Blockchain@State was a one-day forum in Washington D.C. put on by the U.S. Department of State, Secretary’s Office of Global Partnerships. The forum focused on using blockchain to perform government functions more efficiently and effectively.
Deputy Secretary of State John J. Sullivan gave the opening remarks at the forum on Tuesday (Oct. 10).
“Blockchain has the potential to become a transformative technology of our lifetime. It is increasing its footprint in our daily lives every day and is expected to play a major role in trade, business, healthcare management, and finance […]. Through Blockchain we can track movements of goods in the shipping industry; we can verify someone’s ID; we can safely transfer money and payments across borders in real time.”
What is blockchain?
Most have heard of blockchain in relation to Bitcoin, the world’s most prominent digital currency. Blockchain is actually the technology that makes Bitcoin, and many other digital currencies, work.
Blockchain is a ledger of records – a database – where data is stored in blocks. Each new block of data references the most recent block added to the ledger before it, linking each block of data together in an unbroken chain – hence the name blockchain. The ledger is secure, in part, because no block of data can be changed or manipulated without obviously breaking the chain.
A key feature of blockchain is that it is decentralized and distributed. Decentralized, in that there is no single, central repository for the blockchain ledger, and distributed, in that the ledger is stored by every user – or node – of that particular blockchain application. When a block of data is added to the ledger, that change is updated across all nodes wherever they are stored. Data cannot be effectively changed or manipulated without the collusion of every other node. Records are permanent, reliable, and easily checked.
What is blockchain for?
There are many potential uses for blockchain outside of digital currencies. Deputy Secretary Sullivan noted in his opening remarks that governments and other actors around the world have begun using blockchain for important functions:
- Estonia: Creating government-issued digital IDs
- Georgia: Registering land titles
- UAE: Working toward a paperless Dubai by 2020
- United Nations: Delivering humanitarian aid to vulnerable populations
Sullivan marvled that, by some estimates, the market in blockchain technology “could grow to more than $40 billion by 2022.”
The Center for Law, Science & Innovation is launching a blockchain law and policy interest group with Faculty Director Gary Marchant, Faculty and Research Fellows, and community members.