Talks concerning blockchain and governments usually center on concerns about regulations and the idea that government and blockchain are inherently irreconcilable. Still, there are a lot of concrete ways that blockchain may support citizens in holding their governments responsible, which will strengthen democracies. We will discuss three use examples in this blog post that demonstrate how blockchain technology and cryptocurrency can strengthen democracy worldwide.

Elections

In the last year, right-wing political parties have disseminated several false accusations of electoral fraud to restrict the democratic right to vote for particularly marginalized groups, mostly African Americans. In addition to safeguarding voters' rights, blockchain technology has the potential to improve election security and transparency and boost public confidence in the mechanisms that support democracies. Since a hacker gaining access to the terminal cannot impact other nodes, a blockchain-based voting program does not worry about the security of its Internet connection. Voters can cast their ballots without disclosing to the general public who they are or what party they support. Because each ID can be linked to a single vote, no fakes can be made, and tampering is impossible, officials may tally ballots with complete confidence. Seems too wonderful to be true? It's not, and we have the technology at our disposal to put one in place now. As a bonus, putting the voting process online through a transparent and safe blockchain-based platform may also assist boost voter turnout by giving people an easier option to cast their ballots.

Taking on Censorship

Every thriving democracy is built on the principles of free speech and polite conversation. But historically, democracies that appeared to be prospering have occasionally struggled with censorship, endangering the fundamental basis of their systems. Blockchain technology can help promote free expression by establishing an open, decentralized, censorship-resistant platform for the sharing and storing of ideas. Being censor-proof and being tamper-proof are two of the main advantages of blockchain technology. Data stored on an immutable blockchain ensures this. This is just not possible with a blockchain, as governments lack the authority to control or even shut down social media platforms, unlike what has happened in the past. Since most blockchain initiatives are decentralized and transfer authority from the center to the periphery, it is nearly hard for a government body to take over and remove anything they disagree with. Important papers, images, videos, articles, music, and more might all be preserved indefinitely within a blockchain.

Safeguarding Electronic Government Records

Democracy and identity are intricately linked. All governments, democratic or not, have strong incentives to give their inhabitants a method of distinctive identity, such as when it comes to the provision of essential services and benefits. Democracies have a particular stake in protecting people's identities to maintain the rights and benefits that are accorded to them. For instance, a fundamental democratic duty is the ability to vote, which requires official government identity. In a similar vein, passports provide distinct "international standard serial numbers" that enable customs officers to promptly confirm a person's identity, citizenship, and eligibility for certain travel benefits. To assist in the administration of medical benefits, financial aid, and other social services and benefits, government organisations like the U.S.

Social Security Administration assigns identities.

Almost 1 billion individuals lack legal identification documentation globally, making them ineligible for services and the formal economy. By providing those without verifiable identity papers with unchangeable and quickly available identification, as well as by bolstering the resilience of currently in-use paper identification, digital identity can help reduce this "identity gap." In times of natural catastrophes, armed conflicts, and other emergencies, residents might not have the time or means to retrieve their paper government documents—which are essential for their freedom of movement and access to services. The capacity of DLT to securely store such digital data may make it easier to undertake identity verification in stressful situations where hard copy papers are lost or unavailable. Governments could be better able to handle natural catastrophes, refugee crises, and the provision of basic social services while giving people more control over their data. Working towards applications of digital identification systems that empower individuals rather than snoop on and exclude them is crucial to achieving this aim.

Enhanced Accountability for Taxes

Watching your money go into the government coffers during tax season is an all too familiar feeling, and you often have no clue where it goes or how it is used. Imagine a system where you could track every tax dollar collected and its precise spending. Blockchain technology makes it feasible to implement this kind of system. The ideal answer for such a system is blockchain technology because of its open, transparent, immutable, and trustworthy characteristics. An unchangeable blockchain may be automatically created for every tax transaction, making audits simple and effective. In principle, every tax transaction would be recorded and visible to everybody, much like every Bitcoin transaction is traceable on the cryptocurrency's blockchain.

Additionally, this would make it simpler for voters to hold elected officials responsible for keeping their word and ensure that they are following through on their commitments. More public trust results from increased transparency in government expenditure, which in turn leads to better democracies. Although there are many incredible use cases for how blockchain and cryptocurrencies may help hold governments responsible, inspire greater civic involvement and discourse, and rebuild faith in democracy, blockchain and government are not often considered complementary.

The Drawbacks of Cryptocurrency for Democracy

Democratic systems face challenges from cryptocurrency. It is abused by foreign actors for illicit purposes, such as terrorism financing or sanction evasion. The threat is still there even though it's getting simpler to track down. Another problem is access. The lack of resources and expertise among many people to work with blockchain technology limits democratic participation. It will take work to improve the usability of technology to close this gap. Furthermore, the concern is the absence of accountability. Blockchain data might be manipulated by corrupt regimes, threatening democratic openness. The energy usage of cryptocurrencies is another issue. Its mining requires a great deal of energy, which is bad for the environment and might make energy inequality worse.