How Does Blockchain Technology Stand As An Anti-Corruption Tool? | CoinsCapture

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How Does Blockchain Technology Stand As An Anti-Corruption Tool?

The backbone of cryptocurrency is blockchain technology - when blockchain was introduced, it was expected to reduce or get rid of any financial hurdles, fraud, scam, and corruption.

Torplus Yomnak, the founder of Hands Social Enterprise, said, “Blockchain could be used to promote transparency of information for anti-corruption and to increase the power of investigation.”

So the question is how blockchain technology stands as an anti-corruption tool?

In this blog, we are going to discuss blockchain technology and its use as an anti-corruption tool:

1. Blockchain consists of public distributed ledger, which means that any data recorded on the blockchain is transparent and immutable, also it prevents falsifying records.

2. Any data recorded in blockchain is timestamped and traceable as it is permanently there without any tampering or manipulation. 

3. Every data and transaction with blockchain is cryptographically encrypted and it also consists of protocol based on consensual validation for each transaction.

4. Blockchain technology facilitates smart contracts - a computer algorithm that can help validate the contractual terms without the need for third parties.

5. Blockchain technology is borderless and decentralized - meaning it is not controlled by a single entity or entity at all. It is free from being centralized, or in control with the government and financial institutions.

6. The computational algorithm of blockchain and the consensual mechanism helps prevent double-spending of the coins, validates the transactions, and protects from attack.

7. Blockchain technology can facilitate proof of authenticity, proof of provenance, and prevent illegal goods to enter the market space.

Also Read, Evolutionary Regulations of Cryptocurrency

8. The implementation of blockchain technology would create an impact on the governance with elements such as trust in the institution, transparency, and security, or protection of the data and privacy.

9. An open public registry can facilitate with monitoring of the registries leading to increased transparency, and securing such registries with blockchain can help lessen the corruption risks and practices.

10. The environment of the blockchain technology operates on algorithms managing consensus amongst the nodes in the network of the blockchain, and trust is in the data and coding than any institution or individual. 

11. Blockchain technology has even replaced traditional banking services as they reduce the costs of any middlemen or intermediaries, helps with funds tracking and auditing.

12. Blockchain’s ledger feature can aid the government with procurement systems and processes, along with managing the record and securing key events in the process.

13. Also, distributed ledger can prevent powerful or large corporations to fully control the market, which also helps to prevent corruption.

14. Financial institutions and digital companies are adopting to innovations and technologies to create a new product, to progress and develop, and increase efficiency.

15. Blockchain can also be used for the purpose of electronic voting and help minimize the tampering in the process and management as it concerns over security, poll accessibility, voter registration integrity, and vote turnout. 

16. Blockchain technology can aid security and integrity in the system, process, and operations.

World Economic Forum had an article feature that states, 

“while the scalability of those solutions remains challenging, blockchain has emerged as the most promising disruptive technology in the fight against corruption… It possesses important features that can help anchor integrity in bureaucracies, by securing identity, tracking funds, registering assets, and procuring contracts.”

Also Read, The Legalization Of Cryptocurrency In India - Things You Need To Know

The use cases of blockchain

Identity management, provenance tracking, logistics, land rights, and many such fields are making use of blockchain.

The shipping industry uses blockchain technology for tracking the containers, operating to speed the movement and process of the cargo; also, blockchain helps in customs clearance.

Identity management and assistance on cash-based for the refugees in camps have helped to reduce the costs of transactions and have efficiently increased the traceability of the funds.

Blockchain technology provides secure identity, and due to this feature, many developing countries are initiating pilot projects and experiments.

The success and implementation of blockchain rely on contextual elements like the legal system, government, social and political status, but the adaptation of the technology would create a positive impact.

The use of blockchain technology for anti-corruption can help to build the bridge between the government and the citizens.