Technological innovation has been one of the main factors that contributed to the integration of new and improved work models across various spheres of activity, including governmental procedures as well as the public sector. The problem is that most governments are slow when it comes to embracing change which leads to numerous friction points and bottlenecks in decision-making processes that lead to an increase in citizen dissatisfaction when it comes to their interaction with public services and governmental institutions. Blockchain has garnered much attention from the enterprise sector due to its potential to unlock new value and increase efficiency. A strong supporter of blockchain, IBM, states that the immutable ledger built in this technology can help governments build a reliable and tamper-proof framework of data records that resolves the dual challenge of trust and transparency while ensuring privacy and the protection of personal data.

After considerable research, IBM concluded through its government BCDB case study that blockchain provides an answer to some of the most pressing challenges faced by governments. Government purchasing has raised over the years a series of questions related to the allocation of public funds and resources. Current paper records and legacy systems provide limited visibility that often translates to waste either through over-ordering or failure to anticipate shortages. IBM Hyperledger can streamline governmental purchases by ensuring product visibility during each stage of the supply chain, along with accompanying digitized invoices and documentation.

Asset registration is another governmental segment where blockchain can add real value. Governments need to accurately track the ownership of properties, businesses, and other citizen-owned goods. The problem is that legacy systems provide low levels of accessibility and transparency that still rely on manual data entry which may lead to the creation of inconsistent registries. The solution provided by IBM is the creation of blockchain records that link asset ownership to a shared digital ledger to guarantee information accuracy, availability, and efficiency.

Identity verification services are of vital importance for both citizens and governmental agencies. The main issue is that identity services are built on inefficient models that siphon a large number of funds to function properly. Through IBM blockchain, governmental agencies can create and store a single collection of trustworthy digital identity documents that enables government officials to reconcile data conflicts and empower citizens by giving them full control over their own identity.