Countries and Their Adoption of Blockchain Technology AdoptionJun 05, 2022
Countries and Their Adoption of Blockchain Technology
Blockchain technology has transitioned across many industries and has changed the dynamics of the current digital market in many ways. Web 3.0 has been acknowledged and adopted by many companies and individuals globally.
However, the question remains – are countries ever going to accept blockchain across their major systems?
This has been a reality in many countries which have adopted blockchain technology across multiple industries and systems of their utility.
This article will introduce and discuss all such countries which have not only adopted blockchain technology but are working for the betterment and development of the blockchain industry.
What Benefits Do Countries See in Adopting Blockchain Technology?
Blockchain technology enjoys features such as being distributed. This means that instead of one centralized body, the information saved is scattered across the blockchain network, reducing the likelihood of data being corrupted or accessed illegally.
The data is also immutable, ensuring it cannot be tampered with, therefore being reliable and accurate.
This process is also transparent and accessible, making it an ethical and popular medium. How do these features make it a valuable asset for countries?
1. Preventing Corruption and Improving Democracy
Democracies in developing nations have been synonymous with corruption and destabilization. A major reason for this continues to be ballot and financial fraud emerging from a lack of transparency. This occurs at both national and international levels.
At the national level, individuals and corporations with greater financial assets use the money to sway public policy and influence political leaders.
These tactics are amplified on the international stage, where more developed nations hope to meddle with the outcomes of general elections for their gains. This undermines the sovereignty of the victim state and dismantles public trust.
Blockchain technology can be implemented into the voting process in several ways to ensure fair and free elections.
Firstly, the blockchain ledger can securely store the votes by tokenizing each vote with the voter's unique biometric data. Additionally, the technology can also be used as a means for the voters to audit their votes by confirming their total votes.
Since all of the information is stored online in a coded manner, illicit tampering will reduce significantly. Furthermore, the electoral process will transparently contribute to increased public trust in the state and its institutions.
2. Introducing Property Registries
Underdeveloped nations are currently facing registration and identification crises. Owing to large proportions of the population in these nations living below the poverty line, a considerable percentage of the population remains unregistered.
This means that these individuals have no form of ID for their families or their property. Since there is no clear ownership of the land, the government cannot distribute it or utilize it for the provision of public goods such as schools and hospitals.
The government can execute mass registration campaigns by creating online registration websites with easy and concise forms. This has the potential to be a quick and efficient solution to the crisis. The data collected will also be stored transparently and considerably safe.
The authorities can then use these registries to create contracts with the owners encouraging not only the provision of public goods but also small-scale industries.
This newly created legal status and security will encourage property owners to invest in their land and use it as collateral to expand their businesses with the help of loans. Subsequently, the country's GDP and per capita income will increase, proving to be advantageous for the economy as a whole.
3. Making Immunization More Effective and Accessible
The outbreak of COVID-19 in January 2020 brought to light the need for an effective and efficient immunization process and highlighted the problems in the current healthcare systems of most countries worldwide. It is important to have fast channels for the distribution of vaccines in cases of epidemics or rapidly spreading diseases.
This problem is especially pertinent in low-income countries where most of the population is malnourished and therefore more susceptible to diseases.
One of the main problems is the inability of the governments to reach and keep track of the entire population. Managing the supply chain also proves to be a difficult one.
There is already a registration deficit, which makes the immunization process even harder to track.
Blockchain technology can keep a record of both the supply and distribution of vaccines. There are many advantages of adopting this method.
Firstly, the database is secure and reliable and can therefore be used to monitor and respond appropriately to changing needs.
Secondly, the database can be updated in real-time, ensuring a continuous flow of information.
This can be employed by both governments and individuals alike. Governments can carry out mass vaccination programs when the need arises, while individuals can track the provision of vaccinations in their area.
Countries That Have or Are Willing to Adopt Blockchain Technology
Considering the numerous advantages of employing blockchain technology that we have discussed, it is no surprise that countries across the globe, irrespective of their financial or technological advancement stages, have started investing in this particular sector.
From industrial development to healthcare, these countries have experienced a surge in productivity. Which countries have taken the lead in blockchain usage and advancement?
China's position in the blockchain industry is both interesting and unique. This is a country that has historically been under intense government regulation. With its attributes of being decentralized and immutable, Blockchain technology puts the government's control at risk. This is why China has adopted a model that differs from the ones being used in the mainstream industry.
The Chinese dominated the industry in 2013 when BTC-Relay became the largest volume blockchain exchange in history, in the form of bitcoin. Since then, Chinese-led businesses and investors have seen great potential in investing in this market.
However, this rise in popularity has also fueled China's requirement for increased regulation. For this purpose, blockchain technology in China, such as Ethereum, must be state-regulated.
This manifests in the form of Open Permissioned Service, which is a conglomerate of both permissioned and permissionless approaches. Another interesting take in the Chinese industry is the ban on cryptocurrency.
This essentially means that instead of tokens, users have to pay in fiat currency.
India has proven to be a dominant player in the blockchain industry. This development is in line with the country’s rapidly improving IT sector. The country has experienced a shift from paper money to digital currency, which has led to the advent of digital payment platforms such as Google Pay and PhonePe.
In India, blockchain is integrated rapidly into non-financial sectors such as healthcare, insurance, private transport, retail, etc. One of the main reasons this technology makes such headway is the government's use and regulation of blockchain. Currently, more than 40 public sector projects are being executed using blockchain technology. This successfully helps create public trust and encourages local investors to direct their attention toward the rapidly expanding blockchain industry.
Both the blockchain service providers and start-ups are adopting policies encouraging joint investment and innovation.
These collaborations are also influencing government policy to prove competitive at an international level and help tackle India's problems, such as the rise in poverty and agricultural shortages.
Japan has been among the first innovators of blockchain technology that have adopted and become the epicenter of digital influence in their region.
To understand this fact, it should be kept in mind that Japan was the first to start mining and use Bitcoin in its negligible value. It shows the interest of the government and other authorities across the country in this digital innovation.
Blockchain and the adoption of the innovation in the country was duly accepted by the people of Japan. To this date, more than 3.5 million people are a part of the process in cryptocurrency transfer and blockchain adoption.
They are currently paving new ways into the blockchain technology and influencing it within the everyday industries for transforming their technology for the world.
Perhaps the most unprecedented of places for blockchain technology to gain momentum is a warzone like Syria. However, recently international welfare organizations have found increasing use of blockchain to facilitate their welfare programs and fulfill their objectives. While most industrial and technological advancement has been severely disrupted in the past decade when it comes to this region, organizations operating within Syrian borders are more inclined toward investing in blockchain.
In 2018, the United Nations collaborated with the World Food Organization and EyePay to carry out a massive food distribution program amongst the refugees. Another significant milestone in this field is the Building Blocks Project which aims to eliminate the need for an intermediary between WFP and beneficiaries.
As mentioned before, blockchain also helps create records of identification that can be stored online. The Syrian refugees can then use these to access facilities such as rehabilitation, vaccinations, or even necessities such as food and shelter.
This article has discussed multiple uses and benefits to countries employing blockchain technology due to decentralization and transparency features.
We have also seen countries such as India and Syria harness the advantages of this industry and China's efforts to tweak the technology to fit its narrative.
There is ample evidence to convince countries across all continents to move toward investing in this digital market.
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