Exploration of the application of blockchain in e-government: Opportunities and risks coexist

3.1.Advantages of blockchain

Blockchain technology has brought unprecedented opportunities for the innovation of e-government, providing comprehensive and efficient solutions to long-standing problems such as low efficiency, information isolation, data vulnerability, and lack of trust in traditional e-government. From a reliability perspective, blockchain, as a decentralized distributed ledger, does not affect the normal operation of the entire system even if a single node fails. Compared to traditional centralized data processing models, it demonstrates higher system stability and reliability. In terms of credibility, although blockchain technology is open and transparent, it strictly protects personal data through encryption technology, ensuring that only authorized entities can access relevant data. This design, which combines cryptography and consensus mechanisms, greatly enhances the security and trustworthiness of information. In addition, the openness of blockchain technology is reflected in its peer-to-peer accounting method, which can effectively improve the circulation and utilization efficiency of government information resources. After being confirmed by the consensus mechanism, the data of all participating parties can be broadcasted and viewed by other nodes. This process greatly promotes the sharing of government information, establishes a stable trust bridge between participating parties, and lays a solid foundation for building an efficient, transparent, and collaborative e-government ecosystem. Specifically, blockchain has reshaped the face of e-government through the following aspects [13–15].

Economic benefits: By simplifying processes and reducing intermediary links, blockchain technology reduces the cost of government processing, improves the economy of resource utilization, accelerates service delivery speed, and promotes efficient operation of government activities. Many local governments in China are using blockchain technology to optimize their government service processes, such as the “City Brain” launched by Hangzhou, which utilizes blockchain and other technologies to achieve “one-stop service”, making it more convenient for residents and businesses to handle various government service matters, achieving “at most one visit” or even “no need to visit at all”.

Information sharing: The data sharing mechanism supported by blockchain breaks down information silos while ensuring data privacy and security, achieving seamless information exchange across departments and levels, and enhancing information collaboration capabilities within the government and with the public. The distributed ledger feature of blockchain ensures the authenticity and immutability of data, while smart contracts can automatically execute data sharing rules, reduce human intervention, and improve data processing efficiency.

Data Security: By utilizing its tamper proof and encryption features, blockchain technology provides a robust defense wall for e-government data, effectively preventing illegal tampering or leakage of data and enhancing the information security defense line. In the judicial field, blockchain technology is used for the storage of electronic evidence, ensuring the authenticity and immutability of the evidence, accelerating the case handling process, and improving the fairness and efficiency of judicial rulings.

Transparent trust: The transparency and traceability of blockchain enable every government operation to have verifiable records, increasing the transparency of government actions and establishing a new type of relationship based on technological trust between the government and the public. This greatly enhances the public’s trust and satisfaction with government decisions and public services. Blockchain technology is also used to enhance the transparency and accuracy of the social security system, ensure transparent allocation and effective use of poverty alleviation funds, and reduce corruption and abuse.

Blockchain digital identity: Through blockchain technology, a unified and secure identity authentication system can be created, allowing personal information to flow between different government departments without the need for repeated verification. Some regions in China have begun exploring the use of blockchain technology to issue digital identity cards, electronic business licenses, etc., to ensure the authenticity and privacy protection of identity and qualification information, improve work efficiency, and reduce the risks of forgery and fraud.

Smart contract processing sensitive information: Smart contracts can automatically execute contract terms without the need for third-party intervention, providing an efficient and secure way to handle government sensitive information and automatically enforce policy regulations. Blockchain technology is applied to public resource trading platforms, such as bidding and government procurement, to improve transparency, prevent opaque operations, and ensure fair and just transactions.

Electronic bills and certificates: Blockchain electronic bills can achieve fast circulation and verification, without being limited by physical location and office hours, improving the flexibility and efficiency of government processing. The tamper proof nature of blockchain provides strong protection for electronic certificates, enhances public trust in government records, and reduces disputes and audit costs. By utilizing blockchain technology, tax departments can achieve full lifecycle management of invoices, with traceability from issuance to reimbursement, effectively cracking down on illegal activities such as issuing false invoices, simplifying the tax reporting process for enterprises, and improving tax management efficiency.

3.2.Risks and challenges

(1) The contradiction between algorithm security and efficiency: The security of blockchain mainly depends on its characteristics such as distributed ledger, encryption technology, and consensus mechanism. Through these features, blockchain can ensure the immutability of data and the reliability of transactions, thereby maintaining the security of the system. For example, each block in a blockchain contains the hash value of the previous block, and this chain structure makes it difficult to tamper with data once it is written. At the same time, blockchain uses encryption technology to protect the security and privacy of transaction data, ensuring that transaction data is not leaked. In addition, the consensus mechanism ensures consensus among nodes in the network, preventing attacks from malicious nodes. However, these security measures often sacrifice efficiency to some extent. For example, the Proof of Work (PoW) algorithm in consensus mechanisms requires a significant amount of computing power to solve complex computational problems, thereby ensuring the security of the network. But this algorithm has low efficiency and requires a lot of time and resources. In contrast, algorithms such as PoS (Proof of Stake) and DPoS (Delegated Proof of Stake) have improved efficiency, but there are still some scalability issues.

(2) The security risks of smart contracts: The application of smart contracts can be described as a win-win situation. Although it can enable both parties to reach a consensus of trust, related users are also prone to the loss of “trust benefits” caused by technical security risks. Although some legal regulations state that blockchain service providers need to have prerequisites related to providing services (such as technology, compliance with national standards, etc.), they are not sufficient to address the security risks of smart contracts. From the perspective of blockchain technology application security, relevant researchers are also in an awkward predicament. If security vulnerabilities related to blockchain technology applications are made public, it is easy to harm the rights and interests of blockchain service providers and some users. If they choose not to make them public, it will also allow some criminals to exploit vulnerabilities to invade the blockchain system, greatly reducing its security and stability, and even evolving into a “crash and paralysis” chain, thereby losing its due functional role.

(3) The risk of abuse of blockchain technology: Although blockchain technology has promoted the development of the digital society, if its application is not restricted, it will inevitably lead to its abuse, which will be backfired by the application of technology and result in the alienation of the digital society structure. Firstly, relevant users can utilize the decentralized technology characteristics of blockchain to conduct transactions without the supervision of centralized organizations such as banks and other financial institutions. Such a “vacuum zone” is likely to be a paradise for illegal activities such as drugs, money laundering, and gambling.

(4) The limitations of blockchain technology rules: Blockchain technology is also difficult to achieve the “complete decentralization and absolute neutrality” advocated by its technical rules in both theory and practice. From a theoretical perspective, blockchain technology faces issues such as inequality and isolation in regulating user behavior. The main reason for these problems is that they cannot completely break free from the control of “computing bias”. Specifically, computational bias can be reflected in the consensus algorithms mentioned earlier. The operation of consensus algorithms is based on the principle of “minority obeying majority”. If one can have the computing power of more than half of the nodes in the blockchain, they can manipulate the data information on the “chain” at will, forming absolute dominance over the nodes and the blockchain system. However, this is not the essence of fairness and justice (absolute neutrality). If blockchain technology follows the principle of “minority obeying majority”, it will only harm the interests of other nodes or related users, and even lead to the abuse of computing power [16].

4.1.Promote the implementation of applications

Blockchain e-government is in a new stage of exploration and development, and the government plays a crucial role in this process. The government should clearly release relevant policies to encourage technological innovation and application attempts, provide necessary policy guidance and financial support for blockchain e-government projects, and create a favorable environment for innovative development. Select representative and feasible government areas as pilot projects for blockchain applications, such as document management, public services, data sharing, etc., and accumulate valuable practical experience by testing the feasibility and effectiveness of the technology through actual operation. Encourage government departments, research institutions, enterprises, and social organizations to participate and form a joint force to explore the best practices of blockchain e-government. Through cross-border cooperation, promote the deep integration of technology and government needs. During the pilot process, a feedback mechanism will be established to promptly collect opinions and suggestions from users, technical personnel, policy makers, and other parties. Based on the identified problems and shortcomings, technical adjustments and strategic optimizations will be made to ensure the continuous improvement of blockchain e-government projects. While promoting applications, it is necessary to strictly comply with data protection regulations, strengthen data encryption and privacy protection measures in blockchain systems, and ensure the security of personal information and sensitive data. On the basis of successful pilot projects, relevant technical standards and business specifications will be formulated to lay the foundation for the large-scale promotion of blockchain e-government, gradually expanding its application scope to more government fields.

4.2.Institutionalization of development

Although blockchain technology has shown great potential in asset ownership, information verification, and data management, its application still faces challenges such as insufficient legal protection and security risks. Clarify the legal status of data on blockchain, including ownership, usage, and disposal rights, to ensure that data rights involved in blockchain applications have legal basis and provide solid legal protection for data rights. Develop data protection and privacy regulations specifically for blockchain technology, requiring the use of advanced encryption technology to protect on chain data, prevent data leakage, tampering, and illegal use, and establish emergency response mechanisms and compensation mechanisms for data leakage. Given that key security is crucial for blockchain systems, legislation should be enacted to clarify the responsible parties for key management, establish legal responsibilities and remedies for key loss or theft, and ensure the security of users’ assets and data. In the process of data on chain, emphasis should be placed on the legality, legitimacy, and necessity of personal data processing, ensuring the data subject’s right to know and choose. Any data collection, processing, and transmission should be based on the data subject’s explicit consent. By utilizing the tamper proof nature of blockchain, a sound data traceability mechanism should be established. For behaviors such as data forgery and infringement of data rights, legal responsibilities should be clearly defined to ensure that the responsible parties can be traced back and held accountable in accordance with the law, and to maintain the fairness and order of the data environment. Given the cross-border mobility of data and the global nature of blockchain, it is necessary to strengthen real name management and international cooperation, enhance legal coordination and cooperation on data protection and privacy rights between countries, jointly build a legal framework for cross-border data flow, and protect the rights and interests of global users.

4.3.Establish a standard system

One of the major challenges facing the development of blockchain e-government is the lack of unified industry technical standards and application systems, which leads to many projects being easily trapped in patterned replication or blindly following trends during implementation, without fully considering the unique needs and feasibility of specific government scenarios. To solve this problem, it is crucial to establish a scientific and reasonable standardized system for programmatic application technology. We should conduct in-depth research on the needs of different government fields, clarify the specific requirements and technical challenges of e-government in application scenarios such as digital identity, electronic proof, and government auditing, and ensure that the construction of standard systems can be targeted. Due to the involvement of numerous government departments and business processes in e-government, establishing cross departmental working groups to promote information sharing and resource integration is the foundation for developing a widely applicable and compatible standard system. Based on thorough research, we will begin to develop technical standards and operational guidelines, including data formats, interface specifications, security standards, privacy protection, smart contract templates, etc., to ensure interoperability and data consistency between different blockchain platforms. Select representative application scenarios to carry out pilot projects, verify the feasibility and effectiveness of the standard system through practice, collect feedback in a timely manner, iteratively optimize the standards, and ensure that they can effectively guide practical applications. Along with the establishment of technical standards, corresponding laws and regulations are also needed to clarify the legal status, responsibility attribution, and data protection requirements of blockchain e-government, providing legal protection for technological applications. In addition, with the continuous development of technology, the standard system also needs to be constantly updated and improved, while strengthening the integration with international standards, promoting mutual recognition and cooperation of blockchain e-government on a global scale.

4.4.Strengthen technological research and integration

The practical implementation of blockchain technology is an important goal of its research and development, and the key to achieving this goal lies in continuously optimizing and innovating core technologies such as P2P transmission, consensus mechanisms, smart contracts, etc., to better adapt to diverse application scenarios. At the same time, in response to the difficulty of balancing algorithm security and efficiency, technical strategies need to be adopted to ensure legal implementation, thereby eliminating the risks that algorithms may induce and providing technical support for effective governance. Events such as the Agama wallet data breach highlight the severe challenges faced by the blockchain security field, reminding us to continuously improve the security protection capabilities of blockchain systems, including but not limited to strengthening permission management, upgrading encryption algorithms, and improving privacy protection mechanisms, in order to effectively respond to increasingly complex network security threats. For example, the “S-money” theory proposed by the University of Cambridge in the UK, based on advanced ideas of quantum theory and relativity, provides new theoretical support for the security of cryptocurrencies, especially for the study of private key security, which is of great significance for protecting the account security of data subjects [18].

The integration and development trend of blockchain technology with cutting-edge technologies such as artificial intelligence (AI), the Internet of Things (IoT), and Big Data is evident. The combination of these technologies can complement each other’s advantages, jointly break down data silos, and promote the free flow and efficient utilization of information. AI can provide more intelligent data analysis and prediction capabilities for blockchain, and the massive data generated by IoT devices can be securely stored and transmitted through blockchain. Big data technology can help improve the processing efficiency and decision-making accuracy of blockchain networks. Therefore, in the future, blockchain e-government should fully utilize the integration advantages of these technologies. It is not only necessary to strengthen the research on the integration of technologies themselves, but also to pay attention to the integration of cross domain knowledge, ensure that technology applications can better serve the public, improve the transparency, efficiency, and convenience of government processing, and truly achieve the goal of convenience and benefit for the people. In this process, it is necessary to continuously explore regulatory frameworks and legal systems that are adapted to the new environment, ensuring technological progress and social stability and harmonious development.

4.5.Pay attention to talent cultivation

As an emerging and rapidly developing industry, blockchain has an extremely urgent demand for professional talents. Currently, the application of blockchain technology has expanded from the initial digital currency to multiple fields such as finance, logistics, healthcare, and government affairs, with an increasing demand for interdisciplinary and versatile talents. Therefore, strengthening the cultivation of blockchain talents is not only an important support for promoting industrial development, but also a key factor in maintaining the country’s leading position in global technological competition.

IBM and other global tech giants have launched blockchain education programs, reflecting the industry leaders’ emphasis on talent cultivation. By injecting enterprise resources and practical experience, it helps to quickly cultivate practical talents who understand both technology and business. This collaborative model not only provides students with learning opportunities that combine theory with practice, but also helps to shorten the distance between theoretical learning and practical application, accelerating talent output. Local governments and higher education institutions in China are also actively responding, such as Guangzhou’s promotion of blockchain related professional construction and targeted classes, as well as Tongji University’s blockchain DBA teaching program, which aims to cultivate high-end professional talents to meet the industry’s urgent demand for high-level and specialized talents. These measures not only enrich the connotation of domestic blockchain education, but also provide valuable experience and reference for other regions and universities.