Blockchain Solutions: A Promising Path for Municipal Governments

Blockchains are distributed ledgers that maintain a continuously growing list of permanent, tamper-proof records. This core functionality allows blockchain to track diverse data types across multiple industries. However, it’s important to note that governments are also experimenting with this emerging technology. Municipal governments, in particular, have a unique opportunity to examine how these solutions can improve their operations, combating common challenges like inefficient and expensive processes, security risks, and a lack of transparency.

In addition to these operational improvements, blockchain can support asset management, information sharing, public records storage, and more. This post will discuss the benefits of municipal government blockchain solutions and their many applications.

Blockchain technology can generate several positive outcomes for municipal governments, including:

Because blockchain transactions are immutable, any data added to the ledger stays there permanently. This dynamic ensures all parties can view the same data simultaneously, improving transparency and reducing the risk of corrupt practices. For example, utilizing blockchain-based solutions for voting systems and contract management can help establish greater accountability.

Municipalities handle sensitive data from thousands or millions of citizens, which they must protect from cyberattacks and security vulnerabilities. Fortunately, blockchain technology inherently secures information via unique cryptographic features. Specifically, any data added to the blockchain becomes part of a distributed ledger network that requires consensus to validate transactions. This dynamic makes it almost impossible for hackers and cybercriminals to tamper with collected data. For this reason, blockchain solutions are ideal for multiple uses, including sharing verifiable credentials and recording sensitive financial and health information.

Blockchain technology enables faster and more efficient processes than traditional systems. Instead of spending time and money to track paper-based records, municipal governments can leverage blockchain to create a decentralized system that streamlines processes using smart contracts. This automation eliminates troublesome data silos, saves time, and reduces workload, freeing up resources for other initiatives.

Although blockchain is an emerging technology, many have already realized its potential. Here are a few ways blockchain solutions are evolving within municipal governments across the US:

Blockchain solutions are not exclusive to large, bustling cities. In the small, rural community of Williston, North Dakota, the city has placed a municipal-hosted Digital Currency Machine (DCM) in the Williston Basin International Airport, allowing citizens to pay utility bills in cryptocurrency.

Cook County, Illinois was the first location in the US to implement a blockchain solution for managing real estate title deeds and its property tax portal. Specifically, the platform has generated a decentralized record of traceable title updates and ownership transfers. With these insights, the Cook County Clerk’s office is protected from nation-state attacks and can complete paperless land transfers, reducing operational expenses.

Interested in the immutability of blockchain, the municipal government of Chandler, Arizona, approved a mock election in the summer of 2021 to see how blockchain solutions could be used in the future.

With blockchain technology, municipal governments can bolster their digital transformation efforts, adopting robust infrastructure that improves transparency and efficiency across internal operations. Specifically, by leveraging a decentralized ledger, governments can reduce costs, improve performance metrics, and unlock new insights that enable proactive decision-making.

And regardless of the specific use case, blockchain has the potential to fundamentally alter the way municipal governments operate. If any of these blockchain applications has piqued your interest, check out more of our case studies, where you’ll see the potential of blockchain in action.