The Philippines is introducing blockchain to secure government transactions

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The Philippines government is looking to use blockchain technology to make government processes more transparent, paperless and ultimately, corruption free.

The Department of Information and Communications Technology (DICT)’s Undersecretary for e-Government, David L Almirol Jr, recently introduced the eGOVchain initiative, which aims to transform government processes and secure public transactions using blockchain. This initiative is expected to enhance transparency and security and reduce corruption by managing data across multiple secure nodes.

Blockchain is a decentralised digital ledger that stores and shares information across a network of computers in a secure, transparent, and immutable way.

The DICT has set up the first node, which is now integrated with multiple government IT systems. These include the Digital National ID, the government’s data exchange platform, eGovDX, and the eGovPH SuperApp, which bundles citizen services together in one app.

However, the full blockchain enablement will require a second and third node to be established, which is planned to be implemented next year and will be independently managed by two private entities.

The implementation of eGovEncrypt, alongside eGovchain, is essential to enforcing a Zero-Trust policy across all integrations within the eGovDX platform, said Almirol. eGovEncrypt refers to the government’s data encryption project to secure critical government data.

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Overcoming blockchain integration challenges

There are challenges in integrating blockchain technology with government services, including compatibility with existing government systems, regulatory hurdles, and lack of adequate personnel training.

Speaking to GovInsider, Almirol said, “DICT is addressing these challenges by fostering public-private partnerships and initiating technical pilot programmes to facilitate smooth integration”.

Almirol added that DICT is enhancing its internal research and development capabilities to support existing platforms and position DICT as a key organisation for achieving interoperability and compatibility across government systems.

Blockchain’s inherent features, like transparency and immutability, ensure that once data is entered, it cannot be altered without detection. This makes it an effective tool for reducing corruption by providing a permanent and auditable record of transactions, he said.

Additionally, the eGovchain initiative will enhance security and promote cost efficiency by preventing duplication of systems and infrastructure across government agencies.

Almirol highlighted that the eGovPH SuperApp tackled potential privacy concerns associated with managing multiple government IDs within a single mobile wallet by employing advanced encryption techniques to protect user data and give individuals full control over their personal information.

“Users can decide which government agencies will have access to specific details, ensuring privacy and security. Multi-factor authentication and secure data storage further reduce the risks of unauthorised access,” Almirol said.

Although the eGovPH SuperApp provides a unified, citizen-centric platform for accessing various government services, individual government agencies will continue to manage and maintain their respective databases and systems.

The eGovDX platform has implemented standardised protocols and APIs, enabling seamless communication between different government systems without directly sharing sensitive data. Through ongoing testing and collaboration with agencies, DICT has developed secure and efficient data exchange while maintaining the integrity and confidentiality of the information.

Boosting government transparency and security

Almirol emphasised that eGOVchain is designed to implement a decentralised and distributed ledger technology for the Philippines government. The goal is to securely record transactions across various government agencies and services, ensuring transparency, accountability, and data integrity.

This effort addresses the key issue of ensuring secure and verifiable transactions across sectors, mitigating risks such as fraud, data manipulation, and inefficiencies that arise from isolated and manual processes.

Formal adoption measures are being developed, including potential partnerships with key sectors and public awareness campaigns to encourage wider understanding and trust in eGOVchain.

“We are also exploring regulatory frameworks to support secure implementation across all levels of government, and we are planning to conduct a public inquiry and consultation before the end of the year to gather valuable feedback and ensure the successful rollout of both eGovchain and eGovEncrypt,” Almirol said.

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Envisioning a digital future

Over the next two to five years, Almirol said a significant portion of the population will reap the benefits of a fully developed digital ecosystem in the Philippines, driven by interconnected government digital platforms.

Almirol added that eGOVchain will function as a fully decentralised system, with the goal of broad adoption in both government and private sectors. With the integration of multiple nodes, the platform will enhance data security, efficiency, and transparency, fostering increased public trust in government services.

The eGovPH SuperApp and eGovDX platforms are set to become crucial assets for citizens, fundamentally transforming how they interact with government services, he added. By streamlining procedures and enhancing service delivery, these platforms will make accessing public resources more efficient and user-friendly.

They will offer a unified, intuitive interface for managing various government-related tasks, reducing complexity and wait times. As a result, citizens will benefit from a more seamless and responsive experience, leading to greater engagement and satisfaction with government services.

To read more of our past coverage of the Philippines, click here.