A Smart Governance diffusion model for blockchain as an anti-corruption tool in Smart Cities

Abstract

Government corruption in Latin America prevents the region’s sustainable development and constitutes a failure of current systems. Governments have started to leverage new technologies to increase transparency and promote integrity within their processes. Among these, blockchain technology has gained traction as a promising tool for Smart Governance due to its unique properties in terms of immutability, trust, coordination, security, and transparency. The use of blockchain within Smart City initiatives is complicated by a lack of diffusion models. This paper develops a diffusion model for blockchain technology after analyzing three case studies and conducting a survey of thirty blockchain start-up leads across Latin America. The final model, named Smart Governance BT diffusion model, conceptualizes the diffusion of blockchain as a gradual process including inputs, a dynamic throughput, and outputs. Relevant for academics and government representatives alike, the model aims at improving the conceptual understanding of technology diffusion in Smart Cities and highlights the potential of blockchain as a mitigator of vulnerabilities to corruption. As initial conditions matter for its successful adoption and diffusion, it is recommended for Latin American governments to (1) redesign and digitalize their processes and legislation, (2) conduct a thorough cost-benefit analysis for specific use cases, and (3) reduce inefficiencies in areas with relatively medium to low levels of historical corruption in a first instance. The model can be tested and refined in future research and can be applied to any Smart City initiative requiring conceptualization.