Digital Transformation of Public Administration Through Blockchain Technology


Chapter by Artur Rot, Małgorzata Sobińska, Marcin Hernes, and Bogdan Franczyk: “Proper understanding of blockchain technology is one of key importance for decision-makers and staff in public administration sectors, as it helps them decide whether this approach can be of practical use in the realisation of their statutory mission. Blockchain technology is often perceived as a failsafe and unbreakable system with potential to transform many segments of the economy. Blockchain solutions have already been employed with success as basis for digital transactions in such areas as electricity market, trade, cryptocurrencies, stock trading, etc. Their application potential is also actively explored in other sectors of the economy, such as banking, insurance, and public administration.

Blockchain technology can be approached not only as an innovative solution, but also as a tool for effective creation of novel management practices and models of operation in various types of organizations and institutions. The contribution of the chapter is an evaluation of potential uses and conditions for the effective application of the blockchain technology in the public administration sector. The study is constructed on the fundament of literature studies, empirical observations, case study analyses and synthetic evaluations, with the aim of revealing the potential applications of the blockchain technology and highlighting the challenges and possible directions of blockchain research in the public sector….(More)”.

Blockchain Governance: What We Can Learn From the Economics of Corporate Governance


Paper by Darcy W E Allen and Chris Berg: ” Understanding the considerations and complexities of blockchain governance is urgent. The aim of this paper is to draw on institutional governance theory — including corporate governance — to provide insights into the core considerations in designing blockchain governance mechanisms.

We define blockchain governance are the processes by which stakeholders (those who are affected by and can affect the network) exercise bargaining power over the network. The main considerations include how we define stakeholders in blockchain governance, how the consensus mechanism itself distributes endogenous bargaining power between those stakeholders, the role of exogenous governance mechanisms and institutional frameworks, and the needs for bootstrapping. While we can learn from corporate and internet governance, blockchain governance should be understood as being an institutionally distinct organisational form with distinct governance systems….(More)”.

Taming the Beast: Harnessing Blockchains in Developing Country Governments


Paper by Raúl Zambrano: “Amid pressing demands to achieve critical sustainable development goals, governments in developing countries face the additional complex task of embracing new digital technologies such as blockchains. This paper develops a framework interlinking development, technology, and government institutions that policymakers and development practitioners could use to address such a conundrum. State capacity and democratic governance are introduced as drivers in the overall analysis. With this in hand, blockchain technology is revisited from the perspective of governments in the Global South, identifying in the process key traits and proposing a new typology. An overview of the status of blockchain deployments in the Global South follows, complemented by a closer look at country examples to distill trends, patterns and risks. The paper closes with a discussion of the findings, highlighting both challenges and opportunities for governments. It also provides basic guidance to development practitioners interested in enhancing current programming using blockchains as an enabler….(More)”

Data Protection in the Humanitarian Sector – A Blockchain Approach


Report by Andrej Verity and Irene Solaiman: “Data collection and storage are becoming increasingly digital. In the humanitarian sector, data motivates action, informing organizations who then determine priorities and resource allocation in crises.

“Humanitarians are dependent on technology and on the Internet. When life-saving aid isn’t delivered on time and to the right beneficiaries, people can die.” -Brookings

In the age of information and cyber warfare, humanitarian organizations must take measures to protect civilians, especially those in critical and vulnerable positions.

“Data privacy and ensuring protection from harm, including the provision of data security, are therefore fundamentally linked—and neither can be realized without the other.” -The Signal Code

Information in the wrong hands can risk lives or even force aid organizations to shut down. For example, in 2009, Sudan expelled over a dozen international nongovernmental organizations (NGOs) that were deemed key to maintaining a lifeline to 4.7 million people in western Darfur. The expulsion occurred after the Sudanese Government collected Internet-accessible information that made leadership fear international criminal charges. Responsible data protection is a crucial component of cybersecurity. As technology develops, so do threats and data vulnerabilities. Emerging technologies such as blockchain provide further security to sensitive information and overall data storage. Still, with new technologies come considerations for implementation…(More)”.

Technology & the Law of Corporate Responsibility – The Impact of Blockchain


Blogpost by Elizabeth Boomer: “Blockchain, a technology regularly associated with digital currency, is increasingly being utilized as a corporate social responsibility tool in major international corporations. This intersection of law, technology, and corporate responsibility was addressed earlier this month at the World Bank Law, Justice, and Development Week 2019, where the theme was Rights, Technology and Development. The law related to corporate responsibility for sustainable development is increasingly visible due in part to several lawsuits against large international corporations, alleging the use of child and forced labor. In addition, the United Nations has been working for some time on a treaty on business and human rights to encourage corporations to avoid “causing or contributing to adverse human rights impacts through their own activities and [to] address such impacts when they occur.”

DeBeersVolvo, and Coca-Cola, among other industry leaders, are using blockchain, a technology that allows digital information to be distributed and analyzed, but not copied or manipulated, to trace the source of materials and better manage their supply chains. These initiatives have come as welcome news in industries where child or forced labor in the supply chain can be hard to detect, e.g. conflict minerals, sugar, tobacco, and cacao. The issue is especially difficult when trying to trace the mining of cobalt for lithium ion batteries, increasingly used in electric cars, because the final product is not directly traceable to a single source.

While non governmental organizations (NGOs) have been advocating for improved corporate performance in supply chains regarding labor and environmental standards for years, blockchain may be a technological tool that could reliably trace information regarding various products – from food to minerals – that go through several layers of suppliers before being certified as slave- or child labor- free.

Child labor and forced labor are still common in some countries. The majority of countries worldwide have ratified International Labour Organization (ILO) Convention No. 182, prohibiting the worst forms of child labor (186 ratifications), as well as the ILO Convention prohibiting forced labor (No. 29, with 178 ratifications), and the abolition of forced labor (Convention No. 105, with 175 ratifications). However, the ILO estimates that approximately 40 million men and women are engaged in modern day slavery and 152 million children are subject to child labor, 38% of whom are working in hazardous conditions. The enduring existence of forced labor and child labor raises difficult ethical questions, because in many contexts, the victim does not have a viable alternative livelihood….(More)”.

GovChain


Introduction to Report by Tom Rodden: “This report addresses the most discussed digital technologies of the last few years. There has been considerable debate about the potential benefits and threats that arise from the use of Distributed Ledger Technologies. What is clear from these debates is that blockchain is an important technology that has the potential to transform a range of sectors. The importance of Distributed Ledger Technology was identified and discussed in a 2016 report produced by Sir Mark Walport, the UK Government’s Chief Scientific Adviser at the time.

The report provided recommendations for the use of blockchain to meet national needs, and to ensure the UK’s competitiveness in the global arena. The report outlined the need for a broad response that spanned the public and private sector, whilst also recognising the need for leadership in the development and deployment of blockchain technologies.

This report provides an update and reflection on the use of blockchain technologies by Governments and Public Sector bodies around the world. Much has happened since 2016 and this report provides a reminder of the importance of Distributed Ledger Technologies for the public sector, and the various orientations of blockchains adopted across the globe. The team have mapped the various regulatory and policy responses to blockchain, and cryptocurrencies more broadly. This mapping not only reveals a varying degree of friendliness towards blockchain, it also highlights the challenges involved in implementing Distributed Ledger Technology systems in the public sector.

Distributed Ledger Technologies are an important technology for the public sector, albeit there exists a number of policy implications. If we are to show leadership in the use of blockchain and its application it is imperative that we are aware of both its benefits and limitations; and the issues that need to be addressed to ensure we gain value from the use of Distributed Ledger Technologies. This report captures the public sector experiences of blockchain technologies across the globe, and also documents the issues raised and the various responses. This is a hugely informative and useful document for those who seek to make use of blockchains in the public sector….(More)”.

When Ostrom Meets Blockchain: Exploring the Potentials of Blockchain for Commons Governance


Paper by David Rozas , Antonio Tenorio-Fornés , Silvia Díaz-Molina , and Samer Hassan: “Blockchain technologies have generated excitement, yet their potential to enable new forms of governance remains largely unexplored. Two confronting standpoints dominate the emergent debate around blockchain-based governance: discourses characterised by the presence of techno-determinist and market-driven values, which tend to ignore the complexity of social organisation; and critical accounts of such discourses which, whilst contributing to identifying limitations, consider the role of traditional centralised institutions as inherently necessary to enable democratic forms of governance. Therefore the question arises, can we build perspectives of blockchain-based governance that go beyond markets and states?

In this article we draw on the Nobel laureate economist Elinor Ostrom’s principles for self-governance of communities to explore the transformative potential of blockchain. We approach blockchain through the identification and conceptualisation of affordances that this technology may provide to communities. For each affordance, we carry out a detailed analysis situating each in the context of Ostrom’s principles, considering both the potentials of algorithmic governance and the importance of incorporating communities’ social practices. The relationships found between these affordances and Ostrom’s principles allow us to provide a perspective focussed on blockchain-based commons governance. By carrying out this analysis, we aim to expand the debate from one dominated by a culture of competition to one that promotes a culture of cooperation…(More)”.

Blockchain and the General Data Protection Regulation


Report by the European Directorate-General for Parliamentary Research Services (EPRS): “Blockchain is a much-discussed instrument that, according to some, promises to inaugurate a new era of data storage and code-execution, which could, in turn, stimulate new business models and markets. The precise impact of the technology is, of course, hard to anticipate with certainty, in particular as many remain sceptical of blockchain’s potential impact. In recent times, there has been much discussion in policy circles, academia and the private sector regarding the tension between blockchain and the European Union’s General Data Protection Regulation (GDPR). Indeed, many of the points of tension between blockchain and the GDPR are due to two overarching factors.

First, the GDPR is based on an underlying assumption that in relation to each personal data point there is at least one natural or legal person – the data controller – whom data subjects can address to enforce their rights under EU data protection law. These data controllers must comply with the GDPR’s obligations. Blockchains, however, are distributed databases that often seek to achieve decentralisation by replacing a unitary actor with many different players. The lack of consensus as to how (joint-)controllership ought to be defined hampers the allocation of responsibility and accountability.

Second, the GDPR is based on the assumption that data can be modified or erased where necessary to comply with legal requirements, such as Articles 16 and 17 GDPR. Blockchains, however, render the unilateral modification of data purposefully onerous in order to ensure data integrity and to increase trust in the network. Furthermore, blockchains underline the challenges of adhering to the requirements of data minimisation and purpose limitation in the current form of the data economy.

This study examines the European data protection framework and applies it to blockchain technologies so as to document these tensions. It also highlights the fact that blockchain may help further some of the GDPR’s objectives. Concrete policy options are developed on the basis of this analysis….(More)”

Blockchain and Democracy


Literature Review by Jörn Erbguth: “Democratic states are entities where issues are decided by a large group – the people. There is a democratic process that builds upon elections, a legislative procedure, judicial review and separation of powers by checks and balances. Blockchains rely on decentralization, meaning they rely on a large group of participants as well. Blockchains are therefore confronted with similar problems. Even further, blockchains try to avoid central coordinating authorities.

Consensus methods ensure that the systems align with the majority of their participants. Above the layer of the consensus method, blockchain governance coordinates decisions about software updates, bugfixes and possibly other interventions. What are the strengths and weaknesses of this blockchain governance?
Should we use blockchain to secure e-voting? Blockchain governance has two central aspects. First, it is decentralized governance based on a large group of people, which resembles democratic decision-making. Second, it is algorithmic decision-making and limits unwanted human intervention

Cornerstones
Blockchain and democracy can be split into three areas:

First, the use of democratic principles in order to make blockchain work. This ranges from the basic concensus algorithm to the (self-)governance of a blockchain.

Second, blockchain is seen as providing a reliable tool for democracy. This ranges from the use of blockchain for electronic voting to the use in administration.

Third, to study possible impacts of blockchain technology on a democratic society. This focusses on regulatory and legal aspects as well as ethical aspects….(More)”

The New York Times thinks a blockchain could help stamp out fake news


MIT Technology Review: “Blockchain technology is at the core of a new research project the New York Times has launched, aimed at making “the origins of journalistic content clearer to [its] audience.”

The news: The Times has launched what it calls The News Provenance Project, which will experiment with ways to combat misinformation in the news media. The first project will focus on using a blockchain—specifically a platform designed by IBM—to prove that photos are authentic.

Blockchain? Really? Rumors and speculation swirled in March, after CoinDesk reported that the New York Times was looking for someone to help it develop a “blockchain-based proof-of-concept for news publishers.” Though the newspaper removed the job posting after the article came out, apparently it was serious. In a new blog post, project lead Sasha Koren explains that by using a blockchain, “we might in theory provide audiences with a way to determine the source of a photo, or whether it had been edited after it was published.”

Unfulfilled promise: Using a blockchain to prove the authenticity of journalistic content has long been considered a potential application of the technology, but attempts to do it so far haven’t gotten much traction. If the New York Times can develop a compelling application, it has enough influence to change that….(More)”.