What on this planet is happening with DOGE?
The Musk led Division of Authorities Effectivity is slashing funding, canceling contracts and letting 19-year-old hackers entry delicate monetary knowledge.
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 way to this insanity.
Elon Musk has made a profession out of disrupting industries — cost programs, electrical automobiles, house journey, social media…
And now he has his sights set on one thing a lot larger…
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 could possibly be to begin placing authorities companies 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 with regards to expertise.
Bureaucratic pink tape, outdated programs and inefficient spending have plagued federal operations for many years.
That’s the place the blockchain is available in.
A blockchain-based system might observe federal spending in real-time, decreasing waste and making authorities funds extra clear.
It might additionally enhance cybersecurity, making delicate knowledge more durable to tamper with.
And with good contracts — self-executing agreements written in code — processes like grant administration and procurement might turn into extra environment friendly, slicing down on paperwork and human error.
One firm being thought-about for this transformation is Motion Blockchain.
Musk’s group is evaluating Motion alongside different public blockchains to see which might work finest for presidency wants.
Motion is a Layer 2 resolution on Ethereum, that means it’s constructed on prime 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 principle Ethereum blockchain.
This enhances safety whereas considerably rising the variety of transactions the community can deal with.
And Musk isn’t the only real 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 govt order rolling again Biden’s harsher crypto insurance policies and establishing a working group devoted to digital property and blockchain functions.
However with regards to Trump’s motivations, all you really want to do is observe the cash.
Not too long ago, Trump’s World Liberty Monetary (WLFI) acquired Motion Blockchain’s token, MOVE, for its decentralized finance venture.
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 companies 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 loads to love concerning the concept of utilizing blockchain for public companies.
One main benefit is transparency and accountability.
Each transaction on a blockchain is recorded completely, making it more durable for funds to vanish as a consequence of mismanagement or fraud.
Effectivity additionally improves with blockchain as a result of automated good contracts can get rid of pointless steps in authorities processes. This has the extra good thing about decreasing prices and rushing 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 knowledge.
However what would authorities companies on the blockchain truly appear to be for you?
A blockchain system might enable totally different authorities companies to seamlessly trade knowledge, decreasing redundancy and miscommunication.
And for those who’ve ever had a problem together with your social safety examine or your driver’s license, then you know the way 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 every part from tax submitting to social companies entry extra environment friendly.
After all, no expertise is ideal, and there are important hurdles to creating blockchain work for the general public sector.
Scalability is a serious difficulty. As extra customers be a part of a blockchain community, transaction occasions can decelerate.
For those who’ve ever tried to commerce bitcoin throughout occasions of excessive demand, you’ve possible seen how community congestion intensifies and affirmation occasions take longer.
And the large quantities of knowledge the federal authorities handles might put an actual pressure on present blockchain programs.
Regulatory uncertainty is one other problem as a result of implementing blockchain would require coverage modifications, authorized frameworks and compliance measures that simply don’t but exist.
However I consider that’s a part of why Trump issued his govt order making a group that may minimize by means of this pink tape quicker than we normally see taking place within the federal authorities.
After all, there’s nonetheless the difficulty of integrating blockchain with present authorities programs.
That’s certain 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 right down to it, the largest difficulty the Trump administration faces could be convincing the general public that that is the best 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 might backfire terribly.
In different methods — particularly if this administration can set up a leaner, extra environment friendly strategy to authorities — it could possibly be incredible.
There’s even speak of returning a few of the spending cuts recognized by DOGE straight again to the general public.
Placing authorities companies 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 house recommend that we could also be firstly of a serious shift.
However for now, the concept of a blockchain-powered authorities remains to be in its early phases.
I consider that change is inevitable.
The massive query is: Do we’ve got the desire to make the daring leap crucial for these modifications to occur?
Regards,
Ian KingChief Strategist, Banyan Hill Publishing
