Blockchain for Transparent Social Services

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Blockchain for Transparent Social Services

Blockchain technology can help cities deliver more secure, transparent, and decentralised systems for managing data, services, and infrastructure, delivering smarter cities. In smart cities, where digital systems help manage and optimise everything from energy grids to transportation and identity services, blockchain can enhance reliability, efficiency and interconnectedness. For example, it can track energy production and consumption, enable direct energy trading between individuals, manage real-time public transport information, and even automate city services through smart contracts. Additionally, it also supports digital identity verification, keeps land and property records safe, reduces fraud and increases public accountability.

Blockchain can also support progress toward key sustainability and climate targets, like Agenda 2030 and the Paris Agreement. For instance, it can improve the traceability and reporting of carbon emissions and ensure the integrity of carbon credit markets (SDG 13: Climate Action). Furthermore, blockchain’s role in ensuring accountable governance and promoting financial inclusion aligns with the goals of SDG 11 (Sustainable Cities and Communities). By fostering transparency, decentralisation, and efficiency, blockchain can be a foundational technology in building smart cities that are climate-resilient, inclusive, and digitally integrated.

Importance of Blockchain Technology

Currently, we are collecting increasing amounts of data and, simultaneously, we want to be able to access this data as efficiently as possible. This also applies to public institutions, such as municipalities. The use of various types of data can enhance people’s lives; however, individuals need assurance that the data is secure, meaning it cannot be manipulated, misused or deleted without their knowledge. Consequently, one of the main challenges facing public administration is to ensure full transparency and verifiability of data 1Madupati Bhanuprakash, “Blockchain in Day-to-Day Life: Transformative Applications and Implementation”, International Journal for Multidisciplinary Research 3/1, January-February 2021, https://ijfmr.com/papers/2021/1/11973.pdf. This means that data should be easily accessible and understandable, traceable and verifiable.

Data security is also essential. If a city collects information about its residents, the security of this data is paramount, as it directly relates to protecting citizens and ensuring their safety.

Traditional systems that rely on central databases or paper documents are not always sufficiently secure and efficient, or easily accessible. Therefore, blockchain technology is emerging as a promising solution that could revolutionise the way social services are delivered and improve their transparency 2United Cities and Local Governments Community of Practice, “Smart Cities Study”, 2023, https://www.idom.com/wp-content/uploads/2024/06/SCS-2023-VF-Eng.pdf.

Within the context of smart cities development, blockchain plays a special role by facilitating access to many services and building trust between citizens and institutions. Thanks to its unique properties, it enables real-time data tracking and the elimination of inefficiencies 3World Economic Forum, “How Blockchain Can Empower Smart Cities”, 2021, https://www.weforum.org/stories/2021/04/how-blockchain-can-empower-smart-cities-gtgs21.


FIG 1. Initiative Map (fragment): blockchain initiatives throughout the EU, prepared by EU Blockchain Observatory and Forum 4EU Blockchain Observatory and Forum, https://blockchain-observatory.ec.europa.eu/about_en

What is Blockchain

Blockchain is a distributed ledger technology that allows data to be stored securely and immutably on a network. Each piece of information is stored as a block, with successive blocks forming a chain, a solution which ensures transparency and reliability of the data.

Watch this simple introduction to blockchain technology, where its operation is explained using blocks and treasure chests:

The blockchain technology is tamper-proof and offers a high level of security through the use of cryptography. Blockchain is used in many sectors, such as cryptocurrencies (e.g. bitcoin), smart contracts, logistics, healthcare or identity data management 5Ahmed A. A. Khanfar, et al., “Applications of blockchain technology in sustainable manufacturing and supply chain management: A systematic review”, Sustainability, 13(14), 2021, https://ro.ecu.edu.au/cgi/viewcontent.cgi?article=12091&context=ecuworkspost2013.


FIG 2. E-voting system using blockchain, in: Chentouf, F.Z., Bouchkaren, S., “Security and privacy in smart city: a secure e-voting system based on blockchain” 6Fatima Zahrae Chentouf and Said Bouchkaren, “Security and privacy in smart city: a secure e-voting system based on blockchain”, International Journal of Electrical and Computer Engineering (IJECE) 13/2, April 2023, https://pdfs.semanticscholar.org/81a5/4387af5b47d74923d17438ebf2368f4a32c5.pdf

Types of Blockchain

As blockchain technology has evolved, several types have appeared to meet different needs. Here’s a simple look at four main types 7Joseph D’Souza, “Blockchain Statistics By Market Size, Revenue, Demographics, Benefits and Facts.” Electro IQ. 2025, https://electroiq.com/stats/blockchain-statistics/:

  1. Public Blockchain
    Public blockchains are open networks that anyone can join without requiring permission. They are completely decentralised, meaning no single organisation or person controls the network. Users can remain anonymous, and provided they can prove their work role, they can participate in the network.
  2. Private Blockchain
    Private blockchains are controlled networks. A single organisation manages who can access the network and their permitted actions, such as viewing, verifying, or adding data. These blockchains are used by organisations that need to keep information private, like large companies or government agencies.
  3. Consortium Blockchain
    Consortium blockchains, also called federated blockchains, are managed by a group of organisations. Multiple members have the authority to set rules and modify or cancel transactions. This shared control can lead to better efficiency and privacy.
  4. Hybrid Blockchain
    Hybrid blockchains combine the features of public and private blockchains. They offer selective transparency, where some parts of the Blockchain are visible to everyone while others are restricted to certain users. This structure enables organisations to share data securely without needing a third party.

Blockchain is increasingly being used more widely across various industries of society; while starting within the banking industry, primarily with cryptocurrencies, it is now prevalent in government, insurance, healthcare and many other industries.

Blockchain Industry Graph 8Joseph D’Souza, 2025

Watch this video prepared by the Centre for International Governance Innovation to learn more about how blockchain technology works and the many different industries it can help improve :

Blockchain and Smart Cities

Smart cities are designed to better meet people’s needs, be more sustainable and be open to innovation. In this context, blockchain is essential due to its three primary features:

  1. Transparency and trust: Blockchain allows data to be stored openly and immutably, meaning it is easily accessible but cannot be altered. This allows governing institutions to provide information to citizens in a transparent manner, i.e. accessible and easy to understand, without the risk of someone deleting or changing it. This could include general information, such as the amount of money invested by the city for the various residents’ needs, or specific information concerning residents, like their waste production or eligibility for city discounts. This enhances residents’ trust in public institutions 9E-Estonia, “Enter E-Estonia, Security and Safety”. 2024, https://e-estonia.com/enter-e-estonia-security-and-safety.
  2. Increasing service efficiency: Blockchain streamlines administrative processes by automating and eliminating intermediaries. For example, you would not have to contact multiple people or institutions to reach a conclusion on certain matters, like verifying documents. Implementing this technology in social services saves time and money and reduces the risk of fraud 10Aditya Sai Srinivas et al., “Blockchain: The Future of Smart City Development”, International Journal of Advanced Research in Science, Communication and Technology (IJARSCT) 3/1, April 2023, https://ijarsct.co.in/Paper9009.pdf.
  3. Easier consultation with citizens: Blockchain can be used in digital voting systems, allowing citizens to participate in decisions on participatory budgets or local initiatives. This makes the decision-making process more understandable and open 11Fatima Zahrae Chentouf and Said Bouchkaren, 2023.

Explore

  1. The European Blockchain Services Infrastructure (EBSI) was created in 2018 to support cross-border services, such as document and product verification. One example of its use is simplifying student access to various discounts when travelling or studying abroad: https://ec.europa.eu/digital-building-blocks/sites/display/EBSI/Municipality+Credentials
  2. Norway: the TRACE4EU Consortium uses blockchain to trace Norwegian seafood products and detect illegal fishing or black-market transactions. As EBSI points out, “Illegal fishing has been highlighted by the Norwegian Police Security Service (PST) in their 2022 annual report as a major societal problem undermining sustainable resource management” 12European Blockchain Services Infrastructure, “TRACE4EU Seafood Tracing”. No date. https://ec.europa.eu/digital-building-blocks/sites/display/EBSI/TRACE4EU+Seafood+Tracing . Blockchain, credentials, and QR codes are used to register and identify King Crabs through a specific scenario: https://ec.europa.eu/digital-building-blocks/sites/display/EBSI/TRACE4EU+Seafood+Tracing
  3. Colombia: In Colombia, blockchain has been used to increase the transparency of public supply systems, making information more accessible and understandable to citizens. The introduced system allows citizens to track formal documents and contracts in real time and significantly reduces the risk of fraud or dishonesty. The initiative is part of a broader programme to modernise Colombia’s digital infrastructure 13Marlys Herazo Narváez et al., “Legal challenges for Blockchain implementation in Colombia”, Procedia Computer Science 210 (2022), https://www.sciencedirect.com/science/article/pii/S1877050922016155/pdfft?md5=fc88d9faebfdeaf052d3e476539da2a4&pid=1-s2.0-S1877050922016155-main.pdf , including creating a public blockchain system to track supplier selection of school meals programmes in Medellín to prevent fraud 14World Economic Forum, “Procurement corruption in Colombia, in: Exploring Blockchain Technology for Government Transparency: Blockchain-Based Public Procurement to Reduce Corruption”, 2020, https://www3.weforum.org/docs/WEF_Blockchain_Government_Transparency_Report.pdf 15Ian Hall, “Colombian blockchain trial cause for ‘cautious optimism’”, Global Government Forum, 2020, https://www.globalgovernmentforum.com/colombian-blockchain-trial-cause-for-cautious-optimism-says-wef/.

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