In a new report, IDC Government Insights, the provider of accurate, timely, and insightful fact-based research and consulting services, has highlighted the significant role of blockchain and distributed ledger technologies for confirming data origin and accuracy, tracking updates, and establishing true data authority for millions of different data fields.
The report, The Blockchain Audit Trail: Helping to Establish Government "Data Authority" and Information Accuracy, discusses how blockchain technology holds “great potential” to solve government's long-term challenge of establishing clear rules about who has control over specific types of information, how to confirm data accuracy, and confirming who retains long-term authority over a piece of data when it comes to updating or modifying that information.
"We believe that distributed ledger technologies help create a structure for government to reduce fraud and boost security, especially when it comes to data tampering," said Shawn P. McCarthy, research director for IDC Government Insights. "They also can help establish new relationships between government and citizens regarding the way data is collected and shared in a transparent manner. But a great deal of research and infrastructure development needs to occur to boost this process."
The report predominantly focuses on data authority, data accuracy, and access control. Besides transferring and monitoring distinct entities, the report said that blockchain is a “solid model” for establishing an audit trail and can serve as a foundation for improving the authenticity and accuracy of government records.
IDC emphasizes that blockchain capabilities could lead to significant advances in areas such as digital voting, land registries, patent, copyright and trademark issues, and even smart contracts associated with Internet of Things solutions.
According to IDC research, over the next few years government agencies will be running a series of blockchain-based tests and exploring applications within their systems that are capable of leveraging blockchain's capabilities. However, IDC Government Insights foresees system integrators to be key drivers behind building prototype solutions, showing government agencies how they operate, and how they can help establish data authority and boost data accuracy.
"We recommend that both vendors and government agencies investigate the opportunity and value of blockchain solutions as part of their broader third platform strategies. This may include developing internal strategy documents that cover what blockchain could entail to them, and what sort of implementation path they want to follow," concluded McCarthy.
