Case study | How government governance applies blockchain technology

Author: Yang Yuchen Hui

Source: National Governance Weekly

Editor's Note: The original title was "Case Analysis | Implementation and Application of Blockchain Technology in Governance Practice"

The Fourth Plenary Session of the Nineteenth Central Committee of the Communist Party of China conducted a special study on "the modernization of national governance system and governance capacity", and before the conference, the Political Bureau of the CPC Central Committee conducted the eighteenth collective study on the current status and trends of blockchain technology There is a deep connection between the two. The characteristics of blockchain technology such as distributed storage and encrypted credibility make it widely applicable to government governance, social governance, and party building, which is conducive to advancing the modernization of national governance system and governance capabilities.

At present, China has actively explored a number of specific applications on the combination of blockchain technology and modernization of national governance. The article "Application of Blockchain Technology in Government Governance, Social Governance, and Party Building" published by the "National Governance" weekly magazine in November B, details and interprets this.

From October 28 to October 31, 2019, the Fourth Plenary Session of the Nineteenth Central Committee of the Party was held in Beijing. The meeting considered and approved the "Central Committee of the Communist Party of China on Upholding and Improving the Socialist System with Chinese Characteristics, Promoting the Modernization of the National Governance System and Governance Ability." Decisions on major issues. The "Decision" states: "The world today is experiencing great changes not seen in a century, and our country is in a critical period to realize the great rejuvenation of the Chinese nation. Follow the trend of the times, adapt to the major contradictions and changes in our society, and take over the great struggle, great projects, great cause, Great dreams, constantly meeting the new expectations of the people for a better life, and overcoming the various risks and challenges on the way forward, we must work harder to adhere to and improve the socialist system with Chinese characteristics, advance the national governance system, and modernize governance capabilities. "Currently, the new A round of scientific and technological revolution and industrial changes are in the ascendant. New technologies have been born in the new era. New technologies such as artificial intelligence, big data, the Internet of Things, and blockchain are profoundly affecting China's economic and social development. On October 24, 2019, General Secretary Xi Jinping emphasized when presiding over the eighteenth collective study of the Political Bureau of the CPC Central Committee: "The integrated application of blockchain technology plays an important role in new technological innovation and industrial transformation." The secretary's speech pointed out the direction for the development and application of blockchain technology.

China is the country with the largest number of blockchain technology applications and the most abundant scenarios in the world. In the course of many years of research and practice, the author found that, as an "important breakthrough in independent innovation of core technologies", blockchain technology has been adopted by many local governments, widely used in government governance and social governance, and recently also used in party building work China has played an important role in advancing the modernization of the national governance system and capacity.

Application of Blockchain Technology in Government Governance

Blockchain technology is essentially a revolution in production relations. Compared to the Internet, artificial intelligence, and quantum technology, blockchain is not just a technology, but the realization of rule-level reconstruction through technology. It is the basic technology, supporting technology, and key technology of other technologies. It is a reconstruction of public affairs operation and government governance.

01
Blockchain technology can effectively improve the level of government services
General Secretary Xi Jinping emphasized the need to explore the use of blockchain data sharing models to achieve the cross-departmental and cross-regional maintenance and utilization of government data, promote the collaborative processing of business, deepen the "run once" reform, and bring better government affairs to the people Service experience. Safe and reliable data sharing technology is the core of building a digital government. The distributed, consensus, and encryption characteristics of blockchain technology can promote decentralized and localized decision-making technologies, thereby helping local governments to break down information barriers and open up data silos. . This is also a valuable combination of blockchain technology and government governance. In 2015, Guiyang City, Guizhou Province, established the Guiyang Crowdfunding Financial Exchange, combining Guiyang's big data with the blockchain technology used by the China Financial Exchange to build it into China's and even the world's first crowdfunding financial exchange. Since 2017, the Loudi Municipal Government of Hunan Province has conducted innovative explorations in blockchain government affairs, especially applying blockchain technology to real estate registration, industrial and commercial registration, and tax registration, and issued the first blockchain real estate electronic certificate in the country. Loudi City relies on the blockchain to realize the coordinated processing of real estate registration business. Through the business system, data from government departments such as the Real Estate Bureau's online signing system, the Natural Resources and Planning Bureau's file system, the provident fund center, and the real estate registration center are shared. With the help of blockchain technology to build a real-estate data sharing network, the government can better reduce costs, innovate service methods, and improve service capabilities. This is also the "deep advancement of decentralization, decentralization, management, and optimization of services." "Deepening the reform of the administrative examination and approval system" instructions vividly.

02
Blockchain technology can effectively solve political and legal work problems
In addition to the field of administration, blockchain has a lot to do in the field of politics and law. In the past year, many local governments, public security departments, courts, especially Internet courts and other departments have made some very meaningful attempts in the exploration and application of blockchain technology. In 2018, the "balance chain" launched by the Beijing Internet Court has technical advantages such as authority and credibility, controllable and controllable at all levels, high security, privacy protection, and cross-chain mutual trust. It can effectively support Internet trials and truly solve the difficulty of obtaining evidence. Difficulty in documenting and identifying. Relevant departments in Guangdong, Yunnan, and Guizhou also actively invited experts and scholars to jointly explore the application of blockchain technology to alleviate the political and legal work difficulties, and try to build a more open and neutral data sharing and information storage mechanism and platform through blockchain technology to enable justice Data sharing is possible. Procuratorates in Hangzhou, Jiaxing, Wuxi, Suzhou, Wuhan and other places are also studying the application of procuratorates such as blockchain forensics equipment and data sharing. In general, the characteristics of blockchain technology's secure encryption and shared credibility are of great significance to public security organs' ability to increase case handling and efficiency, as well as to deepen the judicial system reform of the judicial organs and to ensure that justice is efficient and authoritative.

03
Use blockchain and other technical means to regulate the blockchain industry
It is worth noting that for the government, it is not only necessary to actively explore the application of blockchain technology within the government, but also to actively assume the responsibility for the supervision of blockchain technology and applications. In recent years, today ’s headlines and WeChat competitions for users ’personal data have been common. The conflicts in digital economy competition have highlighted the inherent contradictions of the digital economy, and the government needs to strengthen control over new technologies and applications. When regulating the blockchain, it is necessary to break the tradition and adopt some new methods. For example, with the help of Reg Tech for active, dynamic, distributed, timely and effective supervision, the most important one is to "regulate the chain by chain", that is, to establish the "Reg Chain", Use blockchain technology to regulate the blockchain industry. In this regard, many local governments have made exploration and practice. For example, Guiyang City proposes a “sovereign blockchain”, that is, a trusted blockchain system that can be monitored, controlled, and intervened by the government; a non-profit chain bay research institute is established in Beibei District, Qingdao, which is dedicated to researching blocks Specific schemes for the application of blockchain to supervision; Ganzhou, Jiangxi, establishes a blockchain supervision sandbox to allow blockchain innovative companies to conduct experimental operations; Hainan Ecological Software Park and the Big Data Blockchain and Regulatory Science and Technology Lab of Renmin University of China jointly establish blocks The Chain System Innovation Center studies the use of blockchain for government supervision to achieve institutional innovation.

As General Secretary Xi Jinping emphasized, "We must strengthen the guidance and standardization of blockchain technology, strengthen the research and analysis of blockchain security risks, closely track development trends, and actively explore development laws. We must explore the establishment of adaptive blockchain technology. The mechanism's security guarantee system guides and promotes blockchain developers and platform operators to strengthen industry self-discipline and implement security responsibilities. " The government should "mobilize" and turn static record-based supervision and passive supervision into technology-driven dynamic supervision and active supervision. General Secretary Xi Jinping pointed out, "It is necessary to implement the rule of law network into the management of the blockchain and promote the secure and orderly development of the blockchain." Therefore, the blockchain world must have a "chain of law", the government must keep pace with the times, use blockchain and other technological means to enhance regulatory capabilities, improve regulatory efficiency, and gradually guide and regulate the market ecology. This is the development of blockchain supervision. The new direction is also the future path of government governance.

Application of blockchain technology in social governance

Like government governance, social governance is also an important part of state governance. General Secretary Xi Jinping pointed out: "The difference between governance and management embodies system governance, governance according to law, source governance, and comprehensive policy." The Fourth Plenary Session of the 19th Central Committee further stated: "We must strengthen and innovate social governance and improve the party committee. Leadership, government accountability, democratic consultation, social coordination, public participation, guarantee of the rule of law, technology-supported social governance system, building a social governance community where everyone has responsibility, everyone is responsible, and everyone enjoys it, ensuring that the people live and work in peace and social stability And build a higher level of safe China. "

01
The implementation of blockchain technology in the field of people's livelihood
People's livelihood is the foundation of people's happiness and the foundation of social harmony. General Secretary Xi Jinping emphasized the need to explore the application of "blockchain +" in the field of people's livelihood, and actively promote the use of blockchain technology in education, employment, retirement, precision poverty alleviation, medical health, commodity security, food safety, public welfare, social assistance and other fields Applications to provide the people with smarter, more convenient and better public services. As one of the earliest cities in China with blockchain technology, Guiyang has also explored many applications in the field of people's livelihood. Among them, Guiyang's "Blockchain + Poverty Alleviation" has launched a blockchain management platform for poverty alleviation investment funds. "Blockchain + Education" has launched cooperative school projects with western universities. "Blockchain + Tourism" focuses on smart tourism applications and Data fusion across the industry chain. The specific application of "blockchain + people's livelihood" is the implementation of important instructions of General Secretary Xi Jinping, and it is also an important embodiment of social governance innovation.

02
Blockchain provides technical support for the orderly participation of multiple subjects in social governance
Blockchain technology, as the underlying technology support, has also changed the state of public participation in social governance and better promoted social coordination and democratic negotiation. The distributed and peer-to-peer technology of the blockchain can realize the participation of multiple subjects in social governance, helping each social subject to build a trust mechanism under the leadership of the government. The biggest value and significance of the blockchain lies in adjusting the relationship between people, which helps to change the social governance model that was controlled by the government in the past, allows people to participate in the process of social governance, and allows people to participate more deeply. Economic and social development and transformation. Based on his experience in participating in Guiyang's big data transactions, blockchain technology applications, and innovation in four practical cases and model exploration experience since 2014, the author creatively proposes a data theory of "co-voting economics". This concept truly turns data into a core means of implementation and tools for important factors of production. The so-called "joint votes", the first is "joint", which unites consensus and collectively raises common wisdom, and is the stock that can be truly shared; the second is the "vote", the payment, circulation, distribution, and equity certificate is the stock, food coupon, banknote Three votes in one. Co-voting is not a financial tool, but a mechanism for the distribution of benefits. It is a mechanism for determining power based on the value of data. It reflects fairness and equality, and at the same time, it can better demonstrate the sharing and superiority of socialism. This is also in line with the "sound mechanism of production factors such as labor, capital, land, knowledge, technology, management, data, etc., contributed by market evaluation and the compensation according to the contribution" emphasized by the Fourth Plenary Session of the 19th CPC Central Committee. And improve the social governance system of co-construction, co-governance and sharing "to make theoretical contributions.

Application of Blockchain Technology in Party Construction

Blockchain has moved from technical ideas to practical applications in the fields of government governance and social governance, and is also gradually developing into other areas. The Fourth Plenary Session of the 19th CPC Central Committee emphasized that the leadership of the Communist Party of China is the most essential characteristic of socialism with Chinese characteristics and the greatest advantage of the socialist system with Chinese characteristics. And comprehensively strengthening party building is an important issue for advancing the state's governance system and capacity, an important content of upholding and improving the socialist system with Chinese characteristics, and an inevitable requirement for upholding and consolidating the party's leadership and ruling status. On October 26, 2019, the Communist Party of China News Network · People's Party Jianyun first combined party building work with blockchain technology and launched the "Initial Heart on the Chain" in a novel way to let the majority of party members and cadres experience the blockchain. In the process, leave the original heart, verify the original heart, do not forget the original heart. This is a further innovative application of blockchain technology, opening up a new situation for the party's construction and the combination of blockchain technology. "Blockchain + Party building" will be an important scenario for future blockchain applications. This is because the consensus algorithm of blockchain technology can prevent data from being tampered with and ensure information security. This will strengthen the party's political, ideological, and It is of great significance to strengthen the party's creativity, cohesiveness, and combat effectiveness by building organizations, disciplines, and institutions.

The Fourth Plenary Session of the 19th CPC Central Committee is the first time in the history of our party that the Central Plenary will conduct a special study on "national governance system and modernization of governance capabilities". Before the conference, the Political Bureau of the CPC Central Committee collectively learned about the development of blockchain technology The status quo and trends are deeply linked. In the new wave of technological revolution and industrial revolution, blockchain technology is more revolutionary and subversive than pure Internet, big data, artificial intelligence, and is the "key", "passport" and "passport" to digital economy and digital civilization. "infrastructure".

The modernization of national governance system and national governance capabilities is closely related to the development and breakthrough of core technologies such as blockchain and artificial intelligence. China is currently a global leader in the application and research of blockchain, and has actively explored a number of specific applications in key areas of national governance, such as government governance, social governance, party building, and judicial system reform. Therefore, we must firmly seize this historical opportunity, thoroughly implement the instructions of General Secretary Jinping and the spirit of the Fourth Plenary Session of the 19th Central Committee, and take blockchain as an important breakthrough in independent innovation of core technologies. Modernize your governance capabilities and work hard to realize the Chinese dream of the great rejuvenation of the Chinese nation!