Blockchain is frequently associated with cryptocurrencies, often evoking images of “crypto bros” or unstable markets. Although the current administration supports crypto, it has yet to offer clear consumer regulatory protections. Beyond cryptocurrencies, decentralized finance tools like blockchain are attracting attention for public sector applications. However, blockchain’s deployment raises data privacy issues that will necessitate regulatory oversight and compliance as its use expands. What is blockchain? Blockchain is a decentralized digital ledger that securely records transactions across a distributed network of computers. It functions similarly to version histories in shared documents: all participants can view, comment, and edit the record, with every change documented. This structure makes blockchain generally tamper-resistant while remaining collaborative, leading many to view it as the safest and most transparent decentralized digital framework. Such features appeal to government agencies managing property titles, identity issuance, public benefit tracking, and more. Blockchain’s decentralized ledger offers “a single view of the truth, ” eliminating discrepancies from multiple ledgers and providing an “immutable, tamper-proof” record. This reduces risks of tampering, fraud, or administrative errors common in traditional government databases. Its secure, transparent nature could also help restore public trust in critical processes like elections and asset management. Yet, data privacy concerns linger, especially regarding data that can be linked or deanonymized through blockchain. Blockchain in state and local governments At least 19 U. S. states have formed official groups to explore blockchain’s potential. For example, California’s Blockchain Working Group, established in 2019, assessed blockchain’s uses, risks, and benefits, recommending adoption particularly for credentials and record-keeping. California’s Department of Motor Vehicles now uses blockchain to digitize 42 million car titles to detect fraud, showing statewide openness to the technology. Sutter County uses blockchain for issuing birth and death records, enhancing efficiency, reducing costs, and improving user experience. Other municipalities have launched blockchain initiatives. In 2018, West Virginia piloted a blockchain-based voting app to improve absentee voting access for military members and families abroad by recording votes anonymously and instantly on blockchain, overcoming mailing delays.

Austin, Texas, explored a blockchain system to securely store IDs for homeless individuals, aiming to replace paper records with encrypted electronic ones and enable mobile verification. However, privacy and equity concerns prompted caution before widespread deployment. More recently, Baltimore implemented blockchain to monitor over 15, 000 vacant houses, tracking more than 200, 000 property land titles and valuations, simplifying permit management, and streamlining vacant property transactions. International implementations Blockchain adoption extends beyond the U. S. Sierra Leone became the first country to use blockchain in national elections in 2018, aiming to enhance legitimacy and reduce post-election disputes. Similarly, Dubai and Georgia deployed blockchain systems for land title and property transaction registration. Estonia has integrated blockchain deeply into government operations via its digital platform e-Estonia, earning it the reputation as the world’s most digitally advanced society. Citizens use blockchain-enabled mobile IDs instead of multiple physical cards. Estonia employs blockchain to maintain data integrity and grant residents secure, convenient access to public services. Privacy protection needs U. S. municipal pilots—from Austin to Sutter County—show how blockchain can tackle public administration challenges, though these efforts remain limited compared to Estonia’s wide-ranging approach. Broader adoption could enable portable digital identities, statewide registries, licensing and compliance tracking, and secure voting for citizens abroad. Scaling these benefits requires updated legal frameworks, public-private partnerships, and careful attention to digital equity and privacy. Without regulatory clarity, expanding local projects faces legal uncertainties across jurisdictions. Blockchain’s immutability, crucial for security, conflicts with privacy laws that mandate data deletion rights. Currently lacking a national data privacy standard, individually linked data may be over-collected, deanonymized, or targeted in cyberattacks exploiting government blockchain use. Furthermore, digital ID and licensing systems risk exacerbating inequalities if communities lack internet access or devices. Millions of “digitally invisible” people may be excluded as government services move online. As governments modernize infrastructure with blockchain, prioritizing equitable design and inclusive implementation is essential to ensure the technology benefits the public good.