Blockchain Could Be Key Tool For Tracking Data Origin and Authority
Blockchain technologies—the technical foundation for Bitcoin—could be key tools for confirming data origin and accuracy, tracking updates and establishing true data authority for millions of different data fields, according to a new study from International Data Corp. (IDC)
"At a time when IT security, information accuracy and reliability are of paramount importance to government, blockchain is seen by many as a potentially powerful tool for IT managers,” said Shawn McCarthy, IDC Government Insights research director.
“It can help create a structure for government to reduce fraud and boost security, especially when it comes to data tampering, McCarthy said. "It can also help to establish new relationships between government and citizens regarding the way data is collected and shared in a transparent manner."
According to the new report, blockchain is a solid model for establishing an audit trail, in addition to transferring and monitoring distinct entities that represent items of value. As a result, blockchain has the potential to serve as a foundation for improving the authenticity and accuracy of government records.
These technologies can track activities via a shared record that’s resistant to hacking and unauthorized changes, IDC said. Once this shared version of the "truth" is established, via a peer-to-peer network, multiple nodes ensure the integrity remains intact even as new records are added.