Cryptosystems and Their Potential in the Private and Public Sectors

Currently, there is already relatively widespread awareness of the existence of cryptosystems, and/or cryptocurrencies and their applicability in the financial sector. Today, the bestknown cryptosystem, i.e. cryptocurrency is Bitcoin. However, not many people recognise the revolutionary potential which cryptosystems entail — the paradigm shift in many social phenomena, not only those of a financial nature.

At present, society has to tackle many problems, especially in the public sector. To name a few: financial transparency, transparency in decision making, the complicated administrative burden of citizens and entrepreneurs, relatively slow and inefficient communication of the public sector with citizens. There are also many issues regarding the interoperability of IT systems within the public sector, the use of public resources for administration and the actual implementation of public policies, the lack of transparency in government procurement, and the common practice of bending the rules. Last but not least is the issue of directness of any form of social assistance by the State (subsidies for transport, welfare, education, culture, etc.).

Technology, which entails cryptocurrencies, allows for the shift of these solutions to a whole new level of operation. Cryptosystems enable society to trust automated activities, which are now carried out by the large public apparatus, without the necessity of this apparatus. They provide immutable and secured data to the users of public databases in an automated way, while ensuring a high level of transparency in public procurement and public decision making. They also allow for the programming of cashflow within the public sector, the addition of further conditions and rights for users of welfare services (transport, education, social services), and predefine the circumstances under which these services are used in an automated way. We may state that, in future, crypto-technologies will enhance the efficiency of the way in which society functions.

Download full policy paper: 4liberty_cryptosytems_web

Matus Posvanc