The upsurge of digital transformation in the past decade has brought new tools and technologies to simplify business operations, and blockchain has had a particularly significant impact. 53% of executives said that this technology is crucial to the success of their organization, and it is clear that blockchain will continue to gain momentum in the enterprise sector in 2020 and beyond.
And it doesn’t seem to stop there. The federal government is also aware of the impact of blockchain on its network. It is estimated that the expenditure on blockchain will increase to US $123.5 million by 2022, an increase of more than 1000% compared with us $10.7 million in 2017. However, in order to achieve extensive integration of public and private networks, state governments must also develop blockchain plans. By establishing transparent and streamlined records, this commitment at the local level will help change the interaction between the public and private sectors, making it easier for businesses to operate in what they call “home” states.
Benefits of public sector investment
The ability of blockchain to provide immutable records will allow the government to develop permanent and uneditable transaction records. This creates more efficient processes – solutions to the problems that governments have struggled with for decades. In addition, it will enhance the security of records and increase fraud protection in states. Perhaps most importantly, this technology will increase transparency between local governments and the citizens they serve, thereby increasing cooperation and trust between the public and private sectors.
Some states have realized how blockchain will have a positive impact on operations and have invested in this technology in several different areas over the past few years. It is worth noting that both Delaware and Illinois are using blockchain to promote their digital transformation. In July 2019, Rhode Island passed a law regulating virtual currency, clarifying the current complex provisions surrounding the role of blockchain in currency transmission. In addition, it is the first state to seek blockchain technology across government agencies, with the goal of improving government efficiency and creating an environment that makes it easier for businesses to do business in the state. The commitment of these three countries to blockchain integration highlights how local governments can translate technology goals into initiatives that benefit the public sector, the private sector and local residents.
The influence of blockchain on enterprise operation
The digital identity of blockchain will simplify the interaction between government and enterprises. In the past, when cooperating with national institutions, enterprises need to contact each department separately. However, the identity based on blockchain allows all members of society to directly access all institutions through a single entrance, thus eliminating the cumbersome back and forth operation related to government operation and encouraging more public-private cooperation.
When considering the security provided by blockchain, network security companies also began to use this technology to protect data from malicious actors.
As the financial technology and network security industries continue to grow, companies will be headquartered in states that also rely on blockchain technology and recognize the importance of blockchain technology in supporting innovation and business growth. Rhode Island can be seen as an example by changing the law to make blockchains easier to adopt and by developing a regulatory sandbox in financial services. This allows new companies to enter and require changes to blockchain rules, while identifying any consumer protection issues. These initiatives together create a modern environment that continues to attract new and innovative enterprises.
The future of blockchain
In order to make full use of the potential of blockchain and create a more efficient and transparent future, local governments must take necessary steps to integrate blockchain technology. While this task may seem daunting at first glance, integration can be accomplished in a number of ways – from auditing or modifying existing laws and regulations that impede adoption. This adoption will help businesses that operate in the state and attract innovative companies that want to do business in areas they feel supported. This blockchain centric landscape will also create a business environment conducive to the blockchain industry and blockchain active incubators, and help further cross sectoral adoption.
States have seen the broad benefits of blockchain and it will continue to have a positive impact on business growth. If other states do the same, and there is evidence that they will, then the United States is one step closer to building a central operations center for government, businesses, and citizens.
Editor in charge: CT