Dubai government unveiled a very ambitious plan – they will shift all transactions to Blockchain by 2020. This, it allows them to save approximately 25 million work hours every year!
Blockchain technology – what is it?
It lets a user make and also record transactions – like as transferring money or selling a car or an apartment. The recorded transaction becomes an operation that will stay in the system permanently. Any new transaction is linked to the previous one. Therefore, the related transactions turn into a block and then blocks create a chain. But only one block is allowed to connect predecessor block. Those transactions are part of the unchangeable, encrypted, secured and growing ledger which can be reviewed by a person with suitable access. The data is stored across the network of devices – it uses cloud technology.
Dubai Blockchain strategy will be launched so the government departments can achieve a high degree of efficiency. This strategy is based on 3 main motives – efficiency, developing new specialized sectors and reaching global leadership.
First step – how are they going to improve efficiency?
It’s simple – they want to shift all government transactions into Blockchain network by 2020. It will help to cut approximately 100 million paper transactions in every year. So you can imagine how it will change the whole process and work. Benefits are double – reduced using of paper what’s right for the environment and reduced time which is required to deal with paper documents – around 25 million working hours is going to be saved! Because of that employers will be able to work more efficiently and the national economy will have more money to spend on other things. So… that’s only good news!
What about the second main motive – developing new specialized sectors?
The primary goal of this point is to create new workplaces in which using Blockchain network is available. It will allow investors, Emiratis and expatriates to establish new companies which provide valuable services. It will have a positive impact on the economy of the country. Thanks to various sectors, e.g. banks, transport, tourism, health care and others will be able to develop.
Third point – global leadership.
Dubai wants to become the global leader in the using and development of Blockchain network. And is on the right way to achieve that!
Whose idea is that?
The Blockchain strategy is a joint initiative of two organizations – Dubai Future Foundation and Dubai Smart City Office. It’s a part of Dubai Future Agenda – which the main goal is to make UAE into a world centre of developing and designing the future. “We have tasked the Dubai Future Foundation with overseeing implementation of the strategy, and the Smart Dubai Office with its execution” Shaikh Hamdan, Dubai Crown Prince, said.
Time to sum up!
The overall goal of this strategy is to make work and life much easier for people in Dubai. The Blockchain technology is absolutely safe. It works thanks to the cloud network through which transactions related to government docs, financial products, contracts and digital currency (like Bitcoin) are verified and realized. This strategy will elevate the private sector and government banking services to a higher level of effectiveness and efficiency. It will make linked – government and private – services much more accessible to accomplish by customers.
In the end, the Blockchain strategy will help to create new businesses in economic fields. It’s expected to achieve 300$ million in the next five years. The Blockchain strategy is called one of the most important innovations of this century. It can be one of the most valuable technological solutions in the industry too. The only thing left is… to watch how this strategy will work.