{"id":382981,"date":"2021-12-18T20:14:00","date_gmt":"2021-12-18T17:14:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cure-for-the-itch-deputizing-blockchain-to-fight-public-corruption\/"},"modified":"2021-12-18T20:14:00","modified_gmt":"2021-12-18T17:14:00","slug":"cure-for-the-itch-deputizing-blockchain-to-fight-public-corruption","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cure-for-the-itch-deputizing-blockchain-to-fight-public-corruption\/","title":{"rendered":"# Cure for the itch: Deputizing blockchain to fight public corruption"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3664d5474de\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3664d5474de\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/cure-for-the-itch-deputizing-blockchain-to-fight-public-corruption\/#Advice_for_Puerto_Rico\" >Advice for Puerto Rico<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/cure-for-the-itch-deputizing-blockchain-to-fight-public-corruption\/#Georgia_gets_creative\" >Georgia gets creative<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/cure-for-the-itch-deputizing-blockchain-to-fight-public-corruption\/#Colombia_cracks_down_on_crooked_contractors\" >Colombia cracks down on crooked contractors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/cure-for-the-itch-deputizing-blockchain-to-fight-public-corruption\/#Adding_other_technologies\" >Adding other technologies<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Cure for the itch: Deputizing blockchain to fight public corruption <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvMjhhZjY3MWEtMGJhOC00MzgzLThjYTQtN2IyOGMwZDQ1NTIwLmpwZWc=.jpeg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>Puerto Rico recently announced that it may be looking for a blockchain solution to fight government corruption, particularly after a Puerto Rican mayor pleaded guilty to accepting a cash bribe of more than $100,000.\u00a0<\/p>\n<p>But could a distributed digital ledger really make an impact in the unincorporated United States territory\u2019s struggle against public fraud and wrongdoing? <\/p>\n<p>It might if it were done in tandem with other public efforts, governance experts tell Cointelegraph. Puerto Rico could gain, too, by heeding lessons from other countries that implemented blockchain to fight corruption in recent years, including Georgia, India and Colombia, and it shouldn\u2019t be reluctant to bring in outside help, though much of the key work should still be done by local agencies. Puerto Rico shouldn\u2019t expect a quick technical fix. <\/p>\n<p>\u201cWe have a real credibility problem,\u201d the Puerto Rican House Speaker <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-12-06\/puerto-rico-lawmakers-want-to-use-blockchain-to-cut-corruption\">told<\/a> Bloomberg, and more transparency and accountability \u2014 the sort that blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> potentially offers \u2014 \u201cmight be part of the solution.\u201d<\/p>\n<p>Nir Kshetri, professor at the Bryan School of Business and Economics at the University of North Carolina at Greensboro, for one, thinks the Commonwealth official might be onto something. Blockchain technology can not only enhance anti-corruption efforts, but it can also be a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>-changer, he told Cointelegraph.<\/p>\n<p>\u201cBlockchain systems can keep a full audit trail of all activities and transactions that government officials have been engaged with,\u201d Kshetri said, adding, \u201cThe immutability feature means that government officials cannot delete files. Any change will be noticed im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely by other participants connected on the blockchain network.\u201d<\/p>\n<p>Others aren\u2019t quite so certain but say that blockchain technology can keep the government clean if other conditions are right. \u201cBlockchain can play a role in securing transactions and monitoring events, preventing fraud and corruption,\u201d Per Aarvik, a researcher at the Chr. Michelsen Institute (CMI)\/U4, told Cointelegraph, continuing, \u201cbut not without a regulatory framework as a foundation.\u201d<\/p>\n<p>Puerto Rico risks adopting expensive systems that \u201cmay have a limited effect, unless a wide range of issues are addressed,\u201d he added. Along these lines, \u201cThere are lessons to be learned from other highly digitized countries such as Estonia or Singapore\u201d \u2014 as well as the former Soviet republic of Georgia. <\/p>\n<p>The technology can play a big role in the area of land titles, Jonas Hedman, professor at the Copenhagen Business School, told Cointelegraph, as has already been shown in Sweden, where such a program has been partially implemented, it also can have \u201ca huge impact on procurement and elections. Imagine if an agency or state \u2014 like Puerto Rico, CIA, UN etc. \u2014 had an open ledger of all their spending?\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Advice_for_Puerto_Rico\"><\/span>Advice for Puerto Rico<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Asked about Puerto Rico\u2019s plans to fight public corruption, Kshetri said the island territory needs to begin in the most corruption-prone areas. It will need to cross-validate the data that it receives before it is entered on the blockchain, and here it might be well served to use other emerging technologies, such as artificial intelligence, machine learning and remote sensing technology rather than relying on government officials.<\/p>\n<p>Reforms should expect to face resistance, too, from actors who are currently benefiting from the status quo, both within and outside government. Involving outside parties \u2014 as with Colombia\u2019s school meal procurement program \u2014 can enhance informal accountability. <\/p>\n<p>That said, \u201cPuerto Rico should not rely too much on foreign companies to implement blockchain to fight corruption,\u201d Kshetri told Cointelegraph. \u201cIt should develop local blockchain manpower\u201d \u2014 as what h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened in India\u2019s Andhra Pradesh state. \u201cLocal blockchain companies are more effective in providing low-cost solutions suitable for local needs.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Georgia_gets_creative\"><\/span>Georgia gets creative<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Georgia is often cited as an instance where a blockchain has been used to secure a government registry, \u201cbut the story did not start with blockchain,\u201d Aarvik told Cointelegraph. \u201cThe country had radically reformed the whole public sector before blockchain was introduced.\u201d<\/p>\n<p>This included carefully studying its corruption problem and then applying sometimes creative solutions, including moving some borderline practices into the legal sphere. \u201cFor example, most people were paying a bribe to obtain a passport or any other document that they needed urgently and were not ready to wait for,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.u4.no\/publications\/the-rapid-economic-liberalisation-and-ruthless-fight-against-corruption-in-georgia\">according<\/a> to Tamara Kovziridze, former chief adviser to Georgia\u2019s prime minister. \u201cToday, an international passport can be obtained within a day if a higher fee is paid.\u201d<\/p>\n<p>When blockchain firm Bitfury introduced its Exonum blockchain-as-a-service solution into the country to secure land titles, Georgia already had a working land-registry system, said Aarvik, adding that technical solutions can\u2019t exist in isolation. Certain pre-conditions must be met. Or as Kovziridze told CMI: <\/p>\n<blockquote><p>\u201cThe rule-of-thumb is that if elites remain corrupt, no country can really defeat corruption.\u201d<\/p><\/blockquote>\n<p>Aarvik has this message for Puerto Rico: Blockchain experts hired to discuss solutions with governments may be tech experts or digital fintech specialists, but they may not necessarily be designers of sound governance systems. Unless the reform design \u201cincludes the full range of competencies from law, social <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/sciencee\/\" data-internallinksmanager029f6b8e52c=\"5\" title=\"Science\" target=\"_blank\" rel=\"noopener\">science<\/a>, economics and tech, I don\u2019t believe the project will yield the expected results.\u201d<\/p>\n<p>Kshetri agreed that land registration is an area where distributed ledger technology can make a difference, citing a promising blockchain-based pilot program in India\u2019s Andhra Pradesh state. \u201cBribery in land administration is rampant in India,\u201d he told Cointelegraph. A typical land record on the blockchain has 58 attributes, \u201csuch as unique ID, plot code, geo-coordinates, survey number, boundary information \u2014 e.g., information about neighboring plots, location in relations to roads or other landmarks\u2014 classification of land as well as dynamic attributes that are subject to change, such as owner and mortgage information.\u201d<\/p>\n<p>But what\u2019s critical is that it also introduces a system of checks and balances. Kshetri added:<\/p>\n<blockquote><p>\u201cA blockchain-based system in which many agencies act as nodes or validators of transactions could serve as a counterbalance for one another to assure that no agency can manipulate the system without being noticed by others.\u201d <\/p><\/blockquote>\n<p>The \u201cvalidators\u201d in the state\u2019s land records include its revenue department, the chief commissioner of its land administration department and other officials. \u201cIf any node tries to change the record, the landowner will receive a text message. The immutability feature means that data cannot be deleted.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Colombia_cracks_down_on_crooked_contractors\"><\/span>Colombia cracks down on crooked contractors <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In Colombia, crooked contractors were inflating bills for school meals, selling chicken breasts to the government for more than four times their cost in supermarkets and, sometimes, not delivering purchased goods at all, Kshetri told Cointelegraph, so the government teamed up with the World Economic Forum and the Inter-American Development Bank to implement a public blockchain procurement program to track the supplier selection process in the city of Medell\u00edn. <\/p>\n<p>This required a tenderer to publicly commit to contract terms and selection criteria <em>prior<\/em> to eliciting bids, explained Kshetri, saying, \u201cRisks such as tailoring selection criteria after the request for proposal is published to favor specific contractors are eliminated.\u201d <\/p>\n<p>Because the vendors are competing, \u201ca blockchain-based solution\u2019s permanent and tamper-proof bid records can ensure that a firm cannot alter submitted bids after learning new information about competing bids,\u201d Kshetri explained. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Adding_other_technologies\"><\/span>Adding other technologies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the fight against public wrongdoing, blockchain technology can be paired effectively with other emerging technologies, too. \u201cIn the cobalt supply chain, there is a concern that blockchain systems can be corrupted if the government agents whose role is to tag bags collude with smugglers and enter incorrect data,\u201d Kshetri reported, but the implementation of artificial intelligence and drones can be used to cross-verify the data. <\/p>\n<p>Traceability-as-a-service provider Circulor, for example, has developed solutions on blockchain and AI in the cobalt sector. When miners enter supply chain data, their identities are confirmed with facial recognition software. <\/p>\n<p><strong><em>Related:\u00a0US infrastructure law could brace up digital assets \u2014 but first some fixes<\/em><\/strong><\/p>\n<p>All in all, blockchain technology can be an effective means to fight government malfeasance as it introduces more \u201ctransparency into governmental spending,\u201d which makes corruption more difficult to commit, as Hedman noted. But it can\u2019t work in isolation, and it won\u2019t work if a government is corrupt at the top. The Georgia experiment was successful, according to Kovziridze, because \u201cthe top leadership was non-corrupt.\u201d<\/p>\n<p>A holistic approach to combating public corruption is key, \u201crather than technological quick fixes,\u201d added Aarvik. But to streamline processes, increase public self-service and omit previous corruption-prone processes, digitalization, including blockchain technology, \u201cis absolutely a powerful tool,\u201d he told Cointelegraph. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/cure-for-the-itch-deputizing-blockchain-to-fight-public-corruption\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Cure for the itch: Deputizing blockchain to fight public corruption &#8221; Puerto Rico recently announced that it may be looking for a blockchain solution to fight government corruption, particularly after a Puerto Rican mayor pleaded guilty to accepting a cash bribe of more than $100,000.\u00a0 But could a distributed digital ledger really make an&#8230;<\/p>\n","protected":false},"author":1,"featured_media":382982,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvMjhhZjY3MWEtMGJhOC00MzgzLThjYTQtN2IyOGMwZDQ1NTIwLmpwZWc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74355,70673,55229,70934],"class_list":["post-382981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-adoption","tag-corruption","tag-law","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/382981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=382981"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/382981\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/382982"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=382981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=382981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=382981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}