Utah just took an important step toward bringing paper-based public services into the 21st century. Over the next several months, the Beehive State will conduct a first-in-the-nation pilot program to investigate the feasibility of a digital ID system using blockchain technologies. As more states begin to realize the importance of modernizing public services, they should emulate Utah’s approach with cautious optimism.
This month, Utah Governor Spencer Cox signed new legislation requiring the state’s Department of Technology Services to delve into the possibility of using new digital registration forms to establish a government-issued digital verifiable credential, better known as a digital ID. Unlike other states like Colorado and Arizona that have begun offering more traditional digital IDs that operate using centralized databases, Utah is taking things one step further and exploring how it can create a digital native identification system built on blockchain technology.
In the simplest terms, a blockchain is a ledger of information recorded over a distributed network of computers where any changes to the ledger are verified using complex mathematics. Blockchains are a way of structuring data that allows information to be stored and transmitted without the need for a single centralized intermediary such as a company or government to control the information or data flows.
Largely due to fraud and corporate crime, blockchains – and the cryptocurrencies built on top of them – have gained a bad reputation among politicians. However, the underlying technology could prove incredibly useful in simplifying and digitizing public services so that they can be delivered in a safer, more transparent and more efficient way. Given the promise of blockchain technologies and the potential pitfalls of implementing flawed systems across the country, it is imperative that governments approach new technologies such as blockchain with cautious optimism.
Utah is taking just such an approach. The pilot program for testing a blockchain-based system for digital verifiable credentials aims to create a more secure and user-friendly way for citizens to manage their personal information. Using blockchain technology, Utah seeks to create a system that allows citizens to truly own and control their information in a digital environment, while ensuring that it is secure and protected from fraud.
It remains to be seen whether this experiment with digital identification will succeed. But Utah’s cautious approach to blockchain and other emerging technologies has been key to past successes.
The state has recognized that blockchain and other technologies such as artificial intelligence are not a panacea, and careful evaluation is necessary to determine whether a technology is suitable for wide implementation throughout public services. This approach has helped to ensure that the state’s modernization efforts are cost-effective, damage-minimizing and provide real benefits for citizens.
Other states would do well to follow Utah’s lead in adopting a cautious and measured approach to implementing new technologies such as blockchain in public services. Although these technologies have the potential to revolutionize public services, it is important to recognize that there is rarely a one-size-fits-all solution. Each state has unique needs and challenges that must be considered when evaluating the potential benefits of adopting new technology.
By adopting a cautiously optimistic approach, establishing pilot programs, and exploring the potential of blockchain and other technologies beyond the areas explored by Utah, other states can leverage innovative technologies to improve the delivery of public services and create more effective and efficient government for all residents.
Luke Hogg is director of outreach at the nonprofit Lincoln Network in Washington, DC, where he focuses on the intersection of emerging technologies and public policy. You can follow him on Twitter @LEHogg.
