Is Elon Musk Bringing Blockchain to Authorities?

What on the earth is occurring with DOGE?

The Musk led Division of Authorities Effectivity is slashing funding, canceling contracts and letting 19-year-old hackers entry delicate monetary knowledge.

We’ve by no means seen something like this within the U.S. earlier than, and it may be disconcerting.

However I imagine there’s a way to this insanity.

Elon Musk has made a profession out of disrupting industries — fee techniques, electrical automobiles, area journey, social media…

And now he has his sights set on one thing a lot greater…

The way in which the U.S. authorities operates.

I imagine that after Musk finishes his slash-and-burn marketing campaign to determine wasteful authorities spending, his subsequent transfer might be to begin placing authorities providers on the blockchain.

And that might find yourself being an amazing factor for the nation.

Why Blockchain?

The U.S. authorities isn’t precisely identified for being cutting-edge with regards to know-how.

Bureaucratic pink tape, outdated techniques and inefficient spending have plagued federal operations for many years.

That’s the place the blockchain is available in.

A blockchain-based system may monitor federal spending in real-time, decreasing waste and making authorities funds extra clear.

It may additionally enhance cybersecurity, making delicate knowledge more durable to tamper with.

And with good contracts — self-executing agreements written in code — processes like grant administration and procurement may change into extra environment friendly, slicing down on paperwork and human error.

One firm being thought of for this transformation is Motion Blockchain.

Musk’s workforce is evaluating Motion alongside different public blockchains to see which might work greatest for presidency wants.

Motion is a Layer 2 resolution on Ethereum, which means it’s constructed on high of Ethereum’s primary blockchain to deal with transactions extra effectively.

It makes use of zero-knowledge rollups, a know-how that bundles a number of transactions collectively and processes them off-chain earlier than verifying them on the principle Ethereum blockchain.

This enhances safety whereas considerably growing the variety of transactions the community can deal with.

And Musk isn’t the only real voice advocating for blockchain in authorities.

President Trump has been very vocal in his second time period about supporting crypto-friendly insurance policies.

As I predicted, he already signed an government order rolling again Biden’s harsher crypto insurance policies and establishing a working group devoted to digital property and blockchain purposes.

However with regards to Trump’s motivations, all you really want to do is comply with the cash.

Not too long ago, Trump’s World Liberty Monetary (WLFI) acquired Motion Blockchain’s token, MOVE, for its decentralized finance venture.

That transfer despatched the token’s worth up by 15%.

And it tells me that there’s actual momentum behind the thought of placing authorities providers on the blockchain.

However is blockchain actually the answer to authorities inefficiency, or is it simply one other tech buzzword getting swept up in political ambitions?

The Advantages of a Blockchain Authorities

There’s so much to love concerning the thought of utilizing blockchain for public providers.

One main benefit is transparency and accountability.

Each transaction on a blockchain is recorded completely, making it more durable for funds to vanish on account of mismanagement or fraud.

Effectivity additionally improves with blockchain as a result of automated good contracts can eradicate pointless steps in authorities processes. This has the extra good thing about decreasing prices and dashing up operations.

Then there’s the good thing about elevated safety. Conventional databases are weak to cyberattacks, however blockchain’s decentralized nature makes it considerably harder for hackers to change knowledge.

However what would authorities providers on the blockchain truly appear like for you?

A blockchain system may enable completely different authorities businesses to seamlessly trade knowledge, decreasing redundancy and miscommunication.

And in case you’ve ever had a problem along with your social safety verify or your driver’s license, then you understand how a lot enchancment is required in these areas.

In an ideal world, a blockchain-based identification system would enable residents to securely handle their digital identities, making all the pieces from tax submitting to social providers entry extra environment friendly.

After all, no know-how is ideal, and there are vital hurdles to creating blockchain work for the general public sector.

Scalability is a significant concern. As extra customers be part of a blockchain community, transaction occasions can decelerate.

In the event you’ve ever tried to commerce bitcoin throughout occasions of excessive demand, you’ve doubtless seen how community congestion intensifies and affirmation occasions take longer.

And the huge quantities of knowledge the federal authorities handles may put an actual pressure on present blockchain techniques.

Regulatory uncertainty is one other problem as a result of implementing blockchain would require coverage modifications, authorized frameworks and compliance measures that simply don’t but exist.

However I imagine that’s a part of why Trump issued his government order making a workforce that may minimize via this pink tape quicker than we often see occurring within the federal authorities.

After all, there’s nonetheless the problem of integrating blockchain with present authorities techniques.

That’s certain to be advanced and time-consuming for the reason that federal authorities isn’t precisely identified for fast tech adoption.

However with sufficient manpower behind an initiative like this something is feasible.

When it comes all the way down to it, the most important concern the Trump administration faces could be convincing the general public that that is the appropriate step ahead.

Right here’s My Take

Trump has tasked Musk and DOGE to radically alter the way in which our authorities operates.

In some ways, this initiative may backfire terribly.

In different methods — particularly if this administration can set up a leaner, extra environment friendly strategy to authorities — it might be improbable.

There’s even speak of returning among the spending cuts recognized by DOGE immediately again to the general public.

Placing authorities providers on the blockchain has the potential to revolutionize the way in which authorities features.

Trump’s push for crypto-friendly insurance policies and the rising momentum on this area counsel that we could also be originally of a significant shift.

However for now, the thought of a blockchain-powered authorities continues to be in its early levels.

I imagine that change is inevitable.

The massive query is: Do we’ve the desire to make the daring leap essential for these modifications to occur?

Regards,

Ian KingChief Strategist, Banyan Hill Publishing