Since the introduction of cryptocurrency as a method of transaction, numerous research by practitioners have been performed to analyze the underlying mechanisms in understanding the benefits of using blockchain using different platforms like quantum AI because of the unlimited nature of trading with cryptocurrencies emphasizing the bitcoins. The underlying blockchain technology has the potential to transform governance activities because it provides new and improved ways in which technologies can be used in different ways, including the handling of technology and organizing processes. In the past decades, governments of all races have introduced new technologies in various functions and services, including in important activities like healthcare procurement, land registration and credentialing in educational services and identity management. The main consideration in the experimentation of the named services is to ensure cryptocurrency has the potential to achieve the expected successes in government transformation.
The main question in the experimentation is to understand the potential of cryptocurrencies, including the transformative power of using blockchain in digital governments. The inventor of blockchain technology Satoshi Nakamoto started the blockchain technology not by focusing on how the technology could be used to transform crucial aspects like information processing but by basing the use of blockchain technology on a human concern based on trust. Improving trust in transactional power is one of the most influential aspects of blockchain technology which gives it control over other technologies and tools for information processing and transactions. The unique power of blockchain technologies lies in combining the power of distributed networks alongside cryptography which can be used by governments, citizens and organizations for validated transactions emphasizing the ability to trust one another. Kenneth Arrow, a Nobel prize winner, observed that the lack of trust in commerce and governance is the leading factor behind failed management and loss in economic systems.
The advantage of blockchain technology over other methods of doing transactions
Trustiness in governance and administration is based on trust, which points to lower transactional costs and monitoring because transactions, especially the most important ones, are limited to trust because of the existing governance and lack of trust. Monitoring and contractual breaches are the leading factors identified to undermine transactional exchange and production, and using blockchain technology goes beyond the current limitations by providing the users with a platform which allows for ungoverned transactions and interactions, which makes the use of blockchain technology and other blockchain technologies essential in making transactions safer more efficient and improves on the aspect of trust. In governance also, it is important to ensure the development of sustainable solutions for the public sector, which requires a concrete understanding of cryptography and blockchain technologies.
The realization of the potential of blockchain technology for digital transformation and governance is not limited to which cryptography or blockchain technology to use. Still, it is more focused on identifying several aspects of the public sector that allow for improving social trust. The latter can include understanding which information should be stored or captured in blockchain to support trust, the development of common blockchain protocols for the different cryptographies and the technical considerations necessary and important in delivering the capabilities needed. The approach requires an understanding of the three-layer paradigm, which includes the social, data, and technical layers. The social layer can consist of understanding different aspects like the social aspects of motivation and incentives, culture and the understanding of digital literacy, which are important in accessing technology and forming positive relationships with it. The data layer can include identifying what transactional data or records are to be stored and considering important aspects of interacting with cryptocurrency, including privacy and security, reliability, data usability, authenticity and integrity. The technical layer includes considering the existing distributed protocols, the peer-to-peer networks and data storage, and the existing platforms for exchange like the quantum AI. A reflection of the named approach would allow for the development of important design trade-offs, which can be essential in removing the existing misalignments between the use of technology and cryptography, which would allow for a more impromptu adoption and more effective transformative outcomes for governance.