The blockchain boom and its real possibilities of application in the records of Public Administrations

Abstract

Blockchain or DLT (Distributed Ledger Technology) provides any object with a permanent digital identity over time, regardless of its nature. Beyond its success in the financial sphere, its applications in public administration seem to be extensive and disruptive, especially in terms of the registration of different types of assets - and the European Union may be one of its main drivers. However, this technology is still at a very early stage and the current literature tends to highlight its potential benefits, without analyzing its implementation or limitations in a systematic way. It is also costly to find examples of consolidated projects at a governmental level, mostly due to the regulatory reform that must precede their full adoption. This article focuses on this issue, gathering a compendium of real-use cases related to identity and property registers, based on blockchain technology, in countries such as Estonia, Sweden and the United States. Based on this analysis, and applying a functional and technical classification, it attempts to infer its different operating schemes and to extract both its benefits and, especially, its main implications and challenges within the current legal framework. It adopts a technical-legal perspective and pays special attention to aspects such as smart contracts.