Although the use of Blockchain technology would enable LEAs to replace bureaucratic systems in a variety of ways, they would absolutely need to be cognisant of what data is held and who has access to this data in accordance with GDPR legislation. However, this ability to verify and share information about children and young people known to a local authority could resolve many issues LEAs face regarding SEND. Such a new digital blockchain-based system would help to make holistic assessment feasible, ensuring appropriate intervention by monitoring and reviewing a child on an on-going basis. Blockchain technology would remove the need to have to trust in a centralised data controller (typically the school the child attends) in order to accurately represent the child’s needs for support and provision. Since all this data would automatically be shared with the LEA and relevant professional carers, on-going intervention could also be automatically triggered using ‘trust free’ smart contracts. Once services have been delivered, the ability to establish and implement self-executing pay-on-delivery would improve the quality of the evidence submitted to tribunals (and potentially the decisions made by judges) by providing clear quantitative data on the exact cost of a child’s support.

Another way that Blockchain technology could be used is the automatic payments of benefits. Chainlink is a ‘decentralised oracle network’ providing reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain. For example, Chainlink can be used to monitor weather temperature and rainfall data. By using smart contracts, automatic payments could be made against a local authority’s insurance policy covering flooding, power outage or sustained abnormal temperature fluctuations.

Source: Chainlink

In Reno, Nevada, the mayor is optimistic about using Chainlink, saying in a tweet: “The time is now to work on great projects for Nevada. $LINK.” Since blockchain-powered platforms have the ability to hold and store data, this enables the historic spending and payments made by a local authority to be very transparent. Interestingly, local authorities in the US will be receiving substantial funds in the near future from the American Rescue Plan which allows Federal relief funds to be sent directly to state and local governments of all sizes. The main goal in passing this legislation has been to help the US to recover from losses caused by the COVID-19 public health emergency. How and where these funds are spent is important - certainly the use of Blockchain technology in this instance would ensure such funds are allocated correctly and appropriately.

Meanwhile, according to the publication BBN Times : “Every year, an average commuter in the United States spends 42 hours in traffic and over $1400 for gas while their vehicle stands idle”. Undoubtedly, Blockchain technology could improve the efficiency for collecting road tolls by providing secure automated payment solutions. Tolls on roads and bridges, such as the Dartford crossing on the M25, often have long queues especially during rush hours. Blockchain-powered smart contracts can enable automated payment with the help of a digital identification system, thus shortening long queues and commute time. One of the major issues that IoT and AI-based traffic management systems might face is the security of collected data. Since the IoT sensors and cameras will be connected to vast databases, hackers may attack networks to breach crucial data. In such a scenario, Blockchain technology can prove to be a solution. Storing the collected data on a transparent and decentralised manner helps to create a more reliable and secure way to collect and store such data.

With such awareness these days about carbon footprints one of the key challenges local authorities face is how to encourage their residents to use their cars less and ‘share rides’ as more of a means to reduce levels of congestion. Arcade City, a blockchain-powered platform, allows drivers who share rides to establish their own rates and then takes a percentage of rider fares. This allows Arcade City to appeal to professional drivers, who would rather build up their own transportation businesses than be controlled from a corporate headquarters: i.e. drivers on Arcade City are free to set their own rates, build their own recurring customer base, and offer additional services such as deliveries or roadside assistance. Another blockchain-based ride sharing app is Drife, based in Bangalore, which uses “personalized smart contracts” between drivers and riders. Drivers stake Drife’s DRF token to be chosen for rides and instead of paying a fee on every fare, Drife drivers pay an annual fee to use the app. 

Source: Cycle4value

In Europe, Cycle4value, which employs incentives to encourage people to use bikes as opposed to cars is currently being tested in Austria as a way to help reduce pollution and traffic congestion. Cycle4value explains its offer as: “With every bicycle ride, the Bike Citizens app calculates how many Cycle Tokens you get deposited on your digital wallet. What makes Cycle4Value unique, is that you can exchange your tokens for real products and in the meantime your “real wallet” can stay inside your pocket. The method of calculating how many tokens one receives is rather complicated but 1 token is approximately one Euro. Besides your digital wallet, the app also provides a marketplace for retailers to offer their products or services you can buy with your tokens”. Scitepress.org details the financial and environmental impacts which Cycle4value offers and, no doubt, the current project in Austria will be closely watched by other cities globally as they, too, address the impact their cities have on climate change and what measures local authorities can introduce.

These are all good examples of the variety of ways in which Blockchain technology is being used to help local authorities and as there is better understanding about how to use this technology (and some of the initial concerns regarding security data and the ability of blockchains to be able to process large quantities of data are addressed) it is likely we will see many more use cases. A report from the Big Innovation Centre’s All Party Parliament Group (APPG) has summarised how Blockchain technology could be used, by saying: “Blockchain is one of the most innovative technologies considered in digital government strategies. Its benefits include:

 • Efficiency gains in any inter-governmental and public-private information exchanges and monetary transaction.

 • Reduction of bureaucracy and associated improvement in transparency and accountability in civic services.”

The use of Blockchain technology with other technologies such as Internet of Things, Artificial Intelligence are certainly proving to be ideal tools in helping local authorities handle the vast quantities of data currently held on their paper-based systems.

The payments eco system

Source: Insider Inteligence

Whilst you will no doubt recognise some of the organisations above, many are unlikely to be familiar. With increasing competition from a variety of companies, this is the conundrum that many banks face. Some argue that with the growing interest in Decentralised Finance (DeFi) another wave of change and competitors are on the horizon. Biznewspost claims: “The coronavirus pandemic accelerated payments industry digitization by two to three years, as lockdowns, restrictions, and ongoing consumer health concerns upended daily life in ways that trickled into spending trends and consumer habits.” Habits such as, ‘Buy Now Pay later’, have offered stiff competition for traditional banks as companies including Klarna (Europe’s biggest Unicorn valued at over $1billion ), Affirm, Afterpay, and even Paypal (having just paid $2.7billion for Paidy, a Brazilian buy-now-pay-later firm), are making it easier for shoppers to obtain credit as they spread the cost of buying over a few months.. According to CB Insights: “E-commerce software companies that support online retail have seen surging investment in 2021, with $12.4B raised in the first half of the year — a 51% jump from all of 2020”.

European FinTech Unicorns - firms worth $1billion+

Source: Sifted

According to CB Insights, there has been a tremendous growth in FinTech firms, with Europe now accounting for 25% of all 120 FinTech unicorns globally. A number of these FinTechs, and certainly many of the Payment platforms such as Google Pay, ApplePay (with 383million users), PayPal, Visa and Mastercard, are all accepting Digital Assets as payment. 

Payment platforms are preparing themselves for the inevitable issuance of digital currencies from Europe, the US, the UK and Japan, to name just a few, with one of the most established payment cards, Mastercard, having recently acquired a US-based business crypto intelligence firm, CyberTrace. Meanwhile on the whole, banks have largely fought shy of Digital Assets. Indeed, it still is the case that, apart from Clear Bank in the UK, it is extremely difficult for those organisations engaged in cryptocurrencies to even obtain a bank account. This is also true in much of Europe. In Australia however, as reported by TechWire Asia: “Approximately 17% of Australians own a cumulative AU$7 billion worth of cryptocurrency.” Volt, a neobank, has teamed up with a crypto exchange to enable clients to trade cryptos and, more importantly, hold/store them in their Volt account. This potentially means that Volt will be the first bank globally to be able to offer clients the ability to store Digital Assets and be protected by a nation’s bank deposit insurance compensation scheme.