Blockchain Anchoring of Public Registries: Options and Challenges

Abstract

Governments across the world are testing different uses of the blockchain for the delivery of their public services. Blockchain hashing-or the insertion of data in the blockchain (anchoring)-is one of the potential applications of the blockchain in this space. With this method, users can apply special scripts to add their data to blockchain transactions, ensuring both immutability and publicity. Blockchain hashing also secures the integrity of the original data stored on central governmental databases. The objective of this paper is to analyse the use of data hashing (anchoring) on the blockchain for public state-owned registries. This paper starts by analysing possible scenarios of hashing on the blockchain and assesses in which cases it may work and in which it is less likely to add value to a public administration. Second, the paper also compares this method with traditional digital signatures using PKI (Public Key Infrastructure) and discusses standardisation in each domain. Third, it also addresses issues related with concepts such as "distributed ledger technology" and "permissioned blockchains." Finally, it raises the question of whether blockchain hashing is an effective solution for electronic governance, and concludes that its value is controversial, even if it is improved by PKI and other security measures. In this regard, we claim that governments need to identify pain points in governance in the first place, and then consider the trade-offs of the blockchain as a potential solution versus other alternatives.