Blockchain technology has been creating significant impacts across industries, and the public sector is no exception. Its transformative potential to revolutionize data management and bolster security has attracted the attention of government agencies and organizations globally. In this presentation, Anndy Lian sheds light on the steps involved in creating and managing blockchain databases within the public sector, along with crucial factors to ensure successful implementation.
Empowering the Public Sector with Blockchain
Before delving into the technical aspects of blockchain databases, it’s essential to emphasize the goal of empowering the people on the ground with the right knowledge. By equipping individuals with the ability to understand blockchain technology, they can communicate effectively and ask relevant questions when engaging with experts or vendors for blockchain solutions. This understanding ensures that the right decisions are made and the system is structured efficiently.
Choosing the Right Blockchain Platform
When implementing a blockchain database, the first crucial decision is to choose the right blockchain platform. There are various options available, but two of the simplest and widely used ones are private and public blockchains.
Private Blockchain
Private blockchains are suitable for organizations seeking enhanced security for their data, ensuring only authorized participants have access to the network. IBM is a prominent example of using private blockchains to establish secure and efficient collaboration among trusted participants. By implementing strong identity verification measures, private blockchains maintain a certain level of transparency while streamlining processes.
Public Blockchain
Public blockchains, like Ethereum, offer an open and decentralized approach. They allow anyone to access and participate in the network. While this openness can lead to concerns about data privacy, it can be advantageous in certain scenarios, especially for public organizations seeking a higher level of transparency.
Essential Steps to Create a Blockchain Database
Whether you opt for a private or public blockchain, the process of creating a blockchain database involves fundamental steps. Here’s a concise guide to get you started:
1. Choose the Right Blockchain Platform
Select the blockchain platform that aligns with your organization’s goals and requirements. Determine if you need a private blockchain for heightened security or if a public blockchain’s transparency suits your needs better.
2. Decide on the Programming Language
The choice of programming language plays a significant role in developing blockchain-based applications. Depending on the blockchain platform, you can opt for languages such as Go, JavaScript, Python, Golang, C++, or Rust. Choose a language with an active developer community for ample support.
3. Define Data Structure
Once the programming language is chosen, define the data structure for your blockchain database. Consider what information you want to put on the chain and how you plan to verify and validate the data.
4. Establish Consensus Mechanism
Decide on the consensus mechanism that governs how data is added and validated on the blockchain. The consensus mechanism could be Proof-of-Work (PoW), Proof-of-Stake (PoS), or other variations. Each mechanism comes with its advantages and trade-offs, so choose wisely based on your specific needs.
5. Implement Security Measures
Security is paramount in any blockchain implementation. Implement robust identity verification, access control, and encryption measures to protect sensitive data and ensure the integrity of the system.
6. Test and Deploy
Thoroughly test your blockchain database before deployment. Identify and resolve any issues to ensure smooth functionality.
7. Governance and Consensus Upgrades
Set up governance rules and consensus mechanisms that allow the network to adapt to changing needs and upgrades. This flexibility ensures that the blockchain database can evolve with your organization’s requirements.
Considerations for Effective Management
Managing a blockchain database involves ongoing tasks and considerations to ensure its efficient operation:
Scalability and Performance
Address scalability and performance concerns by exploring solutions like hybrid blockchains or Layer Two solutions. These can enhance transaction speed and optimize the overall performance of the blockchain database.
Network Monitoring and Maintenance
Maintain a vigilant approach to network monitoring and regular maintenance. Ensure that all servers and nodes are functioning correctly to avoid downtime and potential security breaches.
Data Verification and Validation
Design a robust data verification and validation process to ensure data integrity and prevent fraudulent activities. This process is critical, especially in contexts like e-voting systems, where the accuracy of data is paramount.
Collaboration with External Experts
It is also important to engage with external experts who can offer valuable advice and insights. Collaborating with experienced blockchain consultants or seeking advice from other government organizations that have successfully implemented blockchain can be highly beneficial.
Implementing and managing blockchain databases in the public sector is a transformative endeavor with vast potential. The choice of the right blockchain platform, programming language, and consensus mechanism is crucial. While private blockchains offer enhanced security, public blockchains provide transparency and openness. The steps to create a blockchain database are not as complex as they may seem, and the benefits of proper implementation are substantial. By empowering the public sector with blockchain technology, governments can enhance data management, increase security, and improve efficiency for the betterment of society as a whole.
This video is part of a consultation session on “Technical Expert Service on Improvement of Public Sector Efficiency Using Blockchain-based Database”. The implementing organizations include the Ministry of Industry and Technology of Turkiye and the Asian Productivity Organization. The event was held in Ankara and Bolu, Turkiye, from 4–7 July 2023.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
