Technology and the SDGs -Blockchain and the Transparent World
Blockchain is a securely distributed database or ledger that is not centrally administrated; rather, records of transactions are shared by all members of the network. These transactions are verified by members of the network through cryptographic methods which ensure the integrity of the transactions. By allowing members to verify transactions in the chain, the blockchain creates trusts and transparency. Today, the most widely known application of blockchain, a crypto-currency called Bitcoin continues to baffle financial authorities. Even without intrinsic value as a currency, millions of people opt to use Bitcoin because of the trust that it elicits. Many Information Technology (IT) experts predict that this technology will have profound impact on every industry by truly decentralizing existing systems.
One potential area for application is in national elections. Imagine elections carried out on blockchain technology. Since all members of the network can confirm the authenticity of the tally by referring to the blockchain, it would be almost impossible to rig elections. Hypothetically, the only way to tamper with the results is for the interest party to accumulate computing power equal to and greater than 50% of that of connected members. On the scale of a national election, this is extremely expensive and serves as an incentive which protects the system. This system allows true inclusiveness and representation in decision-making helping countries inch ahead in achieving SDG 16.
Governments all over the world are exploring ways to utilize this technology to strengthen their institutions. Estonia is well-known for using blockchain technology in its several national digital systems. Health records, for example, are protected using blockchain, ensuring that citizens know who accesses their data at any point in time. Public registries are also digitized and protected using blockchain technology. This ensures accountability and transparency. In Ghana, the Bitland Project plans to employ blockchain to transparently register land titles amidst numerous land tenure conflicts. A positive externality of this enterprise in Ghana is that investors are now willing to invest in real-estate because it is effectively conflict-free. Open Government initiatives all over the world aim at increasing transparency of operations in public institutions which is important for building public trust. The Government of Ghana recently implemented an electronic clearing system at the Port Authority, a move which is expected to radically reduce bribery and corruption. The reason is simple: all electronic transactions can be recorded, tracked, and managed easily. With blockchain, all the transactions will be tamper-proof, eliminating the possibility of anyone covering up malicious acts.
Like other general-purpose technologies, blockchain represents huge opportunities for entrepreneurs all over the world. Already, it has spawned hundreds, if not thousands, of start-ups representing employment for many young entrepreneurs. Cryptocurrencies, for example, rely heavily on miners who solve mathematical puzzles in exchange for remuneration in the form of cryptocurrencies. As industries are created, newer jobs will be created too helping to make progress in SDG 8.
In energy, experts suggest that blockchain can be used to manage smart grids to allow for greater efficiencies and monitoring. In distributed databases, accurate information on proportions of renewables against non-renewables can be obtained with much ease. Existing databases do not do a good job of distinguishing between electrons renewably generated from those produced by fossil fuels. Using blockchain, governments can efficiently monitor progress on renewable energy policies in cities and countries without the risk of double-counting. Overall energy efficiency is important for achieving SDG 7.
Notes
K. Korjus, “Welcome to the blockchain nation – E-Residency Blog – Medium,” 2017. [Online]. Available: https://medium.com/e-residency-blog/welcome-to-the-blockchain-nation-5d9b46c06fd4. [Accessed: 19-Dec-2017].
M. Orcutt, “How Blockchain Could Give Us a Smarter Energy Grid - MIT Technology Review,” MIT Technology Review, 2017. [Online]. Available: https://www.technologyreview.com/s/609077/how-blockchain-could-give-us-a-smarter-energy-grid/. [Accessed: 19-Dec-2017].