Victor Ugochukwu · Oct 27, 2020 . 6min read
Denmark dives into Blockchain for Anti-Corruption Initiatives, States Report
Denmark considers blockchain technology to combat corruption. The report elucidates that blockchain be used as anti-corruption tool.
By Komal Joshi · Sep 14, 2020 . 6min read
Denmark’s Ministry for Development Cooperation has issued a report that identifies blockchain to combat corruption. Titled as ‘Code to Integrity,’ the report will be manifested in the International Anti-Corruption Conference (IACC) in October. The paper illustrates how innovation and technology are essential tools in fighting corruption, providing enhanced oversight of businesses, governments, and stakeholders. The Ministry has examined several technologies, including blockchain, e-governance, big-data, and crowd-sourcing for fraud-prevention, mitigating political and administrative corruption.
Corruption prevents the optimization of governmental functions as the designated resources do not flow down to direct a nation’s citizens’ needs. The Denmark government believes that the digitalization of public services and procurement via blockchain technology can promote transparency in financial transactions and land ownership administration. However, this helps in thwarting corrupt practices in governmental institutions.
Role of Blockchain in Battling Corruption
According to the report, Denmark recognizes blockchain as one of four boulevards to stop corruption. The technology’s characteristics of secure and transparent data recording could be used to assure rights to aid land and money to prevent fraud. Moreover, by crowd-sourcing, blockchain avails new possibilities for whistle-blowing and anonymous reporting of corruption.
Blockchain can potentially eliminate the need for institutions like land registries, banks, accountants, registry of birth and deaths, and vehicle registration. It can diminish the work of these institutions, elucidates the report. According to the report, blockchain technology can help entities share resources with people avoiding formal identities or bank accounts. However, the public sector may also embrace blockchain to secure records and certificates from falsifications. Moreover, it can adapt it to track all activities to decrease the possibilities for corruption.
The report elucidates that women have more limited access to digital solutions, mobile technology, and the internet in developing countries. Additionally, this can prove hefty when restraining corruption utilizing blockchain-based digitalization. Furthermore, there is a high possibility for women to serve in the informal economy than men, challenging to digitalize. The Denmark government observes these as potential difficulties. It strives to overcome these challenges so that blockchain can advance the fight against corruption.
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Victor Ugochukwu · Oct 26, 2020 . 5min read