BLOCKCHAIN, THE ACHILLES HEEL OF CORRUPTION



Corruption is one of the earliest state evils in the history of politics and business, as early as 700 BC. C and the poet Hesiod would have denounced, through his work The works and the days,  acts of corruption and injustices of the law against him. In this way, the use of functions, means or state assets for personal benefit has grown as a cancer in the governance of various countries, undoubtedly affecting the success of many efforts.

Abuse of power, impunity, money laundering, embezzlement and drug trafficking are part of the huge group of acts of corruption carried out by politicians, entrepreneurs and power officials who affect the true and effective governance of the state. At present, there is an increasing need to counteract corruption with a view to regaining confidence and transparency in the government and business sector, especially in Latin America , where corruption levels are increasing.
Each of the transactions performed under Distributed Accounting Technologies (DLT) is based on public records, single-code, immutable and auditable. The nature of DLT solutions has been crucial in providing greater reliability to the platforms themselves, motivating diverse economic sectors - finance, health, insurance, fashion and humanitarian aid, among others - to adapt distributed accounting technologies As blockchain technologies, to their own needs with a view to promoting such transparency.Of course, eradicating corruption is not a question of magic formulas, but a collaborative work between the State, institutions and citizens in order to enable mechanisms to make a more transparent environment possible. It is at this point that blockchain can deal a blow to corruption, as the features of its technology represent a new, more effective way of preserving transparency in any transaction .
It is because of these properties, in conjunction with its ability to increase information security and decrease operational costs, that DLT tools have become a strong candidate to be adopted by government authorities around the world with the aim of managing the Politics, societies and finance.
For example, the Chinese government has been one of the political fronts that has been most involved in the use, research and regulation of distributed technologies, including cryptones. The Asian giant has closed important alliances blockchain with Japan, another nation that is marking historyin legislation and domestic adoption of cryptographic coins. Also, different cities in China are committed to becoming blockchain centers that attract the eyes of new investors and embrace the idea of ​​a modern globalized society, as is the case of the city of Hangzhou and the capital of Sichuan,  Chengdu .
Russia, although it has held dubious policies until last month, has also been deeply involved with the blockchain tools under the objective of applying them in the country's financial sector. The United States is another of the nations that stands out for DLT initiatives, from both the private and public sectors, in the midst of a legal landscape that still has its obstacles . But it begins to open up to the possibility of distributed tools. In this list of countries committed to blockchain can not miss United Kingdom, South Korea, Canada and even Poland; Nations that have given talk in the blockchain ecosystem and continue to move towards greater and more accurate initiatives.
Given all this, and facing the possibility of a future adoption of distributed accounting technologies in the government sector, then: Can blockchain become the solution that dismantles corruption? Why might this technology become the worst enemy of the corrupt? We will explain them below:

4 FEATURES FOR TRANSPARENCY

Distributed accounting technologies are characterized by being an open source cryptographic network that allows greater security of all information and global transactions in real time. However, in order for these two properties to become possible and the network to function fully, other mechanisms are geared in order to provide a system resilient to any attack, that does not allow double expense and that generates confidence in the ecosystem.
In the case of solving the problem of state and corporate corruption with blockchain, there are four characteristics that could prevent any unusual transaction from being overlooked, or can be eliminated, modified and even disguised .
This would be avoided since every movement in the blockchain is publicly registered - or in the case that it is a private network can be monitored by all members of that platform. Also, each transaction is unique, none of these records can be deleted or modified and each of this information can be audited automatically and permanently.
A public registry that allows to be monitored by each of the parties involved , and even in the case of State funds could be accessible to all citizens of the nation, would allow each of the transactions carried out to be recognized and their Origin, end and destination; Thereby reducing the scope for large-scale acts of corruption.
In blockchain each of the movements performed on the platform has unique alphanumeric characters, which only belong and indicate a single transaction throughout the blockchain, thanks to this feature no information can be duplicated avoiding false data or double expenditures from the same source money.
Also, this unique code is enhanced by the Hash Function, which is used to verify the integrity of cryptographic messages; If one of the data of that transaction is altered, the modification can be tracked by verifying the hash of the same. This function allows you to detect any pretense of modifying the original records of the platform , which would help all those involved to identify where and when a data was misrepresented. In this sense, the main blockchains have taken measures against the malleability attacks of the transactions, to avoid alterations in the transaction identifier. Bitcoin's main chain will soon update its software to reinforce its security.
This registered information is also indelible, so that evidence of any misuse of resources can not be removed. Last but not least, each of these records can be audited automatically, verifying each saved data and notifying those that do not match or have been modified.

AFTER THE SEARCH FOR RELIABILITY WITH BLOCKCHAIN

It is because of this offer of transparency, which DLT tools propose, that various international organizations, government members and companies across the board have decided to venture into blockchain technologies to provide their industries with business processes and information records free of corruption.
For example, in the financial sector Deloitte would have recently published a document outlining  the importance of blockchain in building a "trust economy," where each party can verify the reliability of transactions and track their funds inside Of the market, thus considerably reducing the possibility of money laundering.
On the other hand, in order to recover the swiftness of institutions and erase the corruption trail in government, both the London mayoral candidate for 2016  George Galloway and the former UK Prime Minister David Cameron , have proposed the use of distributed accounting technologies to filter out any embezzlement activity in power. "What excites me most is the potential of its technology to fight against corruption and to address governance and governance failures around the world," Cameron said in a speech referring to blockchain.
In this revolt to achieve greater transparency also notes the sector of humanitarian aid. The United Nations Organization (UN), through UNOPS blockchain advisor Yoshiyuki Yamamoto; Stressed that DLT tools could be used on both internal and external platforms of the UN in order to direct aid projects and avoid high levels of corruption that produce losses of up to 12.2 billion dollars in the institution, according to reports police .
Blockchain can track the destination of humanitarian aid, checking if it has reached the beneficiary.
The idea seems to have permeated the international body that now leads a variety of blockchain projects in conjunction with other member institutions, such as the World Food Program (WFP) that has successfully introduced the Ethereum blockchain to help Syrian refugees in Pakistan and Jordan .
In this sense, the Dutch foundation Opakeco has also joined this transformation of charitable activities by launching its own blockchain for non-profit foundations and donations that allows tracking how and where the funds raised are handled.
The world of fashion is also dabbling in the use of this technology. The trend lies in how verifiable a network of transactions can become that allows transparency in the acquisition of a product. In addition to this, the financial industry has made some recommendations to apply blockchain solutions  that go beyond the stock market system. From different sectors of society, suggestions have been made to use the technologies distributed in Latin America in order to reduce the forecasts of corruption in the political leadership.
Similarly, the company Citi Tech has also recently motivated the use of Fintech to solve the issue of corruption at government and business level through an award , an event that was dominated by distributed accounting technologies and two Argentine projects that sought Greater transparency in public services, as well as fulfill the promises to reintroduce the most needy in the banking system.
Undoubtedly, a technology that seeks to recover the transparency lost in institutions and eradicate levels of corruption by playing the role of open book.

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