{"id":27811,"date":"2020-11-16T09:00:00","date_gmt":"2020-11-16T08:00:00","guid":{"rendered":"https:\/\/oecd-opsi.org\/?post_type=publication&p=27811"},"modified":"2022-06-16T12:23:04","modified_gmt":"2022-06-16T10:23:04","slug":"uncertain-promise-blockchain","status":"publish","type":"publication","link":"https:\/\/oecd-opsi.org\/publications\/uncertain-promise-blockchain\/","title":{"rendered":"The Uncertain Promise of Blockchain for Government"},"content":{"rendered":"\n
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Summary<\/p>\n\n\n\n

Blockchain and its underlying distributed ledger technology have the potential to fundamentally transform a wide range of industries and markets. However, so far, blockchain hype has often led public sector organisations to approach the technology with both uncertainty and unrealistic expectations, as such inflated expectations often overstate or obscure practical applications. Previous OECD work such as Blockchains Unchained: Blockchain Technology and its Use in the Public Sector<\/a> and State of the Art in the Use of Emerging Technologies in the Public Sector<\/a> have outlined the core blockchain technologies and their use cases and policy considerations for the public sector. Despite hundreds of pilots, there have been few government success stories related to blockchain implementation. Scepticism and cynicism are on the rise as this technology appears to be entering the proverbial \u201ctrough of disillusionment\u201d common among emerging technologies as they inch towards maturity and a fuller understanding. This scepticism must be taken seriously and investigated in more detail to determine the extent to which it is warranted, and whether, when appropriate, it can be mitigated. <\/p>\n\n\n\n

The OECD Observatory of Public Sector Innovation (OPSI) and the Digital Government and Data Unit<\/a> have coordinated the development of this paper, which seeks to outline the current state of blockchain in government. It provides an overview of early projects, describes the observed beliefs and sentiment among the government actors, helps officials decide whether blockchain may be worth pursuing, debunks some commonly held misconceptions, and focuses on a set of examples and case studies that provide useful lessons and early observations about factors that have and can contribute to whether blockchain efforts are successful or unsuccessful, both at the project and organisational levels. <\/p>\n\n\n\n

In doing so, the paper seeks to cut through the hype around blockchain, equip public sector decision makers with a better understanding of the current blockchain landscape, help officials take a critical look at potential use cases, and to assist them in their thinking as they consider, and if appropriate, initiate, manage, and de-risk blockchain technology projects. These steps can ultimately help future public sector blockchain implementations to succeed and reach their full potential. <\/p>\n\n\n\n

This report is not an introduction to blockchain technology or its use in government. Despite aiming for a jargon-free report, readers are expected to understand the fundamentals of blockchain technology. Users who are interested in learning more about the technology can find overviews and guidance in the papers mentioned above. However, we recommend that the reader return to this report for an update after reading up on the fundamentals.<\/p>\n\n\n\n

To aid in blockchain project success, this report explores the following questions and provides illustrative examples based on early reports and research:<\/p>\n\n\n\n