Blockchain technology and ways to use it in combating corruption activities

 Blockchain technology can play a unique role in combating corruption of all kinds.

Blockchain technology can offer a unique combination of permanent record keeping, real-time transaction transparency and auditing, and smart contract functionality.

To be sure, blockchain technology alone cannot completely prevent crime or thwart fraudulent operations, while it can complement and reinforce existing legal frameworks and social structures.

Below we will review the main use cases of blockchain technology and how the technology can be deployed to address weaknesses in current systems:

 1. Public Procurement:

Public procurement is the single largest market for government spending and the largest source of official corruption worldwide.

There are various factors that make corruption pervasive in government circles and precisely at the point of public procurement, including the complex and ambiguous vendor selection processes that involve a high degree of human judgment.

Not only do these weaknesses result in significant financial waste, but they distort market prices, reduce healthy competition, and often lead to substandard goods and ineffective services.

Blockchain technology can help by directly dealing with corruption risk factors related to procurement by facilitating third-party oversight of transactions, preventing tampering and enabling greater objectivity through smart contracts, thus enhancing transparency and accountability in transactions.

 2. Land ownership records:

Many governments have begun experimenting with blockchain-based land ownership records.

Some initiatives, such as those in Sweden, are driven by the desire to increase efficiency in this transaction-intensive industry.

Others, such as Honduras and India, intend to inculcate and expand property rights and enhance transparency in a process vulnerable to corrupt practices.

Blockchain technology can help by providing blockchain-based land records a secure and decentralized registration system that is publicly verifiable and immutable in which individuals can definitively prove their rights to the land.

These attributes reduce the chance of land manipulation and increase the overall resilience of land ownership.

3. Electronic voting:

Growing concern about election security, integrity of voter registration, accessibility to poll results, and voter turnout has led governments to consider blockchain-based voting platforms as a way to increase transparency.

Blockchain technology can aid the voting process by reducing electoral tampering and increasing access to poll results without the ability to tamper with it.

 4. Corporate ownership records:

Recent corruption scandals have raised concerns around the world over the ownership of shadowy or undisclosed companies.

Covertly run companies can easily be used to launder money, pay bribes, or influence government investment with self-interest.

Several countries have begun to develop decentralized registries for recording company ownership in order to better track conflicts of interest and criminal activity.

Blockchain-based registries can provide a mechanism to prevent tampering and promote much-needed transparency.

5. Payments:

Many governments spend millions of dollars annually to support education, humanitarian aid, and social assistance, among other reasons.

This process is often complicated, opaque and ineffective, causing lost funds for bank fees and middlemen and opening the possibility of corrupt remittances.

Blockchain technology can help build public confidence in such systems, as the ability to not mediate and reduce the number of actors involved in granting, disbursement, and administration can simplify the process, reduce costs, and reduce opportunities for illicit financial exploitation.

Balancing benefits and challenges:

In addition to the potential special applications of blockchain technology, systemic technical barriers may hinder effective blockchain-based governance.

These barriers can range from implementation cost and scalability, to unknown negative externalities and policymakers unaware of the technology's capabilities.

The World Economic Forum recently released a report to further assess the ability of blockchain to effectively curb public corruption.

The Exploring Blockchain Technology for Government Transparency Report focuses on the blockchain-based public procurement system on an ongoing forum project with the Inter-American Development Bank and the Office of the Inspector General of Colombia, which investigated the case of blockchain use.

Finally:

More cases of blockchain technology being used to address bad appearances will continue to emerge.

Blockchain technology provides many services, particularly in relation to clear, permanent databases and record keeping, which can enhance transparency, accountability, and citizen participation in areas affecting democratic governance and sustainable development around the world.

Practical examples of how blockchain technology has been used in insurance, banking, and travel

 Blockchain technology promises to revolutionize many aspects of our lives and how we conduct business, and inevitably you have come across many topics and articles that say that blockchain technology will bring about a digital revolution that is no less than what the internet has brought about before.

But despite the great promises that blockchain technology holds, it is still a bit weak on the ground, and this makes it difficult for companies to envision how to implement the technology in the future.

In this article, we'll look at three industries that are realizing tangible benefits from blockchain technology, and which have the potential to lead other industries.

Before that, we know blockchain technology, which is basically a method of storing data.

Putting it and defining it in more technical terms, it can be said that blockchain is a form of open, distributed ledger (like a database), in which data is distributed (duplicated) across many computers.

The ledger may be decentralized (i.e. without a single central administrator), and information can be authenticated via a peer-to-peer system.

Cryptocurrencies like Bitcoin are perhaps the most famous example of blockchain technology in the real world.

But almost anything can be stored on a blockchain, from financial transactions and contracts to supply chain information and medical data.

In theory, any process of recording, moderating, and verifying information can be enhanced by blockchain technology.

Practical applications of blockchain technology:

It might seem like there has been a lot of hype around blockchain for several years without the technology really taking off.

But this is somewhat unfair.

It is important to remember that this technology is still in its infancy, like the early days of the internet, and we do not yet know the true size of the transformation that blockchain technology may bring.

However, many industries are investing heavily in blockchain technology and are showing how blockchain can be used very practically across a wide range of sectors, most notably:

Blockchain and insurance:

We already know from Bitcoin that blockchain is great at facilitating transactions, but it can also be used to formalize business relationships through smart contracts.

This promises to revolutionize the insurance industry by helping to automate processes, streamline claims simplification, and reduce insurance fraud.

For example, “Insurwave” is a blockchain-based marine insurance platform, the platform as a result of cooperation between companies such as “A.P. Moller-Maersk Group, ACORD and Microsoft, the platform was expected to facilitate 500,000 automated transactions and deal with risks for more than 1,000 merchant ships in the first 12 months.

Insurwave provides vital, real-time information to insurers and the insured, including vessel location, condition, and safety risks.

So if the ship enters a high risk area, the system detects this and puts it into insurance accounts.

In another example, insurance company Nationwide is experimenting with a proof-of-insurance blockchain solution called "RiskBlock" that will allow law enforcement and other insurers to verify insurance coverage in real time.

Blockchain and Banking:

With blockchain’s reputation for making secure transactions easy, it stands to reason that the banking industry is exploring many practical uses of blockchain.

In particular, blockchain is being introduced as a method for identity verification and fraud detection, in line with Know Your Customer (KYC) rules.

Blockchain-based startup "Bluzelle" has worked with KMPG and a group of Singapore banks, including HSBC, to develop the KYC platform.

The project demonstrated that not only can blockchain reduce the risk of identity fraud, but it can also reduce costs by 25 to 50 percent, by reducing duplication and providing a clear audit trail.

Elsewhere, Barclays Bank has launched a number of blockchain initiatives to track financial transactions, compliance and reduce fraud, as the bank is so convinced of the benefits of blockchain and has previously described blockchain technology as a new operating system for the planet.

Blockchain and travel:

The travel industry is one of the perfect companions for insurance and banking.

But, if you think about it, blockchain technology could facilitate peer-to-peer transactions that would greatly change the travel industry.

Airbnb's popularity illustrates how consumers are so happy to cut out the middleman and go straight to the hosts for housing.

With blockchain technology, you don't even need an intermediary platform like “Airbnb” to facilitate the transaction, as the blockchain will handle everything.

Perhaps this is why hotel aggregator “GOeureka” is using blockchain to increase transparency and lower costs, by giving users access to 400,000 hotel rooms without broker commission costs.

TUI Group is also investing in blockchain technology, with the ultimate focus on eliminating the need for middlemen like Expedia.

Elsewhere, blockchain is being used to reduce some of the most common problems with travel, such as waiting in line when monitoring passports and customs.

The consulting firm Accenture has teamed up with the World Economic Forum to develop a popular traveler digital identity system.

The blockchain-based system collects and stores personally identifiable information from frequent travelers, helping to improve the data flow between travelers and customs officials, while reducing queue sizes at the airport.

In conclusion, although it may take years for blockchain technology to become popular, these examples demonstrate how blockchain can be used to automate business on the ground, provide better value to customers, and improve data security ...

For Entrepreneurs: Do Startups Really Need Blockchain Technology?

 

Among the questions on the minds of many entrepreneurs is the question: Should I adopt blockchain technology or not?

Especially since blockchain technology is being used in many different areas from supply chain monitoring to managing cross-border stocks and payments, meaning that blockchain is making its way into many areas.

Startups, to achieve their growth goals, jump into the blockchain bandwagon to create a buzz, persuade investors and raise new rounds of financing.

As the adoption of blockchain technology by emerging institutions is not just a technical decision but a commercial one as well, given that they are the leaders in decision-making, it is important that the founders not fall into this hype, but they must analyze whether the adoption of blockchain technology is appropriate from a business perspective. And it's not just to show off.

While the unique characteristics of blockchain technology forced startup founders to think of it as a fundamental and transformative technology, the utility of business remains firmly anchored as a vital consideration in this decision.

In this article, we will cover blockchain technology from a technology and business perspective that founders need to consider while evaluating blockchain technology.

Decision Tree: Assessing the suitability of blockchain technology for startups

Although many research papers present what are known as decision trees to assess the feasibility of using blockchain technology in the project, we wanted to simplify matters further and suggest a table of use cases, shown below:

Use case Do we need to store data? (User data and / or metadata) Do multiple users participate / update stored cases? Does any trusted third part share? Can a third party be eliminated? Resolution Notes

Social media app that includes user engagement and interaction Yes Yes Yes Yes This cannot be developed as a traditional centrally managed app.

However, one can consider blockchain in the event of a desire to migrate to a decentralized network

Food retailers receive supplies from producers, so ensuring food quality is a major challenge Yes Yes No No Yes

Organizations that keep employee attendance records Yes Yes Yes Yes No As long as there is mutual trust between the organization and employees, there is no need for blockchain. If any trusted third party was involved and the blockchain came to the picture, it would be just technical overkill.

Cost-benefit analysis: assessing business suitability

Every startup founder should plan to invest in blockchain technology, and assess the return on investment that will come from adopting it.

Blockchain technology may be adopted as a necessity or differentiating factor for your product, but evaluation should always be done from a revenue generation perspective.

You may have to come up with a cost-benefit analysis according to your business, but I will help you with an example to better understand the approach.

Let's look at the aforementioned case of the food vendors, where we compare the costs with the returns that are possible.

Development cost:

If the development effort to build a MVP pilot product with a traditional centralized system approach takes a certain amount of time, the efforts will be 30-40% higher if a blockchain-based approach is pursued.

A blockchain developer usually costs at least 1.5 times more than developers working on widely used technologies.

This would make the cost of blockchain development two times higher than the cost of developing traditional applications.

Infrastructure cost:

To assess the infrastructure cost, let's assume transaction volume of a few hundred transactions per second (TPS). If the infrastructure cost of a traditional solution were around X per year, then it would be the same for the blockchain-based approach. This is according to the assumption that approximately 8-10 nodes are part of the consortium.

It boils down to one conclusion, which is that instead of one party managing all of the infrastructure nodes, each consortium member must own the node.

As the volume of transactions increases, the traditional approach can expand horizontally; But blockchain-based solutions face the Scalability Trilemma.

This is a popular term coined by "Vitalin Buterin" which, from the perspective of the average person, is similar to the phrase "You cannot have everything."

Firms must clearly understand which of the three aspects will be focused and improved upon the most:

Decentralization, security or scalability.

Other costs

Some of the other business efforts required if blockchain-based solutions are adopted include creating a consortium, persuading accepted members about the benefits of joining the union, and expanding it to a level that can be claimed as secure.

Speaking of benefits, a blockchain-based approach can certainly enable business process automation using smart contracts.

This approach not only improves the overall process efficiency but also reduces the companies' operating costs.

Where blockchain technology can reduce the waste of resources, which could result in saving approximately 450,000 euros per year, depending on the source.

This value far exceeds the initial investment and operational cost that goes into a blockchain-based solution.

The bottom line is that blockchain technology may not have gained the importance it deserves. We strongly recommend evaluating the feasibility of the blockchain for founders of startups, and realistically looking at the technology and whether it can be truly drawn from it away from the media momentum and empty hype.

Telecom giant Huawei has partnered with the Chinese government to work on a new blockchain platform

 

Huawei, one of the telecom and mobile phone giants, has partnered with the Chinese government to create a new public blockchain platform, according to a report issued by Jintai News.

The Chinese tech giant Huawei has stirred up controversy in the West, as it faces allegations that its products can facilitate Chinese espionage around the world.

The charge of cyber espionage, data protection and privacy made the US government ban Huawei products in late 2018, but this did not prevent the technology company from pursuing new opportunities in China, including the first domestic attempts to implement blockchain in data management.

According to the report issued by the aforementioned source, the new blockchain platform underway is designed to be aimed at people in general and to be beneficial to city residents.

In other words, the blockchain platform will effectively and transparently target various areas of daily life in the city.

Among the expected solutions are improvements to the city's healthcare infrastructure, whose problems have been exposed by the outbreak of the Coronavirus.

The report suggested that a solution powered by the new blockchain platform technology can predict epidemic trends in advance, using data from every hospital in the city to coordinate medical responses.

The new blockchain-powered platform will also address other parts of Beijing's capital infrastructure.

Areas of focus include handling complaints and appeals to city government decisions, parking issues and road use, and a means of verifying risks related to water, gas and electricity use in homes.

Meaning and it seems that most issues and annoying problems will be dealt with more quickly and steadily

A Swiss watchmaker relies on the Ethereum blockchain to issue certificates of authenticity

 

Certificates of authenticity and proof of quality have always been a problem between the buyer and the seller, which in many cases is subject to forgery and misrepresentation to make the product price more than it really is.

However, depending on the blockchain technology, things are different.

According to the source, "Breitling", a Swiss luxury watch manufacturer founded 136 years ago, has begun issuing digital certificates on the Ethereum blockchain.

The watchmaking company has teamed up with the non-profit organization "Arianee" to issue these digital certificates of authenticity which will allow users to verify the authenticity of the company's watches.

These certificates of authenticity will be issued for all watches made as of October 13th.

Emmanuel Collett, co-founder and CEO of Arianee, said:

The protocol used for certification is based on the Ethereum ERC-721 standard, which is commonly used to issue non-fungible digital currencies (NFT).

As for how the certificate of authenticity works, it provides a verification mechanism for watch owners who can scan their electronic warranty card with their smartphone camera to download information related to the watch and all its details.

It should be noted that these digital certificates are transferable and contain information such as the watch's serial number and digital warranty.

Thailand uses blockchain technology to store court records in the country

 

Thailand is pushing ahead with its plans to use blockchain technology to store all court records in the country.

According to the Thai Justice Office, which oversees more than 90% of the country's courts, it expects the transition to blockchain to be completed in 2021.

The office says it has been working on blockchain technology for some time.

Thailand is looking to be at the forefront of countries using blockchain technology:

There are insufficient details about the movement of judicial courts in Thailand towards blockchain technology, as the Thai Office of Justice has not specified which blockchain will be used.

However, the move is expected, as Thailand is making great efforts to increase its technical footprint.

The country plans to become the digital hub of Southeast Asia within the next ten years.

The country also plans to implement the so-called "Thailand 4.0", by focusing on digital improvements that will improve the quality of life for its citizens while enhancing efficiency and productivity.

To this end, the Thai government has identified pillars on which this new digital economy depends. These pillars are:

Digital Infrastructure, Promotion and Innovation, Service Infrastructure, Society and Knowledge.

Increased use of blockchain technology:

Many countries in Asia are turning to blockchain technology to meet different needs.

One of the areas in which blockchain technology is used most is the protection of personal data as well as the fight against fraud.

Coronavirus helped spur this development as many individuals want to limit physical contact and complete remote services, and many schools and universities use blockchain technology to issue graduation certificates.

Three practical uses of blockchain technology in the real estate market

 

Blockchain technology offers a number of unique characteristics, perhaps the most prominent of which is its ability to encode assets and its flexibility in various uses.

The real estate sector and market can benefit greatly from blockchain technology through several uses, including the following:

Fractional ownership:

Real estate is among the best investment opportunities available, but most small investors are still banned from entering this lucrative market.

Where building or purchasing real estate involves large initial costs, and the property is highly illiquid.

So, landlords simply cannot liquidate their assets quickly, at least not without incurring significant losses.

These losses include having to find a buyer and middlemen necessary in the transfer of assets and other legal costs.

A possibility to mitigate this problem would be to divide assets into smaller shares held collectively by shareholders.

In the traditional way, these investment opportunities are called real estate investment funds (REITs), but very often, REITs are not listed on the stock exchange, which does not help much in terms of liquidity.

But to face this problem, there are some projects that have paid attention to this point and are trying to find solutions to it, such as the "Meridio" project, which provides the possibility of coding real estate assets and issuing special digital currencies to investors.

For investors, Meridio quotes minimum investment, lower transaction costs and improved liquidity as benefits, while property owners and developers can unlock additional capital by moving into a largely untapped market.

In order to comply with all regulations, Meridio uses a solution to whitelist its coded assets, ensuring that only those investors, are legally able to do so.

Likewise, "Slice" facilitates the trading of fractional assets and, accordingly, investments in real estate by international investors, without the typical five-year ownership period imposed by traditional real estate investment funds.

Transfer of ownership and leases:

Another practical use of blockchain technology in the real estate field is to speed up procedures and speed up the unloading of the property to receive another owner.

Thanks to smart contracts, the legal transfer of property assets can be greatly facilitated, even for full property rights.

Among the projects active in this corner is the "Propy" project, which is based entirely on listing real estate for sale immediately at the international level, allowing their smart contracts to transfer assets and of course transfer the purchase amount without the need for any third party.

Likewise, it is also possible to use smart contracts for lease agreements. For example, the “ManageGo” project uses a blockchain-backed solution for a one-stop solution for all things rental related.

ManageGo tracks contracts, front desk services, rental payments and maintenance tickets, making it easy to rent private property to others.

Real estate coding and release platforms:

Instead of creating a specific real estate solution on the blockchain, token issuance platforms focus on the infrastructure needed to encode and trade assets flexibly.

Recently, “HashCash Consultants” announced the development of a crypto exchange dedicated to real estate.

It allows the exchange of real estate symbols and currencies and the ability to convert currencies for the original properties associated with them.

Another project that falls into this category and usage is the "Realio" project, which is a token issuance platform specializing in security digital currencies.

Although the project is neutral to the types of assets that can be coded, they explicitly state real estate as the best use case.

For this purpose, the Realio project works alongside several blockchain networks that take advantage of embedded blockchain features or build their own transactional controls to comply with international securities regulations.

There is also "RealioX" which is a project for a decentralized real estate currency trading platform, whereby any investor wishing to purchase assets on RealioX must be whitelisted, and thus, token assets can be traded decentralized, while continuing to fully comply, thanks to the controls. Their transactions.

These were the three most prominent practical applications of blockchain technology in the real estate market.