What on the 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 information.
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 methods, electrical vehicles, house journey, social media…
And now he has his sights set on one thing a lot greater…
The way in which the U.S. authorities operates.
I consider that after Musk finishes his slash-and-burn marketing campaign to establish wasteful authorities spending, his subsequent transfer may very well be to start out placing authorities companies on the blockchain.
And that would find yourself being an incredible 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Bureaucratic pink tape, outdated methods and inefficient spending have plagued federal operations for many years.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, lowering waste and making authorities funds extra clear.
It might additionally enhance cybersecurity, making delicate information more durable to tamper with.
And with good contracts — self-executing agreements written in code — processes like grant administration and procurement might turn out to be extra environment friendly, chopping down on paperwork and human error.
One firm being thought of for this transformation is Motion Blockchain.
Musk’s workforce is evaluating Motion alongside different public blockchains to see which might work finest for presidency wants.
Motion is a Layer 2 resolution on Ethereum, which means it’s constructed on prime of Ethereum’s foremost 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 growing 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 actually need to do is comply with the cash.
Not too long ago, Trump’s World Liberty Monetary (WLFI) acquired Motion Blockchain’s token, MOVE, for its decentralized finance mission.
That transfer despatched the token’s worth up by 15%.
And it tells me that there’s actual momentum behind the thought 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 in regards to 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 because of mismanagement or fraud.
Effectivity additionally improves with blockchain as a result of automated good contracts can eradicate pointless steps in authorities processes. This has the extra good thing about lowering prices and dashing up operations.
Then there’s the advantage of elevated safety. Conventional databases are weak to cyberattacks, however blockchain’s decentralized nature makes it considerably tougher for hackers to change information.
However what would authorities companies on the blockchain truly appear like for you?
A blockchain system might permit completely different authorities businesses to seamlessly trade information, lowering redundancy and miscommunication.
And for those who’ve ever had a problem along with your social safety examine or your driver’s license, then you understand how a lot enchancment is required in these areas.
In an ideal world, a blockchain-based id system would permit residents to securely handle their digital identities, making every thing from tax submitting to social companies entry extra environment friendly.
In fact, no expertise is ideal, and there are vital hurdles to creating blockchain work for the general public sector.
Scalability is a serious problem. As extra customers be a part of a blockchain community, transaction instances can decelerate.
For those who’ve ever tried to commerce bitcoin throughout instances of excessive demand, you’ve possible seen how community congestion intensifies and affirmation instances take longer.
And the large quantities of knowledge the federal authorities handles might put an actual pressure on present blockchain methods.
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 workforce that may reduce by way of this pink tape sooner than we normally see occurring within the federal authorities.
In fact, there’s nonetheless the problem of integrating blockchain with present authorities methods.
That’s certain to be complicated and time-consuming because the 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 all the way down to it, the largest problem the Trump administration faces is likely to be convincing the general public that that is the precise step ahead.
Right here’s My Take
Trump has tasked Musk and DOGE to radically alter the way in which 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 may very well be incredible.
There’s even speak of returning among the spending cuts recognized by DOGE immediately again to the general public.
Placing authorities companies on the blockchain has the potential to revolutionize the way in which authorities capabilities.
Trump’s push for crypto-friendly insurance policies and the rising momentum on this house counsel that we could also be originally of a serious shift.
However for now, the thought of a blockchain-powered authorities remains to be in its early phases.
I consider that change is inevitable.
The massive query is: Do we now have the desire to make the daring leap mandatory for these modifications to occur?
Regards,
Ian KingChief Strategist, Banyan Hill Publishing
