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Blockchain In Saudi Arabia A Possibility For KSA Government

Blockchain In Saudi Arabia: A Possibility For KSA Government

Last Updated on March 1, 2024 by Ameer Hamza

Data security, process streamlining, corruption, waste, and exploitation minimization are all possible with a blockchain-powered government, which may boost transparency and build confidence. The government sector is currently capitalizing on blockchain technology to deviate significantly from data silos and unproductive centralized approaches. Blockchain systems provide more robust and adaptable architectures than existing systems, which are by nature vulnerable and expensive.

The Saudi government is utilizing blockchain technology and formalizing the usage of cryptocurrencies. However, the entire process is under investigation because KSA needs to hire adequate human capital to operate blockchain-powered solutions. The fourth technological revolution is slowly making its way into the world. Government processes are being streamlined globally due to e-government solutions. A decentralized ledger that is encrypted using cryptography serves as the platform for resource sharing between people, companies, and states in a blockchain-based governmental system. This design automatically protects the private information of citizens and the government.

KSA’s Blockchain Solutions Require A Talented Workforce

The Saudi government is considering the implementation of blockchain technology in the different sectors of the kingdom. Saudi Arabia has reportedly also talked about Web3 technologies and their potential applications, according to a report. KSA should collaborate with academic institutions to design a blockchain and Web3 coursework in addition to hiring blockchain specialists, Prince Bandar Bin Abdullah Al Mishari said. On the other hand, approximately 50% of the Saudi population is firmly in favor of using virtual currencies as a means of payment. Since it’s inexpensive and convenient to transfer money across borders using cryptocurrencies, Saudi Arabian residents are supporting the adoption of digital currencies.

A $1 Billion Investment In Blockchain Technology Is Made By Saudi Arabia

Saudi Arabia is making a significant investment in blockchain and metaverse. It is also reducing its heavy reliance on oil and gas products. One billion dollars has been invested in NEOM Tech & Digital Company as part of its efforts to implement blockchain solutions. To create a 3D virtual environment where users may communicate with others, this enterprise seeks to establish its very own metaverse. In addition, Aramco will provide $1 billion to its startup capital company, Prosperity7 Ventures.

Blockchain Applications In The Government Sector

Blockchain technology has broad use cases both in the government and public sector. Its use cases range from impacting smart cities, central banking, and managing taxes to streamlining the education process and monitoring medical data. Blockchain technology may be used to build a secure infrastructure that would enable local governments and residents to access cutting-edge services and solutions. Blockchain registry management enables real improvements while also providing the integrity required to prevent corruption and fraudulent activity. Managing government-operated programs, such as pensions, medical plans, education, and defense, often requires coordination between disparate government entities. Additionally, these programs frequently contain sensitive information that has to be secured. Blockchain-enabled management solutions ensure the necessary transparency. It also enables cooperation amongst several key players.

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