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How Blockchain Is Changing The State Government And How Not To Left Out

As a decentralized recording system, blockchain has the potential to support transactions between state and local governments. In a survey released in April, Brookings said seven of the 50 states were actively engaged in government use of blockchain. Over the past two years, states like Delaware, Colorado, and Illinois have begun to evaluate and implement the distributed accounting technology underlying cryptocurrencies, according to Brookings, backed by various initiatives. [Sources: 4]







At the same time, the US Securities and Exchange Commission and the Federal Deposit Insurance Corporation (FDIC) have publicly warned against investing in cryptocurrencies. A recent study by the Center for Economic and Policy Research (CEPR) found that the vast majority of US states have adopted a regulatory stance on cryptocurrencies and blockchain technology. The report says 20 states have adopted cryptocurrency regulations since 2014. [Sources: 0]

Over the past two years, a wave of countries has begun to shift attention to blockchain technology and explore its potential for use in a wide range of industries, from food security to financial services. Just this week, the US Food and Drug Administration (FDA) and the World Trade Organization (WTO) announced a partnership to make global trade more efficient and secure through blockchain technologies. The food safety initiative extends from China to China, through a quarter of Walmart, and from the United States to the rest of the world. [Sources: 0, 1]

We had a good quarter, reflecting the value of our platform to our customers, and SaaS margins continue to grow, but are not yet in the range. Transaction Processing Software posted its best quarter in over a decade with revenue up more than 50% in the third quarter of 2017. PTI margins have fallen since they turned into profit, driven by lower margins, including a shift to SaaS. While Cognitive Solutions profits, its margins turn around and turn into profits. Middleware is driving growth as customers continue to invest in and expand the Z platform. [Sources: 1]

Blockchain advocates argue that moving the state's founding documents to the blockchain would give Delaware a competitive advantage in business creation, by speeding up transactions and increasing transparency. The government needs to carefully consider how blockchain will affect this valuable revenue stream, "he told the news magazine. [Sources: 4]

The importance of Delaware, which is behind the technology, cannot be overstated, and all the signs are that it is increasingly accepted and accepted. The state is moving in the right direction without disturbing the collection of corporate taxes and fees. [Sources: 2, 4]

Bitcoin, the most famous digital currency, is seen by many as a black market currency. But Bitcoin and all digital currency systems that use blockchain technology are not without their critics and black eyes. [Sources: 2]

It remains to be seen whether blockchain technology can overcome its stigma and spread widely to develop the next revolution in payments and accounting. But technology is advancing rapidly, and the results are startling: stable coins issued by private technology companies can be trusted as can government-issued fiat currencies that are not backed by tangible assets, "he said. Blockchain, a distributed ledger technology with machine learning, is being used to digitize financial services, according to a recent report by the US Department of Justice. [Sources: 2, 3]

What strikes me about all this is that central banks want to be the disruptors, not the other way around, and not just in financial services. [Sources: 3]

The financial system we have known and used all our lives was invented more than two hundred years ago. At the event, we discussed how companies can use this technology and how it is already used in many industries. [Sources: 3, 6]

Database technology allows digital assets to be exchanged through trusted records maintained by third parties. Data and changes, such as financial transactions, are recorded in a common public register kept in a large computer network. It used to be thought that there always had to be a "third party," such as a bank or government, trusted to record transactions and change financial data. [Sources: 6]

For many blockchain enthusiasts, one of the most promising aspects is the ability to trust a third party without the need for a central authority, such as a bank or government. Once a transaction is added to the blockchain, no single stakeholder can take the record back. Second-generation blockchains, such as Ethereum, have also introduced a feature called "smart contracts," the software code stored in a blockchain that can execute transactions if certain conditions are met. [Sources: 0]

The biggest challenge for governments and industry is to quickly identify use cases where the added value is explicit and demonstrable - a situation in which trust levels are usually much higher than in the case of open-source cryptocurrencies exchanged by parties. [Sources: 5]

If there are one or more of these three things to do, blockchain can emerge as part of the solution. Consider where blockchain might and might not be introduced in your government. [Sources: 5]






Sources:

[0]: https://www.brookings.edu/blog/techtank/2018/04/17/blockchain-and-u-s-state-governments-an-initial-assessment/

[1]: https://www.sec.gov/Archives/edgar/data/51143/000110465918003059/a18-3308_2ex99d1.htm

[2]: https://www.andrew.legal/blog/tag/distributed+ledger

[3]: https://dailyfintech.com/46540/

[4]: https://statetechmagazine.com/article/2018/05/blockchain-ready-state-government-use

[5]: https://www2.deloitte.com/us/en/insights/industry/public-sector/understanding-basics-of-blockchain-in-government.html

[6]: https://www.techalpharetta.com/how-blockchain-technology-is-changing-the-global-economy/



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Sydney, Australia