Blockchain and its public value 1: The opportunities of DLT application in public sector case studies

Authors: Marlen Komorowski, Laurence Claeys and Thomas Van Dam

This article is the first article of a short series published on LinkedIn on "Blockchain and its public values", which presents the findings from a 6 months research project of imec-SMIT-VUB for the Ministry of BZK in the Netherlands. Please consult the Policy Brief and Full Report in English and Dutch, for the full study including all references and information.

Distributed ledger technology (DLT) of which blockchain is one system has experienced in recent years a lot of attention as it offers new ways of bringing public services to citizens and businesses. Because of this, governments have started experimenting and investing in blockchain and DLT solutions for the public sector. The OECD (2018) found already more than 200 government-led blockchain initiatives in more than 40 different countries.

To understand where applicability of blockchain should be considered, it is important to recognize that DLT can be seen as a form of “general purpose technology”. This is due to the infrastructural character of the technology. This means that whether DLT or blockchain is a solution to a given problem in the public sector and can impact public value can only be answered on a case-to-case basis.

In this article, we present below an analysis and description of a total of 21 DLT use cases to show potential opportunities for application in different public sectors and services:

The application patterns for DLT use cases in the public sector

By analysing a total of 21 case studies, we found that features of DLT application in the public sector vary by each use case. However, it should also be pointed out that applications are not limited to the 21 use cases. While the applications are all specific, yet certain patterns can be discerned which we call application patterns. Identifying these patterns can help to further recognise additional use cases in the public sector. The identified application patterns generalize specific applications by bringing together recurring technological attributes on the one hand and services offered in the public sector that can be encountered on the other (see table below).

Assessing possible applications in the public sector

Due to the diverse levels of application possibilities and application patterns as shown above, there is no clear consensus in which public sectors and which application patterns of DLT show the most benefits. Further, it needs to be highlighted that each individual application pattern could also be implemented by centralized systems. Therefore, the specific attributes and applicability of DLT for use cases need to be assessed with care. We suggest that a good indication to identify the most promising public sector applications is the maturity of the application by use case. We assessed the maturity level of analysed use cases by comparing the technology readiness level and the number of countries/regions working on such blockchain solutions (see figure). There are four major groups:

• First, un-identified or novel use cases, which are not mapped below.
• Second, use cases in early-stage development. This includes for example government subsidies, and grant and funding management. For these use cases research can often be found and first research by governments but not many specific applied use cases yet.
• Third, tested use cases lacking evidence. These have been tested and implemented by at least one or a few governments but haven’t been adapted across many different public sectors yet and therefore not much evidence is available. This includes for example immigration or taxation.
• Finally, advanced use cases with many different governments investigating blockchain for solutions or are already running blockchain systems for a longer time. Most notable are CBDCs, land registries and solutions for the energy sector.

Presenting 21 use cases of DLT application in the public sector

Below we present all 21 use cases in more detail, describing how DLT could be implemented as a solution, what the possible technological benefits and limitations of adoption DLT are and what real-life case studies already exist.

Use case 1: Digital infrastructure in the government

A functional public administration depends on an efficient infrastructure that is equipped for the exchange of value between different government services, public sectors, Ministries, and local administrations. Research highlights, that governments maintain huge records of data, which are currently held on databases, that are not shared and are not transparent. A DLT network can connect the various public bodies, give citizens more control over their data and optimize the transfer of value between the various parties, which dispenses of unnecessary manual keeping of data in multiple copies. This in turn can make the government more efficient. Research also highlights that DLT can have an impact on data security and support fighting cyber-attacks and malfunction. We couldnt identify specific real-life use cases yet.

Use case 2: E-voting

DLT has been coined in research as technology to enable participation into the democratic process and to create trust in elections through e-voting. Through DLT, voting could be done without physical presence, from abroad without mailing based on a NFT token giving the citizen the unique value of having a voting-right. This means that less physical infrastructure is needed, citizens could vote for longer periods instead of one single day and could hold a copy of the full voting record while the identity of individual voters would be protected. The application of DLT in e-voting is currently explored in many different countries and has been deployed in the last year already for several elections (see table below for examples). The results have been mixed. For example, Russia has created several state-funded systems that have gone through multiple iterations. Some have been deployed in elections, with each election still ending in accusations of mismanagement, data leakage, and ballot-stuffing. Another deployment of blockchain-based voting has been established in Tsukuba City, Japan, in 2020. The overall rollout was considered a success with mayor Tatsuo praising the ease and simplicity of voting through the application.

Use case 3: Government-issued digital identities

DLT can offer an infrastructure for establishing permanent digital identities for persons, legal entities (enterprises and organizations) and for example for goods. These can be self-governed by the individual or company/entity owning the identity, without the need for control by one central authority. A public blockchain with a digital identity can make it easy to digitally sign documents and make it verifiable by everyone concerned. The most common example of the application of a digital identity via blockchain is citizen identity through a self-sovereign identity (SSI) system. Via the DLT network, citizens can manage their digital identity and gain access to government services like, filing a new passport, address registration, birth certificates, etc. A possible solution is the use of decentralized identifiers (DIDs). DIDs expand the realm of self-sovereign identities (e.g., personal identity, diploma, flight tickets, items, credentials, etc.) without need for a centralized authority. DIDs are persistent and can be linked to any subject and can be cryptographically verifiable. While most government services in this regard are already online available, experts and literature highlight that blockchain and SSI (and DID) can offer additional advantages, including privacy protection, more data control by citizens and prevention of identity fraud. There are already various countries, who are testing or developing blockchain-based SSI for citizen identity (see table below for examples). Most notably, in 2021 the European Commission put forward a proposal to create a framework for European Digital Identity to be used by all citizens across the European Union allowing cross-border identification. Blockchain has been discussed as viable solution.

Use case 4: Land title registry

Dealing in land properties is today a time-consuming administrative process that is vulnerable to fraud, falsified documents, lost title deeds, etc. Establishing an agreement requires the trust of several parties (seller, buyer, notary, etc.) accompanied by hefty administration, which normally takes several days to finalize. Because of this, DLT systems have been favoured in research and many tested projects to run title deeds, land registry and transactions of land ownership via a blockchain system to reduce bureaucracy, digitize the land registry, and prevent fraud and falsified land titles. There are several countries who already implemented DLT solutions in this regard (see table below for examples).

Use case 5: International aid

Organizations and reports argue that Blockchain can trace financial and non-financial activity in any given foreign project cycle. In this context, the potential of blockchain can impact not only the administration of funds and aid but also other value exchanges that are happening. In the international aid sector, several experiments are currently being conducted to distribute aid funding using blockchain. One example is the Start Network consisting of 42 aid agencies across five continents. It has launched a blockchain-based project that enables the organizations both to speed up the distribution of aid funding and to facilitate the tracing of every single payment, from the original donor to everyone assisted. Also, national organizations work on blockchain solutions. For example, the German Gesellschaft für Internationale Zusammenarbeit (GIZ) established a ‘Blockchain Lab’ in February 2018. The lab currently tests blockchain technology for sustainable development. Also, Denmark’s Ministry of Foreign Affairs has partnered with virtual currency platform Coinify to use blockchain in foreign aid delivery. One of the few notable examples is the launch by the United Nations (UN) World Food Programme (WFP) in May 2017 of a project in the Azraq Refugee Camp in Jordan which, using blockchain technology enables the creation of virtual accounts for refugees and the uploading of monthly entitlements that can be spent in the camp’s supermarket. Reportedly, the programme has contributed to a reduction by 98% of the bank costs.

Use case 6: Government assets and spending

Governments face a challenge in being accountable for the complex systems and structures that they finance and manage. There will always be a need to check whether a system is legal, compliant, and working properly and these checks are performed by audits.Research has emphasised, that the use of DLT systems can change the perspective of what is examined in audits and how monitoring and tracing of budgets and assets in the government is conducted. DLT can drastically increase the effectiveness and efficiency of such processes through technical assurances for security, integrity, and immutability, which make many existing checks redundant. Using a blockchain to provide a currency, token or other digital asset can also be a way for governments to support asset and financial management within the complex and multiple management structures that they must internally manage. Implementations can range from the use of internal government coins (used for accounting and corresponding to real financial assets) to the automatic execution of simple financial transactions if certain requirements are met. Finally, smart contracts can be added to blockchain infrastructures that handle government expenditures, thus making automatic transactions and controls possible. The application possibilities for this use case are plentiful and first research into this application of blockchain exists. However, no specific use cases could be identified so far.

Use case 7: Taxation

One highly promising area for blockchain application is taxation. Experts and academia agree, that blockchain could solve many of the weaknesses of taxation systems. In terms of VAT payment, blockchain can be used to create a registry of electronic invoices that would allow the Tax Administration to see and verify taxes are paid when a product is marketed. A taxpayer could for example upload electronic invoices to a reporting system. The invoices would be verified and placed on a blockchain-based network. Such a system could allow for more automation, and create a history of transactions, allow for easier accessibility, and enable detection of fraud or errors. The European commission announced already in 2018 investment to reshape the way authorities for example collect cross-border taxes. Some European countries have already started experimenting with specifically blockchain for tax collection. For example, in Finland, the tax administration works with banks on a blockchain system to track taxes on real estate transactions and has also conducted a pilot project evaluating the effectiveness. In Sweden, blockchain is being tested to digitalize invoices, non-resident income tax, and customs duties. In China, blockchain is being used to combat fake invoices. However, most use cases are still in early development phase.

Use case 8: Central bank digital currencies (CBDC)

Another important topic related to the Ministry of FIN is digital currencies. Especially, central bank digital currencies (CBDC) are gaining attention on a global scale. CBDCs can be a starting point for a fully digital payment system, and spark interest to implement blockchain networks in other financial services. The most discussed benefit of a CBDC is faster, cheaper, and more efficient payments, domestically and internationally. It is also supposed to reduce costs of making, distributing, and safeguarding physical money. Most importantly, these gains can deliver greater productivity in an economy, a fundamental aspect of economic development. Currently, the trend for establishing a CBDC is especially significant in low- and middle-income countries. But there are also already pilots and tests on the way in Europe and other developed countries, especially for cross-border payments (see table below). For example, the Bank of Canada and Monetary Authority of Singapore have partnered in 2019 to enable transactions via digital currencies to make cross-border, cross-currencies transactions cheaper, faster and safer. ReiseBank Germany and ABT Canada want to enable financial institutions to process costumers’ cross-border payments, at real time and little to no cost and have developed a proof of concept in 2016.

Use case 9: Natural disasters

Natural disasters have become more frequent due to climate change in recent years. Research has argued that blockchain technology, offers unique capabilities to support rapid response to natural disasters, whether the incidence is a flood or threat of contagious disease. Most importantly, a solid, stable communication infrastructure is among the crucial factors for emergency response. With its technological capabilities, blockchain can directly address critical challenges of disaster response such as communication, coordination, rebuilding trust, or maintaining safety. For NGOs, for example, blockchain may support the registration of volunteers, rewards to volunteers and other contributors, identification, and tracking the delivery of supplies, such as vaccines and food, and services in complex supply chains. Already in 2015, the U.S. Federal Emergency Management Agency (FEMA) began an initiative to transform the way the agency administers grants and disaster relief funds. They claimed that in addition to validation of assets, FEMA can use blockchain identity management to issue e-identities to individuals seeking aid and assistance. A blockchain e-identity can help ensure that FEMA has a unique record of every person and issue relief payments in a manner that is secure and transparent. In 2018, a grant was issued to IBM working with the Texas OneStar Foundation and Texas A&M University to understand the disaster recovery landscape and to build a blockchain proof of concept working directly with survivors, the FEMA, private insurers, inspectors, the Small Business Administration, community partners and other government officials. In this regard, DLT can become a viable solution for similar challenges for the National Coordinator for Security and Counterterrorism (NCTV). The NCTV also ensures that regional authorities are given enough information to take a harmonised approach, which in turn creates problems for data exchange for which DLT could offer solutions in the future.

Use case 10: Immigration

Experts have highlighted, that DLT in combination with SSI solutions has the potential to help refugees and forced migrants. According to the United Nations, at present there are 30 million refugees around the world. Not only is it often difficult for them to prove their identities, but it is also often difficult to prove their professional skills or experiences (see also use case on digital diplomas below). The existence of SSI solutions and decentralized and immutable blockchain networks provides new ways to issue verifiable digital identity credentials and professional digital certificates. Research has already proposed systems using blockchain technology to create decentralized, secure, and scalable migration records of individuals, which help to check for unlawful immigration but will also allow to check if an individual has successfully reached the intended destination. There are already immigration tools developed which are powered by blockchain. For example, Migranet combines artificial intelligence, smart contracts, blockchain technology, biometrics, and the Migranet (MIG) utility token. The testing of the first working prototype of Migranet was completed in 2019. Also, Germany explores the possibilities for blockchain solutions for asylum procedures, which is presented below in more detail.

Use case 11: Financial aid – grants and funding management

Many public agencies have been encountering challenges in building transparency in their grants management systems and are struggling to reduce burdens around reporting. Recent research has stated that improvements in grants management for both federal agencies and grant recipients can be enabled using blockchain technology. Based on recent research findings, the primary benefit to federal agencies is improved decision making through more transparency, quality, and timeliness of grant financial and performance information. The primary benefit to grant recipients is reducing redundant reporting to multiple grant-making entities and auditors. Blockchain application could also help increase or improve transparency in the grant payment lifecycle by reducing the number of grant payment platforms that are involved in the process. Additionally, it needs to be acknowledged that poor automated checkpoints and several ID registration portals are the ideal setup for fraud and other criminal activities in the context of grant and funding management. Research has also highlighted that DLT, and smart contracts can prevent such criminal activities. Because of the potential benefits through DLT, the possibilities of application for grant payments are currently explored by several governments. For example, the Department of Health and Human Services and the National Science Foundation in the U.S. started a pilot program backed by blockchain, called the Grant-recipient Digital Dossier (GDD) in 2021. The Blockchain for Grant Payments project—steered by the Bureau of the Fiscal Service’s Office of Financial Innovation and Transformation in the U.S. was started in 2020.

Use case 12: Tourism vouchers

Research has highlighted that Blockchain can be applied in several domains in the tourism industry: reservation and ticketing (hotels/car rentals, insurance and flights), identity management (traveller identity, personalization and baggage tracking), loyalty programs (discounts and incentives or rewards), digital payment (cryptocurrency and B2B settlement), credential management (authenticity review, ranking and verification), and inventory management (direct distribution and supplier network). An example is the Alastria project in Spain which develops a digital ID aiming to simplify tourist operations by having all information available in one place. In 2018, Dubai’s Department of Tourism and Commerce Marketing launched Tourism 2.0, a blockchain-enabled marketplace that connects potential buyers directly to hotels and tour operators to boost Dubai’s tourism ambitions. Most of such initiatives were instigated by public authorities. Additionally, incentives through vouchers issued and handled via blockchain technology is an emergent topic in research and praxis. Issuing vouchers is a means of implementing social welfare. There are security concerns about paper-based vouchers, such as counterfeiting, reproducing, their low operating efficiency and so on, which can be mediated via a DLT solutions. In this context, blockchain-based incentives through vouchers can make an impact on creating incentives for tourists to visit less visited cities and regions.

Use case 13: Public procurement (in the military)

Public procurement has become one of the most discussed potential use cases for blockchain technology application by governments. Blockchain is expected to hold strong promise against corruption and inefficiencies. There are different potential applications of blockchain for public procurement discussed in literature including for example integration of blockchain to track full-cycle procurement workflows to prevent record tampering; creating interoperable supplier profiles across fragmented e-procurement systems to reduce asymmetry of information in purchasing or pre-tender assessment; and “decentralise” bid evaluation to disincentivise bribery and biased decision-making. Because of these possibilities and features of application of blockchain in procurement, there are also great opportunities for arms procurement as the example from South Korea, where since 2019, South Korea’s state Defence Acquisition Program Administration (DAPA) announced that it is working with multiple other agencies for an interoperable blockchain system.

Use case 14: Drug supply management

Research as highlighted that DLT systems can bring solutions to supply chain tracking, including the drug supply chain of the pharmaceutical industry. There are various publications discussing the usage of blockchain for securing the drug supply chain, mostly describing different possible setups. Research highlights that the data related to the users of the system, suppliers, manufacturers, distributors, pharmacies, hospitals, doctors, and patients can all be stored in the blockchain-based system. Each user of the system is provided with client application based front-end where they can easily perform their transaction and communicate with the blockchain network. Such systems can also support analytics and visualization of data combining blockchain technology with for example machine learning.[2] In this context, blockchain-enabled drug supply chain tracking can support fighting counterfeit medication. Because of the benefits of blockchain solutions in this regard, there are already several applications developed driven by mostly pharmaceutical companies. This includes for example Merck’s SAP Pharma Blockchain POC App or Novartis’ PharmaLedger (launched in 2021). However, also governments have been involved in the development of solutions, which includes for example the U.S. Food and Drug Administration (FDA).

Use case 15: Personal Health Records

The most prominent and mature case for DLT implementation in the domain of healthcare is the electronic personal health record (PHR). Electronic health records are comprised of digital health-relevant information regarding a single individual and are intended to be shared between different healthcare providers to continuously document treatment as well as having access to treatment-relevant health information on the patient. The sharing of healthcare data is an essential step towards making the healthcare system smarter and improving the quality of healthcare service. Experts have highlighted, that blockchain-driven solutions could thereby reinvent the way patient’s records are shared and stored by providing safer mechanisms for health information exchange of medical data. The importance of protecting delicate personal data, such as medical records, is commonly accepted. Yet, data leaks, human errors, miss communication, hacks or other failures still occur. Hereby, personal data of patients being vulnerable for malicious actors. DLT could offer a solution, where smart contracts regulate access to the servers and certain files while patients themselves could gain and grant access to their scans, acting as third party. Because of these many application possibilities, there are already several healthcare-related use cases deployed or being tested (see table below for examples).

Use case 16: Welfare services and payments

The lack of communication and interoperability of data is one of the bottlenecks for benefit payments, which causes extra costs and mistakes. Correcting applications (updating of data, invoicing wrong payments, etc.) can take several months and requires sending physical written notices to the tax agency. In this regard, automated payment infrastructures based on DLT, smart contracts, SSI and cross border interoperability can prevent wrongly paid social benefits. Research already highlighted potential applicability of DLT for benefit payments. Especially pension schemes have become focus of research in this context. Experts highlight that blockchain technology can reduce the complicated layers of pension management and give pensioners more control over their money. For example, by allowing the inclusion of cryptocurrency as a pension portfolio investment, blockchain can create more accessible retirement plans that appeal to younger people. Research from the UK pointed out the benefits of such a system and the Royal Mail has indicated interest in employing a blockchain driven system for their pensioners. Another example is a current proof of concept project by the Bangladesh Computer Council (BCC) with IBM to develop a blockchain solution for primary school teachers’ e-pension system. In the Netherlands, the Dutch pension provider APG is exploring multiple use cases for blockchain as well.

Use case 17: Social welfare coins

Issuing vouchers is a means of implementing social welfare in many countries and cities. There are some security concerns about paper-based vouchers, such as counterfeiting, reproducing, their low operating efficiency and so on (see also tourism voucher use case above). Research already highlights that the application of blockchain technology and cryptography to build a secure e-voucher system can solve various shortcomings of paper vouchers. In this regard, first projects have been announced. In 2018, Seoul City announced its plan to launch S-Coin, which is supposed to be used in city-funded welfare programs. There are also various other cities exploring opportunities for “Social Digital Currencies” (see also CBDC use case above), which can be seen as vouchers or other digital currencies to be used for various purposes. In the Netherlands, Stadjerspas, a fully operable service to provide discounted services to low-income citizens of the Municipality of Groningen using a blockchain infrastructure since 2016. Another example is GovCoin from the UK, who has been working with the Department for Work and Pensions (DWP) since early 2016 to develop a blockchain solution for welfare payments.

Use case 18: Subsidies

Research has shown, that DLT, smart contracts and SSI can offer an easier approach to apply, confirm and pay-out subsidies (see also the use case on grant payments above). This is also the case for the education sector where specific benefits can be identified. First, subsidies are partially based on the number of students per school, which can be easily transferred and validated via a smart contract and SSI. If schools keep track of their students via SSI (conformed when they registered at a certain school), then schools can share their number of students via a smart contract. Second, DLT can offer a secure network to share their subsidy applications, and handle payment settlements via smart contracts. This could automate some steps and increase efficiency for all parties involved. There are not many real-life use case yet but such systems are currently being explored. For example, with funding from Innovation Edge and UNICEF, the start-up Amply tested in 2017 a blockchain system to replace an existing paper-based system to register children for government funded pre-school subsidies in South Africa.

Use case 19: Digital diplomas

In the last few years, digital diplomas have become the foremost examples of how blockchain can be used in education. This is due to the inherent permanence, convenience, and security associated with blockchain, using this technology to store and share academic credentials, particularly diplomas. There are a handful of state-funded digital credential initiatives, such as EBSILUX in Luxembourg, the Education Blockchain Initiative, funded by the U.S. Department of Educatio and LegitDoc in India. There are also private collaborative initiatives (such as Sony Global Education19, ODEM20, IBM’s Learning Credential Network21) that range between being in nascent stages to piloting stages. On a national-level, we found that Malta is the first country to have introduced blockchain-driven diplomas, and we present more details below. Especially, in an international context blockchain-driven academic credentials are being discussed. The issuance, management, translation, foreign validation, and verification of diplomas is a substantial issue internationally. Often, when attempting to present a university diploma abroad for employment or secondary education, an original version or a certified copy must be presented physically. When diplomas are lost or stolen, re-issuance may even be impossible. All these issues cost significant amounts of both time and money for individuals. In this context, SSI promotes the issuance of digital verifiable credentials that are portable, do not need translation, follow international standards, and can be cryptographically verified in real time. The digital credentials can be digitally issued and signed in real time. Even more, students’ academic histories can be digitized, with the cryptographic proofs stored via the blockchain, and smart contracts could be developed to generate automatic diplomas signed by the issuers after graduation. On the European-level, solutions are being developed. For example, within the European Blockchain Services Infrastructure project, diplomas are one of the four case studies being investigated. As part of its initiative ‘Secure Digital Education Spaces’, the German Federal Government is involved with the work with selected partners from education, within the framework of the EU project ‘Europass’. This also includes the pilot testing of ‘digitally signed credentials’, for end-to-end digitally verified certificates of competence and work-performance references via Blockchain. Malta is the first country to have launched a blockchain initiative which will see it issue notarised blockchain certificates to complement paper certificates for professional and informal education based on their Blockchain Records Platform. After completing a national pilot of Blockcerts blockchain credentials in 2019, the Republic of Malta and Learning Machine Technologies jointly announced that the Maltese Ministry for Education and Employment has begun a multi-year rollout of Blockcerts to all Maltese educational institutions.

Use case 20: Energy

Now, many use cases for DLT in energy and sustainability are often less recognized then use cases in other sectors. Still there are already many research studies and projects underway with very different foci. Different public agencies already recognized potential benefits. For example, the German BMWi (Federal Ministry for Economic Affairs and Energy) claims that blockchain technologies have the potential to improve the efficiency of current energy practices and processes, can accelerate the development of IoT platforms and digital applications and can provide innovation in p2p energy trading and decentralised generation. In addition, they report that blockchain technologies have the potential to significantly improve current practices of energy enterprises and utility companies by improving internal processes, customer services and costs. There are currently several projects and investigations happening in Germany led by the BMWi. It needs to be pointed out that most use cases in the energy sector are led by the private industry and start-ups. Recent research mapped more than 140 projects and start-ups, which range from emerging p2p energy trading and Internet of Things (IoT) applications, to decentralised marketplaces, electric vehicle charging and e-mobility. The World Economic Forum, Stanford Woods Institute for the Environment, and PwC released a joint report identifying more than 65 existing and emerging blockchain use cases for the environment. These use cases include new business models for energy markets, real-time data management, and moving carbon credits or renewable energy certificates onto the blockchain. While many DLT solutions aim to make energy supply more efficient and secure, we found that use cases related to energy trading and sharing solution promise the most public value benefits. For example, residents of Perth who generate electricity using roof-top solar panels and have excess energy can sell this directly to their neighbours using a blockchain-based solution (and therefore are incentivised to install solar panels). The owners of excess energy can sell their surplus to their neighbours for less than the uniform tariff but more than they would get from selling it to their retailer. Similarly, United Kingdom-based Verv start-up offers users in social housing a smart hub to monitor their energy usage, reduce it accordingly, and sell any renewable-generated excess via blockchain solutions.

Use case 21: Food supply chain management

One of the main issues to create food safety as identified by different stakeholders is inefficient tracking in food production. For example, traditional food supply methods make tracing the origin of the contamination or diseases for animals difficult and time consuming. Blockchain is currently being championed as a solution by many experts. In this context blockchain can digitize secure transactions at every point along the food supply chain, viewable directly by those with access to that blockchain ledger. A smart contract can reduce the number of intermediaries, which can reduce transaction costs, improve margins, and increase efficiency, and as a result, transfer a larger share of profits to the farmer/producer. The application of DLT is in research specifically linked to the development of Internet of Things (IoT). IoT provides solutions to overseeing environmental conditions, product quality, and product traceability for food. Next to supply chain tracing, blockchain solutions could further support and enable processing of payments more quickly, licences and distribution of digital coupons for buying food or prevention of mislabelling of food.?Experts have pointed out that it is unlikely that governments will have the capacity to mandate the use of blockchain in this area because even the minimum economic impacts of such a mandate on businesses could be damaging. Because of this, available technological solutions appear to be producer or industry-led, rather than government-led. Still governments can give the right incentives and advocate for new industry-driven solutions and try to harmonise on-going developments. In the Netherlands for example, most advances are being made in relation to fright transport. The Municipality of Rotterdam and the Port of Rotterdam Authority have jointly launched a field lab for the development of concrete applications and solutions based on blockchain technology in relation to energy and logistics called BlockLab. Another example is the TKI Dinalog project, a joint project of ABN AMRO, Delft University and 14 other partners in the Netherlands launched in 2016. In the late 2016, it was first reported that also Walmart was trial testing a service it developed with IBM Food Trust to monitor produce in the U.S. Today, Walmart tracks over 500 food items using blockchain, and in 2020, was able to provide FDA investigators in the U.S. with detailed information on the original source of a potential contamination within an hour, a reduction from the seven days that this process used to take. In 2021, Walmart arranged with U.S. Customs and Border Protection to pilot a program to track imported foods.

Final thoughts

Technology influences the everyday lifeworld of citizens and society in general, but this also works the other way around. Individual behaviour and societal structures co-construct technology or steer the technology in a certain direction. Public services are one of the dynamic societal agents in this process. They can govern what and how new technologies are used for and evolve on the one hand and can be users of the technology themselves on the other hand. For DLT this means that governments and public sector actors have a role to play in governing these technologies but also should look for opportunities to optimize their governance processes and tasks.

This article showed the opportunities in this regard around DLT and blockchain. In order for governments and public sector actors to understand where DLT and blockchain could be a solution in the future, the here presented case studies give a first overview of possible applications. We hope to have shown, that there are various opportunities and that DLT application is not only a future vision anymore but that there are already many functioning DLT solutions that have been implemented and are being developed.

Find out more via: