Blockchain, Web3 and the potential for governmental transformation

Some local authorities were left behind during the transition from analogue operation to what later became known as Web1 and Web2, maintaining largely paper-based records and processes. As we move towards Web3, or the distributed network, the municipalities take the opportunity to get ahead this time. By adopting blockchain technology (as opposed to cryptocurrency), they can more than reach the current standard for the digital age. Blockchain brings accountability and transparency to municipal processes and empowers constituents more than ever before.

What are Web1, 2 and 3?

Web1 was the first iteration of the web, which was essentially a read-only version, where users could access information but not interact with it. Web2 is the primary web form used today, where interactive and user-generated content creates a participatory web. User data is collected, owned and monetized by the platforms, which sell it to other businesses to target users in various ways, especially for advertising. Web3 moves from centralized platforms to a decentralized web, where users can interact, exchange information and perform financial transactions in a peer-to-peer manner, without any central authority. Blockchain technology forms the backbone of Web3, introducing a new form of governance that allows users to establish trust and transact directly with each other.

Digital transformation at municipal level

For various reasons, municipalities have not undergone the same degree of digital transformation as companies and may not meet the public’s expectations of online services. As the mayor of Reno, Nevada recently described, many local governments seem to have missed out on taking advantage of Web1 and Web2. They have paper-based records that require physical access to view or access, and their processes also remain manual and time-consuming. This situation is less than ideal for voters who want easy access to local government records.

As an example, Reno, Nevada is working to create The Biggest Little Blockchain, where public records can be accessed directly by the public and updated by relevant city departments.

The first records added to the blockchain will be Reno’s Register of Historic Places. These records have been digitized and then added to the blockchain. Each property is represented by an NFT (non-fungible token) which stores all relevant information about the property: name, street address, historical relevance, purpose and more. In the future, NFTs of specific properties will be for sale to the public.

The functionality goes beyond just disk storage. Landowners and developers in Reno will request “Certificates of Appropriateness” for proposed work on historic properties. Past and present certificates will permanently reside in the ledger where users can see the details and status. The blockchain helps city administrators, who are responsible for approving and denying Certificate of Appropriateness requests, improve their workflow and demonstrate their commitment to transparency in their governance practices.

Other use cases

Historical records are just one use case. Web3 provides the potential for almost all public processes and commerce to be carried out on the blockchain. Other use cases that have been piloted include vehicle registration and title tracking for state motor vehicle departments. Most DMVs use incomplete, outdated and scattered databases to manage vehicle registrations. By creating a records management system that tracks ownership and vehicle status from initial registration to retirement, a single source of truth exists even if ownership and vehicle status change over time. As more governments adopt this technology, their vehicle registration systems can work together, and transferring registration to other states will maintain a complete audit trail.

Other applications of the technology include maintaining credentials and certifications for professionals and even tax collection. Blockchain will help strengthen data security and validity in these areas, as well as automate labor-intensive processes. Overall, if adoption continues, we will see an increase in efficiency and accountability for local governments and municipalities.

For local authorities and municipalities that want to delve further into digital transformation or establish themselves as a technology hub, these are just some of the core use cases that have proven to increase efficiency, drive trust among components, automate time-consuming tasks and save costs. Web3 adoption will continue to increase over the next few years regardless of local government involvement, and those who begin navigating the waters now will certainly not be left behind.