As head of the Department of Government Efficiency (DOGE), Elon Musk is pursuing the innovative potential of blockchain technology to increase transparency and dramatically reduce U.S. government spending.
Elon Musk, known for his disruptive visions in various sectors, has set his sights on the use of blockchain technology in the American public administration.
According to a recent report by Bloomberg, the head of the newly created Department of Government Efficiency, DOGE, is looking into ways to apply blockchain technology to improve government transparency and efficiency and address concerns about government spending in the United States.
Blockchain technology against government opacity
Bloomberg report has revealed that Elon Musk is reportedly exploring the use of blockchain technology to combat corruption and lack of transparency in the US government. Until now, opacity in public spending has been a global problem, which commonly facilitates mismanagement and diversion of funds. However, the use of blockchain could be an ideal solution to address this problem and ensure government efficiency.
This technology, which offers its immutable record of transactions verified by multiple nodes, is presented as a potential solution to establish a distributed and secure database, where each block of information would be encrypted and connected to the previous one, making it practically impossible to alter the data. This structure could help the United States government to Securely track federal spending, protect data, make payments, and even manage buildings, according to him report.
Experts have pointed out that this transparency, offered by blockchain technology, would also allow citizens to track the use of funds in real time, fostering accountability and inhibiting corruption.
A technology to optimize efficiency
Beyond transparency, blockchain technology also has the potential to improve the efficiency of public administration. Bureaucratic processes, often slow and complex, could be automated and simplified by implementing smart contracts that live on the blockchain. These smart contracts, programmed in code, automatically execute agreed-upon actions once certain conditions are met. For example, a smart contract could automate the payment of social subsidies once the beneficiaries’ requirements are verified.
Thus, automating processes through smart contracts could not only reduce the processing time of the same, but could also minimize human errors, reducing the waste of resources and time. On the other hand, the intrinsic security of blockchain would also protect the administration from cyber attacks, protecting sensitive data and avoiding fraud.
The use of Blockchain in public administration
While the potential of blockchain to revolutionize public administration is enormous, there are also challenges to overcome. According to the report, the parties involved in the discussions, who asked to remain anonymous, indicated that The government is meeting with several blockchain project leaders in its interest to use public and permissionless networks.
While these blockchains offer revolutionary potential for public administration thanks to their intrinsic advantages, such as irrefutable transparency, data immutability and decentralization, their use could also be challenging at present due to the lack of regulatory clarity and global standards.
However, it is also important to note that the US government is making progress in this area, with a view to establishing a clear and solid framework for advancing the integration of this technology into administrative processes and for promoting the development of this emerging technology.
Thus, despite the existing challenges, the future of blockchain in public administration seems promising.
The growing need for transparency and efficiency in public spending, coupled with the ongoing development of blockchain technology and its potential regulation, paves the way for a wider adoption of this transformative technology. Not to be forgotten, blockchain implementation in the public sector not only promises to increase transparency and reduce fraud, but can also redefine the relationship between citizens and governments.
A milestone in the modernization of public services
In summary, the application of blockchain technology in public administration is presented as a promising solution to combat corruption and improve efficiency.
While there are challenges to overcome, the potential transformation of governance that blockchain offers is significant and the interest of governments such as the United States in this innovation highlights its growing global importance.
