The Use of Blockchain in Public Administration

The potential fields of application for blockchain technology are many and varied. While the technology gained recognition primarily through its use in cryptocurrencies – such as Bitcoin or Ethereum –and its impact on the financial sector, there are far-reaching opportunities for the application in industry, commerce and also public administration.The German federal government wants to make Germany one of the leading locations for blockchain technology and issued a strategy on how to fully exploit the potential of the technology as an innovation driver. In this context, the federal government sees a potential to sustainably transform and influence public administration. The strategy explicitly formulates a wide range of application possibilities like registry management, digital identity and data verification. Therefore, Blockchain technology could replace institutional trust with self-managed and autonomous transparency.The article briefly describes the technology of the blockchain and its essential features (1.), gives examples of the potential use of blockchain in public administration in Germany (2.) and assess legal challenges and effects with regard to data protection and constitutional law (3.).