What on the planet is occurring with DOGE?
The Musk led Division of Authorities Effectivity is slashing funding, canceling contracts and letting 19-year-old hackers entry delicate monetary information.
We’ve by no means seen something like this within the U.S. earlier than, and it may be disconcerting.
However I consider there’s a technique to this insanity.
Elon Musk has made a profession out of disrupting industries — fee methods, electrical automobiles, area journey, social media…
And now he has his sights set on one thing a lot greater…
The way in which the U.S. authorities operates.
I consider that after Musk finishes his slash-and-burn marketing campaign to determine wasteful authorities spending, his subsequent transfer might be to start out placing authorities providers on the blockchain.
And that would find yourself being a fantastic factor for the nation.
Why Blockchain?
The U.S. authorities isn’t precisely recognized for being cutting-edge on the subject of expertise.
Bureaucratic pink tape, outdated methods and inefficient spending have plagued federal operations for many years.
That’s the place the blockchain is available in.
A blockchain-based system may monitor federal spending in real-time, lowering waste and making authorities funds extra clear.
It may additionally enhance cybersecurity, making delicate information tougher to tamper with.
And with good contracts — self-executing agreements written in code — processes like grant administration and procurement may develop into extra environment friendly, slicing down on paperwork and human error.
One firm being thought of for this transformation is Motion Blockchain.
Musk’s crew is evaluating Motion alongside different public blockchains to see which might work greatest for presidency wants.
Motion is a Layer 2 answer on Ethereum, which means it’s constructed on high of Ethereum’s fundamental blockchain to deal with transactions extra effectively.
It makes use of zero-knowledge rollups, a expertise that bundles a number of transactions collectively and processes them off-chain earlier than verifying them on the primary Ethereum blockchain.
This enhances safety whereas considerably rising the variety of transactions the community can deal with.
And Musk isn’t the only voice advocating for blockchain in authorities.
President Trump has been very vocal in his second time period about supporting crypto-friendly insurance policies.
As I predicted, he already signed an government order rolling again Biden’s harsher crypto insurance policies and establishing a working group devoted to digital property and blockchain purposes.
However on the subject of Trump’s motivations, all you really want to do is observe the cash.
Lately, Trump’s World Liberty Monetary (WLFI) acquired Motion Blockchain’s token, MOVE, for its decentralized finance mission.
That transfer despatched the token’s worth up by 15%.
And it tells me that there’s actual momentum behind the concept of placing authorities providers on the blockchain.
However is blockchain actually the answer to authorities inefficiency, or is it simply one other tech buzzword getting swept up in political ambitions?
The Advantages of a Blockchain Authorities
There’s rather a lot to love concerning the concept of utilizing blockchain for public providers.
One main benefit is transparency and accountability.
Each transaction on a blockchain is recorded completely, making it tougher for funds to vanish as a result of mismanagement or fraud.
Effectivity additionally improves with blockchain as a result of automated good contracts can eradicate pointless steps in authorities processes. This has the extra advantage of lowering prices and dashing up operations.
Then there’s the good thing about elevated safety. Conventional databases are weak to cyberattacks, however blockchain’s decentralized nature makes it considerably harder for hackers to change information.
However what would authorities providers on the blockchain really seem like for you?
A blockchain system may enable completely different authorities businesses to seamlessly change information, lowering redundancy and miscommunication.
And for those who’ve ever had a difficulty along with your social safety test or your driver’s license, then you understand how a lot enchancment is required in these areas.
In an ideal world, a blockchain-based identification system would enable residents to securely handle their digital identities, making the whole lot from tax submitting to social providers entry extra environment friendly.
After all, no expertise is ideal, and there are vital hurdles to creating blockchain work for the general public sector.
Scalability is a significant problem. As extra customers be part of a blockchain community, transaction occasions can decelerate.
Should you’ve ever tried to commerce bitcoin throughout occasions of excessive demand, you’ve doubtless seen how community congestion intensifies and affirmation occasions take longer.
And the huge quantities of knowledge the federal authorities handles may put an actual pressure on present blockchain methods.
Regulatory uncertainty is one other problem as a result of implementing blockchain would require coverage adjustments, authorized frameworks and compliance measures that simply don’t but exist.
However I consider that’s a part of why Trump issued his government order making a crew that may minimize by means of this pink tape quicker than we normally see occurring within the federal authorities.
After all, there’s nonetheless the problem of integrating blockchain with present authorities methods.
That’s sure to be advanced and time-consuming for the reason that federal authorities isn’t precisely recognized for fast tech adoption.
However with sufficient manpower behind an initiative like this something is feasible.
When it comes all the way down to it, the largest problem the Trump administration faces may be convincing the general public that that is the proper step ahead.
Right here’s My Take
Trump has tasked Musk and DOGE to radically alter the best way our authorities operates.
In some ways, this initiative may backfire terribly.
In different methods — particularly if this administration can set up a leaner, extra environment friendly strategy to authorities — it might be unbelievable.
There’s even discuss of returning a few of the spending cuts recognized by DOGE immediately again to the general public.
Placing authorities providers on the blockchain has the potential to revolutionize the best way authorities capabilities.
Trump’s push for crypto-friendly insurance policies and the rising momentum on this area recommend that we could also be at first of a significant shift.
However for now, the concept of a blockchain-powered authorities remains to be in its early levels.
I consider that change is inevitable.
The massive query is: Do we’ve got the desire to make the daring leap vital for these adjustments to occur?
Regards,
Ian King
Chief Strategist, Banyan Hill Publishing
