Blockchain Technology for Governmental Processes

Abstract

The European Union is exploring the possibilities of blockchain for their services and processes as a bottom-up approach to the coordination of citizens and economic administrators. However, the multi-actor complexity and the systems complexity of blockchain technology makes decision-making in this subject a difficult task, resulting in a proliferation of blockchain experiments that do not provide significant value. To capture the benefits of blockchain in processes where this technology is applicable in the EU, a blockchain assessment tool is needed that allows for the structural assessment of the fit with blockchain for an information exchange or registration process. This thesis uses a Design Science to design this blockchain assessment tool.

Six elements were found to be of importance for blockchain experimentation in EU Institutions and Bodies: Complexities, Process Factors, Ripple Effects, Organizational Factors, Decision-making Process and Design Features. It is critical to take the complexities involved in implementing blockchain in public administrations into account. Also, the factors that define the fit between the process and blockchain technology need to be considered as insight in this fit can enhance decision-making regarding blockchain experimentation in EU Institutions and Bodies. In addition, there are a number of organizational factors that determine the ability of a governmental organization to adopt blockchain technology. Given the institutional change that blockchains might present, it is critical to take into account the ripple effects of blockchains when deciding to experiment with blockchain technology as an EU Institution or Body. As there is not merely one decision-making process for IT innovation adoption, the process of how a decision on blockchain experimentation is reached needs to be considered as well. Lastly, as blockchain technology compromises of various types and design features, it is important to reflect on the impact of these features on the process criteria.

Using explorative expert interviews combined with Qualitative Data and Matrix Prioritization Analysis, the elements are concretized and translated into requirements for the blockchain assessment tool. Based on these requirements, the blockchain assessment tool is designed using a Morphological Chart to structure the design process. The blockchain assessment tool consists of three steps that allow a user to assess the blockchain fit, create a high-level blockchain design and to map the ripple effects. The blockchain assessment tool was demonstrated in two case studies exploring the possibilities of blockchain for an EU registration or information exchange system, for which the tool proved to provide key insights. Also, experts were interviewed to evaluate the tool, which demonstrated the need for this blockchain assessment tool for the public sector.

Future research is suggested to focus on the trade-offs between the design features to provide a better view on the possible blockchain architectures. Also, more research into the openness and interoperability of blockchain systems could create more depth in the debate of permissionless versus permissioned blockchains in governments. Lastly, research into applying Value Sensitive Design for blockchains could enable the design of permissionless blockchain systems where authorities can be supervisors to protect public values in permissionless blockchains.