You are absolutely correct that blockchain can make the world a much more efficient and reliable place.

However, it is unlikely to make government so, although I hope you're right, and it does. One of the most salient features of government is that, while government is just an agreement, it is delegated the authority of the citizens, and staffed by personnel.

Those personnel, from the lowliest civil servant at the DMV, or Post Office, to the head of state, are all empowered with the authority of the citizens they are supposed to serve, and there certainly are some that do their best to provide good service.

All too often, though, some of the personnel decide that their own nests need more feathers, and use their positions of authority to violate the authority of citizens and sell information, or favors, or even executions of the enemies of those that will pay.

In America, and I suspect most places in the world, this problem of corruption is highly entrenched, with families succeeding one another in certain posts, relationships that are multigenerational between criminals, gangs, and certain government agencies. For example, it isn't even secret anymore that the CIA is the largest drug dealer in the world.

For these corrupt agencies and personnel, the blockchain is a terrible threat to their business model. Such corruption isn't limited to government either, and private industry, particularly finance, engineer their business so as to extract maximum returns for their effort, and black market profits are neither taxed, nor regulated - especially when you can buy corrupt LEOs to protect you, and bust your enemies.

Because of these entrenched interests that the blockchain is a terrible threat to, the rest of government personnel, many of whom are principled people that would hardly believe some of their coworkers are venal and corrupt, are probably going to be convinced that blockchain won't work, or limits their ability to exercise their discretion, that they use to select particularly worthy beneficiaries of their programs, and so is unacceptable.

I believe that the best way to let the blockchain improve the world, is to replace government altogether. While there will be resistance to this new world order, I do not think it can prevent the blockchain from making corruptible government obsolete.

I don't think corrupt government personnel will allow blockchain to be employed to make their jobs go away, be only conducted with integrity, or otherwise end their power and wealth.

We're just gonna have to do it ourselves.