A blockchain is a decentralized, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network. Cryptocurrency (eg Bitcoin) were created on the blockchain technology framework, at the moment the cryptoworld is dominated by decentralized non-state issue crypto.
Its generally agreed by expert and analysis that new technology like Blockchain, AI, Cloud and IOT we change the world and the way things are done forever.
There’s been plenty of speculation on whether cryptocurrencies are a bubble ready to pop or something more significant and likely to pass the test of time. Depending on which Bank CEO you listen to, the sentiment varies considerably, which continues to leave a shroud of uncertainty over the cryptoworld - however, it is believe that blockchain technology holds the secret to a better run and coordinated economy.
Every serious government must take a second look at blockchain technology has it appeared that in a digital world accelerated by the concept of decentralization it is a MUST to create "state own" blockchain powered currency, this actually comes with lot of advantages for the efficient running of the state.
Some of the massive advantage of a state issue crypto includes:
Automated Tax Collection: Its no secret that most nation runs on revenue generated largely from tax, a state own cryptocurrency means that tax calculation and deduction can be automated (especially consumption tax and VAT) - thus, simplifying the process and eliminating corruption and evasion.
Accurate Data Collection: Government and business owners need accurate data and statistics to plan - blockchain powered state own currency will give us an opportunity for the first time to collect a more accurate information as regard consumption pattern, market trend and even wealth distribution.
Reduction and/or End of Corruption: Corrupt enrichment would also become a thing of the past - how do you embezzle money in an open ledger transparent network system - the awareness that your wealth or better still all money movement is in the OPEN is sufficient to discourage theft, corruption and embezzlement.
Production Enhancement: This would also encourage productivity - after all government can use a concept Proof of Productivity/Work to program the crypto; thus, building in a reward system for production and productivity.
Financial Inclusion: With a state-created crypto, state can achieve almost 100% financial inclusion, since owing or spending money automatically mean own some form of bank account or wallet system; this will on it own also create endless opportunities and possibility. That includes: accurate credit score tracking, international payment, efficient bill management, loan management redefine, insurance redefine, pension scheme redefine - the possibility is endless.
Cash Logistic Cost Reduction/Elimination: For example according to a news article on vanguard, Nigeria spends an estimated $5.1 billion, about N816 billion yearly on printing and handling cash, an amount which is one per cent of the country’s Gross Domestic Product, GDP figure. This massive expenditure can be eliminated complete with the creation of a government backed digital currency.
Smart Economy & Governance: adopting blockchain technology, we help create a smarter and more efficient system, from financial to commerce, health sector, maritime sector, data management, security, shipping, immigration management, land registry, asset registry, agriculture exchange, virtual all aspect of our life can transport with the adoption of blockchain technology.
Every serious government that desire massive socio-economic transformation must embrace this new frontier of technology - thus creating a better, smarter and more efficient government and economy.
What do think?, let help people in government see the reason to move to blockchain now - add your voice by dropping comment below!!