Giving Compass' Take:

• Brookings examines how blockchain is being used by various state governments to deliver public services more efficiently and finds successful implementation, but cautions that more regulation may be needed.

• Not all states have evolved, with many responding negatively to the emerging technology. NGOs that work with state agencies should take a close look at Brookings' assessment to see where their local government stands.

• This new report shows how blockchain can be used to solve social problems.

Blockchain is no longer just a tool to mine cryptocurrencies or manage databases. Now U.S. state governments have recognized the technology’s potential for the delivery of public services, and are at various stages of implementation. For blockchain to emerge as the technological imperative for public services, states will have to change existing regulations. They must address concerns about scalability,  the difficulty of removing and editing data once uploaded, and investment in the new technology.

The state of Delaware announced in 2016 the Delaware Blockchain Initiative, a comprehensive program intended to spur adoption and development of blockchain and smart contract technologies in both private and public sectors in the state. Then Governor Jack Markell noted that “Smart contracts offer a powerful and innovative way to streamline cumbersome back-office procedures, lower transactional costs for consumers and businesses, and manage and reduce risk,” and suggested that the state will “lead the way in promoting blockchain technology and its growing role in digital commerce.” As Delaware hosts over 60 percent of Fortune 500 companies and numerous startups, it was widely considered a major development at the state level.

In 2017, the state of Illinois announced the Illinois Blockchain Initiative, which calls for a consortium of state and county agencies to “collaborate to explore innovations presented by Blockchain and distributed ledger technology”. Similar to Delaware, the state of Illinois aims to utilize blockchain and distributed ledger technologies to “transform the delivery of public and private services, redefine the relationship between government and the citizen in terms of data sharing, transparency and trust, and make a leading contribution to the State’s digital transformation.”

Read the full article about assessing the use of blockchain by state governments by Kevin C. Desouza, Chen Ye, and Kiran Kabtta Somvanshi at Brookings.