Can Blockchain Help Restore Confidence in the Global Political Economy?

The current political structure is a collision of technology, communication and societal concerns. On the one hand, technologies such as AI, IoT and Blockchain, etc. They are advertised as the solution to gloomy problems such as climate change, the rotation of black money in the economy, on the other hand political parties have started to rely on social media platforms with which to connect components in an open platform.

While the current political framework – the one centered on millennial constituents – is showing signs of political revolution, there are some confidence-related concerns that remain open to address.

In this article, we will look at how blockchain in politics can be just what the global political framework needs to become a trusted industry.

To truly understand the role of blockchain technology in politics, it is first necessary to know the challenges facing the global political economy. Even with the need for open communication and complete transparency becoming the cry in the streets, there are many ways in which political paradigms are manipulated.

What are the political issues that act as the driving force of Blockchain technology in governance?

The fusion of blockchain and politics doesn’t happen organically like the combination of blockchain and fintech. Unlike fintech or other industries where a transparent system is welcomed and disruptions are deemed necessary, the political environment requires more convincing.

But what cannot be ignored is the plethora of obvious challenges facing any political party that wants to bring about positive change.

Fake news fueled by social media

Social media platforms allow information to spread faster than it can be verified for factual reasons. The result of this readiness was pure propaganda and falsehoods which became a major concern.

An obvious example of the harmful use of free speech on social media platforms can be seen in the Facebook data privacy line. The Internet Research Agency in Russia employed thousands of people to create and spread pro-Trump propaganda to U.S. voters, a campaign that was visible to more than 126 million people on Facebook alone. The Trump campaign team used this information for their micro-targeting technique in which they displayed personalized messages about Donald Trump to US voters on different digital platforms. This, in turn, is known to have helped him win voters in the 2016 election.

Shadow politics and black money

Two of the biggest threats to the integrity of political domination are black money and shadow politics. At the hearing of Citizens United vs Federal Election Commission, it was determined that the Super PAC he could collect and spend a number of monetary amounts on advertising without revealing the name of the donors as long as there was no evidence of direct coordination.

The result? In the 2016 election, more than 1.4 billion dollars in black money was pushed by the Super PACs *. In general, companies and wealthy people distribute money to Super PACs and election campaigns to make decisions in their favor.

* Super PACs – It is a separate political action committee and has no indirect or direct communication with any political candidate.

Fraud in elections and deprivation of the right to vote

The 2018 elections, like a horror story, were filled with deprivation of the right to vote and election fraud. In North Carolina, more absentee ballots were collected by political agents and were handed over to Republican voters. In Georgia, over 53,000 voter registrations have been kept pending due to spelling and hyphens problems.

What are the applications of the merger between blockchain and politics

The potential benefits of blockchain, especially in a political setup, may seem unusual. Unlike other sectors such as healthcare, manufacturing and finance, etc. Which are known for non-emotional and discreet transactions, politics on the other hand is controversial, grounded in cultural, economic and social identities and ideologies.

However, upon closer examination, we can find several ways that technology can be used to improve policy.

Blockchain for voting

Blockchain technology offers voters the opportunity to record votes on a blockchain-based ledger where their selections are safeguarded and transparent, with the confidence that voters’ identities are protected. To protect the identities of the voters, each voter is assigned a private and unique ID. In a blockchain-based voting system, anyone would be able to see how the verified ID voted without revealing their identity.

We have detailed the benefits of using blockchain for elections in this blog: Can blockchain change the way we vote? Read the link to learn how the blockchain-based election is a game changer for the future of politics.

Transparent public procurement

Public procurement is the breeding ground for corruption. The supplier selection process is opaque and complex, and also includes a high degree of human discretion: these factors lead to a number of problems: distorted market price, huge financial waste, healthy reduced competition.

The blockchain-powered political industry is able to create a system that can address risk factors by facilitating tamper-proof transaction records through smart contracts – one of the most popular forms of blockchain development solutions. Thus improving the accountability and transparency of actors and transactions.

Corporate property register

From time to time, a corruption scandal emerges around secretly managed companies that can be used to launder money, pay bribes, or influence government investments for personal interests. Several governments have begun collaborating with blockchain app developers to create blockchain-based central ledgers to track conflict of interest and eliminate criminal activity.

Scholarship disbursements

Governments spend millions each year to support the arts, humanitarian aid, education, social assistance, etc. The process, although one of the main decision makers of a political party’s efficiency, is often associated with emotions such as opacity and inefficiency that require the involvement of intermediaries. Blockchain app development services can help build public confidence in the system. It brings the ability to disintermediate and demote the intermediaries involved in grant awards and disbursements.

Although still in a nascent stage, the role of blockchain development services in the government sector is growing in both macros – decentralized governance and micro – blockchain for the electoral level. Are you a government representative looking for decentralized services? Contact the leading blockchain development company.

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