Blockchain Technology: Prospects and Challenges

[op-ed snap] Open data, open government


Mains Paper 2: Governance | Citizens charters, transparency & accountability & institutional & other measures

From UPSC perspective, the following things are important:

Prelims level: European Union, General Data Protection Regulation, application programme interfaces (APIs), Blockchain, Internet of Things

Mains level: Using new technologies to promote inclusive governance


Creating a data-driven governance architecture

  1. The new wave of a technological revolution will not be from pure data or access to consumer behaviour
  2. The application of data and their assimilation with solving social problems, enabling better governance and powering elected governments to serve their citizens better is ushering in a new revolution

Ensuring privacy

  1. “Datafication” of businesses has also brought to the fore the criticality of developing data management, storage and privacy laws
  2. The European Union with its General Data Protection Regulation has been a front-runner
  3. Other countries, including India, have also adopted a collaborative model to develop privacy laws, which includes deliberations with creators of data (the consumer) and users (corporates)

Open government data movement

  1. Open government data is a silent but powerful movement unfolding globally
  2. Open government data means publishing information collected by the government in its entirety, such as government budgets, spending records, health-care measures, climate records, and farming and agricultural produce statistics
  3. Over 100 governments have already signed a charter to proactively share data collected by various government departments, for public consumption
  4. Fostering collaboration, enabling creative innovations and collective problem-solving are giving accountability and transparency a shot in the arm

Why is immediate action necessary?

There are three basic reasons:

  1. One, such data collected by governments are for citizen welfare; hence they have an implicit right to benefit from the information
  2. Two, data sets such as government budget usage, welfare schemes and subsidies increase transparency and thereby build trust
  3. Third, and most important, it paves the way to develop technology-led innovations which can unlock massive economic value, thereby benefitting even the poorest of poor, the under-represented and the marginalised

Potential Uses

  1. Availability of data on yearly produce of crops, soil data health cards and meteorological data sets can help companies develop customised crop insurance solutions with specific risk-based pricing
  2. Data points around progress in literacy rates, demographic data and density of educators can help develop customised solutions for villages
  3. Information on the availability of facilities in public hospitals, current occupancy rates, hospital and demographic data can pave the way for curated health-care applications

5C framework 

  1. Completeness: The first step is to ensure completeness of data stacks opened for use either through machine-readable formats or direct application programme interfaces (APIs)
  • For example, soil data cards will have data on all relevant aspects as well as current emerging technologies such as Blockchain and the Internet of Things to provide the opportunity to automate data collection

Comprehensiveness: This is essential for a data stack or various data sets. Currently, data sets shared in India are somewhat disjointed and not comprehensive

  • For example, a comprehensive agri-data set would have digitised data sets on soil data, rainfall, crop production as well as market rates

Clustering: This would mean combining data sets which can lead to the creation of applications such as farm insurance from weather, soil and crop cycle/sale data

The fourth step is building anchor cases or use-cases to encourage data usage.  A case in point is Aadhaar/identity data which has seen exponential growth

Setting up a comprehensive governance framework which includes an open data council with cross-sector representation to monitor, regulate and build usage after proportionate oversight

Way forward

  1. Research by PwC in Australia estimated that open data can add an additional 1.5% to the country’s GDP
  2. In the Indian context, this could conservatively translate to about $22 billion
  3. The time is now ripe for the government to create a data-driven governance architecture by building digital trust in the economy and its intent
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