Top Six Nations Pioneering Blockchain Technology

“We need blockchain technology. Stone Age has not ended due to a lack of
stones, but because new technologies appeared. Those late in this race will
instantly, VERY FAST, be under full dependence from leaders of these
processes.” Russian President Vladimir Putin

Why governments cannot ignore blockchain

The blockchain is a classic example of disruptive technology creating a

widespread impact on national governments. Case studies reveal blockchain’s
influence on state-run programs specifically in the areas of healthcare, citizen
identification systems, voting, taxation, revenue assessments, safe banking
services, land registration, law enforcement, and welfare payments.

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Governments all over the world are impressed by the powerful features
offered by blockchain technology. It is quite apparent that in a fiercely
competitive environment related to innovation and technology, no one wants
to lag. It is interesting to note that quite a few governments like Russia, China,
USA, Canada, Singapore and Israel are either studying the potential of
blockchain-based applications or already in the process of prototyping on a
limited scale and tasting success as well.

Countries leading blockchain revolution

We will now find out why the following nations are moving ahead in the
blockchain technology revolution.
Russia
Russia is setting the pace on blockchain technology implementation by
enacting favourable regulations, funding multiple public welfare programs,
creating blockchain innovation parks, enabling quick banking transactions and
supporting private partners.
Russia’s Ministry of Communications (Minkomsvyaz) informed it is planning to
“legalise” blockchain technology by 2019. One of the critical aspects is
bringing into effect regulatory guidelines governing the possible use of
blockchain technology for decentralised registers and legal certificates.
The state-run bank Sberbank announced that it is partnering with Russia’s
Federal Antimonopoly Service (FAS) to implement document transfer and
storage via Blockchain. The first project to convert the land and property
registry of all Moscow immovable assets to a blockchain started in Jan ’18. The
objective is verifying information from the property registry, which is typically
controlled by the state agencies.
The Russian state-owned development bank Vnesheconombank (VEB) and
Ibrahim Zakriev – the mayor of Russian city Grozny, have launched two
blockchain-based pilots. The goal is to test the technology for the management
of housing and utilities and lease of the municipal property. The blockchain
platforms cost them about 2.5 million rubles.
The government of Russia is actively collaborating with blockchain consortiums
like Universa to facilitate state promoted projects. For example, the Russian

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railway company will implement Universa.io blockchain network. According to
a Russian media source, Russia’s defence ministry has set established a
dedicated blockchain research centre in the ERA Technology Park to apply
blockchain technology to combat cybercrime
BAZAAR Tech Convention 2017 was dedicated to the innovations in human
resources, augmented reality, artificial intelligence, and other areas using
blockchain technology. More than 3000 participants from social organisations
and government agencies participated and discussed issues related to children.
The well-known Russian voting service Active Citizen adopts a government
blockchain protocol permitting residents to vote on a wide range of community
challenges. A couple of examples include choosing the colour of new stadium
seats and naming new bus services.
China
The Chinese government is keen to make the best use of blockchain
technology by creating flexible legislation, educating its citizens, promoting
state-funded initiatives and encouraging private players.
China Central Television (CCTV), the government-controlled broadcaster in
May ’18 aired a talk about blockchain (video in Chinese). The show included
government bureaucrats, Don Tapscott, the Canadian author of blockchain
revolution and other experts. It was a significant step taken by the Chinese
government to discuss blockchain applications in the public domain.

Science and Technology Daily informs that China will spearhead an

international research group to target the standardisation of the Internet of
Things and blockchain technology. Chaired by Dr Shen Jie, the discussions will
revolve around fiat-digital integration an operational strategy to advance
international standards.

China’s Ministry of Industry and Information Technology (MIIT) is encouraging

the nation to come together and support blockchain as a “core” technology for
the new digital economy. The Digital Currency Research Lab at the People’s
Bank of China (PBoC) filed a patent for a digital currency wallet that would
permit consumers to track their transaction records. The PBoC is also keen to
support a blockchain-powered system to digitise paper checks. Li Ming, an
official working with MIIT, informed that the Chinese national standard plan for

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blockchain is complete and is ready to be made public. It is quite impressive to
know that the Chinese government has already established blockchain national
standards across data security, business and application criteria, and other
credibility and interoperability guidelines.
The Chinese government has the most substantial number of Blockchain
patents in the world, surpassing global economies such as the US and Japan.
The Chinese government has invested $1.6 bln in a blockchain innovation fund
aimed to support local public initiatives.

United States
I have come across many reports about the US Government’s consistent efforts
toward supporting the blockchain movement. The USAID Primer on Blockchain
reveals blockchain technology-supported programs in the areas of financial
transactions, supply chain management, information technology, smart
contracts, patents, trademarks copyrights, royalties, visas, passports, social
security numbers and birth certificates.
U.S. Congress has formally supported the federal and state governments and
enacted legislation to support block technology. The Joint Economic Report
provides specific proposals to policymakers, regulators, and entrepreneurs
regarding applications of the blockchain technology.
The Department of Homeland Security (DHS) awarded a blockchain contract to
“Prove Integrity of Captured Data from Border Devices.” The DHS has
extended a grant of nearly 1 million dollars to a blockchain start-up. The US
Naval Innovation Advisory Council is conducting a series of experiments using
blockchain technology to share data between Additive Manufacturing sites
securely. Another dimension is to support secure the digital thread of design
and production.
Market Reports Centre reports that blockchain market volume in the US is
anticipated to reach USD 60.7 billion by 2024.
The state of Delaware was the first to establish the Delaware Blockchain
Initiative in 2016. This well thought out initiative launched by then-governor
Jack Markell is aimed to stimulate the use and development of blockchain
technologies and smart contracts in both the private and public sectors of the
state.

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West Virginia has collaborated with Boston-based voting technology start-up
Voatz in piloting the country’s first blockchain-based mobile voting platform
for overseas military.
Tennessee has become the latest U.S state to pass a bill recognising the legal
authority of blockchain technology and smart contracts in conducting
electronic transactions.
The Centres for Disease Control is coming up with prototypes based on
blockchain technology. The outcomes will be used to improve public health
surveillance by efficiently managing data during a crisis or to better track
opioid abuse.
U.S. Food and Drug Administration is supporting the use of blockchain by
healthcare providers. The idea is to facilitate the exchange of electronic
medical records (EMRs) and other information such as genomic data, clinical
trial information, and data collected from IoT devices and wearables.
Canada
Canada has become a hotspot as a leading crypto nation supported by
innovation, low energy consumptions, reliable broadband services and
favourable regulatory regime.
Canadian securities regulators have responded positively to the blockchain
revolution, concerning the existing case law and regulatory treatment of
“investment contracts.”
Canada's banks – robust, stable and innovative – are well positioned to
promote blockchain growth. The Bank of Canada with its executives such as
deputy Governor Carolyn Wilkins are viewed by their peers globally as
outstanding innovators on blockchain and financial technology. The Royal Bank
of Canada (RBC), announced its involvement with blockchain technology,
experimenting with their US-Canada payments business.
Vitalik Buterin is a Russian-Canadian programmer and writer well known as a
co-founder of Ethereum. His influence is one of Canada’s primary reasons for
Canada’s dominance in blockchain innovation.

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Canada’s first blockchain exchange-traded fund began trading on the Toronto
Stock Exchange commenced early this year.
Canada Research Chair a Federal state-funded agency is focussing on global
food security by exploring ways to use blockchain in the agriculture sector
across the country. Essentially, blockchain will allow the tracking and
verification of from food to tools in the food supply chain process.
Canada is ranked third globally behind the United States and the United
Kingdom when it comes to blockchain ventures.
Singapore
Singapore’s business-friendly environment, innovative ecosystem, diverse pool
of talent, and IT infrastructure are some of the reasons that are promoting
blockchain technology in this tiny island nation.
Singapore central Banks was one of the early adopters of blockchain
technology. In 2016, it executed a collaborative project called ‘Project Ubin’ to
explore blockchain technology in regards to clearing and settling payments and
securities.
The Monetary Authority of Singapore (MAS) and the Government of Andhra
Pradesh (GoAP) signed a FinTech Cooperation Agreement to support
blockchain innovation in financial applications across their local markets.
Singapore is a well-sought destination for a large number of new blockchain
start-ups. The blockchain startup community in Singapore is quite diverse and
includes organisations offering solutions for compliance and security,
payments, enterprise-grade solutions, ID, trading, real estate and
infrastructure. Singapore's government is launching a challenge that will
recognise successful blockchain projects with funding.
The Singapore government is extending its support to use blockchain to its
property industry. Blockchain applications are making real estate transactions
can be more transparent, with necessary paperwork like titles, contracts and
agreements digitised and secured.

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Israel
Israel is emerging as a hub for blockchain technology in the areas of banking,
promoting start-up ventures and proposing flexible policies.
The Israeli government has proposed the ‘Economic Arrangements Bill,’ which,
if approved would create a separate panel for the Bank of Israel to consider
building the digital shekel. Colu, an Israel-based Blockchain wallet application,
has been part of the conversation with the Israeli government in pursuing a
digital currency. For example, one suggestion would be legislation against
paying wages in cash.
The Tel Aviv Stock Exchange (TASE) announced the development of a
blockchain-powered securities lending platform that the bourse operator
believes would support direct lending among all significant financial
instruments across the nation. Bank Hapoalim is exploring methods to use
blockchain in a bid to secure documents digitally.
A Deloitte’s report Israel: A hotbed for blockchain innovation talks about the
Israeli government’s support towards this movement. The Israeli defence
establishment is finding ways to use blockchain in cybersecurity and
cryptography applications. Israel is geographically well positioned and can act
as a gateway to access European and African markets which are working
towards its advantage.
Dubbed by many as “Startup Nation”, Tel Aviv is now creating a new
generation of blockchain companies such Whitestream working on
cybersecurity, DNATix focussing on healthcare, and Carats experimenting on
diamond trading. The country has its fair share of core tech start-ups such
as QEDit  and DAGLabs. Interestingly. We are also witnessing quite a few
existing traditional firms making a gradual transition to leverage blockchain
technology to increase their competitive advantage in the global landscape.

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Summary
It is becoming evident that Russia, China. USA, Canada, Singapore and Israel
are becoming hotspots for using blockchain technology. We can see the
various government-sponsored programs supported by blockchain platforms.
Governments are either framing or relaxing legislations to facilitate blockchain
technology across the country. Some blockchains supported success stories in
welfare schemes have created a cascading impact on other areas. Many start-
up ventures are cooperating with these governments to implement
blockchain-based applications in the areas of cybersecurity, food and drugs,
land registration, smart transactions and voting.

Keywords: Blockchain, Startups, Innovation Funds, Banks, Cybersecurity,

Hotspots, Welfare Schemes, Digital Currency, Food and Drugs.