Can blockchain, a decentralised ledger system, really work within the strongly centralised public sector?
There has been a fundamental shift in thinking about blockchain technology in the past year, and blockchain-related innovations are already providing solutions to longstanding problems.
Public sector agencies in particular are exploring its potential, according to Katrina Donaghy, co-founder and co-CEO of Civic Ledger, which focuses on civic applications of the technology.
“In Australia, we are still in a development stage, with government, industry, banks, academia and business exploring blockchain technology through proof of concepts,” she says.
"There is still a long way to go but we are moving from questions such as ‘what is blockchain technology?’ to ‘how can we start exploring its potential?’.”
The federal government is sending positive messages about blockchain technology. Standards Australia is the Secretariat for the International Standards Organization’s international technical committee for blockchain standards, and is looking at standards, definitions, rules, and other elements of the technology. This will provide a clear decision framework on issues such as governance, jurisdiction and interoperability of the technology.
“This role by Standards Australia will, I believe, be very significant in the long term,” Donaghy says.
“Another critical step is that the Australian Government’s Digital Transformation Agency is taking a lead with exploring blockchain uses in government. In our experience, their digital marketplace is very useful for Australian start-ups looking to secure government as their first customer.”
Donaghy also notes that the Australian Digital Commerce Association is working with government on behalf of the blockchain and cryptocurrency industries, assisting with the design of policy, guidelines and legislative changes to encourage innovation in the area.