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Sherab Lhamo
The Bhutanese government is integrating blockchain technology into various sectors through the Bhutan NDI initiative to leverage its advantages of security, decentralization, transparency, and immutability.
An official from the government’s Ministry of Science and Technology said that the potential of blockchain technology will help improve public services in various fields. By leveraging the decentralized and immutable nature of blockchain, the government aims to improve data integrity and security in areas such as healthcare, land management and education.
In healthcare, blockchain can be used to ensure the traceability and authenticity of medications, promote preventive healthcare, and facilitate the development of virtual healthcare platforms.
In terms of land management, blockchain can simplify land administration, reduce fraud, corruption and errors common in traditional land registries, and automate processes such as property transfers and tax payments.
In the education sector, blockchain can protect student records, certificates, and other sensitive information while also supporting online learning systems and improving the overall efficiency and security of the education system.
What is blockchain?
Supreet Pradhan, senior manager of the Bhutan National Data Institute, said that blockchain is a distributed ledger, that is, an interconnected database that records information in the form of blocks to form a data chain. “Once information is recorded in a block, it is difficult to change or delete, thus ensuring the integrity and security of the data.”
He added that it is an interlinked collection of data supported by different servers running around the world.
Unlike traditional databases that rely on central servers, blockchain runs on multiple computers. Data is encrypted and protected through a consensus mechanism involving multiple computers, making it almost impossible to tamper with or delete information, but anyone on the network can verify the information.
Multiple computers in the network verify the validity of the block. Once verified, the block is added to the existing blockchain. Each block contains information including a timestamp, transaction data, and a reference to the previous block. This creates a chain of records that is extremely difficult to change.
Pema Wangchug, deputy director of Druk Holding and Investments, said that while blockchain technology may seem complex, it is crucial to understand its value and benefits.
He compared blockchain to a car, saying that while one does not need to understand how the engine works to appreciate its usefulness, understanding the decentralized nature of blockchain is crucial to recognizing its security advantages and ability to disseminate information widely.
Kinzang Dorji, a backend developer at Bhutan NDI, said that Bhutan NDI uses a decentralized system to store and verify data on multiple computers, which benefits from blockchain in terms of scalability, security and user privacy. “Blockchain enables information to be fully distributed, thereby reducing the risk of data leakage,” he said. “It also enables users to control their personal information.”
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