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The use of blockchain technology in e-government services

The use of blockchain technology in e-government services

The role of the DAO in government

Most countries currently offer e-services, in which public services are delivered via information and communication technologies for the benefit of their inhabitants. 

These e-services are used for a variety of government tasks, including voter registration, driver’s license acquisition, immigration, taxes, and more. Overall, e-services have increased government productivity and efficiency in the gathering, security, and transmission of information. 

Electronic technologies used in government are referred to collectively as an “e-government system,” and such solutions are progressively being embraced globally to increase government efficiency and transparency. 

Current e-government services, on the other hand, are still centralised and rely heavily on humans to monitor and control them. Because of its lack of decentralisation, the highly centralised IT infrastructure is very vulnerable to external attacks. 

Outsiders pose a risk since they have access to systems that could compromise data integrity, such as infected laptops or misplaced external drives. Furthermore, internal rogue users may jeopardise data integrity. 

Another disadvantage is that relying on personnel to monitor and oversee operational processes exposes the system to flaws and opens the door to bureaucracy and corruption.

The use of blockchain technology in e-government services 

How would blockchain-based DAOs be used in e-government services? In theory, such a system would be completely decentralised, making it impervious to malevolent attacks. Using smart contracts, this strategy has the ability to control and manage all connections between decision-makers, management, agency personnel, other agencies, clients, contractors, stakeholders, and citizens.

Some of these contracts would be legally binding, while others could be informal operational arrangements (e.g., internal processes, standards, etc.). To preserve openness and accountability, every government transaction (e.g., the use and transfer of money, property, data, and access and use rights) will be recorded on a public blockchain. Smart contracts may be built to provide varying degrees of access depending on a role-based authority framework. 

A blockchain-based DAO would remove errors and paperwork associated with traditional human operations because it would be managed by pre-defined rules executed via a smart contract. 

The blockchain might also be used to automate a wide range of government procedures. A smart permit, for example, might manage a wide range of normal government functions. A smart permit, like a blockchain smart contract, is a type of legal arrangement that binds several parties. 

Separate obligations would be assigned to the government and the permitted entity (i.e., as pertains to the issuance of licenses). A permit is required for a non-governmental group to perform a regulated function. 

In fact, presenting a new government-DAO (or eGov-DAO) to the general public may necessitate significant changes, which may be difficult due to the complexity of government operations and the public’s initial reluctance to adapt to technology. 

However, adding blockchain technology to various government functions would surely bring additional security and reliability because the eGov-DAO, like most blockchains, will be both irreversible and transparent. 

As a result, many government services will be processed much faster, enhancing the efficiency of most departments. The general population will recognise the benefits of such a system and will most likely adapt to the technology.

The use of blockchain technology in e-government services

At the moment, e-government services need completely automated and efficient platforms that integrate all parties and provide transparency. Adopting a blockchain-based eGov-DAO will enable real-time monitoring and assessment of e-government services. 

More efficiency and openness, as well as better resource management, will benefit the government. This method protects all documents for auditing, reduces litigation between parties, and expedites contract allocation and execution. 

Several times in the past, both public and commercial systems have been hacked using ransomware and denial-of-service assaults. The e-Gov DAO will undoubtedly address these security concerns while reducing IT infrastructure expenses. 

The ultimate purpose of e-Gov-DAOs is to save governments money, boost efficiency, and minimize risk by developing a low-cost, transparent e-government system. 

At a time when public trust in government is dwindling, blockchain may be the answer to restoring people’s faith in their governments.

Is the DAO legal?

DAOs are legal in different jurisdictions. A DAO may be deemed a firm or a nonprofit in some circumstances but a contract in others. To acquire a definitive answer, as with most legal issues, speak with an attorney who is well-versed in the appropriate jurisdiction. 

The legal framework for federal governance and regulation in the United States is usually skeptical of bitcoin and DAOs. The Federal Reserve, the Securities and Exchange Commission (SEC), the Department of Treasury, and the Commodities Futures Trading Commission are all regulatory bodies. 

The following crypto activities may pique the SEC’s interest:

What measures will the federal government take to regulate DAOs? On the one hand, because DAOs are comparable to equity investment vehicles or exchanges, they will be regulated by the federal government if they are meant to trade different types of cryptocurrency.

On the other hand, many DAOs will be about how to deploy resources more efficiently to accomplish an aim that members of the DAO agree is essential rather than about the tokens used to execute business operations in the DAO.

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