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CIO 100: eradicating corruption with Blockchain

A poll by the World Economic Forum reports that the total cost of corruption around the world amounts to about 5% of global GDP, almost $ 2.6 trillion. It is like the entire annual nominal GDP of the United Kingdom, the fifth largest economy in the world, completely lost in the underworld of bribes and shady negotiations. The report continues: "Countries that desperately need economic growth like Kenya are the biggest victims of this internal corruption, Kenya regularly loses one third of its state budget – nearly $ 6 billion per corruption every year."

Corruption is a constantly growing herb in our farms. On a global scale, it limits productivity in every country. Sincerely, the anti-corruption war is strongly integrated into the systems of most countries and is known to be relatively effective. Nevertheless, there remains an endless war where there is no loser side.

The prevalence of corruption can be well attributed to a few factors, but above all the lack of effective monitoring and a weak accounting information system. In other words, to combat corruption, we need an effective incorruptible information management system. We need BLOCKCHAIN.

Encryption

Cryptography is an important factor behind the blockchain technology that allows the creation of digital identity using private and public keys. We could compare the private key to a password and the public key to a username with which we can be identified publicly. The previously established blockchain provides a perfect system for recording static information in the form of a register as well as dynamics in the form of transactions, registration and distribution. This data is recorded in a sequence of arrays with one another, so changing a data will require changing the historical records on each individual node, which makes it immutable!

The last of the blockchain attributes is its purpose as a platform for cryptocurrency.

cryptocurrency they have several advantages over paper currency, part of which includes its ability to cut off the intermediary while the transactions take place on a peer-to-peer network structure. You can also add some conditions to determine when to run the transaction, which may not be trusted by a third party. Moreover, apart from the possibility of confidential transactions, it is possible to avoid all the huge unrealistic bank charges. It offers greater access to funds and facilitates international trade.

Other features of the blockchain as "the platform" allow you to generate a currency on a functional blockchain. The "Money System" feature on Ardor allows users to create new decentralized currencies supported by the security of an existing blockchain without going through the difficulty of starting currency with their own blockchain and network, thus removing the main obstacle faced by most of the other blockchain platforms. Even better, this can be achieved in less than five minutes. Therefore, the newly created currency will be the only currency available for all government-related transactions in the lists of institutions for insect growth. And of course, this is not a currency that is given by one hand to another, passes from the payer to the blockchain, then to the receiver.

These features present many interesting account usage scenarios, including: multi-signature account; encrypt an account as a "savings" account that prevents sending the transaction; using an account blocked as an "escrow" account; limiting the ability of the account to transfer resources, pseudonyms, etc. So the funds are safe and leave the wallet only when the right and trustworthy people want it.

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