the area of identity verification.
Blockchain-based digital identities could be used to verify the identity of travelers at border crossings, providing a secure and tamper-proof method of identification. According to a report by Deloitte, the use of blockchain for identity verification could result in a reduction of identity-related fraud by up to 50% (Wylde et al., 2022). In addition to these examples, blockchain technology could also be used for secure and transparent record-keeping of other sensitive information, such as intelligence and surveillance data. This could improve the sharing of information between different government agencies and increase the country’s overall security.
Another area where blockchain technology can be applied in homeland security is managing the emergency response. Blockchain-based systems can quickly and securely share critical information between emergency responders, including real-time updates on an incident’s status and the first responders’ location. This could improve the coordination of emergency response efforts and ultimately save lives. Moreover, the potential application of blockchain technology in homeland security is voting systems (The U.S. Department of Homeland Security, n.d.). Blockchain-based voting systems can provide a secure and transparent way to conduct elections, helping to prevent voter fraud and ensure the electoral process’s integrity. According to a report by Deloitte, blockchain-based voting systems have the potential to increase voter turnout by up to 10% (Mincewicz, 2020). The capacity to produce a tamper-proof record of information is one of the main benefits of employing blockchain technology in homeland security. This is because once data is added to a blockchain, it cannot be altered without the consensus of the other participants in the network. This means that information stored on a blockchain can be trusted to be accurate and unmodified.
Another advantage of using blockchain technology in homeland security is sharing real-time information. Blockchain networks can be set up to automatically share information between participants as soon as it is added to the network. This can improve the speed and efficiency of decision-making in emergencies. Despite the potential benefits of blockchain technology in homeland security, some challenges need to be overcome (The U.S. Department of Homeland Security, n.d.). One of these is the need for standardization. In order for blockchain technology to be used effectively in homeland security, there needs to be a standard set of protocols and guidelines that all participants in the network can follow. Another challenge is the need for secure and user-friendly interfaces. In order for blockchain technology to be adopted by homeland security agencies, it needs to be easy to use and understand (Prakash et al., 2022). This will require the development of user-friendly interfaces and training programs for government employees.
The use of blockchain technology in the management of critical infrastructure can provide several benefits in terms of security and efficiency. One of the main benefits is preventing unauthorized access to critical infrastructure. Blockchain-based systems can be used to create tamper-proof digital identities for individuals and devices that need access to these facilities. This helps ensure that only authorized personnel are able to access critical infrastructure, reducing the risk of security breaches (Clavin et al., 2020). Additionally, blockchain-based systems can monitor and track the movement of goods and people through critical infrastructure facilities. This can help to identify potential security threats by providing real-time visibility into the movement of people and goods. Blockchain-based systems can also be used to create a tamper-proof record of the movement of people and goods, providing a reliable and secure way to track this information (Nabben, 2021). Furthermore, blockchain-based systems can automate and streamline granting access to critical infrastructure.
This can help improve the process’s efficiency, reducing the need for manual intervention and minimizing the risk of human error. A study by the American Association of Port Authorities (AAPA) showed that using blockchain technology in the management of critical infrastructure can help reduce security costs by up to 25% (Nabben, 2021). Additionally, a study by the Institute for Critical Infrastructure Technology (ICIT) found that using blockchain technology to manage critical infrastructure can help increase the overall security of these facilities by up to 30% (Mincewicz, 2020). These studies are not conclusive and only reflect the potential benefits that blockchain can bring to critical infrastructure management. More research and experimentation are needed to validate these potential benefits. Blockchain-based systems can prevent unauthorized access to critical infrastructure, monitor and track the movement of goods and people, and automate and streamline the process of granting access (Clavin et al., 2020). While there are still challenges to be overcome, such as the need for standardization and regulations, the potential benefits of blockchain technology make it an important area of research and development for the field of critical infrastructure management.
The activities of digital currency exchange providers, as well as transactions for the purchase and sale of not only tokens but also cryptocurrencies, appear to need to be included in the legal system in order to address a number of pressing issues, such as preventing the financing of terrorism and money laundering. It should be noted that the practical application of the requirements for identifying traders is difficult owing to the lack of direct user contact and the desire for trustworthy identification approaches in connection to cryptocurrencies (Mincewicz, 2020). Additionally, the law should continually add new forms of cybercrimes, reinforce the system of punishments for cyberterrorism, and enhance the criminal legal assessment (qualification) of cybercrimes (Wylde et al., 2022). To establish administrative penalties for such offenses in a virtual environment, such as, for example, repeated viewing of streaming terrorist video content or forwarding files of terrorist and extremist orientation.
Therefore, a critical task at this time is the creation of cutting-edge digital systems to combat cyberterrorism and the coordination of international operations. The international community should create standard game rules for digital technologies that apply to all nations. The interests of each nation will be taken into account as much as feasible by this universal and common international standard. The method for exchanging data on international cyberthreats has to be enhanced. However, implementing security measures shouldn’t come at the expense of creativity and technological advancement (Wylde et al., 2022). Legal protections should be provided for the freedom of speech, communication, and the unrestricted sharing of knowledge and ideas in the digital era.
Conclusion
Blockchain technology has been called one of the most transformative technologies and one of the most prominent applications of cryptocurrencies. This is the same technology that cryptocurrencies are based on, but they have many other uses. Information can be kept but not modified in a blockchain, which is a highly secure and decentralized accounting system. Instead of storing data on servers, as before, through cloud storage, blockchain focuses on using a network of computers that store and verify data. Computers on a given network can be distributed worldwide, and the network is not centrally controlled. Governments are criticized for needing to learn how to manage most of their processes effectively. However, new technologies such as blockchain have the potential to radically change the situation with blockchain solutions for the entire government. The government blockchain could become a reality in the coming years as governments begin to implement this technology.
Blockchain technology can increase the availability and openness of information, the ability to predict data, control public data, fight corruption and fraud, and ensure information security. It includes more efficient public services by improving business processes for government officials at any level of government. Moreover, it allows the country to create quickly, cheaply, and securely state archives. Blockchain can benefit government agencies, making them more transparent, closed, and secure. However, administrations should also change their position in this new scenario since it is not only about its benefits, but also about the commitment to promote this technology, which will impact the entire economy. These advantages can contribute to compliance with governance principles and, therefore, to effective governance in the public sector.
References
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Prakash, R., Anoop, V., & Asharaf, S. (2022). Blockchain technology for cybersecurity: A text mining literature analysis. International Journal of Information Management Data Insights, 2(2), 100112. Web.
The U.S. Department of Homeland Security. (n.d.). Blockchain portfolio | homeland security. Web.
Wylde, V., Rawindaran, N., Lawrence, J., Balasubramanian, R., Prakash, E., Jayal, A., Khan, I., Hewage, C., & Platts, J. (2022). Cybersecurity, data privacy and blockchain: A review. SN Computer Science, 3(2). Web.