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The Integration of Blockchain and Government Affairs Chain

The Chinese government has introduced policies to encourage the adoption of blockchain technology throughout different levels of government. The government affairs chain can make use of decentralized blockchain to provide automated departmental and government services to citizens, civil servants, etc., and to create a public space in combination with various fields of state affairs. This can help to achieve information sharing in various fields along with transparency, efficiency and reliability of data management.

Governments at all levels in China have issued policies to encourage the application of blockchain technology to transit to an “e-government”, which has made progress over recent years. Through decentralization of blockchain technology, the government aims to provide automated departmental and government services and to create a public space in combination with various fields of state affairs. The sharing of data and information in various fields raises transparency, efficiency and reliability of data management.

At present, the application of government affairs chain is mainly focused on data storage and sharing. As the technology matures and adoption increases in the future, there can be multiple areas for research and development, such as digital identity, intelligent law, electronic invoices, e-certificate and ecological security.

Digital identity
The registration management department can use blockchain to carry out related services. For each registration item, when provided with the digital identity, it can be managed in combination with the blockchain system. This allows more convenience in terms of control for reading, modifying, and adding permissions such as attributes and entries. Through the multi-level authority system, the interaction and division of labor between different departments, industries and organizations can be seamlessly connected in the application.

Intelligent law
Intelligent law is part of the government chain ecosystem that regulates documents and modifies interface permissions through smart contracts. It can determine the conditions and restrictions stipulated by national legislation, improve the speed of verification of registry regulations, and guarantee accurate enforcement of the law. When faced with legal ambiguity or other special circumstances, the wisdom law will be forwarded to the authorized personnel for digital signature to make a decision to confirm.

Electronic invoice
In August 2018, blockchain electronic invoices were implemented in Shenzhen. In November, the Shenzhen branch of China Merchants Bank acted the first blockchain electronic invoice. Electronic invoices have the advantages of uniqueness, non-deformability and mutual participation. The whole process of ticketing, billing, accounting, and reimbursement can be fully recorded and traceable. The tax bureau and the billing party can participate in the bookkeeping. It is convenient, fast and can effectively solve existing problems of using traditional electronic invoices, such as unlimited copying, repeated printing, difficulty in authentication, tax evasion and other issues.

Electronic certificate of deposit
In September 2018, the Hangzhou Internet Court confirmed for the first time that the blockchain electronic certificate of deposit carries legal validity. As of January 2019, Beijing has built 17 judicial blockchain nodes. All qualification certificates can also be recorded using blockchain. Since the beginning of 2018, educational institutions such as the Massachusetts Institute of Technology have also begun to award blockchain digital degree certificates to recent graduates.

Ecological safety
Using blockchain technology, executed transactions cannot be tampered with. Data on all nodes can be updated synchronously and authority management is clearly defined. These features can better protect the security of the government affairs chain ecosystem. The uplink data forms a de-personalized data fingerprint through an algorithm. Permission is required when we want to access the data storage to read stored information. Putting into context, the data on the chain is “meaningless” without having permission, therefore we do not have to worry about privacy leaks. Blockchain provides a secure transmission channel, and the government blockchain can be accurately tracked.

“In the future, we will go through a process of government chain-up,” said the Director of Institute of Industrial Economics of CASS, Information Center, Ministry of Industry and Information Technology and the Director of the Editorial Board of ‘China Blockchain Industry White Paper 2018’, Mr. Yu Jianing. He also suggested that governments at all levels should actively coordinate and open up more application scenarios. He said, “some good examples are needed for the better industrialization of blockchain,” and to welcome the era of digital government.