Blockchain is one such thing, quite associated with cryptocurrency. Along with AI, Blockchain is also a foundational pillar named “Fourth Industrial Revolution”. Blockchain is a database of transactions. When transactions are peripheral in the form of blocks, all network participants’ copy of blockchain update together. Few blockchains are public, others are private.
Particularly this ASX update reduces the $100 million spent every year on clearing and settling fees. Thus the market participants no longer need to appease their database with ASX. As they have an updated version of stock ownership is available.
This is just a radical demo of the private sector using emerging technology to reduce costs and improve efficiency. Including how can the public sector harness this new force. Governments do not have an enviable track record at keeping information private. But, governments are trying new ways to innovate.
What are the solutions to these problems?
To overcome with the problem of widely dispersed, incomplete databases, the Australian government is rolling out Govpass. With the upcoming years, eight high-volume government services may pilot the digital identity system. This includes more than 500,000 Australians. Once rolled out completely, it will be safer and easier than before for Australians to prove who they are when dealing with the government.
In case of investing in Govpass, the 2018-19 Budget includes $700,000 for investigation into blockchain for government services. In this situation, it has numerous advantages: it allows services to work seamlessly across parties that do not know each other. Hence, creating a chain of trusted records that help with the security and accountability of transactions.
IP Australia will soon use Blockchain in government to manage patent registries, as well as improve the notoriously illiquid patent market. Currently, the Department of Agriculture and Water Resources is investigating the possibilities of using a blockchain platform for water trading in Australia’s $16 billion water market.
What will it result into, when Blockchain centralizes databases? Share your thoughts in our comment section.