How Bitcoin and Blockchain can Benefit the Government?

As more businesses, governments, and individuals trade electronically, business partnerships are becoming increasingly prevalent. It would help if you explored the better options available in the market, like cryptocurrencies and, more importantly, bitcoin on Pattern Trader.

One of the biggest problems companies face with these partnerships is that they often rely on proprietary systems, which makes them prone to potential data breaches and cost overruns. Governments would be wise to invest in blockchain technology for its transparency, safety, and longevity.

Bitcoin is a cryptocurrency that’s been the focus of great controversy from countries like China, which have attempted to ban it. However, blockchain technology can provide a solution for cheaper transactions and greater transparency regarding government contracts or even other supply chain agreements between organizations in its sector and global partners. It can also help verify goods that are exported and imported.

It is a massive benefit for government contractors who often face government audits at the end of the fiscal year or when seeking contracts or grants. It allows companies to record every transaction, justifies their numbers, and provides transparency on tax payments, revenues, etc. So let’s discuss how bitcoin and blockchain can benefit the government.

Validation of educational and professional qualifications:

Education and training are significant factors in most successful careers. Therefore, it is essential that government employees can validate their qualifications based on proof from universities, verifying certificates and degrees. Government institutions are already automated and increasingly relying on programs such as e-verify, an online system that allows for vetting eligibility for federal jobs.

In these cases, blockchain can provide a safe and secure check on whether an individual is listed as eligible to have specific jobs within the government or not. In addition, the data stored in the blockchain can be used by users to verify and prove the qualifications of any employee with paperwork available to them without relying on third-party companies.

Collection of Payroll taxes:

Collecting payroll taxes is often painful, requiring tax agencies to issue quarterly or annual tax payments based on the number of government contracts or grants an individual or company qualified for. In addition, it can often lead to documentation errors and loss of revenue if users do not adequately inform the individuals involved about the components that make up their tax payments.

Asking everyone part of a government contract for the documents and data needed for this validation can be time-consuming, but it’s a necessary evil. Blockchain technology offers a way to speed up this process by providing proof that all taxes have been paid and securely keeping records of these transactions.

The mitigation of fraud:

One of the significant problems that blockchain and bitcoin can solve is the issue of outright fraud. As you know, information about a transaction goes into an encrypted database that those with permission can only access. It’s far more difficult to fake a transaction using bitcoin than it is using an in-person meeting and hand-written contract.

This type of fraud will only prove that a person tried to commit fraud, but the transaction will remain intact, and no one can alter the data. It makes detecting and preventing fraud in government dealings and private companies that use blockchain technology easier.

Public records and records management:

Blockchain technology offers a safe place for individuals or companies to keep information they may need but don’t mind everyone else seeing. For example, you may have your tax return stored in an electronic format but prefer people not to find out about it. Through blockchain, you can create an encrypted record that companies cannot alter.

It would allow you to prove that individual tax returns were filed or not filed, or even change earnings categories, etc. In addition, companies or government contractors who work with multiple parties would provide transparency to their bookings and bills with others.

Faster processing times:

Blockchain technology can help make conducting business with governments or other international organizations faster by automating processes such as payment verification, the movement of funds, and tracking such transactions in real-time.

It would also help speed up verifying potential government employees’ credentials, tax payments, and earnings.

The transparency it provides is a bonus and an efficient way to verify transactions and contracts. Government agencies like NASA, the US Department of Homeland Security, and Intel & IBM have already started working on this concept to provide better delivery of services to citizens & corporate entities.

In short, there are two ways that blockchains can benefit the government: The simple one is by helping government agencies provide services to individuals and businesses; the complex one is that blockchain has the potential to secure data and transactions between governments or corporations.