The Application of Blockchain for State & Local Governments

Blockchain is an interesting new technology—offering a way to both share and protect data that has advantages over many traditional data management and security techniques. However, adoption of this technology is hindered by its overly strong association with cryptocurrency in the popular imagination. Regrettably, this association distracts from blockchain’s other use cases, many of which can be of great value to state and local governments.

Many state and local government functions involve being the “source of truth” for information, including real estate records, social services, public safety, and others. Properly implemented, blockchain technology can simultaneously provide what would normally be the competing goals of greater accessibility and better accuracy.

This Guidehouse Insights thought leadership paper offers an overview of the essential elements of blockchain technology and how it has evolved and improved in recent years. It then covers the advantages of blockchain compared with traditional database tools and how this applies within the state and local government operational environment. Next, it offers case studies of how some agencies are using blockchain today, and ends with suggestions for state and local government stakeholders on how to best plan for blockchain use in the future.