Digital Transformation of Public Administration Through Blockchain Technology

Abstract

Proper understanding of blockchain technology is one of key importance for decision-makers and staff in public administration sectors, as it helps them decide whether this approach can be of practical use in the realisation of their statutory mission. Blockchain technology is often perceived as a failsafe and unbreakable system with potential to transform many segments of the economy. Blockchain solutions have already been employed with success as basis for digital transactions in such areas as electricity market, trade, cryptocurrencies, stock trading, etc. Their application potential is also actively explored in other sectors of the economy, such as banking, insurance, and public administration. Blockchain technology can be approached not only as an innovative solution, but also as a tool for effective creation of novel management practices and models of operation in various types of organizations and institutions. The contribution of the chapter is an evaluation of potential uses and conditions for the effective application of the blockchain technology in the public administration sector. The study is constructed on the fundament of literature studies, empirical observations, case study analyses and synthetic evaluations, with the aim of revealing the potential applications of the blockchain technology and highlighting the challenges and possible directions of blockchain research in the public sector.