Ministry of Foreign Affairs of Denmark has released a report analyzing the use of blockchain in the fight against corruption.
The Ministry of Foreign Affairs of Denmark published a report explaining the use of IT technologies and services including blockchain, e-governance, big data, and crowdsourcing to fight administrative, or day-to-day, corruption as well as political corruption.
Presented during the International Anti-Corruption Conference, or IACC, the report emphasizes the use of blockchain as a technology that will build a more transparent governance and transaction system, further adding that it will also give individuals greater rights over their own data.
According to the report, blockchain can be used as a potential anti-corruption tool as it has the ability to store records immutably and transparently. A public database such as blockchain also provides every individual equal access to the data stored in the ledger, thus allowing individuals to claim their rights over aid, land and money without depending on any middlemen.
The report further says that blockchain “reduces or eliminates the need for institutions” such as banks, land registries, accountants, registry of births and deaths, and vehicle registration whose main job is to validate transactions.
The technology would help entities efficiently and securely share resources with people without formal identities or bank accounts, the report adds.
The public sector may also use blockchain to secure records and certificates from any alterations and use blockchain’s ability to trace all activities to reduce the chances for corruption.
The report clarifies, however, that blockchain technology’s ability to fight corruption would only be possible if the data is recorded correctly on the ledger:
“Blockchain solutions are only as good as the data entered into them. Data entered into a blockchain cannot be deleted, erroneous data can therefore have enormous consequences for an individual.”
Source: Cointelegraph https://cointelegraph.com/