Study on the Feasibility of Using Blockchain Technology in Public Administration of the Republic of Serbia

Ministry of Public Administration and Local Self-Government is publishing “Study on the Feasibility of Using Blockchain Technology in Public Administration of the Republic of Serbia“, prepared by a team of young experts from Seoul, lecturers at Serbian-Korean Information Access Center, as part of the MPALSG project and the National Information Society Agency of the Government of the Republic of Korea.

It is a detailed analysis of the public administration system reform with the aim of sustainable development of Serbia through the application of new technologies. Blockchain security technology incorporates encryption techniques such as the creation of blocks and block hashes, which identifies blocks and merges them into chains, ensuring that personal information is permanently protected. This study provides a detailed elaboration of all the benefits of moving to this approach to the work of state authorities, analyzes the costs of introducing new technology in the most important areas and offers an assessment of the benefits and the level of savings that the Republic of Serbia can realize, and therefore its citizens.

With interest in and utilization of blockchain at home and abroad expanding, it is necessary to pay attention to the blockchain technology to solve problems related to the aforementioned reformation of Serbia’s administrative system. Therefore, this report comprehensively analyzes the necessity of introducing blockchain technology to Serbia’s public administration system, and examines the trend of blockchain introduction, focusing on discussions applicable to Serbia. Describe the principle of blockchain, and learn about the technology strategically through SWOT analysis. It compares the blockchain utilization cases in other countries and proposes how the government could apply blockchain to Serbian public services. It also describes the prerequisites Serbia must have for effective project progress.

Some problems with the introduction of blockchain have been pointed out, with a special emphasis on the fact that in one part of the public, primarily those residents of the Republic of Serbia who do not have adequate knowledge on modern technologies, there may be opposition due to the concern that personal data can be misused. Therefore, instructions have been given on how to introduce this technology so everyone can understand how it works and that it is completely safe and stable.

The study proposes that in order to improve e-government in Serbia, blockchain technology should be introduced into an integrated system of public administration consisting of land administration, agricultural product management and customs export system. Everything is graphically detailed as well, therefore it is easier to understand the whole process. Examples from several countries which are at different stages of the introduction of this technology are of great importance, as well as the analysis of everything that is included in their process of modernizing public administration. One of the conclusions that the Feasibility Study on the use of blockchain technology in the work of the public administration of the Republic of Serbia provides is that the use of blockchain prevents fraud and simplifies the transaction process.