Blockchain and the Promise of Digital Governments

The year 2017 proved to be an exciting year for the cryptocurrency market. The bullish trend lasted the entire year, with Bitcoin reaching a peak of $19,000—a value that was once unimaginable even for long-time cryptocurrency enthusiasts. But digital assets aren’t simply an alternative means of paying for goods and services. Thanks to increased media attention, the public has become more aware of the many benefits of using cryptocurrency and its underlying tech—blockchain. Perhaps the most interesting is the potential for creating digital governments.

Well-renowned investor, Tim Draper, explains that among all the possibilities presented by blockchain, forming digital governments ranks as his favorite. He shares that this can be the solution to the inefficiencies that the public has grown sick and tired of all these years. A government that leverages digital coins, artificial intelligence, and smart contracts has all the ingredients to become the ideal bureaucracy. Once implemented, Draper says that the traditional roles and responsibilities of the current system will inevitably change as different processes can be streamlined to deliver more efficient services for the people.

Critics say this concept is a bit optimistic, but the foundation is already set. For example, smart contracts are the reason behind the incredible growth of Ethereum. This cryptocurrency project serves as a platform upon which different applications can be built rather than a standalone payment system. Today, many projects run on Ethereum, and it shouldn’t be a huge surprise when the time comes that digital governments are already the norm.

As blockchain, smart contracts, and AI continue to be used by banks, major corporations, and governments, an increase in mass adoption of cryptocurrency can be expected. This is supported by the increase in the user base of trading software such as Bitcoin Trader, highlighting that more people want to get into the market and that they welcome these exciting changes no matter how radical they appear to be.

Given the innovative solutions provided by these new technologies, it’s easy to see how digital governments can make use of them to improve upon their services. In the healthcare industry, for instance, blockchain and artificial intelligence are already used to gather and monitor health data including blood tests, X-rays, and DNA analyses.

The same applications can be used in other industries such as real estate and insurance. As you know, these are notorious for their inefficiencies, requiring people to invest a ton of money and deal with piles of paperwork. A blockchain-based government can put an end to these common problems, helping people breeze through the process without compromising their time and money.

Right now, little steps are being taken to test just how realistic a digital government is. It seems that we’re headed in a positive direction with governments and banks worldwide adopting blockchain and finding new ways to incorporate it into their current systems and processes. Sure enough, a digital government will challenge existing norms, but it’s about time for a powerful technology such as blockchain to address the many government inefficiencies plaguing the people across the globe.