The blockchain, a technique for storing and transmitting information, has enormous potential, not only in the financial sector, but also for services in the public sector. Early in 2019, the Luxembourg Government, in collaboration with the Syndicat intercommunal de gestion information (SIGI), created its own blockchain for the public sector, thereby expressing its determination to play a pioneering role in the field.
By providing itself with its own public blockchain, the Luxembourg Government stands out on the international scene, demonstrating its desire to act as a European and indeed global pioneer. Making use of this innovative technology is enabling the Government to test and develop a whole range of new applications to improve interaction between the public and private sectors.
Blockchain technology is currently used mainly in the financial sector, but it could also be used in many other areas. Digital identification, proof of land ownership, logistics chain management, and even voting are just a few of the potential applications which would be of interest to the public sector.
Because it is decentralised, it also makes it possible to solve problems connected with single points of failure in the event of incidents or attacks, giving it the potential to help public stakeholders reduce fraud and error and improve the transparency of both data and transactions.
A blockchain consists of a database containing the past history of all the exchanges between its users. The database is shared by its various users, with no intermediary, enabling each user to check the validity of the data. Once data has been validated by the network and recorded, it can no longer be manipulated.
(article written by the editorial team of the portal luxembourg.lu)