Introduction

With the rapid development of information technology, the fields of e-government and public services are undergoing profound digital transformation. Governments worldwide are increasing investments to promote e-government initiatives, aiming to improve administrative efficiency, optimize public service delivery, and enhance government transparency and credibility. However, challenges persist in this process, including barriers to data sharing between departments (resulting in information silos), growing concerns about data security and privacy, and cumbersome traditional workflows with excessive manual intervention. Blockchain technology offers innovative solutions to these problems.

As a distributed ledger technology, blockchain features core attributes such as immutability, decentralization, and traceability, ensuring data authenticity and integrity while facilitating interdepartmental data sharing and collaboration. Its smart contract functionality enables automated execution of business processes, reducing human intervention and improving the fairness and efficiency of public services. For example, Estonia’s blockchain-based e-government system streamlines citizen identity verification, medical record management, and business registration, significantly boosting governance capacity and service quality. In summary, blockchain holds vast potential in e-government and public services, paving the way for a more efficient, transparent, and secure future while delivering superior and convenient experiences for citizens and businesses.

Overview of Blockchain Technology

Blockchain is a decentralized distributed database technology that eliminates intermediaries and trust institutions, allowing participants to conduct transactions and exchange information directly in a trustless environment. Initially proposed by Bitcoin’s creator, Satoshi Nakamoto, blockchain was closely tied to cryptocurrencies. However, its applications have since expanded beyond finance to supply chain management, healthcare, intellectual property protection, voting systems, and more.

Distributed Ledger

A distributed ledger refers to a system where transaction records are maintained collectively by multiple nodes across different locations, each storing a complete copy of the ledger. This design enables nodes to jointly validate transactions and ensure their legitimacy, enhancing security and reliability. Altering data would require modifying most nodes simultaneously, making tampering practically impossible.

Source: https://corporatefinanceinstitute.com/resources/cryptocurrency/distributed-ledgers/

Consensus Mechanisms

Consensus mechanisms are rules and algorithms ensuring agreement among blockchain network nodes. As blockchain lacks a central authority, nodes must reach consensus autonomously. Prominent mechanisms include Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS). For instance, Bitcoin uses PoW, where forging records would require controlling over 51% of the network’s nodes—a near-impossible feat.

Source: https://hacken.io/discover/consensus-mechanisms/

Encryption Technologies

Blockchain employs cryptographic algorithms to secure data integrity and safety. Common techniques include hash functions (e.g., SHA-256 in Bitcoin) and asymmetric encryption. Hash functions convert inputs into fixed-length outputs (hashes), ensuring uniqueness and irreversibility. Asymmetric encryption uses public-private key pairs for secure transactions, where the public key is shared and the private key remains confidential.

Smart Contracts

Smart contracts are self-executing programs that automate contractual terms when predefined conditions are met. Stored on the blockchain, they reduce transaction costs and intermediaries while improving efficiency. Ethereum’s platform popularized smart contracts, enabling complex decentralized applications.

Current Developments

Blockchain has evolved from Bitcoin to broader applications like Ethereum’s smart contracts. Today, it is used in finance, supply chains, healthcare, and public services, and new use cases are continuously explored.

Application Examples

• Estonia’s E-Government System: Blockchain facilitates citizen ID verification, medical record management, and business registration, elevating governance and service standards.
• Finance: Blockchain streamlines cross-border payments, improving speed and cost-efficiency.
• Supply Chains: Enhances transparency and traceability, reducing fraud and counterfeit goods.

These application cases of blockchain technology demonstrate its vast potential across various fields. As the technology continues to mature and its applications deepen, blockchain is expected to unlock even greater possibilities in the future.

Current Status and Challenges of E-Government and Public Services

In recent years, e-government has made significant progress worldwide. Governments have increased investments in digital transformation to enhance administrative efficiency, optimize public service delivery, and improve transparency and credibility. In China, for example, the development of e-government has been particularly rapid. Governments at all levels have actively established online service platforms, enabling a wide range of administrative services to be processed digitally. During the COVID-19 pandemic, the national integrated government service platform introduced over 700 high-frequency services, further improving the e-government development index. Mobile government service channels—such as apps, mini-programs, and official accounts—have expanded coverage to include high-frequency scenarios like community affairs, healthcare, and transportation, extending convenience services to county-level regions.

Current Status of Public Services

In the public service sector, digital transformation in healthcare, education, and employment has progressed steadily, though considerable room remains for improvement. Many countries have digitized certain public services through e-government platforms, such as online medical consultations, remote education courses, and employment information portals, providing citizens with more convenient service experiences. However, these services still face coverage, depth, and user experience limitations, requiring further optimization and expansion.

Challenges

Despite the achievements in digital transformation, e-government and public services continue to face numerous challenges:

• Data Sharing Barriers: Siloed data between departments creates “information islands,” hindering the integration and utilization of data resources and reducing the efficiency of cross-departmental services. For instance, businesses and citizens often need to repeatedly submit documents when handling interdepartmental procedures, increasing costs and processing times.
• Trust and Security Issues: Concerns about data security, privacy protection, authenticity, and tampering risks have become critical constraints on the development of e-government and public services. Government networks face threats such as cyberattacks and data breaches, necessitating stronger security measures.
• Inefficient Processes: Cumbersome and time-consuming traditional workflows reduce service efficiency and user satisfaction. For example, some administrative approval processes still require multi-level reviews across departments, leading to prolonged processing times.
• Regional Disparities and Legal Gaps: Uneven development across regions and lagging legal frameworks also hinder progress. In China, for instance, the digital capabilities of coastal regions far surpass those of central and western areas, and urban-rural service disparities remain pronounced. Additionally, unresolved legal issues—such as the validity of electronic documents and data ownership—impede the transition to paperless governance.

Moreover, issues such as uneven regional development and lagging legal frameworks continue to constrain the advancement of e-government and public services. For instance, in China, the digitalization level of government services in eastern coastal regions significantly surpasses that of central and western areas, with a pronounced urban-rural divide in service capabilities. Additionally, institutional gaps including the lack of clear legal validity for electronic documents and undefined data ownership rights, are impeding progress toward paperless governance.

Application Scenarios of Blockchain in E-Government and Public Services

Government Data Sharing and Management

Blockchain plays a pivotal role in enabling secure and efficient data sharing across government departments by establishing decentralized, tamper-proof platforms.

• Integrated Data Sharing Platforms: Blockchain-based systems break down interdepartmental data silos. For example, Beijing’s Municipal Government Service Administration has implemented “blockchain+government service” solutions, where departmental data requests, sharing records, and administrative activity logs are immutably recorded on-chain. This has streamlined document processing for citizens and businesses while enhancing data traceability.
• Data Provenance and Auditing: The technology’s immutable ledger allows precise tracking of data flows. Beijing’s “Directory Blockchain” project links real-time data change monitoring from 53 departments with full-access logging, resolving trust issues in cross-agency data sharing.

Digital Identity Authentication and Authorization

Blockchain enables unified digital identities while protecting privacy through cryptographic controls.

• Cross-Platform Identity Verification: Jiangxi Province’s “Ganfutong 3.0” platform utilizes blockchain’s anti-tampering features to enable “zero-contact” mobile approvals and “certificate-free” services, ensuring data consistency and functional synchronization.
• Transparent Authorization Management: Citizens can monitor all authorization activities and certificate usage through blockchain records, creating accountable and privacy-preserving access controls.

Smart Contracts for Administrative Processes

Self-executing contracts automate bureaucratic workflows to eliminate delays and human error.

• Automated Approvals: Permit applications and subsidy distributions are processed via predefined rules. Eligible submissions auto-approve while rejected cases receive instant, auditable explanations.
• Public-Private Partnership (PPP) Enforcement: Government contracts with private entities are programmatically executed, with blockchain ensuring compliance to terms and transparent dispute resolution.

The advantages and value of blockchain applications

Enhancing transparency and credibility

The transparent nature of blockchain allows government data and operational processes to be conveniently queried and verified, effectively increasing the transparency of government work and improving public trust and satisfaction. For example, the government established a blockchain-based e-governance system in Estonia, enabling efficient and convenient handling of various public services such as citizen identity verification, medical record management, and business registration. This significantly improved the government’s governance capabilities and service levels.

Strengthening security and privacy protection

Blockchain technology uses advanced encryption algorithms, such as asymmetric encryption and hash functions, to encrypt data, ensuring security during storage and transmission. Additionally, blockchain’s distributed architecture and tamper-proof characteristics provide strong support for data privacy protection. For instance, in the healthcare sector, blockchain can integrate health data, optimize medical processes, promote institutional collaboration, and safeguard patient privacy.

Optimizing business processes and efficiency

Blockchain’s smart contract functionality automates business processes, reducing human intervention and cumbersome intermediate steps, significantly improving the efficiency and quality of government services. For example, in administrative approvals, smart contracts can automatically review applications based on preset rules, approving those that meet the criteria and rejecting those that do not, providing reasons for the rejection.

Promoting interdepartmental collaboration and innovation

Blockchain technology provides a shared, trustworthy data platform among different departments, breaking down data silos and fostering cross-departmental business coordination and data sharing. For example, the Beijing Municipal Government Service Administration is exploring the combination of blockchain technology with government data sharing, creating several “blockchain + government services” scenarios.

Challenges and risks

Centralization risk

Consortium chains are typically governed by a small number of core members or institutions, which may lead to centralized decision-making. For instance, government service departments are often designated as orderer nodes responsible for bookkeeping, data deposition, retrieval, and usage permissions in government service scenarios. This centralized management structure may make consortium chains resemble traditional centralized systems, weakening blockchain’s decentralization advantage. Furthermore, centralized governance may result in uneven resource distribution, conflicts of interest, and affect the fairness and sustainability of the consortium chain.

Additionally, high centralization may still lead to doubts about the authenticity of internal data. If internal members of the consortium chain collude, they could theoretically tamper with on-chain data, undermining data credibility. For example, in government services, if participants conspire to falsify transaction data, it could trigger a trust crisis, affecting the stability and credibility of the entire consortium chain ecosystem.

Lack of standards and regulations

Global regulations on blockchain and cryptocurrency vary across countries, and policy uncertainty increases market risk. New business models under Web3.0 face inadequate legal frameworks, encountering challenges like digital asset ownership and data intellectual property protection. For example, the replicability of data complicates the determination of originality and uniqueness, intensifying intellectual property disputes. In China, blockchain applications in finance, healthcare, education, and other fields are increasing, but improving relevant laws and regulations still requires time.

Privacy and security risks

Despite blockchain’s high security, it still faces issues such as 51% attacks and smart contract vulnerabilities. The transparency of blockchain also raises concerns about data privacy and sensitive information leakage. In healthcare, while blockchain can help establish secure and reliable electronic medical record exchange platforms, patient privacy protection remains a key issue. For example, Walmart filed a patent in 2016 aimed at storing patient medical records in a blockchain database, using wearable devices and biometric technology for record transmission and decryption.

Public awareness and acceptance

Blockchain technology and Web3.0 concepts and applications are not yet widely adopted, and public awareness and acceptance must improve. The public’s understanding of blockchain is limited, requiring more promotion and education to increase trust and familiarity with the technology. For example, many users are still unfamiliar with digital identities and decentralized applications, limiting blockchain’s widespread adoption in e-governance and public services. In China, blockchain applications in finance, healthcare, education, and other fields are increasing, but public understanding and acceptance still need further enhancement.

Future development trends and outlook

Technological innovation and integration

With continuous technological advancements, integrating blockchain with artificial intelligence (AI), the Internet of Things (IoT), and big data will deepen, expanding its application boundaries. For example, AI can optimize blockchain smart contract development, automatically detect vulnerabilities, and improve code quality. At the same time, blockchain provides AI with reliable data sources, addressing issues of data bias and forgery. In IoT, blockchain ensures the security and credibility of data transmission between devices, enabling autonomous device collaboration.

Standardization and regulatory development

Establishing a unified standards system and regulatory framework is crucial for blockchain’s healthy development. Currently, global regulations on blockchain and cryptocurrencies vary, and policy uncertainty increases market risks. For example, the European Union passed new MiCA regulations by the end of 2024 to ensure transparent transactions and compliant operations of crypto assets. In China, blockchain applications in finance, healthcare, education, and other fields are increasing, but relevant laws and regulations still need improvement.

Global cooperation and exchange

Strengthening international cooperation and learning from other countries’ experiences with blockchain applications will jointly drive the technology’s global adoption. For example, the government of Andhra Pradesh, India, leveraged blockchain to reform land registration processes, establishing a digital land registration system that improved transaction transparency and efficiency. The Estonian government created a globally leading e-residency system, using blockchain to store and authenticate citizen identity information securely. These successful cases provide valuable insights for other countries.

Conclusion

Blockchain technology demonstrates tremendous potential in e-governance and public services, effectively addressing existing challenges such as data sharing, trust and security, and process efficiency. By building data integration and sharing platforms, enabling digital identity authentication, optimizing electronic certificate management, enhancing public service quality, and promoting smart contract applications, blockchain significantly improves government efficiency, transparency, and credibility while enhancing data security and privacy protection.

Although challenges remain in technological maturity, standardization, privacy protection, and public awareness, with continuous advancements in innovation and integration, the gradual establishment of standards and regulations, strengthened global cooperation, and the ongoing expansion of application scenarios, blockchain is expected to reshape e-governance and public service models in the future. This will provide citizens and businesses with more efficient, convenient, and trustworthy service experiences, promoting modernizing social governance systems and capabilities.