Wednesday, November 15, 2017

CHIEF INFORMATION OFFICERS:

Scan any business, technical, or financial media source today and you are
sure to find an article on blockchains.



Blockchains have emerged as one of
the next big transformational technologies. However, blockchains are more
than technology and how transactions will be executed and the potential
impact on the economy is enormous. It’s still early in state government,
but with the potential in the public sector, NASCIO will be exploring
blockchains in the coming months. We won’t delve into the mechanics
of blockchains, nor the potential for proliferation of new “e-currencies.”
NASCIO will open the door to the world of blockchains through a variety
of conversations with leaders in state government and industry in order
to begin discussions regarding where blockchain technology can serve the
mission of state government.
Survey Results
To begin the discussion, NASCIO issued a one question survey to state CIOs.
The results are as follows:
Most CIOs are investigating blockchain technology and the application of
this technology through informal discussions. A minority of state CIOs are
not evaluating blockchains at this time. There are very few early adopters
that see blockchain technology as a transformative technology and have
formal business and technology plans for moving forward.
NASCIO Staff Contact:
Eric Sweden,
MSIH MBA CGCIOTM
Program Director, Enterprise
Architecture & Governance
NASCIO represents state
chief information officers
and information technology
executives and managers
from state governments
across the United States.
For more information visit
www.nascio.org.
201 East Main Street,
Suite 1405
Lexington, KY 40507
Phone: (859) 514-9153
Twitter: @NASCIO
Copyright © 2017 NASCIO
All rights reserved
Blockchains:
Moving Digital Government
Forward in the States
To what extent is blockchain technology and economics on your agenda?
19 out of 19 people answered this question
1 Still investigating blockchains in state government with informal discussions 12/63%
2 No Discussion of blockchains at this time 5/26%
3 Adopted blockchain technology in support of some state government services 1/5%
4 Formal discussions on blockchains 1/5%
5 Blockchain technology is referenced in the state enterprise architecture and/or IT str... 0/0%
6 Developed a blockchain road map to guide adoption and deployment 0/0%
Blockchains: Moving Digital Government Forward in the States 2
Enterprise Relevance – The New Government Services Model
Why such energy and interest around blockchains? Blockchains have the
potential for opening up new markets; for allowing any participant to enter
into business whether they have a lot of capital or very little capital.
Blockchains open up the global economy to everyone from large communities
down to small rural communities.
Blockchain technology fits into the enterprise as a new and growing
capability for creating, recording, and verifying transactions instantaneously
using a decentralized autonomous logic. There is no central authority or
third party required to authorize, verify, approve a transaction. 


The application
of this technology ranges from creating whole new markets for buying
and selling to real time executable contracts to managing the long chain of
custody transactions in supply chains.
In essence, Blockchain is a shared, global, incorruptible and therefore
trusted ledger of economic transactions. It is controlled equally by all who
wish to participate and transparent, yet private. 




Think of it as a steadily growing
spreadsheet of records or “blocks” that create an immutable
record where each block is “chained” or linked to the previous block using
state-of-the-art cryptography. Each entry recorded is validated and reconciled
by all participants in the network to ensure its consistent integrity.
Blockchain technology can be programmed
to record not just financial transactions, but
nearly anything that holds value and can be
expressed in code. Anything from birth, death
and marriage licenses, to property deeds and
titles of ownership, educational certificates,
financial accounts, medical procedures, insurance
claims, to votes, the possibilities are
truly limitless. Blockchain re-writes trust as we
know it, replacing it with a platform of shared,
verifiable integrity.
One of the main potential features of blockchain
is to completely disintermediate transactions. In the case of
Bitcoin, there is no central bank to manage the currency. The governance
model uses consensus. A lot of the government use cases being evaluated
are based on things that governments do today that involve government
as the trusted holder of an official record, like a property deed. However,
there is the potential that a blockchain could replace a state or local
government agency role as the keeper of truth for some records.
Do we really understand
blockchain and its applicability
for our organization?”
Key
Question
Blockchains: Moving Digital Government Forward in the States 3
Property records provide one example. In this case, the purchaser of
property wouldn’t file a deed at the courthouse. Instead, they would
commit the updated deed to a blockchain. If enough participants in the
blockchain were at consensus that this constituted a valid transaction,
then a sale of property and transfer of ownership would be transacted and
recorded. Likewise, an interested party wouldn’t need to look up a deed
at the courthouse in this scenario. They would simply check the blockchain
in real time.
All of this said, it remains to be seen if public officials and citizens will
have enough confidence in such a circumstance. Will a state be the creator
and administrator of the blockchain (see State of Illinois initiative described
below)? This circumstance may provide a higher level of assurance for
citizens. Government has historically been in the role of a trusted administrator.
Citizens may not feel confident about transactions such as property
transference without that trusted administrator somehow involved.
Potential Use Cases for State Government
Some of the potential areas where blockchain technology can assist with
transactions, creating a necessary audit trail, authorizing a decision,
authenticating authority, establishing a system of record include:1
• Property - encode and confirm/transfer of property
• Financial - transfer of currency, stock, private equity, bonds, derivatives;
facilitate crowdfunding
• Public Records - managing the lineage of land titles, vehicle
registries, business licenses, passports, voter IDs, death certificates,
proof of insurance
• Private Records - managing and executing contracts, signatures, wills,
trusts, escrows
• Physical Asset Keys - managing access to home, hotel rooms, rental
cars, private car
Where should we be experimenting
with blockchains now?
Key
Question
Blockchains: Moving Digital Government Forward in the States 4
Where could a blockchain inform
a current process? e.g., supply
chain management
State government applications:2
Early applications of blockchain technology
are circumstances involving audit; audit trail;
necessary record of information lineage;
multiple systems or databases that must be
reconciled due to recording errors; managing
physical or digital assets; managing ownership;
managing contracts or agreements involving
many secondary parties.
As blockchain technology is employed in these
and other ways, business processes, training
and expertise, even business language will
change. Similar to how cloud services, analytics, geospatial capabilities,
and other transformational capabilities have entered government and
industry and have changed the approach to decision making, blockchain
economics and technology will impact normal business vernacular and
thinking. However, this will take some time. It will be evolutionary in terms
of adoption and maturity.




State government applications:2

Early applications of blockchain technology

are circumstances involving audit; audit trail;

necessary record of information lineage;

multiple systems or databases that must be

reconciled due to recording errors; managing

physical or digital assets; managing ownership;

managing contracts or agreements involving

many secondary parties.

As blockchain technology is employed in these

and other ways, business processes, training

and expertise, even business language will

change. Similar to how cloud services, analytics, geospatial capabilities,

and other transformational capabilities have entered government and

industry and have changed the approach to decision making, blockchain

economics and technology will impact normal business vernacular and

thinking. However, this will take some time. It will be evolutionary in terms

of adoption and maturity.

Key

Question • Managing Property Deeds • Authenticating Academic

Credentials

• Submitting Healthcare

Providers Reimbursement

• Filing and Managing

Insurance Claims

• Evaluating and Managing

Professional Licenses

• Tax Calculations and

Payment

• Administering Tickets, Fines,

Citations including Payments

and Processing

• Managing, Updating and

Transmitting Criminal

Records

• Managing Birth and Death

Certificates

• Managing, Updating and

Transmitting Healthcare

Records

• Managing micro-grid

transactions in the energy

sector

• Recording and reporting

financial transactions,

financial statements

• Managing lineage of patents,

trademarks, reservations,

domain names

• Managing Voting in Elections





By Dan CALLAHAN







'via Blog this'
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