The document discusses how blockchain technology can impact government services and law enforcement. It provides examples of projects underway in different jurisdictions like Estonia and Illinois to use blockchain for areas such as health records, academic credentials, property records, and benefit distribution. Blockchain could increase efficiency by allowing real-time transparency and tracking across agencies. It also explores how blockchain may transform the criminal justice system by providing tamper-proof record keeping of cases.

1. BLOCKCHAIN AND
GOVERNMENT
Susan Dart
Business Blockchain Consultant
Susan.Dart@bigpond.com
01 February 2018

2. Overview
■ What is blockchain technology?
■ What makes it brilliant and revolutionary?
■ What is blockchain’s place in society?
■ What is the reach of the technology globally?
■ How does it function and what are its benefits?
■ What types of blockchains exist?
■ Which are the significant Australian blockchain companies?
■ How is blockchain impacting government?
■ When should you use blockchain?
■ How do you implement blockchain?
■ Conclusion
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3. BLOCKCHAIN
REPRESENTS
ATRUST
MACHINE:
manufactured trust
through clever
software
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Blockchain is open-source technology that
maintains data as a shared record distributed over
many computers of people that do not know each
other.
Instead of having a central authority, the entire
network of combined computers is responsible for
the integrity of the data, and via consensus,
approves changes made to that data

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6. Why is blockchain so revolutionary?
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DECENTRALISATION
•Encryption
•Private and public keys
•Secure
•Irrevocable digital identity
•No central point of failure
•The source of truth
PEER-PEER
CONSENSUS
•Revolutionises the way
people interact (mining,
trustless transactions)
•Shared consensus
•Shared governance
REAL-TIME
TRANSPARENCY
•Open source code
•Audit trail
•Time stamped
•Immutable data
•Complete provenance
DEMOCRACY IN
TECHNOLOGYAND
DATA
•Democratisation of data
•Anyone can be a miner
FAIRVALUE
•Tokens creation
•Marketplaces
•Distribution of costs
•Consortiums
SOCIAL STABILITY
•Community contributes to
code
•“give back” mentality
•Charity of tokens
•Universal access
•Greater economic
participation
•ICOs (Initial Coin Offerings)
INCENTIVISATION
•Rewards
•Mining
•Token ecosystems
•Self-sustaining system

7. Technicalities: Blocks and MerkelTree are
cryptographic details in a blockchain
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New business
models will
largely rely
on
synthesized
types of
assets
(tokens)

9. Blockchain real-time dashboard Ethereum
9

10. Blockchain solutions solve existing
problems with centralised system
■ Inefficiencies (such as duplication of effort and process)
■ Inability to recognise “source of truth in real-time operations
■ Increasing risk of data and financial loss not to mention administrative overheads
■ The need to go through a third party (such as clearing house with fees)
■ Adding time to complete transactions
■ Increasing complexity of business processes
■ The ease of monopolistic behaviour by bigger corporate entities
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…and also create new value opportunities

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How users would engage with Bitcoin

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(Chain of custody)

15. There are various types of “blockchains”
1. Bitcoin: 2008 best known public $BTC cryptocurrency
2. Ethereum: 2013 Ethereum public, open-source block chain featuring smart contracts.Gas
allocating the resources in proportion to the incentive provided by the request $ETH
3. Ripple: 2012 gross settlement system with company acting as validator $XRP Focussed on
almost free global financial transactions of any scale without any chargeback
4. Hyperledger: 2015 permissioned open source blockchain from the Linux Foundationn
community to support high-performance, standardized business transactions
5. NEO: 2014 “Ethereum of China” digital identity; smart contracts $NEO
6. IOTA: 2015 usesTangle acyclic graphs; resolves scalability challenges of existing
blockchain technologies without transaction fees; geared to emerging Machine-to-
Machine economy and Internet ofThings; quantum resistant $MIOTA
7. Hashgraph: 2016 future of blockchain? Faster, fairer and more secure? virtual voting;
eliminates massive computation and energy needs
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16. Types of blockchain consensus protocols
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POW (Proof ofWork) consensus:
• Works in untrusted networks but relies
on high energy use and is slow to
confirm transactions
• Non-democratic since large mining
farms dominate this
• Example: Bitcoin
POET (Proof of ElapsedTime)
consensus:
• Efficient but requires processor
extensions
• Put on chips to lock up power
• Hardware-based (Intel)
• Example: Hyperledger Sawtooth
POS (Proof of Stake) consensus:
• Works in untrusted networks but
requires intrinsic cryptocurrency
• Uses much less resources
• Example: Nxt
Solo/No-ops consensus:
• Validators apply received transactions
without consensus which is very quick
but can lead to divergent chains
• Example: Hyperledger FabricV1
PBFT-based (Practical Byzantine
FaultTolerance)
• Efficient and tolerant against malicious
peers butValidators need to be known
and totally connected
• Example: Hyperledger FabricV0.6
Kafka/Zookeeper:
• Ordering service distributes blocks to
peers
• Efficient, fault tolerant but does not
guard against malicious activity
• Example: Hyperledger FabricV1

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18. 1/31/2018 © Susan Dart 18MANY BLOCKCHAIN

19. BLOCKCHAI
N IN
SOCIETY
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Australia’s role in standardisation of Blockchain
Australia is leading the international development of standards governing blockchain
ISO committee focuses on "technical solutions including protocols and interoperability" rather than legal
obligations and regulatory matters, which Standards Australia said, governments should address
The committee - which includes 35 ISO members like the US, UK, Germany, Canada and Japan - will be tasked
with creating a common language for "interoperability systems, privacy, security and terminology"
Australian Securities Exchange is using the technology as replacement for its equities clearing and settlement
system
The federal Treasury and Data61 (CSIRO) are studying potential use cases
Australia's biggest banks are part of an international consortium looking at using blockchain for bond trading
Many blockchain start-ups are appearing and being successful globally

21. Notable Australian blockchain companies
■ Horizon State – digital ballot box protecting votes and enabling voting $HST
■ Powerledger – energy market $POWR
■ Canya – marketplace for digital workers who choose their own terms $CAN
■ Brontech – data market
■ E-Nome – genomics and pharmaceutical testing market
■ Scalamed – online prescriptions
■ Agridigital – agriculture supply chain
■ Perth Mint (coming) – gold backed cryptocurrency
■ Many incubators encouraging blockchain start-ups
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22. All
governments
are
investigating
blockchain
technology in
some fashion
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Estonia:
everything
Canada:
funding
projects
Dubai: 20
projects
USA: policy
& projects
Netherlands:
admin legal
documents
Israel: Bank
using digital
currency
Switzerland:
ICO
framework

23. Estonia
■ E-residency: the e-Residency program as a government startup, in which virtually anyone with access to
the internet can become a “digital citizen” of Estonia.The idea is to simplify the requirements for setting
up a business in Estonia. “Join the digital nation” says the e-Residency official website
■ There are already 4,272 companies registered under Estonia’s e-Residency program, with more than
27,000 applicants from over 140 countries. By taking advantage of Estonia’s online government
infrastructure, non-residents can set up their businesses with ease and become part of what could be the
first “borderless digital nation” with its own cryptocurrency
■ Its nationwide health system has taken 8 years to implement:
– All health records from doctors and hospitals on-line (14m documents)
– ePresciption (99% of prescriptions are issued electronically)
– Digital images available in real-time
– eReferral
– eAmbulance (17.6m Ambulatory case summaries and 8.3m exam reports)
– Drug-drug interaction information
– Cross-sectoral services such as health declarations for driver’s licenses or sick forms (working
incapacity)
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24. Illinois blockchain projects and vision
■ Vital records including birth records and issuing digital identity
■ Academic credentials onboarding and issuing
■ Driver’s license onboarding and issuing
■ Entitlements and food stamp distribution (verifies digital identity and issues benefits into
wallet to buy food; healthy eating incentives via smart contracts)
■ Tokenising tax credits: solar panels garner tax credit tokens into tax wallet which consumer
can subsequently sell at an exchange
■ Grant distribution in case of disaster recovery: drone scans physical damage which is
analysed which in turn system automatically issues grants which are tracked
■ Waste management: smart garbage container informs of need for pick-up which is
example of demand-based marketplace
■ Property deed recording
■ Health provider registries and licensing
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26. Governance and Law enforcement in general
Current government systems
■ Ruled by legal code
■ Rules enforced by regulators ensuring
compliance
■ Compliance costs are high
Blockchain systems
■ Functions without legal rules
■ Technical code defines and enforces rules
■ Compliance costs are low due to software
■ Mining systems verify validity of transactions
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 Effectively governing blockchain will require finding an optimal balance between governance,
regulation, legal and technical code using a unique mix of skills and perspectives from a variety of
stakeholders including lawyers, mathematicians, business experts and computer scientists
 Blockchains can aid law enforcement:
 Cases or transactions can be traced all the way back to the first one
 unlikely to hit “third party doctrine” issues as they are public and freely accessible
 blockchain is borderless so probably won’t need to seek foreign law enforcement assistance

27. Blockchain technology could help
transform criminal justice system
■ Government Computing journal, by David Bicknell, published 04 July 2017
■ Digitisation can transform the UK’s criminal justice system and put services at its
heart, delivering better experiences for everyone
■ Blockchain could present a unique opportunity to increase accuracy and transparency
through secure, auditable distributed records
■ Each criminal case could be logged
■ When a case is updated, changes could be reflected automatically with information
being accessed by multiple institutions, which could help address issues of
interoperability between justice agencies, as well as improving public access to data
■ Distributed ledgers will reduce cost, save time, and increase transparency, speed, and
accuracy when processing justice system data for entire populations of prisoners
across many different locations
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Evidence
Submitted
Into
CrowdJury
Dispute
Resolution
process
Voting
outcome
How CrowdJury blockchain app is used

29. CrowdJury: a blockchain solution for court
processes of adjudication
■ CrowdJury.org is an example of a judicial system built with blockchain technology
■ Instead of lawyers, judges, and endless reams of paper, legal squabbles can be
subjected to a couple of algorithms, a few expert jurors picked randomly, and some
crypto-currency to pay people for their time
■ It shows the power of the blockchain to manage the records of an entire judicial
system
■ The two sides put all relevant evidence (contract, emails, website, social content) into
an immutable ledger on the blockchain, giving the evidence a timestamp and making
it resistant to tampering by either side
■ An algorithm then searches automatically for people with certain expertise: in order to
convene a 10-person jury online, who review the evidence for a set period of time and
vote on the outcomeThe side with the most votes wins, with a pre-arranged
settlement delivered automatically when the jury reaches a decision. Jury is rewarded
with tokens
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30. When do you need a blockchain i.e., a
decentralised solution?
■ Need a shared database with multiple writers accessing and storing immutable data
■ Need to verify that transactions or records are valid and unchanged as part of important government
or financial workflows
■ Multiple parties need to electronically view, verify and/or record actions of a given party in real-time
■ Need to share data between multiple parties via case management with automatic reconciliation
■ Want a distributed system that removes intermediaries and lower costs, simplifes process and speeds
up complicated transactions
■ Need a trusted case management scenario, since no suitable intermediary currently exists for
complex cases
■ Audit trail of cases is required
■ Avoidance of a cartel or monopolistic behaviour is needed
■ A balanced funding model for case management is desired
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31. Implementing
blockchain
A typical process for
deploying a blockchain
solution
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32. Conclusion
■ Blockchain (Distributed LedgerTechnology) is a transparent, foundational technology
which is having a revolutionary effect on the world
■ It is a shared, global, incorruptible and therefore trusted ledger of transactions/cases
and it’s controlled equally by all who wish to participate
■ There is an opportunity to apply blockchain to law enforcement projects leveraging
from the efforts of the State of Illinois (USA), Estonia and CrowdJury as excellent role
models for further investigations about blockchain
■ There is tremendous opportunity for blockchain start-ups in law enforcement
■ Blockchain is becoming instrumental to social change. It’s a remarkable technology
that is simultaneously impacting consumers, governments, services and businesses
globally at an extremely fast pace
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33. BLOCKCHAI
N MARKET
SPACE
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