Last week, Ghana’s Vice President Bawumia made comments at the 14th Commonwealth Regional Conference on Advancing Ghana to be Powered by Blockchain Technology.
Blockchain technologya system of recording information in a way that makes it difficult or impossible to change, hack or cheat the system, is seen by many governments as a solution to improve transparency, efficiency and trust in information management.
This move represents a major step forward in digital governance, but it also brings a set of challenges that need to be addressed.
Benefits of Blockchain Technology
Using Blockchain’s decentralized technology and processes can eliminate the need for middlemen in government transactions, leading to significant efficiency gains and cost savings.
By automating many manual processes, blockchain can reduce bureaucratic red tape and speed up service delivery, allowing governments to focus on strategic initiatives rather than administrative tasks
Every transaction on a blockchain is recorded in a public ledger, providing an immutable and transparent record. This level of transparency can significantly reduce corruption and increase trust between the government and its citizens.
Case study: Estonia
Estonia has been a pioneer in implementing blockchain technology at the national level.
They have incorporated blockchain to secure health records, as well as judicial, legislative, security and commercial code systems, among others.
Challenges of putting government functions on the Blockchain
Computing Power
One of the main challenges is the technological infrastructure required to implement blockchain on a government scale. Blockchain Systems rrequire a significant amount of computing power and energywhich can be an obstacle for a country where energy resources are already depleted.
In addition, the lack of international rules or laws regarding blockchain technology can create uncertainty and hinder its adoption.
Digital Literacy
Another challenge is the digital literacy and technical expertise required to manage and maintain blockchain systems.
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While Ghana has made strides in digitization, with the Vice President stating that most of all government departments have been integrated into the digital platform Ghana.govthere is still a need for skilled professionals who can navigate the complexities of blockchain technology.
High implementation costs
In addition, the cost of implementing blockchain technology is not insignificant. It requires investment in both hardware and software, as well as staff training.
For a developing country like Ghana, this cost must be weighed against other pressing economic needs.
With Ghana currently in agreement with the IMF on a $3 billion loan and the state of the economy, implementing blockchain for government functions does not seem like a task to be undertaken in the near future.
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