Written by Jonny FryWriters linkdin: https://www.linkedin.com/in/jonnyfry/
Typically, local authorities spend money in five different areas - education, public welfare, health, roads and criminal justice - and the monies they have at their disposal are not insignificant. In the US, state and local governments spent $3.2 trillion on direct general government expenditures in 2018 and in the UK, local authorities spent £94.6 billion in 2019-20. Therefore, it ought to be of no surprise that government offices are looking for ways in which technologies such as Blockchain can help them deliver services to the local community in a more efficient and transparent manner - after all, they are spending our taxes.
One of the key attributes that using Blockchain technology has, is the ability to offer greater transparency and therefore trust. For example in the UK, this offers some real benefits for local authorities when complying with special educational needs and disabilities (SEND) for young people. Historically, the current systems of many local authorities have been dependent on bureaucratic analogue procedures which rely on paperwork and files. Such cumbersome and bureaucratic processes demonstrate their efficacy (or, conversely, inefficiency), yet struggle to retain or expand social capital, chiefly ‘trust’ - i.e. parental trust in one local authority. Local Educational Authorities (LEA) rely on partners to cooperate – parents trusting professionals in their assessments of their children. However, by creating a blockchain-powered platform where all relevant parties can have access to the same data it is possible (using smart contracts) to create a ‘trust-free’ database with far greater transparency.
Although the use of Blockchain technology would enable LEAs to replace bureaucratic systems in a variety of ways, they would absolutely need to be cognisant of what data is held and who has access to this data in accordance with GDPR legislation. However, this ability to verify and share information about children and young people known to a local authority could resolve many issues LEAs face regarding SEND. Such a new digital blockchain-based system would help to make holistic assessment feasible, ensuring appropriate intervention by monitoring and reviewing a child on an on-going basis. Blockchain technology would remove the need to have to trust in a centralised data controller (typically the school the child attends) in order to accurately represent the child’s needs for support and provision. Since all this data would automatically be shared with the LEA and relevant professional carers, on-going intervention could also be automatically triggered using ‘trust free’ smart contracts. Once services have been delivered, the ability to establish and implement self-executing pay-on-delivery would improve the quality of the evidence submitted to tribunals (and potentially the decisions made by judges) by providing clear quantitative data on the exact cost of a child’s support.
Another way that Blockchain technology could be used is the automatic payments of benefits. Chainlink is a ‘decentralised oracle network’ providing reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain. For example, Chainlink can be used to monitor weather temperature and rainfall data. By using smart contracts, automatic payments could be made against a local authority’s insurance policy covering flooding, power outage or sustained abnormal temperature fluctuations.
Source: Chainlink
In Reno, Nevada, the mayor is optimistic about using Chainlink, saying in a tweet: “The time is now to work on great projects for Nevada. $LINK.” Since blockchain-powered platforms have the ability to hold and store data, this enables the historic spending and payments made by a local authority to be very transparent. Interestingly, local authorities in the US will be receiving substantial funds in the near future from the American Rescue Plan which allows Federal relief funds to be sent directly to state and local governments of all sizes. The main goal in passing this legislation has been to help the US to recover from losses caused by the COVID-19 public health emergency. How and where these funds are spent is important - certainly the use of Blockchain technology in this instance would ensure such funds are allocated correctly and appropriately.
Meanwhile, according to the publication BBN Times : “Every year, an average commuter in the United States spends 42 hours in traffic and over $1400 for gas while their vehicle stands idle”. Undoubtedly, Blockchain technology could improve the efficiency for collecting road tolls by providing secure automated payment solutions. Tolls on roads and bridges, such as the Dartford crossing on the M25, often have long queues especially during rush hours. Blockchain-powered smart contracts can enable automated payment with the help of a digital identification system, thus shortening long queues and commute time. One of the major issues that IoT and AI-based traffic management systems might face is the security of collected data. Since the IoT sensors and cameras will be connected to vast databases, hackers may attack networks to breach crucial data. In such a scenario, Blockchain technology can prove to be a solution. Storing the collected data on a transparent and decentralised manner helps to create a more reliable and secure way to collect and store such data.
With such awareness these days about carbon footprints one of the key challenges local authorities face is how to encourage their residents to use their cars less and ‘share rides’ as more of a means to reduce levels of congestion. Arcade City, a blockchain-powered platform, allows drivers who share rides to establish their own rates and then takes a percentage of rider fares. This allows Arcade City to appeal to professional drivers, who would rather build up their own transportation businesses than be controlled from a corporate headquarters: i.e. drivers on Arcade City are free to set their own rates, build their own recurring customer base, and offer additional services such as deliveries or roadside assistance. Another blockchain-based ride sharing app is Drife, based in Bangalore, which uses “personalized smart contracts” between drivers and riders. Drivers stake Drife’s DRF token to be chosen for rides and instead of paying a fee on every fare, Drife drivers pay an annual fee to use the app.
Source: Cycle4value
In Europe, Cycle4value, which employs incentives to encourage people to use bikes as opposed to cars is currently being tested in Austria as a way to help reduce pollution and traffic congestion. Cycle4value explains its offer as: “With every bicycle ride, the Bike Citizens app calculates how many Cycle Tokens you get deposited on your digital wallet. What makes Cycle4Value unique, is that you can exchange your tokens for real products and in the meantime your “real wallet” can stay inside your pocket. The method of calculating how many tokens one receives is rather complicated but 1 token is approximately one Euro. Besides your digital wallet, the app also provides a marketplace for retailers to offer their products or services you can buy with your tokens”. Scitepress.org details the financial and environmental impacts which Cycle4value offers and, no doubt, the current project in Austria will be closely watched by other cities globally as they, too, address the impact their cities have on climate change and what measures local authorities can introduce.
These are all good examples of the variety of ways in which Blockchain technology is being used to help local authorities and as there is better understanding about how to use this technology (and some of the initial concerns regarding security data and the ability of blockchains to be able to process large quantities of data are addressed) it is likely we will see many more use cases. A report from the Big Innovation Centre’s All Party Parliament Group (APPG) has summarised how Blockchain technology could be used, by saying: “Blockchain is one of the most innovative technologies considered in digital government strategies. Its benefits include:
• Efficiency gains in any inter-governmental and public-private information exchanges and monetary transaction.
• Reduction of bureaucracy and associated improvement in transparency and accountability in civic services.”
The use of Blockchain technology with other technologies such as Internet of Things, Artificial Intelligence are certainly proving to be ideal tools in helping local authorities handle the vast quantities of data currently held on their paper-based systems.
