Fighting Corruption With The Blockchain Technology

It is no news that the blockchain technology is definitely here to stay and it can only get bigger in influence and value.

But what is the block chain?

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According to wiki, a block chain is a distributed database that maintains a continuously growing list of data records that are hardened against tampering and revision, even by operators of the data store's nodes. It is a public ledger of transaction for cryptocurrencies, like bitcoins, which eliminates the need for a third party processor. To understand this fully, let’s use the analogy of the banking system. Let’s look at a block chain as a full history of banking transactions. The most recent transactions being recorded, which are called blocks, can be likened to individual bank statements. Each completed block or transaction is added to the history or the chain and another block begins forming a constantly growing blockchain.

This technology is the major power behind cryptocurrencies like bitcoins. It creates a proof of all transactions on the network in a permanent database such that any computer connected to the network, whether old or new users can have access to all the information previously recorded on the network..

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At the moment, it is still the wild wild west as far as blockchain cryptography is concerned. For instance, bitcoin has no central regulating authority whether at the national level or at the global level. Instead, the users of the cryptocurrency dictate and verify transactions when anyone pays another person for goods and services. The proof of transaction is then available publicily for other BItcoin users to verify after the completed transaction has been publicly recorder into the blockchain.

Corruption and the use of the blockchain technology

The major hydra-headed monster that is a common denominator to most developing nations of the world is corruption. Corruption is endemic at every level, whether it is government to government, government to business, government to individuals, business to business, business to individuals or individuals to individuals. The rate at which disservice is done with impunity to the integrity of these nations is alarming and shocking. Public records are easily falsified, when a few people who matter connive together to defraud the state. Most get away without any trace and those who don’t, even after trial, get away with just a slap on the wrist, with the freedom to enjoy their loots without paying for their atrocities.

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Inexplicable sudden fire outbreaks arise in government buildings, private offices, destroying official documentary evidence and the main aim is to cover up the tracks of the perpetrators.
Individuals easily terminate the lives of other individuals by hiring hit men just to cover up financial dealings or fraudulent acquisition of properties, money, investments, making it easy for them to transfer ownership simply because they know there is no tangible evidence that can be tendered publicly if the need arises to challenge ownership in a court of law.

Widows and the less privileged usually bear the brunt. They are powerless to mount any form of resistance because forged documents can be made to replace original ones even in public records!

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It is just amazing the level of atrocities some people get away with in the name of lack of proper documentation. The possibility of the adoption of the blockchain cryptography, even to the slightest degree, as a starting point, will definitely provide a solution to most if not all of these atrocities. Since every transaction made for instance through the blockchain is recorded in a public ledgers, a database with time stamps, which cannot be altered once completed, and available for everyone to see, proof of ownership can then easily be established and can be tendered in a court of law regardless of how corrupt the government, business or individual may be.

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Some Promising Developments

There have been some interesting developments regarding blockchain technology.

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Adoption of blockchain technology in Ghana for land title registration.

In Ghana, about 70 percent of land lack proper title, which prevents investment and borrowing in real property markets. Referring to the article by @steempower titled “The Bitland Project is set to Empower Ghana Through Land Title Registration - Corporate License Approved!” (https://steemit.com/bitshares/@steempower/the-bitland-project-is-set-to-empower-ghana-through-land-title-registration-corporate-license-approved) there is now an effort being pioneered in Africa, to use the blockchain technology to create a blockchain-based land registry in Ghana. It is indeed true that in many countries around the world, there is a poor recording and enforcement system of land ownership, which in turn denies land owners a crucial asset that could be sold, used as asset to borrow, or legally develop. This has a potential of opening a huge market place where none really existed before now.

Image Credit: CP Africa

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The Chinese Involvement

China seems to be taking the bull by the horns. Its government recently hinted that it is seriously warming up to blockchain and digital technologies, with a newly proposed civil law that will recognize people’s legal right to own virtual assets, including digital currencies. This is a huge step in the right direction. According to Bitcoin magazine, there is a strategic alliance being formed in China to speed up the adoption of blockchain technology.

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The Chinese state has set up a working group whose role is to identify significant trends both in China and abroad, fast-forward the development and adoption of blockchain technology, decide which key technologies and applications should be developed, identify cyber-security concerns and look at possible government regulations and standard-setting for the blockchain industry. This is China, showing leadership once again where a void has been create and left unfilled for a long time.

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Management and Financial Consulting Firms showing more interest

Many financial and management consulting firms are beginning to give the blockchain technology some serious considerations. A new report commissioned by business management consultant firm McKinsey & Company entitled "Beyond the Hype: Blockchains in Capital Markets", mentions that “blockchain technology will "dramatically reshape the capital markets industry", impacting business models, cost savings and capital requirements in the sector”.

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The report further contends the adoption of blockchain technology will have significant near-term benefits, bringing faster clearing and settlement to the capital markets, while reducing the number of ledgers needed to be maintained by financial institutions and ensuring audit trails are more precise. The benefits are quite enormous.

Again, in observing the global financial technology sector, Accenture has also identified blockchains as “possibly the biggest opportunity from taking an open approach to innovation”. It believes this technology has the potential to help minimize counterparty risk, reduce settlement times, improve contractual term performance and increase transparency for regulatory reporting.

Some Possible Limitations

What is there not to embrace? But like any form of change, whether incremental or transformational, there is always resistance. Possible limitations to the growth and adoption of blockchain technology are many some of which include:

Availability of enhancing technology

Although developing nations are catching the bug of technological advancement, there is still quite a distance to go in order to be able to smoothly and fully adopt the use of the blockchain technology. Mobile communication and Internet access is a major part of moving forward with this technology. According to the ITU, only 20% of the African population has access to the internet. Also, access to the facility through mobile phone technology is key to adoption and seamless implementation of the technology. Currently, about 50% of the world has access to a Smartphone with conservative estimates set to rise to 70% by 2020.

Legislation

Legislation to accommodate and incorporate the technology into the legal system or legal framework of various nation for such transactions as evidence to be admissible in a court of law is lacking and will be needed for this to succeed.

Leadership

Leadership is absolutely necessary to provide the will power for these changes to be brought about. Even the developed nations including the US, The U.K., Germany and so on do not have a central regulatory authority regarding bitcoins and bitcoins transaction. Some are still adopting the sit-down-and-look mentality.

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Whether it is an issue of how and where to classify the currency or that of its probably volatility , there needs to be clear and defined policy regarding blockchain technology for it to really spread its wings and fly

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In conclusion, the embrace and adoption of the blockchain technology is closer than we think. From the day when 10,000 bit coins were used to purchase one Papa John’s pizza till date when a bitcoin is worth over $500, digital cryptography has come a long way and it is lending its way to daily use. It is only a matter of time before it becomes a major instrument in our day to day lives particularly for equity and to fight corruption.

Comments, contributions and Upvotes will be greatly appreciated.

Happy Steeming!