Throughout history, every technological revolution has brought the rapid progress and major changes in economic, social, and political development in which we live, and also a whole new way of accelerating the process to speed up re-engineering to humanity.
We humankind has experienced the three major industrial revolutions creating and developing with stages those such as industrial mechanics, steam engines, and railways during the 1st revolution; the electricity, mass production, and assembly line in the 2nd revolution; and computer, electronic and automated manufacturing during the 3rd revolution as scientists consider. Then the experts have agreed since Professor Klaus Schwab the founder and executive chairman of the World Economic Forum introduced firstly about the concept that we are now moving to the fourth industrial revolution at the World Economic Forum in 2016.
The world leaders are paying particular attention to the preparation of the revolution providing supports to their research and academic institutions to develop strategies and policies.
Even though human work performance was simplified and labor productivity was increased during the three industrial revolutions, now it is different in the 4th industrial revolution and the manufacturing by artificial intelligence which is to replace human intelligence would be managed through the Internet of things, in otherwise, artificial-intelligence-driven machines would outsmart humanity driving.
International research and analysis, consulting service organizations, and experts consider that the key technologies that will strongly affect the fourth generation of the industry as follows: these including,
– Internet of Things (IoT),
– Smart Home
– Smart City
– Big data
– Driverless car
– Artificial Intelligence
– Shared Economy
– 3D printing
– Virtual Reality (VR),
– Augmented Reality (AR).
The reason to point out the Blockchain technology called as a trust-building machine from those the technologies bringing revolutions is that blockchain technology-based innovation is acting as creative disruptive innovation technology for the startups and bringing more entrepreneurship greatly in the ICT sector somewhat start-up businesses were grown like the mushrooms after raining during the Dot-Com boom in the mid-90s.
What is Blockchain?
Blockchain technology is often understood as Bitcoin or electronic money, but only one application of Blockchain technology which is the base of Bitcoin is the cryptocoins/cryptocurrencies and it can be compared to the only visible part of the iceberg.
How do we check if we buy expensive elegant brand products? How do you know and validate if it is actual? Can you deny that the salesperson sold A copy products or it is given during transportation even if purchased from the brand stores? How can you prove the original of inimitable artworks or fine arts which are worth millions of dollars when you buy? The best copy of imitation? Or are stolen? In a word, blockchain technology is the technology enabling to validate these.
It enables the users to know and control/supervise all the data of the products or items starting from its manufacturers or sources, and when are made, stored, distributed, and delivered. Some technocrats/experts emphasize that the Web 1.0 era client-server technology provides information internet while the online contents are developed, exchanged, and created big data through social media and networking sites by Web 2.0 stage users. But the next revolution stage in the Web 3.0 phase creates internet value on a decentralized network powered by a Blockchain solution that enables us to make ownership validation, controlling, transferring, and trust-building in online environment.
Blockchain is a digital ledger and its entry records are entered in chronicle order, unmodifiable, secure (validated by cryptographic and secure hash algorithms), with continuous storages and all records traceable is based on a peer-to-peer decentralized network of nodes based solution.
When blockchain is useful?
Professional experts consider that controlling the supply chain from end-to-end customers will enable to detect fraudulent supply, fraud and expel intermediate fraudulent distributors; to certify, validate ownership, transfer of any sources of such as products and goods; to save immutable records which are not able to delete; and to use the ledger with stakeholders when it is needed.
How can public services use Blockchain technology?
Blockchain technology is being used as a digital property and a source of information/data which is immutable and unchangeable as validated paper documents including all data of public services in a digital environment such as all types of certificates and identifications (of birth, marriage, death, criminal, residency identification, and educational, etc.); all types of ownership, assets, and registration (of land ownership, car and insurance registration, health insurance, military, and officer registration, electoral result and voter registration, organizational registration, and real estate ownership, etc.); all types of licenses, regulation logs, verification registration, construction approval, firearms license, criminal case journal creation and registration, enforcement execution records, etc.; and all these digital assets and records can be stored and operated on Blockchain.
World nations strategy and policy on Blockchain technology
Governments around the world face many major concerns and challenges on creating of policy and regulatory environment on Blockchain technology such as the lack of knowledge and understanding of the technology, the lack of certain concept, the importance of its usage in public services, how it can be standardized, and possibilities in trialing.
A total of 202 types of blockchain technology initiatives of usage in public services in the world 45 countries under three main domains such as developing strategies to conduct research and analysis, validate those, categorize, develop, do piloting and testing, and including in incubations which are as shown detailed in Figure 2.
I emphasize some cases on the initiatives from international, for example, UAE has approved the “Emirates Blockchain Strategy-2021” paper in April 2018, and its main goal is to transfer 50 percent of its state digital documents to the Blockchain platform by the 2021 year. Thus, this means that blockchain technology will affect on works and lifestyles of its people which well-suited to the technology by saving their work time, cost-saving, time-saving, and resource-efficient.
After the government’s blockchain strategy implementation, it is estimated that 11 billion of Arabian currency transactions and records daily work will be digitalized, and will help ease the day-to-day processing of documents of 398 million papers and 77 million working hours.
Also, in Dubai, blockchain technology is defined as an economic new opportunity and a new digital innovation wave, and its government and private sectors together established the “Global Blockchain council” under the “Dubai Blockchain Strategy” document. And this public-private council discusses the further implementation of all possible blockchain projects involving many organizations.
Following the “Dubai Blockchain Strategy”, Blockchain will be used in sectors such as real estate, fintech, fiscal, banking, health, transportation, urban planning, smart energy, e-commerce trade, and tourism sectors. it is estimated that 114 million tons of CO2 carbon dioxide emissions will be reduced in a year by saving 100 million document papers.
Tomorrow of Blockchain
Now Blockchain technology is at its beginning stage of research and development. Following to analysis of the international research and advisory services companies and experts, Blockchain-based application programs will be used in most markets in the world by the year 2022, becoming more common in the next five to ten years, with nearly 55 percent of total usage is in the financial and capital markets,
Global Marathon which is intended to the day of tomorrow of Blockchain technology in public services for the revolution in society, economy and business has just started and has made its first one or two steps once the attention of the governments of 45 countries has paid on it. There are equal opportunities to participate in the marathon for all countries in the world not depending on its level of development.
But what will be the next day for full adoption of blockchain technology in Mongolia?
Of course, there are full utilization of remittance and retailers payment service in financial sector using the cryptocurrency easily; enable to trade at stock market without expensive intermediary brokerage service; tax and insurance and related other registrations are verified on blockchain; exporting minerals able to track and trace that originated from Mongolia; livestock origination of place and all the history such as vaccination, exporting supply chain can easy monitoring used by blockchain platform; in cashmere supply chain industry eliminated expensive intermediaries so that herders more earn profits while cashmere price gone down for consumers; citizens able to electronic voting using their mobile phone with Blockchain powered application; government service able to deliver on smart e-government open, transparent, accountable, responsible and auditable system powered by Blockchain, thus our countries social and economic situation increased, citizens experiencing digital democracy more illustrated for the blockchain adopted tomorrow in Mongolia.
Do we have a recent advantage and opportunity for Mongolians? Yes, there is. It is obvious that there are fewer difficulties to learn, adapt, develop Blockchain technology especially in the soil of nationwide following to factors such as our country’s smartphones and internet usage which exceeds the world average; our population is few 3.1 million and 64 percent of the total population is under 35 years old if compares to other countries.
Will we make tomorrow of Blockchain for our country in the near future? Or further? Will wait for another country’s development and follow? Will you lead?
Probably, it can be a rare occasion and history of the technological revolution to bring the opportunities to keep up with the global development if we work together from today with planning and implementing. Moreover, it might enable opportunities to supply technical solutions and developing technology and to export intellectual capacity to other countries besides they come for our lessons learned.
Therefore, for our Government of Mongolia, the time has already come to take a comprehensive approach/measures gradually to implement such as to start blockchain technology research and development studies, to approve and set up related policy and strategy, to develop blockchain modeling with defining relevant important sectors, to collaborate tightly with state and public partnerships and research and non-governmental organizations, and to make piloting and testing successful national program and projects.
When we reach the outcome step by step, the value of the blockchain and the socio-economic benefits are not comparable to the present.