The Advantages of Blockchain in Public Administration and Ecommerce

Blockchain Technology

What began as an unknown way to manage digital assets and cryptocurrencies, year after year, continues to reach increasing levels of application in various processes and industries, among which we highlight the administration. But how does it apply and what benefits can the blockchain bring in this sector?

Before delving into the usefulness of this technology, it is previously essential to reflect on the role that the administration must play. In the following lines, we collect our vision in this regard, in addition to sharing our experience and deepening the differential value provided by this technology.

Advantages of Blockchain Technology

The main advantages of this technology are:

Exchange without Third Party Intermediation

It is possible to exchange between two parties without the intermediation or supervision of third parties, reducing risks considerably.

Strength and Reliability

Blockchain can resist malicious attacks better, since it lacks a weak central point, by using decentralized networks.

High-Quality Data

Data under Blockchain are widely available, accurate, private, and complete and always arrive on time, improving data integrity.

More Trained Users

Users can control all their transactions and information.

Process Integrity

Users can rest assured that their transactions will be executed exactly as marked by the protocol, without the need for third-party supervision.

Transparency and Immutability

Any modification to public Blockchain can be seen publicly by each party, ensuring transparency. Each transaction is immutable; it cannot be deleted or modified.

Accounting System Simplification

By adding each transaction to simple public accounting, we reduce the complexity of multiple accounts.

Efficient Transactions

Blockchain provides greater security, speed, and efficiency. This productivity reduces unnecessary overhead costs and intermediary costs, requiring less monitoring and control.

The Role of Public Administration in Debate

In this new paradigm in which intermediaries and trusted third parties are disappearing, the administration must relocate. Providing mechanisms and systems that promote the adoption of the blockchain with the corresponding support of the institutions must become the goal to be achieved. However, despite the many advantages arising from its application, we cannot ignore those problems and challenges abound, among which, it is a priority to certify the activity recorded in these systems.

It is required to guarantee the validity and validity of the executed operations. And it is in this line where administrations have to seek to position themselves. Government agencies must ensure the validity of these systems, ensuring compliance with the corresponding regulations. At the same time, they should also provide mechanisms to audit them. The involvement of the institutions will provide the endorsement required by these systems, to grant sufficient confidence to favor their adoption.

It is necessary to address the challenge of user identification and authentication. With this, we get all the activity regulated. The administration has to guarantee the correct management of the identities, certifying the identity of those that operate on these systems. Currently, this user identification and authentication component is a critical point on which the administration could shed some light.

Government agencies must work on their projects and use cases. In this line, it is necessary to contemplate the paradigm of Smart Cities or Cities 4.0 towards which we are moving. In this context, the application of the blockchain is essential. We are not talking about a mere enabler, but it is the tractor technology that will orchestrate this transformation. Blockchain will allow to manage and govern these complex metropolis in an agile and safe way.

Salient Benefits

Once the different challenges posed by the blockchain in Public Administration have been resolved, it is time to take advantage of the numerous advantages offered by the implementation of blockchain technology, both for public employees and for citizens. We expose only some of its multiple benefits:

Goodbye to the paper. Many of the public procedures are still recorded in writing and filed on paper, which takes up space and can deteriorate. Also, to carry out procedures involving some other agency or organization, citizens are generally obliged to submit additional printed documentation. Thanks to the blockchain it will be possible to build multi-organizational solutions that allow us to free ourselves from paper, which implies both an economic and ecological benefit.

Agility and security in procedures. The integration of multiple organizations in the same system will also provide agility in operations. On the other hand, the disappearance of intermediaries will allow citizens to carry out their efforts telematically, with complete security and speed. This automation of bureaucratic processes may also have its application, for example, when communicating public tenders, which would significantly reduce processing times.


Thanks to the decentralization of the information, it cannot be modified, thus avoiding possible fraud. Besides, the information may be made available to citizens on a permanent and up-to-date basis, thus guaranteeing its veracity. In some countries, this technology is beginning to be used in electoral processes, since we cannot forget that in addition to providing transparency, the blockchain also serves as an agile and secure communications system.

Protection of the data

Finally, it is worth mentioning his contribution in this era in which the concern for sensitive data is increasing every day. Proof of this, the intensification of the legislation in this regard. In this sense, it is essential to implement systems that guarantee the privacy of users and the confidentiality of their data, which is feasible thanks to the blockchain. On the other hand, it should be remembered that thanks to the application of this technology, the sovereignty of the data can be guaranteed to the users.

Probably if we think of an e-commerce platform, we imagine browsing product lists, categories, brands, etc.

But have you ever thought about what happened to all these products before being part of the online store? Some technologies are capable of radically breaking the business rules known so far, thus allowing the design of a future in fields that were traditionally already consolidated and standardized. We know these technologies as “technology enablers”

The field of electronic commerce is about to experience a revolution in the hands of two of these technology enablers, Blockchain, and eCommerce, and also based on the moral principle of “doing the right thing.”

Key factors of applying Blockchain as part of your eCommerce strategy

One of the basic concepts of Blockchain lies in maintaining an immutable list of transactions. Based on this principle and with the objective of providing all possible information to the user during the purchase process we seek to improve two key factors in the eCommerce strategy, such as transparency throughout the process and the commitment to fair trade, Blockchain can help us by tracking and recording two elements that are usually hidden along the supply chain. They are the following:

The price

The first of these elements is the price. Do you know how the price of products changes as these products change from hand to hand? This evolution of the price is called “trade” and obviously, we all assume that the price of a product is increasing from its origin until we finally buy it, but many times this price increase is treated as a taboo. Why not turn this taboo into a fortress? Some studies reveal that approximately 40% of buyers prefer to pay a little more if they know they are buying from a store that takes care of issues related to corporate social responsibility, such as in this case the fair trade. Therefore, clearly showing the end-user how the price has been increased from the producer to the seller through the carrier, can help eCommerce platforms not only to improve their brand image but also to increase their conversion rate.


The second element is the traceability of some key aspects related to the final quality of the products. For example, tracking the cold chain of some products can be a good practice to ensure their quality, such as in the case of fruit. On the other hand, registering this type of key aspects of the products allows you to know in advance if any of those products could be defective and therefore manage their sale or withdrawal in the best possible way.


Blockchain can greatly benefit public institutions, making them more transparent, close and secure. However, administrations also have to relocate to this new scenario, since it is not only about its benefit, but the commitment to boost this technology will have an impact on the entire economy.

If you are interested in knowing more about how this technology can improve the procedures and procedures in your institution, you can contact our team of experts in Blockchain. Undoubtedly, e-commerce has completely transformed our way of buying and thanks to technologies such as blockchain with its incorruptible and transparent method that allows us to know at all times how the purchase process develops from when an online store is visited until the product is delivered, users have gained confidence when buying online.

In short and after knowing the reasons why blockchain helps to achieve a more transparent, fair, fast and secure electronic commerce in the next post we will stop at the elements that we will need and how to apply blockchain in our eCommerce strategy.

If you also have an online store and want to benefit from this technology enabler in AppStudio we have experts who will help you develop the tool that your business needs.

Check Out:-


Welcome to AppStudio: a leading mobile application development company that is disrupting the status quo by leveraging the power of technology and user-centric design. Renowned brands such as Riyadh Season, Settlyt, Skills Competences Canada, Amy Macedo, and others have partnered with us & attracted millions of new users on their platforms. We are the architects of creating unique digital & mobile experiences and empower our clients to trigger unstoppable success. Connect with us to script an amazing success story! Android | iOS | React native | Flutter | IoT