Sherab Lhamo
The government is integrating blockchain technology across various sectors through the Bhutan NDI initiative to harness its benefits of security, decentralisation, transparency, and immutability.
A GovTech official said the potential of blockchain technology will help improve public services in various sectors. By leveraging blockchain’s decentralisation and immutability, the government aims to enhance data integrity and security in areas such as healthcare, land management, and education.
In healthcare, blockchain can be used to ensure the traceability and authenticity of medications, promote preventive medical care, and facilitate the development of virtual healthcare platforms.
In land management, blockchain can streamline land administration, reduce fraud, corruption and errors commonly associated with traditional land registries, and automate processes like property transfers and tax payments.
In education, blockchain can secure student records, certificates, and other sensitive information while also enabling online learning systems and improving overall efficiency and security of the education system.
What is blockchain?
The senior manager of Bhutan NDI, Suprit Pradhan, said that blockchain is a distributed ledger, meaning it is an interconnected database that records information in blocks, creating a chain of data. “Once information is recorded in a block, it is difficult to change or remove, ensuring data integrity and security.”
He added that it is a collection of data which is interlinked to each other and backed by different servers operating globally.
Unlike traditional databases that rely on a central server, blockchain operates across multiple computers. Data is encrypted and protected through a consensus mechanism involving multiple computers, making it nearly impossible to tamper with or delete information, though it remains verifiable by anyone on the network.
Multiple computers in the network verify the block’s validity. Once verified, the block is added to the existing blockchain. Each block contains information, including a timestamp, transaction data, and a reference to the previous block. This creates a chain of records that is extremely difficult to alter.
The associate director at Druk Holding and Investments, Pema Wangchug, said that while blockchain technology may seem complex, understanding its value and benefits is crucial.
Comparing blockchain to a car, he said that while one doesn’t need to understand how the engine works to appreciate its utility, understanding blockchain’s decentralised nature is crucial for recognising its security benefits and its ability to distribute information widely.
A backend developer of Bhutan NDI, Kinzang Dorji, said that using a decentralised system where data is stored and verified across multiple computers, Bhutan NDI benefits from blockchain in terms of scalability, security, and user privacy. “Blockchain enables information to be distributed fully, reducing the risk of data breaches,” he said. “It also empowers users to have control over their personal information.”