Blockchain Technology Will Provide Transparency; Corruption and Fraud Can be Eradicated

Blockchain technology’s most recognizable trait is that it provides transparency. This makes the technology the best solution to fight corruption. Different methods have been used before in an effort to prevent corruption, yet loopholes prevented these methods from being effective for long. Blockchain technology promises an undeniably secure and open framework.

Although blockchain technology is associated with cryptocurrencies; the mostly unregulated digital asset, the underlying technology is viewed as a smart innovation, separately from the currencies. Due to leakages in the government system, large sums of money assigned for citizens’ welfare is lost every year. This huge amount goes to a select few beneficiaries in the government’s hierarchy. These leakages are called corruption and corruption is a product of lack of proper monitoring and greed.

Blockchain technology is an encryption-based network that can create a trail for public money. The idea is not a speculation; already, several countries have implemented the technology.

In a traditional transaction mechanism, a central person or entity maintains a track of all transactions; in blockchain technology, all registered members in the transaction mechanism will have control over all interactions in the system. Data is stored in encrypted blocks that are monitored by a decentralized global network. All transactions are time-stamped and unalterable.

Corruption occurs when there is power in the hands of a single central authority and when there is a lack of accountability. In blockchain technology, every person on the network is accountable for the transfer of data and there is no scope at all of altering the transaction records. Anyone trying to alter the system will be easily caught.

The public and government will have a more open and transparent relationship, if not essentially a trust-less relationship, which is beneficial for both. The flow of funds will be permanently recorded and can be audited by everyone.

The U.S., Canada, and Australia are few among a list of countries which already use blockchain technology to cut down corruption. The U.S., for example, plans to use blockchain technology to procure and track appropriated funds, in federal assistance and in foreign aid delivery tracking.

Australia has begun to use blockchain technology to settle trades in stock exchange and they are the first country to have a blockchain-run stock exchange.

Blockchain technology has several other uses in forming trade agreements, and contracts in general.

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