We’ve all dealt with government red tape and bureaucracy. We create new accounts for each department, verify our identities multiple times, and question why government services don’t share our data securely.
Liz Tanner, Rhode Island Secretary of Commerce
Liz Tanner has served as Director of the Rhode Island Department of Business Regulation since 2017. Earlier this year, Governor McKee named her Secretary of Commerce for Rhode Island. When Liz joined state government, she set out to change red tape and bureaucracy and move Rhode Island up in business climate statistics. As Liz traveled the country, she found no inspiration from the large states with abundant resources. Indeed, with a few exceptions, states conducted business in similar ways. It attracted Estonia, one of the first countries in the world to embrace and deploy blockchain technology in manufacturing systems globally.
Introducing blockchain technology to the government in the Estonian model
The Estonian model makes doing business with the government easy and frictionless. Using blockchain technology, citizens enter their information only once and can interact with multiple agencies and government departments with the same information when applying to college or obtaining a permit or license. Liz wanted to take the Estonian blockchain experience to Rhode Island.
In the year In 2017, the state floated an RFP to test the concept of introducing blockchain technology to the government. The response was unprecedented, with more than sixty proposals from over thirty providers representing a variety of businesses, from marijuana to licensing and licensing to healthcare.
Rhode Island selects Infosys Public Services to help streamline the process of opening a new business. However, it determined in detail that five independent government agencies were involved in this process. Recognizing that long-term adoption is dependent on the success of the pilot, the scope of the project has been approached to the business code section.
The initial proof-of-concept project focused on certified public accountants (CPAs), a low-risk project that could validate the technology.
Reducing the process of several weeks to thirty minutes
Traditionally, it was a difficult process for a CPA to renew their license in Rhode Island and verify their credentials. A blockchain pilot developed by Infosys Public Service allowed CPAs to keep their credentials on their wallet phones, significantly reducing the time.
Obtaining a CPA license requires proof of education, CPA exam scores, work experience, and proof of identity. A driver’s license verifies identity and residency, an employer verifies credentials, and Commerce Department regulations verify all documents before renewing or renewing a license.
The blockchain-based solution forms an identity-blocking network that digitizes and automates workflows that enable secure data exchange between state agencies and citizens. In the future, CPAs will be able to initiate a service request (for example, renewing their CPA license) by simply contacting the agency they previously worked with. This ‘main agency’ fills the service request through the identity blockchain network in collaboration with the Department of Business Regulation. This solution eliminates the need for the citizen (requiring CPA renewal) to share information multiple times.
The Department of Motor Vehicles (DMV) has provided the ID network with node-only capability. This allows Rhode Island to process more DMV use cases on this one Rhode Island identity network.
Infosys Public Services used Hyperledger Indie, tools and libraries to create and manage digital identities and used core blockchain standards to ensure data security. Hyperledger is built to scale in the cloud using Amazon Web Services (AWS).
The solution is highly secure as all data on an individual remains in the individual’s wallet and the user has control over who and which part of his/her data can be accessed. Personal identification information is never stored on the account; Authentication is only requested by the decentralized account representing the credentials.
CPAs are one of the few professions that can practice in the states. But they have to give legal permission to provide their services to customer. With this solution, CPAs have a fast, secure and easy way to verify their credentials using their digital wallet. Many states and national organizations are looking for ways to adopt blockchain because it simplifies the authentication process by leaps and bounds.
Three key technological components of the solution
Blockchains are secure blocks of data that are linked in a chain. The chain creates an immutable ledger that is distributed across participating nodes. The first part of the solution is digital identity. Today, whether we like it or not, all documents that prove our identity, such as driver’s licenses or passports, are controlled by the government. Blockchain digital identity technology creates a “self-sovereign identity” (SSI) that shifts identity ownership from governments to individuals.
SSI transforms identity and authentication management from centralized state-run systems with all their associated silos to a peer-to-peer model using public-key cryptography, decentralized identities on the blockchain.
The second element is Hyperledger Indie, a distributed ledger designed for purpose-decentralized identity. Hyperledger Indie comes with tools, libraries, and redundant components to create and use independent digital identities on the blockchain.
Finally, there is Hyperledger Aries, a decentralized identity application client component. Aries is a client layer in Hyperledger Indy that facilitates interoperability with other platforms.
Wrapping up
Talking to a state agency is a first for me. But here’s the good part: Instead of talking to their partner Infosys Public Services, Rhode Island is doing this. I know that the choice of CPA digital credentials was not really lustful, but technology confirmed it. The importance of establishing a foundation is great and can lead to a complete overhaul of doing business with the government.
The state of Rhode Island and Infosys Public Services deserve credit for piloting blockchain initiatives in the midst of the pandemic. It should also be noted that this project could not have happened without the strong leadership from former US Secretary of Commerce Gina Raimondo in understanding the technology that will help move it forward. When it finally came time to push the pilot forward, the lieutenant governor, now governor Dan McKee, gave approval from the top.
Looking forward, Liz, with new funding, wants to go back to her original desire to start a new business by providing the information in one place. Today, when you form your LLC or corporation, you do so in several different areas of state government, including four or five different websites. In the future, citizens will use a data entry website to enter information once, and then it will go to the necessary place. right now That’s what he said. It is an aphrodisiac.
Through the blockchain initiative, residents and businesses in Rhode Island will establish digital credentials that can be used on various state and government websites. Liz shies away from calling it blockchain because of its connection to cryptocurrency. According to Liz, “It’s a very safe and secure place to store information and use it frequently.” It’s a worthy goal that I hope other states follow Rhode Island’s example.
Note: Moor Insights and Strategy writers and editors contributed to this article.
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