The HUGE need to implement blockchain in 3rd world countries goverments.


The vast majority of third world countries have many needs that are widely explained in many articles throughout the internet; nevertheless I want to analyze one of them where I think the blockchain technology can have a fast and huge positive effect: weakness of government’s institutions.

Normally, a common weakness in third world countries institutions is that they all (Or most of them) works independently, here I explain it:

Reason 1: Use their own resources

Most of their processes and legal framework were designed and are executed by their own resources that makes them tremendously expensive and inefficient to self-sustain.

Reason 2: Made to be an island

Organizations mostly were established many decades ago, which implies that in those years there were very few organizational resources that allow a synergy between them.

Reason 3: Lack of will to evolve

Mostly, organizations are the last to implement improvements due to the lack of interest of the central government (led by the private sector) since there is no approach towards the citizen that makes easier to access to public services take advantage of technology.

This is a current problem that has been existing for decades and are still affecting the lives of millions of people in many third world countries, generating these effects:

Effect 1: Making very expensive to get official documents

From birth to death certifications, many of the official documents that all these organizations were expensive to get, over the years the prices has been decreasing for the implementation of better technology. With blockchain, it would be cheaper because the different processes will need less resources.

Effect 2: Taking too much time to get official documents

Some documents can take many days or weeks to get ready because most of this organizations have a very old fashion way to do things. There has to be a total revaluation of all the structure of every organization with only one goal: make citizen’s life easier.

Effect 3: Most data is not digitized

In some organizations, data is not digitized quickly because of economic limitations that can’t make all data be digitized, this process normally is made in parts and takes many years to finish.

My proposal

So the question is, HOW can the governments make the best investment decision and be sure to have a huge positive impact on solving this historic problem?

I’d propose to implement a private blockchain that have ALL the information from ALL the government organizations (healthcare, police information, judicial information, property information, job information,etc) of ALL citizens of the country in order to have only ONE information source / data base where all the government organizations can manage their own data with the possibility to have complementary information to have a better service for the citizens.

For example: In health sector not only you can know if people has a public health insurance (depending on the type) but they can also have data if people have a private health insurance and which technical specifications have. For what? For comparing the coverage, prices, etc and finally get better services for the citizen.

Benefits of blockchain applied on government organizations

1) Lower costs and time processing

They will start decreasing operation costs of all the organizations because they’ll need less time to get things done so they could reduce number of people working there or distribute them better in each department. Apart from that, they’ll get data from one place so they’ll reduce time processing.

2) More self sustainable

This effect will be detected in the middle-term and this will let know the CEO’s of every organization that this will let distribute better the budget assigned and get focus on improve the services each one bring to the citizen.

3) Better reputation

When blockchain and new legal framework are implemented with a previous training for all the stuff of every organization, the results will be incredible and the natural and fast effect will be: a very high approval of all the citizens. This is the best part for politicians.

Information to consider before implementing blockchain

1) Prepare data

I will leave something clear, the fact that all the information of all citizens can be digitized and uploaded to the private blockchain implies a giant effort for governments (some more than others) because many of them do not have the information ready. Therefore, in this case it is necessary to make a structural change in the way the state handles the information so that it can be used by the future government private blockchain.

2) Time of implementation

Right now, blockchain technology is in its beginning (or beta) mode, so to start designing this kind of private blockchain (specialized for goverments) is going to take some time.

However, let’s suppose that right now it can be implemented so this kind of adaptation of a private blockchain can maybe takes weeks or months. (Depending on the complexity of data)

3) Cost of implementation

Right now this topic is very sensitive and unexplored because nowadays I think, and correct me if I’m wrong, there aren’t companies that do this kind of service but I’m sure of one thing: it’ll totally worth it. I’m 100% sure Benefit/cost analysis will prove it.


Finally, the main victim is the citizen since he is forced to endure all the difficulties that i have already detailed. And the government? they are chilling out enjoying their 4 or 5 years of administration because most of them go the easy way: they do not invest in technology, they do not invest in training their staff, they do not change the regulations/legal framework of the process of every ineffective organization, etc. Many governments see this as an expense because this kind of investments don’t have a political dividend but sooner or later have to be done in the correct way. This is how things work now.

Nevertheless, I have hope that in the coming future, the 3rd world government administration’s can value the immense potential that blockchain technology has so that it is a state policy to invest in these secure technologies for the good of each of these societies.

The HUGE need to implement blockchain in 3rd world countries goverments. was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.