Blockchain technology, the basis of most cryptocurrencies, is now being implemented by various industries and institutions. Companies ranging from public records to real estate, airlines and cloud storage are integrating blockchain technology to improve transparency and security to address today’s emerging digitalization across the world.
While countries like Canada and Australia have already started to include blockchain technology in their digital infrastructure, Singapore is also progressing as one of the leading blockchain developing countries in Asia. As early as 2018, consultancy firm PWC released a report stating that 82% of surveyed executives in Singapore reported ongoing blockchain initiatives, while 13% had already purchased the initiatives live in the market.
Blockchain is a technology that can completely rebuild the supply chain for sustainable practices. blockchain is a type of distributed ledger that offers a digital database to track all supply chain transactions. Researchers and developers have shown that blockchain technology offers benefits beyond cryptocurrencies like Bitcoin. It can completely change the functions of financial and governmental institutions by bringing new methods of processing information and organizing procedures.
Several governments, especially in Europe, have tested this cutting-edge technology for a variety of purposes and services over the past few years, including land registration, education credentials, healthcare, procurement, food supply chains and land management. ‘identify. In addition to the improvements that blockchain technologies have brought to financial transactions, they have been used by governments around the world in various fields to develop smart and sustainable cities and to improve government information systems for the foreseeable future, as blockchain technologies can provide a secure and interoperable infrastructure that enables all smart city services and functions to operate beyond levels currently envisioned.
In 2020, the Government of Singapore, in collaboration with Enterprise Singapore (ESG), Infocomm Media Development Authority (IMDA) and National Research Foundation (NRF), launched a $12 million program Singapore Blockchain Innovation Program (SBIP), which aims to integrate blockchain technology research with industry needs, to facilitate the development, commercialization and adoption of broader real-world applications. This industry-focused initiative will engage nearly 75 companies, including multinationals, large corporations and ICT companies, to conceptualize 17 blockchain-related projects over the next three years in the sectors of commerce, logistics and the supply chain.
Additionally, the SBIP aims to examine the scalability of blockchain technology to enable its adoption in high transaction rate environments; blockchain interoperability that enables the exchange of value between blockchain systems and addresses the current challenges of siled blockchain networks; and developing the blockchain technology talent pool to enable ICT companies to further exploit blockchain technologies. If incorporated carefully, the advantages of the SBIP will enable a common, shared and open public infrastructure to develop digital services across Singapore’s public sector. Other benefits include data protection, transparency, anti-fraud, etc.
The main attraction of the blockchain decentralized finance or DeFi, which removes intermediaries from financial transactions, remains largely unregulated. Indeed, changing critical aspects of DeFi would remove decentralization and transparency, rendering the technology useless. Either way, trust in this industry matters as blockchain technology is now being deployed by governments.
Similar to contemporary technologies in the early stages of adoption, blockchain can thrive as policymakers develop effective regulatory frameworks and avoiding over-regulation not to fail to reduce the beneficial outcomes which should improve the quality of future De-Fi improvements which are desired to dramatically change the financial landscape in Singapore through decentralization and transparency. When fully implemented, the SBIP will enable government agencies to expand and revolutionize digital services, from issuing passports to scheduling appointments with public services. It really is a win-win situation for everyone.