How can Blockchain help in the Public Administration of the Smart City? What uses can this technology have and what are the ones that are already being launched? Schematically we can cite the following advantages:
- The application of Blockchain technology in the Public Administration solves one of the great concerns of the Digital Society: The data security of millions of people and the inviolability in the databases of citizens.
- Blockchain, by its very nature, bets on a model of open and participatory transparency, but at the same time sure what opens the door to telematic electoral processes, one of the great aspirations of the Digital Society.
- The inviolability of Blockchain transactions and registrations opens the door to a revolution in citizens’ relations with the Administration. We talk about the implementation of smart contracts that will be essential for such important matters as property records or titles, payments, legal certificates, health …
- The use of Blockchain in Public Administration will allow decentralization of processes and offer citizens a transparent and safe management for taxpayers and companies.
- In the same way, the automation of Public Administration processes with the entry of Blockchain will expedite thousands of procedures that, in this way, will overcome the concept of ‘bureaucracy’ to move to an agile administration that resolves and streamlines its processes.
- Blockchain for its fully digital idiosyncrasy will produce an immediate effect in the form of paper and administrative cost savings thanks to the use of this technology.
- Improvement of all bidding processes and public tenders that thanks to the application of Blockchain in the Public Administration can resolve the constant litigation and win significantly in processing times.
- The role of Blockchain in Public Administration will also be key to solving communication problems between any type of administration from another community or even from another country. The data is there and is safe and accessible for anyone who has authorization to consult it.
- Fight against fraud both from the point of view of security, and in the field of collecting taxes or payments that, thanks to smart contracts, will be able to advance in the fight against fraud.
The incorporation of new technologies in the Public Administration is usually a complicated and slow process.
An example of the difficulties in introducing them into the contracting processes is that after the entry into force of the Public Sector Contracts Law (LCSP), tenders are still called in which paper submission is admitted when the LCSP no longer allows it . The 15th Additional Provision of the LCSP says that “notifications and communications will be made electronically and that the submission of offers and requests for participation will be made using these means, except when tools or devices that are not available are required.” The paper presentation is an exception and must be justified in the contracting file, confirming the bet of the legislator in favor of electronic contracting.
One of the clearest application processes is the tender process. Blockchain technology would provide transparency, since the information that is incorporated into blockchain is accessible to those who are part of the network and in addition all the information remains immutable, and provides efficiency when automating processes. Another quality is that the contracting authority is released from the custody of tenders, since they are maintained by each tenderer until they are linked for evaluation. All these contributions are of great value for the procedures, which predicts that we will find new tenders using blockchain technology.