Blockchain in UAEs Federal Authority for Identity

Executive Summary

Blockchain technology permits a combined category of select actors to share data. Its importance is gaining momentum as governments and public agencies are beginning to integrate the process for their daily transactions. One of such entities is FAICCPS, an agency in UAE that decided to invest in the creation of a new data management system using the BT. Therefore, this paper reviewed and discussed the impact of BT on the federal authority for identity, customs, and port security in the UAE. The research was formulated and executed through a case study design, and the study relied on secondary data generated through the document analysis technique. This was followed by analysis guided by comprehension, synthesis, theorising, and decontextualizing of the facts as they were presented in various materials. The findings revealed that FAICCPS managed to enhance accuracy and efficiency and provided timely and transparent delivery of services. Thereby reducing time for service delivery, lowering operating costs, improving work efficiency, enhancing data security, and reducing operating costs. However, FAICCPS still needs to invest heavily in cybersecurity to curb fraud and criminal activities.

Introduction

Background Information

Blockchain is defined as a ledger of decentralized data that is securely shared. The technology enables a collective group of select participants to share data. With Blockchain cloud services, transactional data from multiple sources can be easily collected, integrated, and shared (Hayes, 2022). Further, it is a distributed database that keeps data electronically in digital format and is very important for maintaining safe and decentralized information and transactions in cryptocurrency systems. This technology guarantees the accuracy, trust, and security of data (Hayes, 2022). Unlike a conventional database, Blockchain is structured such that it collects details in groups called blocks, with each having a specific storage capacity. However, the filled block is linked with one another so that they form a chain of records. The primary reason for Blockchain is to allow the capturing and distribution of data without editing them (Hayes, 2022). Thus, it is the foundation of permanent ledgers of transactions that are not changed, deleted, or erased.

Over the years, Blockchain has exploded through the creation of several cryptocurrencies, decentralized finance applications, non-fungible tokens, and smart contracts that allows full transparency, efficiency, and cybersecurity. The importance of Blockchain technology is gaining momentum as governments and public sector organizations are beginning to adopt and integrate the process for their daily transactions. For example, the FAICCPS, operating in the UAE, is using it to enhance its responsibilities.

Federal Authority for Identity and Citizenship (ICP) was established on September 29, 2004, under the name Emirates Identity Authority. Its core functions included keeping an electronic database of personal and vital data for all people in the country as well as issuing Emirates ID cards to individuals incorporation with other government agencies (About ICP, 2022). Since its creation, ICP has specialized in giving identification and confirmation services to individuals within federal and local governments and all other entities. Further, it is authorized under the law to ask for the necessary information from other state agencies to fulfill its mandate (About ICP, 2022). The Federal Decree-Law No. 3 of 2017 necessitated the change of its name to Federal Authority for Identity and Citizenship (FAICP). Additionally, the agency portfolio increased to include functions such as citizenship Affairs, passports, and entry and residence of foreigners in the state (About ICP, 2022). The terms of reference and powers assigned to the Ministry of Interior were equally transferred to FAICP.

In 2021, the UAEs leader issued a further order to merge the Federal Authority for Identity and Citizenship with the Federal Customs Authority and the General Authority for Ports, Borders, and Free Zones Security. The new entity was then called the the Federal Authority Identity, Citizenship, Customs and Ports Security (FAICCPS) (Expat Media, 2021). In addition, the new mandate for the agency was spelled as regulating privileges, passports, access, and dwelling of foreigners in the country, upgrading ports, boundaries, and open areas security, and elevating their efficiency and readiness. Consequently, it was given the role of arranging and overseeing customs work in the country in line with global standards.

Further, FAICCPS is expected to formulate policies, strategies, and laws associated with recognition and peoples affairs, passports, entry and residence of immigrants, customs, and dock safety, along with other business for Cabinet concurrence. Along the same line, FAICCPS should establish, develop and upgrade the population registry and personal data system in the country and manage it in line with the best practices (Khaleej Times, 2021). To actualize these tasks, the agency was therefore decided to set up systems, programs, and procedures to enhance the accuracy, security, efficiency, and competent delivery of its responsibilities. Essentially, the resources of FAICCPS end up with a lot of digital data that needs to be effectively managed and fully transparent. Adopting Blockchain technology, thus, was meant to eliminate any possibility of its data being compromised, and it inculcates transparency in its processing procedures. Additionally, FAICCPS recognized that it works incorporation with other organizations, both public and private, to accomplish its mandate. Therefore, it must constantly exchange necessary information through secure channels with other public sector bodies and stakeholders.

FAICCPS needed a technology that could help them keep information in blocks protected by hashing. The idea was to replicate a process that has tight cybersecurity to prevent unauthorized persons from gaining access to the system. In addition, FAICCPS wanted a system that could allow the creation of a digital profile of each citizen, with data stored as multiple copies in blocks of the distributed network (Khaleej Times, 2021). Purposely arrange data in blocks that give room for improving data processing speed. This necessitated the selection of Blockchain technology, which simplified the bureaucratic part of administrative work at FAICCPS and ensured effective automation of data sets through distributed databases, eliminating errors.

Problem Statement

FAICCPS, as a newly created multi-agency government organization, needs to handle large amounts of data of strategic value. The administrative work associated with the need for bureaucratic paperwork impedes the efficiency of FAICCPS (About ICP, 2022). Additionally, the increased economic speed of the UAE, combined with the investment and tourism attractiveness of the country, creates the need for secure, precise, efficient, fast, and transparent data management for the countrys national security. However, there were gaps between the anticipated changes related to improving the organizations operations and efficiency and the real work going on within FAICCPS (About ICP, 2022). This enormous task and responsibility called for the review and adoption of a new pragmatic and efficient data management system by FAICCPS. Consequently, FAICCPS invested in the development of a new data management system using Blockchain technology (BT). Therefore, this paper reviewed and discussed the impact of BT on the federal authority for identity, trade, and dock safety in the United Arab Emirates.

Research Questions

The paper looked into the research questions such as the operational challenges that FAICCPS currently faces, the expected KPIs performance indicators in the agency, and the benefits that the implementation of Blockchain technology created for the organization. Additionally, the paper tried to answer the question of the challenges that FAICCPS might face by adopting and implementing the Blockchain system as a mechanism for improving its operational efficiency.

Objective/Aims of Research

The project aimed to explain in detail the practical framework of the benefits and opportunities of Blockchain technology in the FAICCPS. In addition, it focused on conducting a literature review and identifying the key challenges facing population registration companies. Further, it explored the existing examples of intelligent solutions for public companies to improve their operations and assessed the possibilities of using Blockchain technology in public sectors. Lastly, the study analysed the opportunities and challenges that could become relevant to the FAICCPS after the operational changes.

Expected Outcomes

The paper is expected to come up with the conclusions on the challenges FAICCPS currently faces and reveal the performance level of BT automation at the agency. Further, it demonstrates the benefits that FAICCPS has so far realised as a result of going digital in its service delivery and then highlights the issues that could impede the organisation from improving Blockchain technology efficiency during its implementation. Lastly, the research will, after the findings, make recommendations on how FAICCPS could improve on the grey areas which prevent smooth operations currently and in the future.

Literature Review

The president of UAE ordered the merging of the three government entities: The Federal Authority for Identity and Citizenship, Federal Customs Authority, and General Authority of Ports, Borders, and Free Zones Security. A new agency called the Federal Authority for Identity, Citizenship, Customs, and Ports Security was formed (Expat Media, 2021). FAICCPS is responsible for formulating laws, regulations, standards, and requirements for passports, citizenship, entry affairs, and foreign residency for cabinet approvals. Further, it manages affairs of citizenship, entry into the country, as well as customs and port security. To meet this challenging task, FAICCPS adopted Blockchain technology to enable it to execute its mandate accurately and efficiently (UAE, 2021a). This followed the launching and adoption of BT by the UAE government in its strategy to transform 50% of government transactions into the BT platform (UAE, 2021a). The aim was to make Dubai the first city fully powered by BT by 2020, and it was anchored on efficiency, industry creation, and international leadership standards. The UAE government, through FAICCPS, has been proactive in implementing this approach to actualize its dual goal of improving services and citizen engagement.

FAICCPS Company Analysis

Currently, FAICCPS is responsible for coordinating services such as citizenship, passports issues, entry and residence of foreigners in the UAE, as well as customs and port security. The agency prepares laws, regulations, standards, and necessities in its various categories of responsibilities and sends them for cabinet approval (Expat Media, 2021). It sets up procedures for issuing IDs to all citizens and residents. Further, it promotes and enhances the efficiency of the ports, borders, and free zones security and manages customs work. According to the set standards, the authority develops unified processes related to inspection, control, tariffs, data, and combating smuggling and frauds (Expat Media, 2021). Additionally, it issues, renews, suspends, withdraws, closes ports, and freezes licences for individuals and companies. FAICCPS develops and updates the countrys population register and personal data system (Expat Media, 2021). Internationally, the organisation represents the UAE government in signing treaties and agreements with other countries and global bodies in several relevant fields.

In trying to actualize these activities currently and in the future, FAICCPS launched a digital transformation strategy based on improving its competition in technology and integrated processes and services. Further, to promote innovation, improve the efficiency of digital tasks, and infuse automation culture within the agency. FAICCPS has so far managed to remodel and automate its services 100% (Khaled, 2021). In addition, it witnessed an 80% reduction of customers in service centres by 2021 (Khaled, 2021). Consequently, FAICCPS now has electronic platforms where customers register with digital UAE pass, besides accessing information and performing all transactions on its online network and smart channels. Furthermore, the organisation has an explicit digital charter that supports the culture of automation and institutional digital innovation among the employees to increase their ambitions and develop their competencies. This is meant to retain the best workforce to help actualize the change (Khaled, 2021). To build true digital tradition, FAICCPS is working with partners to create awareness among individuals, firms, and companies in line with the vision of the UAE government.

SWOT Analysis

SWOT analysis is a framework used to investigate the competitive situation of an organisation or a company so as to develop a strategic scheme of operation. This method examines the internal and external factors, as well as current and future potential (Kenton, 2021). It is data-driven and not influenced by existing beliefs but focuses on the real contextual position of the firm. The FAICCOS strategy draws from the Federal government of UAEs plan to be the largest technologically advanced country in the Middle East by implementing and utilising state-of-the-art technology to improve its performance. Therefore it sought to analyse its internal environment by looking into its strengths, weaknesses, opportunities, and threats to its service delivery.

Strengths

FAICCPS has support from the federal government of UAE, key stakeholders, and other partner organisations. The agency prides itself on clear prerogative based on federal laws and leadership in favour of making changes to achieve intended results and outcomes. It has excellent communication channels with both the federal and local governments and all stakeholders. Further, FAICCPS has an express mandate to initiate the development of work systems, protocols, and the improvement of both internal and external business relations (UAE, 2021b). Lastly, it boasts of a uniquely valuable and integrated BT system and employees who are ready to learn and serve the customers.

Weaknesses

On this front, FAICCPS is experiencing the inability to reach its target every year. In addition, they suffer due to the limited number of skilled BT engineers and human resources to operate the system, thus impeding its growth and expansion (UAE, 2021b). It has inadequate mechanisms for linking with external entities, thereby preventing automatic data and information updates. So far, it has a good link only established with the federal government of UAE.

Opportunities

Federal government moves towards e-government service provision, UAEs commitment to and planning for a knowledge-based economy creates conducive room for improvement in Blockchain technology by FAICCPS. The need to provide comprehensive, accurate, transparent, and efficient services to citizens and foreigners as well makes it easier for the organisation to explore and innovate new ideas (UAE, 2021b). Additionally, the gaps in the provision of secure and fraud-free services to individuals and companies necessitate the importance of enhancing service delivery. Senior management backs the initiatives to keep abreast of best practices amid global information sharing and competition.

Threats

FAICCPS is faced with poor linkages of its system with other agencies and partners, and this undermines faster and more effective delivery of services. It lacks enough technical and managerial personnel specialised in Blockchain technology within the UAE and, therefore, cannot function optimally sometimes. There is a lack of proven understating of the customer needs and expectations by the management and its staff, this leads to the delivery of unsatisfactory outcomes (UAE, 2021b). In addition, poor legislative and legal coordination on enacting laws required to regulate the BT operations at the national and local levels leaves room for misunderstandings that negate service delivery. Lastly, the increasingly costly investment needed to implement Blockchain technology fully to digitise FAICCOS services could slow down the digital transformation of the agency.

PESTLE Analysis

PESTEL analysis is a tool used in situation analysis to examine the external or factors outside the company (macro environment level) that might affect its performance. It identifies the situations that may change in the future and take advantage of the opportunities which could exist or try to mitigate the firm against the threats posed (Jurevicius, 2022). The FAICCPS used the PESTLE tool to identify a series of political, economic, social, technical, legal, and environmental factors that may influence its strategic operations and performance currently and in the future.

Political

FAICCPS must enhance coordination with other government agencies, both national and local, to improve its efficiency and eliminate barriers that could derail service delivery. It must comply with the federal government on the activation and implementation of e-government services by following the laid down policies (Jurevicius, 2022). Further, FAICCPS must study the trends in the market and understand what other competitors on Blockchain technology locally are doing so that they could match up to them or even do better than all.

Economic

There is a need for FAICCPS to have an advanced financial management system to enhance accountability and efficiency for maximum profits. The agency must source funds to build the state-of-the-art BT system that functions at minimal cost but with optimal financial benefits (Jurevicius, 2022). Additionally, FAICCPS should strive to provide BT services that are affordable to the larger segment of the UAE population, taking into account their income levels, inflation, exchange rates, and disposable income levels.

Social

The system must be flexible to the extent that it should accommodate the expected surge in the number of locals and foreigners that it will serve in the future. Further, BT services provided by FAICCPS must be fast, accurate, and effective to meet the demands and preferences of the clients (Jurevicius, 2022). The system put in place must meet international standards in terms of language use and take into account the cultural diversity of individuals within UAE and foreigners as well.

Technical

FAICCPS must build a BT infrastructure that is safe, secure, and sophisticated but with elaborate instructions on how to rectify errors. The agency must recruit and train enough staff to handle the technical issues so that it will achieve optimal performance most of the time each day. In addition, FAICCPS must invest in research and development so as to be up to date with trends and new innovative ideas in BT digital domain (Jurevicius, 2022). The firms management and general staff should be flexible enough to embrace all the new changes in technology they have adopted.

Legal

FAICCPS should formulate legislation on how to cooperate with other national agencies, partners, and private entities implementing the BT system. The agency must have a reliable legal mechanism to resolve challenges such as fraud and contractual obligations (Jurevicius, 2022). Further, there is the need for a legal framework on key responsibilities of all key stakeholders who are involved with the provision of services. It must put in place policies on data security and protection and the rights of individuals, firms, or companies to the confidentiality of their information.

Environmental

The organisation must look into the impact it creates on its immediate surroundings and neighbourhood. It should strive to create the least pollution and destruction to the atmosphere in which it operates. FAICCPS must have proper waste management and disposal mechanisms that keep its premises clean and habitable (Jurevicius, 2022). Lastly, it would be excellent if the organisation goes completely paperless in its operations and service delivery to have zero impact on the environment.

Analysis of Operation Functions

There have been a number of claims in the recent past that Blockchain has the potential to revolutionise many sections of international trade, including finances, customs procedures, and intellectual property. The argument is based on the fact that BT is transparent, decentralised, and immutable in nature (Ganne, 2018). Therefore, it could elicit the interest of private sector players and governments to explore the potential of this technology to enhance the efficiency of trade processes. International trade involves movement and multiple actors and continues to rely on paperwork.

For example, in 2014, a shipping company called Maersk followed a refrigerated container carrying roses and avocados from Kenya to the Netherlands to document the procedures involved. It revealed that 30 organisations were involved with over 100 people throughout the journey who made more than 200 interactions, and the shipment took 34 days to complete (Park, 2018). It showed that several documents must be filled out, and the process took many days to complete. Further, these paper-intensive proceedings increased the administrative costs and were found to be prone to errors, losses, and fraud. This complexity has necessitated many companies and governments to experiment with how BT can be used to reduce paperwork and improve transactions.

Blockchain is excellent at administering import and export licences more precisely and effectively. Normally, these permits are delivered to cover a specific period of time and for a set period of time. When they are stored on the BT, it saves the importer or the exporter the burden of having to look for a safe place to keep them, so they do not get lost. In addition, Blockchain allows the customs authorities to easily check the authenticity and validity of the documents and, in the process, eliminate the possibility of admitting individuals with fake certifications (Tapscott & Tapscott, 2018). Likewise, the use of a smart contract within BT creates room for parties to instantly render all imports/exports invalid once the validity period is over, thus, assisting in fighting deceit. Such a scenario was once witnessed in the Philippines in 2016 when the Agricultural division terminated and recalled all imports of meat products to solve the fraud whereby old permits were being recycled to smuggle commodities.

Key Challenges Facing Population Registration Companies

BT is capable of facilitating the verification of identities of ventures and people. It can improve the efficiency of border regulations between companies and governments (Ganne, 2018). Due to this enormous potential, many organisations such as UN/CEFACT, and the World Customs Organization (WCO) are investigating how Blockchain technology could be integrated with the existing customs systems and certification processes. They are partnering with different governments and IT firms on this venture. However, there is a real challenge in making cross-border government-to-government processes effective. For instance, there is a risk such as sharing of information related to authorising economic operators (Ganne, 2018). Whereas the BT can facilitate the various dimensions of border government to government interactions involved with customs clearances, there are regulatory legislation issues existing in different countries which Blockchain could do little to solve.

There is the technical interoperability challenge that comes with the digitization of documents. While using the traditional paperwork way, the transactions are usually presented in copies to the right and competent agencies for verifications. However, digital papers require the creation of ad hoc e-bridges between authorities in different countries, and this process is complex and difficult to implement (Ganne, 2018). It is not clear whether BT can facilitate such technicalities as much is dependent on real technical setups that exist at the national levels of two bordering countries. The best way to solve this is when both governments and their agencies would be part of the same Blockchain so that no coordination would suffice.

Consequently, data would be moved directly from one authority to the other based on the BT platform rules only. This scenario is at its initial stages and is being tested by several players in the BT field. An example is the Singapore Customs Declaration system that was rolled out in cooperation with IBM. These two entities developed a Blockchain customs portal that facilitated the agency to send customs declarations from New York to Singapore (Ganne, 2018). The technology has a ledger permitting members of the network to access all customs data in real-time from one single place.

Additionally, going paperless needs more than the technology and the interfaces involved because there must be a regulatory framework for the electronic authentication of e-signatures, e-documents, and e-transactions. The process should be able to permit the authority of other government entities (both national and foreign) to issue required documentation and allow the sharing of specific types of information (Ganne, 2018). This is not the case at the international or cross-border levels, as only a few countries have legal provisions for such recognition. Likewise, in a number of countries, national laws must be amended to allow the access and sharing of data with other administrations even within their borders. There is the difficulty of language simplification and standardisation which impedes several companies from implementing BT (Ganne, 2018). It prevents efficient working of Blockchain due to variation in the formats that exist in different countries because currently, there is no standardised semantics.

The case of Blockchain Technology Globally

Companies are increasingly using artificial intelligence (AI) in business, and there are signs that it will accelerate further in the near future. The advances in AI tools have created room for firms to access these intelligent solutions (Pratt, 20221). They use AI mostly for data security, process automation, and customer care. There is evidence that AI adoption helps lower the cost, increase efficiency, boost productivity, and provide avenues for new products and services. For example, chatbots use both machine learning algorithms and natural language processing (NLP) to understand the customers request and respond correctly (Pratt, 2021). Further, these solutions work faster than humans and at a lower cost. AI solutions have functions that employ customer data and predictive analytics to suggest what they want.

Organisations, including public companies, use intelligent solutions to detect fraud that is postulated to cause about 5% of revenue losses every year. This algorithmic security is applicable to many situations, including cybersecurity and tax evasion (Wellers et al., 2017). For instance, Firms are nowadays building models based on historical transactions and social network data using machine learning algorithms to spot anomalies, exceptions, and outliers in operations. The process enables the ventures to prevent fraudulent business in real-time (Wellers et al., 2017). It further helps firms to discover suspicious patterns of payments and transfers between networks of individuals with overlap.

The process automation (PA) of digital and physical tasks at companies for back-office administrative and financial services is done effectively by robotic technologies. Robots act as humans inputting and consuming information from many systems (Davenport & Ronanki, 2018). The activities it could perform include transferring data from email and call centre into systems of records and reaching into several structures to update documents and handle client communications. Further, process automation helps with reconciling failures to charge services by generating data from multiple files (Davenport & Ronanki, 2018). Additionally, it assists in reading contractual and legal documents to create provisions using natural language processing. PA cognitive technology is cheap, easier to use, has a higher return on investment for companies, and can work across many back-end systems.

Further, an increasing number of companies are turning to Blockchain to further improve cross-border payments. The need for transparency, accountability, and effectiveness is prompting governments and their agencies globally to leverage technology to improve services, reduce costs, and better management and procurement processes (Ganne, 2018). This drive has escalated following the successful implementation of e-government procurement (e-GP) in Canada in 1991. Currently, electronic systems have been designed, developed, and launched across the world. For example, in October 2017, MasterCard introduced its Blockchain network to address the challenges of speed, transparency, and cost in cross-border payments (MasterCard, 2017). This BT is accessible via an API, making it easier for users to get linked without creating their own distributed ledger server nodes.

Benefits and Opportunities of Blockchain Technology in FAICCPS

There is the opportunity that FAICCPS could benefit from Blockchain technology because it improves the transparency of its operations and services, thereby enhancing trust among the public and foreigners. BT will help the agency to achieve this through data monitoring and by creating new mechanisms for tracking the processes (Ganne, 2018). Consequently, providing the mechanisms for tracking all aspects of their transactions. Further, BT will enable FAICCPS to have a highly secure system that is capable of proving the authenticity of identities of all individuals and corporations they are handling and help curb fraud.

Blockchain could assist FAICCPS in reducing the cost of doing business, such as verification (the ability to determine the attributes of a transaction cheaply) and networking expenses. There is evidence that BT could have a significant effect on the overall tariffs (Ganne, 2018). Additionally, BT enables the information that is added in to be automatically screened on the basis explained in a smart card contract, for example, processing applications and records for customs. This technology makes it easy for data to be tracked and audited; likewise, it facilitates the validation of individuals identities and financial documents of companies (Ganne, 2018). The decentralisation traits of BT allow many entities to coordinate undertakings in real-time in an open, accountable, and secure manner, hence, improving the efficiency of FAICCOS services (UAE, 2021). In addition, a Blockchain-based digitised agency will be able to protect its data, streamline operations, and eliminate waste and misuse of resources.

Challenges Experienced by FAICCPS when using Blockchain Technology

The challenges faced by FAICCOS cut across all other government agencies and organisations in the UAE. They are essentially related to the strategic, operational, and regulatory aspects of implementation. There was a survey conducted by the Centre for the Fourth Industrial Revolution in the United Arab Emirates (Muhairi et al., 2020). The study recruited 100 from over 60 governmental and non-governmental entities across the country. The objective of the research was to explore the implementation of Blockchain technology and to investigate the evolution of the ecosphere and the appropriate issues and key attainment factors applicable. One of the findings was that it was difficult to bring stakeholders to the table, as was affirmed by 62% of the respondents (Muhairi et al., 2020). Further, there were issues to do with the alignment of interests and communication between parties. Lack of proper knowledge about BT by employees of various entities was confirmed by 52% of the participants, and this was more pronounced among employees in the public sector (Muhairi et al., 2020). On the other hand, those working in private firms were concerned about the problems around regulatory uncertainties.

Other challenges were witnessed in authenticating individual and companys identity, safeguarding the integrity of data entering the Blockchain, and managing compliance and security standards. Results revealed further that organisations were still learning to design project management in a federated and democratised manner to be in line with the nature of Blockchain architecture and administration. Therefore, regulating the engagement among companies on a co-owned platform that needs funding, hosting, operating, and maintaining was proving difficult (Muhairi et al., 2020). Due to differences in methodologies used by separate entities, unconventional management requirements were not easy to achieve. Lastly, there were differences in timelines and priorities between organisations.

Innovative Approach and Transparency Framework

Blockchains influence within the public sector has the potential to create security and efficiency and speed up services and processes. Its benefits are very much applicable in all organisations and government agencies, as evident by the growing number of government leaders who are exploring how they could tap it into running their affairs. In the UAE, the state at the national and local levels is examining cases of its application in business registration, trade, and central bank operations (White et al., 2022). BT has the ability to settle and verify transactions very fast in minutes and in real-time with specific codes that meet conditions and act accordingly. This technology eliminates inefficiencies and creates clarity that allows for automated execution of tasks after meeting set criteria between parties to the ledger.

Present Knowledge Gaps

BT is still an emerging technology, and the skills required to design, develop and use it are scarce. A survey carried out by the Blockchain Council in 2019 revealed that demand of more than 500% for BT engineers (Brown, 2021). This has created a challenge for the companies and organisations, including FAICCPS, that are currently adopting, integrating, and implementing the system (Brown, 2021). Trust deficit among firms using BT is another gap that impedes its implementation. This problem cuts in two ways; firstly, organisations have issues with the security of the technology itself and so fail to trust those other entities they are dealing with.

It is expected that each BT should be secure, private, and verifiable. However, this is not the case because there is no central authority to validate the transactions since the network is decentralised. Further, with many firms and companies moving to BT, they do so by developing their own structures with different characteristics (Brown, 2021). They create variations in governance regulations, variations in BT versions, and consensus models. Thus, these separate BTs are not able to work together, and currently, there is no standardised mechanism that can allow dissimilar networks to communicate with each other. The lack of interoperability makes it hard to access and share information. Additionally, BT ecosystems need board adoption for them to function properly. Currently, only about 29% of companies are piloting it or have fully developed BT (Brown, 2021). Lack of large-scale usage limits the effectiveness of the technology.

Research Methods

This research paper was formulated and executed using qualitative design. This plan involved collecting and analysing data to understand the concepts, opinions, and experiences, gather in-depth insights, and generate new ideas (Busetto et al., 2020). A case study was therefore selected as the best layout to generate data for analysis, gather information, and draw conclusions on the impact of Blockchain technology on the delivery of FAICCOS services. This strategy enables the researchers to carry out an in-depth exploration of a phenomenon within a specified context (Rashid et al., 2019). A case study analyses issues within the boundaries of a particular environment, situation, or organisation.

It allows for the integration of both qualitative and quantitative aspects of generating data. Further, the techniques capture complexities of real-life occurrences giving room for a detailed analysis of the incident or the experience. The design brings out the understanding of a complex idea through in-depth contextual analysis of the parameters of the study. Its flexibility gives space for applying a variety of methodologies and necessitates the use of many sources to investigate a research problem (Rashid et al., 2019). However, a small number of cases could offer little ground to reliably generalise the findings to a wider population. Additionally, this design does not allow the researcher to examine the cause and relationships of the study variables and may not represent the larger problem under investigation.

Sampling Strategy

This study used secondary data to come up with the findings and conclusion on the research topic. Second-hand facts are information that is already available, that was previously collected by primary sources, analysed, and has been documented, and anyone can access them (Harappa, 2022). In other words, secondary data is generated by a researcher as a third party from books, journals, articles, internet sites, and reports. What is required is just gathering a variety of information from different authorities with themes similar to the study topic or research question, then collating and summarising them into insightful results. In this case, the researcher does not require participants to answer specific questions (Harappa, 2022). However, they only need a list of topics from various authors to extract the right data for their analysis, categorization into themes, triangulation, and make conclusions as appropriately as possible. Further, the strategy involved collecting information from both qualitative and quantitative sources.

Data Collection Strategy

The data was collected using a document study or analysis method. This is a systematic procedure to analyse documentary evidence and answer specific research questions. It is used to explore, group, and analyse physical sources, most frequently written reports, in the social, public, private, or digital domain. This technique allows the researcher to gather information on the subject to which they have limited physical access (Morgan, 2022). Further, it needs a reiterated review, assessment, and explanation of the data so as to gain the context and empirical mastery of the variables being assessed. In addition, a document study creates room for the researcher to either conduct a stand-alone investigation or carry out a mixed methods research (Morgan, 2022). Thus, allowing triangulation of results and findings generated from a variety of data sources such as interviews, focus group discussions, observations, and surveys. Consequently, documents are corroborated, refuted, elucidated, and expanded and thereby helping the researcher to guard against biases.

In this paper, the researcher relied on public documents from the federal government of the United Arab Emirates. Secondly, the official records of the activities of the FAICCOS agency, such as handbooks, reports, strategic plans, digital policy documents, and e-service documents (Indeed Editorial Team, 2021). The information contained in these materials was key in putting the research context into its perspective. Further, they assisted in proposing the situations that needed additional observation and gave extra insights that were valuable to the study topic. In addition, the sources made it easy to track and validate the evidence found in other research elsewhere.

Data Analysis Framework

The process involved listing and deciding on the types of documents that were used, as explained in the immediate last paragraph. All the sources were extracted either from the UAE government website, online newspapers, or magazine reports. Secondly, the data was organised into units of meaning (such as words, phrases, or images) and a set of categories (characteristics of the content) (Indeed Editorial Team, 2021). This was followed by coding, which establishes the themes emerging from each set of information. Thirdly, the researcher created the authenticity of the sources by looking into their credibility, dependability, confirmability, and transferability (Indeed Editorial Team, 2021). Fourthly, checking was done to confirm the biases that could exist in the data in terms of opinions, perceptions, and wordings.

The researcher then asked questions to assist in examining the background of the materials and how best they could be used to answer the study topic. For example, the following quiz was used in the analysis framework, who created the document, the material is about what, the time when it was written, the origin of the document, and its importance. Finally, the records were evaluated to identify the patterns in the data, and key information was extracted (Indeed Editorial Team, 2021). For each source used, a determination on how it responded to the research topic was made. Thereafter, the results were interpreted as findings for reporting, making conclusions, and recommendations for the study.

Research Limitations

This study and the final paper purely relied on qualitative case study design, and data was generated using document analysis techniques. Therefore, it had limitations in the sense that the researcher could not verify the primary data, which formed the basis of the findings in the documents used. Secondly, this method does not allow for examination of the causal relationships of the variables at hand, and so it is difficult to formulate a hypothesis of the study (Christiansen, 2021). Additionally, qualitative research is not statistically representative; thus, its outcome cannot be generalised outside the organisation, place, or the environment in which it was conducted.

Data Analysis

Much of the data analysis procedure is captured in the framework sub-section. However, there was a particular focus on the comprehensive analysis steps due to the fact that multiple sources were used to extract the evidence that tried to respond to the topic. This process was guided by comprehension, synthesis, theorising, and decontextualizing of the facts as they were presented in various materials (Morgan, 2022). Thus, each stage of the analysis was examined by looking at the examples that were revealed in every material used.

Results

Key Changes Observed

There is an integrated e-service called Basher that enables investors to establish their ventures fast through an online platform. Trade licences and establishment card numbers from the Federal Authority for Identity and Citizenship are among the bundles of services (TDRA, 2021). Further, the system offers membership numbers from the Ministry of Human Resources and Emiratisation, a quota for three work permits, and so far, it has renewed commercial licences for more than 1,200 commercial activities. There is another platform called Usrati (My family), which is a government service that was developed based on the outputs of 7 interactive workshops (TDRA, 2021). It was designed with community participation in mind and is being implemented through more than 40 interactions between agencies and 32 work teams (TDRA, 2021). This facility is currently four stages of family development such as marriages, pregnancy, birth, and child progress. Additionally, an employment bundle called Tawtheef enables firms to complete all activities related to hiring and employment in one visit. Through this, companies get a quote for the new employees, work permits, and labour contracts for workers.

The introduction of BT has so far enabled the UAE, through its agencies, to provide more than 6000 federal and digital services. The activities are broken down into 2126 online transactions, 180 informational activities, 110 commercial tasks, 134 social solutions, and 85 seizures (189 of them being priority utilities) (TDRA, 2021). Further, as a result of the operationalization of BT, FAICCPS has witnessed an increase in eServices in the following categories in the year 2020. There were 5073 243 entry permits issued, 1732403 residency certificates were renewed, 1737885 traffic fines were made, and another 844174 contract/mission work licences were renewed (TDRA, 2021). In addition, 681779 new work contracts were given to individuals and firms, 374197 Emirates IDs were renewed, and 77175 new IDs were processed (TDRA, 2021). All these statistics point to a remarkable improvement in the authoritys performance due to BT implementation.

BT has boosted the number of customers who are served by FAICCPS per day. For example, on the first working day, it implemented a new system, and the authority received 5822 clients through various departments and customer happiness centres (Gulf Today, 2022). Those who checked in to the intermediaries constituted 15.1% of the total services (Gulf Today, 2022). Further, FAICCPS completed 32549 transactions per day. A record 84.9% of the applications were submitted electronically through its new online smart services portal, giving another indication that BT improved its operations (Gulf Today, 2022). This shift in performance means technology was proving worth the investment.

The integration of Blockchain technology in the operations of FAICCOS has enabled the agency to tighten security and curb the fraud that existed before its implementation. For example, on March 1, 2022, the authority foiled the smuggling of banned dairy goods worth AED 25, 239,000 through its port at Fujairah (Lucas, 2022). Further, its General Administration of Customs officials arrested individuals both of Arab and Asian origins who made attempts to bribe the staff on duty with AED 280,000 (Lucas, 2022). The use of advanced technology inspection devices played a key role.

FAICCPS, with the help of the UAE federal ministry of foreign affairs, replaced visa stickers on the passports of visitors with electronic Emirates ID cards to prove their residence status. This is done through apps in a new unified form which includes issuance and renewal; all merged in a single application (Godinho, 2022). This step has helped FAICCPS to greatly reduce the link with the process of issuing and renewing permits for immigrants. It has assisted the agency in enhancing its flexibility for individuals who use the identity card as an alternative during their periods of transition (Godinho, 2022). The new process has made it possible to get the electronic copy of the ID card with the new generation featuring all the details previously found in residence stickers given to visitors. In addition, it has all their information, including personal and professional data and issuing entities, among other readable facts.

A combination of superior legislation and innovation in BT has set the UAE federal government and its public agencies to make the country a global digital hub. Through its well-developed and comprehensive regulatory framework, it has several features that position it as an excellent global centre for the Blockchain technology industry (Buehler, 2022). It has a comparative advantage in terms of existing business networks, and so far, it is leading in connectivity in the Middle East, North Africa, and India. The UAE federal government, through FAICCPS, so far has managed to net Dh 11 million in transactions and document processing through the BT system (Buehler, 2022). Consequently, the country has successfully proved to be a leader in BT as a foundational mechanism for improving public operations.

Key Trends in operational changes

The successful implementation of BT in their operations has increased the appetite for FAICCPS in cooperation with the UAE federal government to strive to be the leader in the services sector and position it as the best in the world in rendering public services (UAE, 2021c). Currently, the agency is focused on implementing a strategy that aims to render its responsibilities to customers efficiently. FAICCPS is seizing the opportunity and is committed to achieving global leadership in the provision of eServices through the BT system. It expects this trend to be actualized and be the benchmark for advanced and effective digital solutions that are accessible to all from any part of the world, at least 24 hours a day by 2023 (UAE, 2021c). The trend in its performance will be guided by the need to put people and their needs first, being proactive in performance, creating and rendering unified and diverse services, and carrying out tasks on time or in advance and with more flexibility.

Further, FAICCPS intends to integrate all operations and enhance data security and confidentiality between all entities and parties whom they serve. Consequently, it will centre its activities on the clients voice transparency when measuring and evaluating its performance towards delivery to the customers. It ensures precise records of data and creates a data-sharing platform with other government agencies. Therefore, FAICCPS intends to deliver 90% of its services through the BT system, design 100% proactive online services, and create 100% service partnerships with all sectors of the country and international organisations (UAE, 20221c). Additionally, the trend is to have 100% eServices that are accessible from anywhere around the world all the time (UAE, 20221). The end goal is to maintain the leading role in Blockchain technology across the globe.

Connection to FAICCOS problems and operational efficiency

The problems faced by FAICCPS before the implementation of BT were related to the strategic, operational, and regulatory aspects of service provision. The latter is part of the legislation and laws required to enhance the security of data and client confidentiality and to protect the agencys activities from fraud. Therefore, regulation would much be solved by FAICCPS in conjunction with the federal government of UAE and other organisations through the formulation of relevant policies. However, strategic and operational aspects of FAICCOS performance were directly solved by the BT mechanism, and the impact was realised in terms of efficiency of the delivery of tasks. Currently, FAICCPS is almost achieving full BT potential in all aspects of cross-border transactions. The firm has digitised all its services and operations, including finances, customs, logistics, and aligning language semantics in recognition of the diversity of its users (Muhairi et al., 2020). Additionally, the implementation of BT has enabled FAICCPS to increase its transparency, thereby reducing operational costs such as verification, networking, coordination, and exchange rates significantly.

To uproot the challenges, FAICCPS has, over time, identified the right Blockchain technological application and created awareness among key stakeholders. In addition, it has sensitised and educated its staff on the BT system and put the correct structures in place that catalysed the effectiveness of its services (Muhairi et al., 2020). Further, the organisation has embraced emerging technologies through innovation and taking the initiative to actualize the Dubai and Emirates BT strategies as outlined by the federal government of UAE. This has created a conducive atmosphere for FAICCPS to collaborate with other public and private entities to make the technology work seamlessly (Muhairi et al., 2020). Their approach has scaled up the BT implementation in less than three years and increased its service competencies. FAICCPS has successfully used BT for transparent, end-to-end transactions, thereby eliminating delays in definitively identifying shippers moving through customs and improving inspection target compliance via greater data accessibility (Buehler, 2022). Further, by using distributed and secure BT, it has improved security, record keeping, inspection rates, and visibility of inbound international shipments.

Discussion

Blockchain technology is an important aspect of technology that has helped FAICCPS to improve its service delivery, efficiency, data security, and timely operations. Through BT, the agency has, in less than three years, been able to provide advanced digital services that are accessible to all individuals and corporates from all parts of the world at any given time of day (White et al., 2022). This trend has been refocused to be the driver of FAICCPS in all its operations and will inform how it collaborates with other sectors of the economy, both public and private. BT has necessitated FAICCPS to deliver one-stop-shop integrated eServices as bundles that give the customers excellent experiences without the need to physically visit offices (White et al., 2022). The features give the users the opportunity to upload their documents, save their requests and submit them later, and get electronically signed documents.

The technology allows FAICCOS clients, such as businessmen, researchers, and individual customers, to get instant, latest, accurate and comprehensive information about economic licences and data, statistics, and reports. The benefits realised so far have convinced FAICCPS and the entire UAE federal government to stamp its authority as the world leader in Blockchain technology and its applications. Currently, across the globe, from almost three years back, many agencies in several countries, including Canada, the UK, Brazil, China, and India, are intensively running pilot studies and trials on BT systems. The tests are based on architectures broad utility as a foundation for government service delivery, procurement, and development of individual BT-based applications (Ganne, 2018). However, each country is striving to create BT apps that are unique to its own internal operations and circumstances within its borders.

In Estonia, the government is piloting BT solutions for voting, identity management, and healthcare (Ganne, 2018). On the other hand, in the United States, the state of Delaware is testing the Blockchain corporate registry system. Further, US federal agencies such as the General Services Administration, the Department of Homeland Security, and the Health and Human Services Departmenthave announced BT programs (Ganne, 2018). Additionally, New York, Illinois, and Texas are among the states that are trying Blockchain applications to determine their potential to improve service efficiency.

BTs proliferation of experiments across the world shows that governments have realised its benefits and impact in the long run. FAICCPS, just like other agencies in the UAE and the rest of the world, must therefore invest in long-term strategic innovations that are needed to maintain BT architecture for effective outcomes. Agency heads, directors, and managers will be required to work closely with BT-based solutions to scale up its adoption and adaptation (Ganne, 2018). Meanwhile, governments, agencies, and private entities must strive to bridge the knowledge gap in understanding BT matters, how it works, and why it is relevant to their operations.

Assessment of Research Results

It is clear that Blockchain technology is key and fundamental to the FAICCOS strategy of improving its operations and service delivery. BT has enabled the agency to transform its work by providing precise, efficient, timely, advanced, and secure customer data (About ICP, 2021). This could not be further from the as FAICCPS was awarded the Platinum Award for the best smart application in the electronic and smart services category in the region for the year 2021. The recognition was organised by the Global Excellence Award, based in the United States of America (About ICP, 2021). The honours were given to FAICCPS because it demonstrated its innovative traits in BT, artificial intelligence, ease of use of its system through interactive screens, simple design, and various security protection standards. Further, the reward acknowledged that FAICCOS eServices were easy to access and available to all people and corporate bodies around the world (About ICP, 2021). This was a clear testimony that FAICCOS BT implementation was a success and has had a big impact not only with the UAE but on the global stage as well.

Key Conclusions and Implications

FAICCPS has an integrated e-service called Basher that enables investors to establish their ventures within 15 minutes. Trade licences and establishment card numbers are among the bundles of services. The introduction and implementation of BT have accelerated accurate, efficient, secure, and timely operations at the agency. This has, over the last three years, increased the number of customers the organisation has been managing to serve per day. Further, through the integration of Blockchain technology in its activities, FAICCPS has been to tighten security and curb the fraud that existed before its implementation.

BT enabled FAICCPS to replace visa stickers on the passports of visitors with electronic Emirates ID cards. This, in turn, helped the firm to reduce the link with the process of issuing and renewing permits for immigrants. Likewise, it has assisted the agency in enhancing its flexibility for individuals who use the identity card as an alternative during their periods of transition. The well-developed and comprehensive regulatory framework, with several features, positions FAICCPS as an excellent global centre for the Blockchain technology industry. Essentially giving it a comparative advantage in terms of existing business networks, and so far, it is among the leading agencies in BT connectivity in the Middle East, North Africa, and India.

The successful implementation has raised FAICPSs interest in implementing a strategy that aims to render their responsibilities to customers efficiently. It is seizing the opportunity and committed to achieving global leadership in the provision of eServices. Additionally, FAICCPS is focused on continuing this trend and making it the benchmark for advanced and effective digital solutions that are accessible to all from any part of the world, at least 24 hours a day by 2023. Further, the implication of all these advances and developments is that FAICCPS has reduced time for service delivery, lowered operation costs, improved work efficiency, enhanced data security, and reduced operating costs. Lastly, the agency managed to go fully paperless, thereby aiding in environmental conservation. However, this process has, in the long run, rendered a good number of its previous staff jobless, thus, losing their sources of livelihood.

Research Limitations and Their Effects

This paper purely relied on a qualitative case study design, and data was generated using document analysis techniques. Therefore, it is limited in the sense that the researcher could not verify the primary data which formed the basis of the findings in the documents used. The effect of this is that there are chances the evidence presented was fake or false and in which case, this study could be presenting non-accurate information. Secondly, this method does not allow for examination of the causal relationships of the variables at hand, and so it is difficult to formulate a hypothesis of the study. Consequently, the findings in this research are not statistically verifiable and are merely descriptions of opinions as presented by entities in their reports. Additionally, most of the information in the paper is qualitative, lacks statistical representation, and the results cannot be generalised.

Recommendations

Tangible evidence shows that BT increased benefits for FAICCPS; however, the agency still needs to gauge and evaluate what applications can work for it better before scaling up the investment. Due to massive cybersecurity issues across the globe, the agency should in the future enhance its system security to avoid the risk of losing its data and clients confidentiality to frauds and criminal activities. Lastly, FAICCPS must strive to implement BT in an optimal manner that does not deprive it of the human element required to ensure progressive engagements in the applications.

List of References

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Blockchain Technologies and Illegal Transactions Risk

Introduction

Launched in 2009, after the introduction of the first cryptocurrency, blockchain technology attracted more and more interest as the popularity of cryptocurrencies grew. Apart from the world of finance, blockchain technologies are increasingly being used in marketing, video games production and different other industries, allowing them to identify, store and process data. However, the first blockchain was implemented as the public ledger for transactions using bitcoin, and is still most commonly used in finances (ICAEW, n.d.). Blockchain technologies are extremely helpful in reducing the risk of crime-related financial transactions because they provide a decentralized, persistent, anonymous and auditable system.

Analysis

The main reason why so many companies have introduced blockchain technology is the fact that it provides them with better cybersecurity, unavailable in other technologies and databases. One of the most common financial crimes in global crypto markets is currently money laundering (Idmerit, 2019). Blockchain is an essential tool to reduce the risk of money laundering, mainly because the data stored in each framework is immutable, and only the members with permission can access it (Idmerit, 2019). Because of the way new blocks are connected to the previous ones, it is almost impossible to tamper with this system, which is decentralized because of the distributed network of its participating members. No one can edit or modify data within the blockchain: people can only append data entries after they have entered the system (ICAEW, n.d.). Thus, blockchain technology prevents criminals from trying to mask their transactions to avoid being detected (Idmerit, 2019, para. 4). Consequently, the technology makes it more difficult to evade the anti-money laundering process, damaging the reputation of the given organization.

It is highly important for financial institutions to implement blockchain technologies, and a number of recommendations can be used to do that. Blockchain is often considered to be the foundational technology for the future of risk management (Deloitte, 2019, para. 2). The institutions can apply risk treatment strategies such as avoidance, mitigation, transfer and acceptance to implement this technology.

First, the system allows removing the activities that increase the risk of the companys data being accessed by criminals, therefore avoiding the risk situation. Second, within the blockchain framework, action is taken to minimize or eliminate the likelihood of the risk situation, as well as its consequences (Deloitte, 2019). Finally, all the parties within the blockchain system are responsible for the parts of or all of the blockchain (ICAEW, n.d.). Therefore, the likelihood and consequences of the risk situation are reduced by transferring a portion of it. All this enhances the security, traceability and transparency of the blockchain technology as well, which, in turn, will benefit the financial sector and other industries in the long run.

Conclusion

All this allows the conclusion that blockchain technologies are going to be the most efficient way to ensure security in financial transactions for years to come. This is because this system is transparent, available, immutable, and decentralized, and it can only be accessed by the participants who have permission. It is highly recommended for the institutions that have not implemented the blockchain system to do so because it would ensure the security of their data on many levels. Money laundering and other crime-related transactions can be successfully avoided in the blockchain system, and strategies like risk avoidance, mitigation, transfer and acceptance can be applied to introduce this system.

References

Deloitte. (2019). Web.

ICAEW. (n.d.). Web.

Idmerit. (2019). Web.

Potential for Blockchain Inclusion in Voting System

Voting and ensuring a secure election system for candidates in the government or any society is essential and undoubtedly one of the most important processes that needs to be managed with high precision so that a fair representation of the votes can be reflected when making the decision. However, with the advancement of technology and hacking tools available for exploitation, malicious methods are being put to test to infiltrate the database as well as voting machines to distort and create a havoc within the voting system. As such, it can eventually reach the stage where results can be rigged and used to portray an unjust outcome that has potential to cause corruption and discourage voters from placing their choices in the first place.

Ensuring voting confidentiality and security has become a huge spotlight issue with citizens raising their voices and opinion to find effective solutions to alleviate the problem and relieve people from concerns.

Hence, blockchain technology has the potential in both political and technological aspects to maintain privacy, minimize election costs and most importantly ensure all votes deemed legitimate are counted and reflected. In the modern online voting system, votes are submitted through a system where there is a main database that collects and keeps track of all the votes casted through the server. Each vote is then tallied and verified so that there are no duplicates between different people and that there are no fraudulent activities. However, there are potential problems out there with technology facing the current voting systems when servers become too full or unable to handle the quantity of votes being placed at once. This could then lead to problems ranging from validation of votes placed from many different locations or hacking into it to place unauthorized votes.

When incorporating blockchain technology into a voting system the registration of voters will have to first take place physically and done through a way where eligibility is determined correctly. Once the voter falls into the eligible category, they would receive a special key or single token through blockchain that would allow them to vote only once. Furthermore, due to the fact that the voting process will not pass through a central agency but become decentralized it will essentially enable votes to be placed across multiple locations rather than one single central agency where it will have to hold onto all the data that is being placed. This will be under the condition that all those accessing are registered and eligible to vote. Ultimately, this will ensure that voters will only be able to vote once which subsequently will remove the extraneous error of duplicates.

Furthermore, the blockchain itself will act as the distributed ledger where all shared and synced information such as the voting results will be spread across multiple location or node and not just one central agency or main database. It will instead function and act in accordance with the blocks or nodes spread out, that will process, validate and take digital data from all of the transaction across the whole node in the system. This will mean that checking information will be easily identifiable due to its link and extremely difficult to infiltrate or break due to decentralization that allows the node to exist in multiple places rather than one single system. If hackers did want to make any amendments of the election results in any way, they would have to infiltrate every node of the network simultaneously, change all the past history and transactions that have been made whilst recalculate the next blocks in the chain to create a new consensus (Gregor, 2018).

Consensus mechanisms are fundamentally protocols that have been formed to ensure and provide all nodes which contain information are in synch with each other and determine which addition of data is legitimate and able to be added to the transaction ultimately forming the blockchain. There are many consensuses mechanism protocol out there which respectively involve different ways of operation.

Proof of work (PoW) is the most commonly use and original consensus mechanism and is where miners (special users of Bitcoin) will solve complex mathematical puzzles to find the nonce value which in turn will validate the transaction. The first one to solve this puzzle will get to create the forthcoming block and receive rewards for creating the block.

Delegated proof of stake is also known as DPoS in another type of consensus algorithm and comes from proof of stake in which a certain size or limited number of block makers/miners are selected to mine and build blocks in a systematic sequential order. Due to the limited capacity that can be held, block producers are selected based on a voting scheme where users in the network will choose who will be elected and have their secure position in the network and conversely who will be removed. Moreover, the voting authority will be correlated to the number of tokens each user hold. Thus, those that do get enough votes will remain in the threshold and have their ownership/stake on the network. Lastly, the rewards that are given to those on the network will be shared with their counterpart voters.

Proof of stake is a little different to PoW and this is different in the aspect of where miners require solving mathematical puzzle to validate the next transaction, there is no need in PoS for doing these rigid complex tasks. Instead, miners are simply selected based on a random token quantity selection method to validate the transaction.

However, to be more specific, miners in this protocol have to stake in a certain amount of tokens in their desired blockchain network and consequently the more you stake or invest in the network the higher the probability you have of being nominated to validate the next upcoming transaction and most importantly receiving the respective reward. The more you stake the higher your chances of getting nominated to verify a transaction and getting the reward for doing so.

Delegated proof of stake (DPoS) would be the most appropriate and fitting consensus mechanism choice for the voting system. It is one of the faster and quickly processible operation as well. For instance, if all votes placed in the network to their designated choice and is then transmitted to every other user to confirm the transaction, it will be easily identifiable for any rejections that did take place since only the chosen miner for each part is allowed to determine the outcome of the block.

In the real voting system, a similar methodology could be taken where the network adds the block of votes to the chain and a user or miner who is authorized to confirm the validity of the votes verify the transaction. This block is then escalated to the next level where all remaining miners on the network make the final agreement decision on the vote.

By getting confirmation from multiple users dispersed across the network we can evenly spread the load reducing the traffic and error possibility as well ensure that the system maintains its activity where sometimes high traffic on one certain area could lead to crashing or unexpected failures.

The integrity and traceability of a voting system can be somewhat ensured using blockchain technology which can range and involve from securing the privacy of voter and ensuring their election votes are counted and legitimate. This can be done through this blockchain technology as votes or ballots placed will be confidential and private since only the designated voter will have access through a special private key. Furthermore, due to blockchain running through a decentralized system rather than one central agency where all information is collected all of the votes or ballot information will be simultaneously captured and encrypted in multiple locations where hacking this system will require extreme technical knowledge and advance tools.

To be able to access the information, hackers would have to use malicious methods to infiltrate each and every database located in different networks rather than one single network. More importantly, if anyone attempted to modify or amend the information, all of the entities inside would be instantly notified and would quickly respond to the situation. However, we cannot reassure ourselves with the current blockchain technology as like all technology it is never perfectly secure and impossible to penetrate through hacking methods.

Blockchain technology in voting system will have many potential advantaged due to the technological advancement it can benefit from like explained above. It will help reduce the breach gap in regard to the security aspect and minimizing fraudulent activities regarding the election.

However, like always there is a drawback for any technological advancement, as voting online through blockchain could still be in current stage be extremely dangerous and vulnerable due to the Internet and online aspect being an open source and not enough security requirements developed onto it yet.

Blockchain technology is a recent issue and has gained a lot of spotlights in the media due to the innovation it can potentially bring and change the operation fashion of many areas from security and efficiency of how things can be better. Nevertheless, it has still not been fully uncovered of its potential and therefore it cannot be fully acclaimed that things will change drastically and be revolutionary in a positively ethical way. However, what we can reassure ourselves is that there is massive potential out there and a bright future if able to execute this technology right.

Integrity Verification In Patient Medical Records

Abstract

A patient’s medical record identifies the patient and contains information regarding the patient’s case history information such as medical history,care or treatments received,testresults,diagnoses and medications taken.These information regarding the patient records can be misused or stolen or even lost because of the third party access.At times insurer may not have the updated medical information and hence may refuse to pay for the treatment.So to overcome these issues we store the patient records on the blockchain.By implementing the patient records on blockchain we can overcome the various issues on integrity and security.The encryption on data is been done which is used for improving security of the records.

Introduction

A patient’s individual medical record identifies the patient and contains information regarding the patient’s case history information ,care of treatments received, test result, diagnoses, and medications taken. Medical information can be tampered with, misused, stolen or even lost because of the intermediaries getting access to it. At times, the insurer, may not have the updated medical information and hence may refuse to pay for the treatment. Hence to overcome these issues medical record may be stored on a blockchain

Today blockchain is a growing list of records in which either the data is stored or the respective hash of the data is been stored. A blockchain consists of Timestamp, Hash value, previous hash. Timestamp is the one which records the time taken for a particular action or event. Hash value are the cryptographic functions which are used to link the blocks in the blockchain and the previous hash of the blockThe first block is called genesis block which has a zero value of previous hash.

A Blockchain is a decentralized ,distributed and public data ledger that is used to record transactions across many computer so that any involved record can be altered retroactively. Its database is usually managed using a peer to peer network. It is an value exchanging protocol.Blockchains are classified as Public Blockchains,PrivateBlockchains,ConsortiumBlockchains.

A public Blockchain as the name says there is no restriction for the access .The user who uses internet can access the records and send transactions and can also edit the records and will automatically become a validator.These public blockchains are Bitcoin and Ethereum

A private Blockchain undergoes authentication process or it is permissioned .An user cannot join the network unless and until he is been authorized or invited by the network administrators.So here an user cannot edit the records or send transactions which restrict the option of validator.This types of blockchains are used by companies handling sensitive data.

A consortium blockchain is a semi-decentralized.In this instead of single company,multiple companies operate on each node.The network administrators of this blockchain restrict reading rights and allow only a limited set of trusted nodes as they see fit to execute a protocol.

Existing Work

The paper Integrating Blockchain for data sharing and collaboration in Mobile Health care application[1] deals with collection of data from personal wearable devices,manual input, and medical devices and synchronize data to the cloud for data sharing with healthcare providers and health data and health insurance companies.For preserving the integrity of health data,within each record,a proof of integrity and validation is been retrieved from the cloud database and which is been anchored to the blockchain network.

A system is proposed for maintaining EHRs to secure them before deploying them for sharing among healthcare providers. The proposed system is based on the following: A web-based system with secure login and registration.Cloud storage for flexible retrieval and is a feasible alternative. Data Classification and Encryption.

Web-Based System With Secure Login And Registration[2]:A web-based system can be accessed anywhere, anytime with the help of good internet connectivity. The system is designed in such a way that only authorized users to access the relevant information. Patients and doctors have to first register. After registration, they will be a given a Unique Key that will be used by them to avail the information.

Cloud Storage For Flexible Retrieval And Is A Feasible Alternative[2]: Cloud storage provides rapid deployment. It has greater accessibility and reliability, also data backup and disaster recovery is possible. The overall storage costs are low because there is no need of purchasing, managing and maintaining expensive hardware that makes Cloud storage economically feasible.

Data Classification and Encryption[2]:Classification is done on the basis of sensitivity levels of confidential medical information. Data that falls under higher sensitivity will be given more security focus as compared to its less sensitive counterpart. Data is classified as authentication information, personal details and medical tests and reports. Medical tests and reports need highest security from exposure to unauthorized access than authentication information and personal details. This is done using various cryptographic techniques like Rivest-Shamir-Adleman (RSA) Algorithm, Advanced Encryption (AES) Algorithm to provide security to the data according to their associated sensitivity level.AES, RSA for providing confidentiality. Hashing techniques such as SHA-1, MD5 for integrity, e.g. passwords. For authenticity they proposed digital signatures. Security for databases. Possible elimination of different attacks like SQL Injection, Cross Side-Scripting, etc

In hospitals, documents consisting of sensitive patient information, that is stored digitally and security of such documents are very much essential [3]. Privacy of such sensitive information can only be guaranteed, if it is encrypted by the data owner before it is being stored in data centers. In this work, the high end security is provided for the patient‟s sensitive data thereby ensuring maximum privacy for the patients.The users of this system are doctors and researchers. For registration, doctor needs to provide his username and password. Thereafter doctor can either view or needs to enter the patient‟s details such as name, age, health type etc.This is the work implemented on ‘Advanced Protection for patient information in medical database’

A data-hiding technique called the “bipolar multiplenumberbase” was developed to provide capabilities of authentication,integration, and confidentiality for an electronic patientrecord (EPR) transmitted among hospitals through the Internet[4] which was proposed on the paper ‘A data hiding technique with authentication integration,and confidentiality for electronic health records’.The proposed technique is capable of hiding those EPR relateddata such as diagnostic reports, electrocardiogram, and digital signaturesfrom doctors or a hospital into a mark image. The markimage could be the mark of a hospital used to identify the originof an EPR. Those digital signatures from doctors and a hospitalcouldbe applied for the EPR authentication. Thus, different typesof medical data can be integrated into the same mark image. Theconfidentiality is ultimately achieved by decrypting the EPR relateddata and digital signatures with an exact copy of the original mark image. The experimental results validate the integrity andthe invisibility of the hidden EPR related data. This newly developedtechnique allows all of the hidden data to be separated andrestored perfectly by authorized users.This paper also uses Blockchain technology.

The proposed approach in building this[5] model is to use blockchain technology as a solution to address eHealth applications challenges. They give attention to data exchange security and sensors’ low computational power. First, it is infeasible and provokes very poor performance to store all the data on the blockchain, so the blockchain will be used as a tool to transfer only part of the data, or a pointer to where the data actually is, and thus, Off-Chain database. IPFS is a tool that has been already discussed in Section II. This will be used in our architecture as Off-Chain database to store medical data [13].

This approach is based on blockchain technology to mainainsecuriy and integrity by cloud computing storage[6], they studied the potential to use the Blockchain technology to protect healthcare data.They suggested to store the health care data in off-storage that is not to directly store it in database only the hashes should be stored on-chain for secure storage.

The proposed features summarize what is implemented to overcome the challenges such as : (1) record type, (2) storage, (3) medical records and reports, (4) ownership and reading right, (5) data security, (6) western medical practice and Chinese medical practice, (7) patient’s right of knowledge,for the development of a reasonably sound and safe medical record system that will benefit most patients. Medical record types, formats and storage are the first few challenges in the whole development cycle.

They are resolved by today’s technology without much challenge. Whether they use off the shelf ready-made software or customer-designed system, it is never a challenge right now. They[7] have a centralized system with backup in different locations for data storage, new data insertion or instant data record reading. Different channels are established for accepting documents or multi-media files. Standardization is been achieved by converting all files into a couple reading formats. All medical tests, test interpretation, diagnosis, treatment and recovering progress reports are important data records or files. A general medical report system are utilized different channels for accepting the data or files. A web based good looking user interface can be developed for such purpose.

It can upload individual files or a batch of files. As for the data or progress reports contributed by patients can be inputed through web based interfacing portal. All uploaded data files and records are now been saved to a centralized storage area or database for future retrieval. All records or files will be digitally signed by owners/contributors and will designate the possible viewing counterparties. Each record will be used later for either patient’s view, or original medical doctor’s review, or be reviewed by other medical doctors for further diagnosis and treatment, or be retrieved by court for judicial process[7].This author has proposed a system but yet to implement it.

The defects in these systems are the hashing is done through SHA-1[2] but for integrity verification SHA-256 is the best choice which is a type of SHA[2] .Similarly they use RSA algorithm while we use AES encryption technique for better security.

RESULTS AND DISCUSSION

In this work we have ensured integrity for patient medical Records and assigned user roles for the accessing of the data. We have used SHA-256 and MD5 for hashing and compared the results and for encryption we have used AES encryption.Both SHA-256 and MD5 algorithms performed as expected.SHA-256 works slightly slower than MD5 but believed to be more secure. Therefore, we suggest that when computing capability or time is not a concern then SHA-256 may be better to use than MD5 since it may be more secure than MD5 due to the more bits used in the encrypted output message.

We store the hash value in the block chain and the previous hash is used for verification or modification in the medical records. Increasing the difficulty level of mining process increases the time taken to add a block.

CONCLUSION AND FUTURE WORK

In this work, we have implemented the block chain technology for ensuring integrity in patient medical records by using hashing and encryption algorithms. Our future work is to implement it as an mobile application using any of the exiting blockchain platforms.

REFERENCES

  1. Liang, X., Zhao, J., Shetty, S., Liu, J., & Li, D. (2017, October). Integrating blockchain for data sharing and collaboration in mobile healthcare applications. In 2017 IEEE 28th Annual International Symposium on Personal, Indoor, and Mobile Radio Communications (PIMRC) (pp. 1-5). IEEE.
  2. RizwanaShaikh 1, Jagrutee Banda2, Pragna Bandi. “Securing E-healthcare records on Cloud Using Relevant data classification and Encryption”. In International Journal Of Engineering And Computer Science , 2017.
  3. Ramdas, Shruthi, and K. Ankitha.’Advanced Protection for Patient Information in Medical Database.“In IJCSMC-International Journal of Computer Science and Mobile Computing , 2017
  4. Chao, H. M., Hsu, C. M., &Miaou, S. G. (2002).A data-hiding technique with authentication, integration, and confidentiality for electronic patient records. IEEE Transactions on Information Technology in Biomedicine, 6(1), 46-53.
  5. Rifi, Nabil, ElieRachkidi, NazimAgoulmine, and Nada ChendebTaher. ‘Towards using blockchain technology for eHealth data access management.’In 2017 Fourth International Conference on Advances in Biomedical Engineering (ICABME), pp. 1-4.IEEE, 2017.
  6. Esposito, Christian, Alfredo De Santis, GennyTortora, Henry Chang, and Kim-Kwang Raymond Choo. ‘Blockchain: A panacea for healthcare cloud-based data security and privacy?.’ IEEE Cloud Computing 5, no. 1 (2018): 31-37
  7. Liu, P. T. S. (2016, November). Medical record system using blockchain, big data and tokenization.In International conference on information and communications security (pp. 254-261).Springer, Cham.

Blockchain’s Potential to Improve Environmental Sustainability

Do you know that around 800 million people are currently vulnerable to many life-threatening risks like floods, droughts, hurricanes, heat waves, sea-level rise, and extreme weather events? Species are going extinct. Oceans are suffocating. Ice regions are melting. And the lives around us are at stake all because of our actions like deforestation, excessive carbon emissions, pollution, etc. At the same time, we are also seeing the convergence of the technological. biological, and physical realms. The Internet of Things, artificial intelligence, blockchain, virtual reality, and mobile application development technologies are affecting economies, values, identities, and possibilities for future generations. So, it’s high time for harnessing these technologies to address environmental issues and transform how we manage our shared global environment. In this article, we are focusing on the potential of blockchain to mitigate many existing and emerging environmental challenges.

When it comes to environmental sustainability, four qualities of blockchain count here:

  1. Decentralization – peer to peer system with no intermediate channel to manage the data;
  2. Immutable records – the data stored in a blockchain is unalterable;
  3. Traceability – all public records are completely traceable from inception to expiry;
  4. Equity – equal treatments in regulations, requirements and distributions.

These qualities of blockchain come in handy in multiple ways in sustainable development. They help reduce bureaucracy and fraud, make organizations more transparent and democratic, track the movement of products and resources, and encourage people to adopt environmentally friendly practices.

Currently, six environmental challenges need imminent proactive action. They are climate change, biodiversity loss, natural disasters, ocean-health deterioration, air pollution, and water scarcity. So, let’s see how blockchain can mitigate these challenges.

Sustainable Supply Chains

Have you ever wondered if the products we buy from stores are produced in environmentally friendly ways? Even if you did, it’s impractical to get and verify such information. Because the products go through many hands before they reach us. So, who knows how they are made and processed? But, a blockchain-based supply chain system provides complete traceability of products from source to store with immutable records. For example, let’s say we are buying organic food. So, this system allows us to check if it’s produced organically and ethically, check where they dump the waste, monitor its complete life cycle and movements, and many more. Not only does this help us make better-informed decisions, this transparency can also put an end to many illegal and unethical practices in supply chain management such as illegal fishing, unethical timber cutting, illegal waste deposition, etc.

Saving Energy and Water

Do you know that there are around 1 billion people in the world with no access to clean water and electricity? It’s disturbing to even think about such a scenario, right? Well, it’s our reality. This is partly due to inefficiencies in the current resource distribution system. Many factors such as transportation loss, disparity in distributions, and illegal extraction contribute to this inefficiency. A decentralized resource management is the ultimate solution to this. it connects the users directly to the source, without the need of intermediaries. A decentralized energy grid can direct the energy from where it’s produced to where it’s needed with no tampering and leakage along the way. Similarly, a decentralized water distribution system enables us to check if the water is distributed as scheduled, check its quantity and quality, reinforce water conservation, and detect illegal extraction or water tampering.

Reducing Carbon and Greenhouse Gases

Carbon and greenhouse gases are the main culprits behind current environmental challenges such as climate change, chemical pollution, and ozone depletion, and so on. Although there are many rules and regulations to control these emissions, few people follow it strictly. So, companies can lie about their allowed rate of emissions and cause to aggravate many environmental risks. Blockchain can eliminate all these discrepancies by bolstering traceable and immutable records of carbon credit transactions such as carbon footprint and carbon tax. This will also encourage companies to restructure their business model to meet sustainability demands.

Protecting Biodiversity

Earth’s biological assets are facing unprecedented threats due to the violation of many planetary conditions. Reports say that one in five species earth is already on the verge of extinction. And we lost nearly 1 million hectares of coastal ecosystems over the past years. Blockchain’s applications can minimize these risks to a great extent. For instance, we can reinforce many environmental laws such as forestry laws, fishing laws, hunting laws, and pollution control laws and ensure that they are strictly followed. We can also monitor the pillars of an ecosystem such as lands, oceans, forests, resources, and species living in these habitats in a geospatial digital ledger. This way, we can spot and eliminate any illegal activities that can affect the healthy conservation of diverse species and habitats.

Controlling Pollution

Estimates predict that by 2050, there will be more plastic waste in the ocean than fish. Blockchain can encourage people and organizations to practice the right way of valuing and treating the materials and natural resources. For example, we can transfer cryptocurrency credits to individuals and companies as a reward for following sustainable practices such as collecting plastic from land and oceans, recycling materials, and saving water. Plastic Bank and RecycleToCoin are some platforms that do exactly that.

Proactive Disaster Management

The scale and frequency of natural disasters are increasing day by day, partly due to climate change. Natural disasters are often unpreventable. The only thing we can do is prepare for foreseeable natural disasters and manage real-time responses to repair their consequences. Blockchain can be very handy in these situations. For example, financing and coordinating immediate support and supplies to people in need in the affected areas. By connecting the suppliers and those who deliver the supplies with blockchain, we can track the movement of supplies to ensure that they are delivered at scheduled times in specific locations.

Final Thoughts

There is a great deal of incentive for these sustainability initiatives in the technology world. IBM’s ‘Call for Code’ initiative and Amazonia third way initiative called ‘Earth Bank of Codes’ are a few examples of that. Mobile app development also has a commendable role in popularizing environmental practices. Blockchain-powered mobile apps like FoodTrax, RecycleToCoin, EcoChain, SolarCoin are helping people embrace environmental practices. So, let’s just hope that these opportunities will encourage stakeholders to take action for a better planet.

Blockchain-Based Community Battery Storage System

The world, including developed and developing countries, is gradually switching to renewable energy sources (RES), and Egypt is among them. A significant energy transition occurs in the Egyptian population with in-house battery storage systems, and the state is politically supporting this process (Gabr et al., 2020). However, “the large-scale amalgamation of intermittent RES causes reliability and stability distress in the electric grid” (Datta et al., 2020, p. 1). The current moment provides a unique business opportunity to implement a community-level battery storage system based on blockchain technology that would provide sustainable electricity for the Egyptians and contribute to the development of new RES infrastructure.

The rationale for this project lies in a gradually accelerating energy transition, which, if not adequately addressed, could lead to power outages and malfunctioning of the energy infrastructure in the country. The fields of blockchain technology and battery storage systems have just started to interact (Deign, 2018). However, one can safely say that some progress has been achieved as models of community battery storage systems where market transactions are carried out through blockchain software already exist (Truong et al., 2018). The proposed enterprise is expected to provide affordable, simple, innovative, safe, and sustainable energy infrastructure. A flexible and responsive community battery storage system would be developed through novel software and high-tech hardware to provide electricity to urban and rural Egyptian residents. Similar models already exist; however, a centralized one that allows its customers to buy battery storage resources online and pay for them at any stage of purchase and delivery has not yet been developed.

As noted above, researchers and business people are already experimenting with these two technological phenomena and putting the newly developed energy frameworks into practice. The innovation and originality of this proposed blockchain-based community battery storage system lie in its approach to electricity consumers. The project proposed here would provide its future consumers with new infrastructure, comfort use, quality service, and safety in exchange for just one traditional resource: money.

One can safely say that the proposed blockchain-based community battery storage system has some unique features. Its comparative advantages are the flexibility of its online payment system, innovative software, and the fact that future customers would no longer have to spend a lot of time dealing with their in-house battery storage systems. Its only weakness is its heavy reliance on its digital side. It would be problematic for future consumers to pay for and receive energy products without an online connection. The current global attitude towards electricity and energy resources is beneficial for the proposed blockchain-based community battery storage system. It might even be possible to obtain additional funding from multinational organizations to implement and introduce the described project into the existing energy infrastructure of Egypt. The fear of some residents of a partial loss of their energy independence is the only threat identified here. The described project would have a significant advantage in convenience and accessibility for its customers.

The innovative blockchain-based community battery storage system has already passed the first initiation stage and is in its planning phase. Major concepts and ideas regarding material equipment, digital software, and their interactions were thought out and formulated, and minor details such as perceptions and reactions of potential customers were analyzed. RES and related technologies are a global topic, so is the growth potential of the proposed project. Quickly entry into international markets is possible but would not be easy, as this field is rapidly filling up with new market players. Technological implementation of the proposed energy system is possible as RES and blockchain technology are well-researched scientific areas, and several potential big investors friendly towards green tech already exist.

References

Datta, U., Kalam, A., & Shi, J. (2021). A review of key functionalities of battery energy storage system in renewable energy integrated power systems. Energy Storage, 3(5), 1-21. doi:10.1002/est2.224

Deign, J. (2018). Battery storage comes to the blockchain. Greentech Media. Web.

Gabr, A. Z., Helal, A. A., & Abbasy, N. H. (2021). The viability of battery storage for residential photovoltaic system in Egypt under different incentive policies. International Transactions on Electrical Energy Systems, 31(2), 74977-74988. doi:10.1002/2050-7038.12741

Truong, C. N., Schimpe, M., Bürger, U., Hesse, H. C., & Jossen, A. (2018).. Energy Procedia, 155, 3-16.

Blockchain for Government Administration

Introduction

The adoption of new technology is often pioneered by private organizations incentivized by the need to attract customers and grow profits. In contrast, public entities may change their processes slower due to established rules and traditions. As a result, such new advancements as blockchain are not used by many governments, and the knowledge of its potential benefits is not discussed. The following investigation explains what blockchain is and offers some reasons for using this technology to improve government administration.

What Is Blockchain?

To investigate how blockchain can be implemented into the public administration system, it is vital to understand what it is. According to Berryhill et al. (2018), blockchain is “a form of distributed ledger technology” – a list of recorded transactions stored in a peer-to-peer network. This definition implies that the information contained in the system is shared among its “nodes” – the participating actors running the necessary software (Berryhill et al., 2018). This data is sent to all nodes when a transaction is created or updated. Furthermore, this information can be encrypted, meaning that it will be accessible only to users with permission to read it.

Based on these descriptions, blockchain presents several benefits – first of all, in theory, it prevents the recorded transactions from being deleted, altered, or otherwise tampered with without alerting other users. As each new ledger change is shared across the chain, an authentic version of the information is always available. Therefore, blockchain can provide transparency to all parties and record data changes. Furthermore, the existence of a peer-to-peer network removes the third party from any transaction, leaving only people or organizations involved in the transaction. For example, banks that transfer money between two people are no longer needed if the transaction is performed in a blockchain.

Blockchain and Government Administration

As discussed above, blockchain technology is often linked to such concepts as transparency, immutability, and sharing. In government administration, these ideas are often underdeveloped, especially in areas where paper-based documentation and information storage are still used. Blockchain can make many processes in the public sector more efficient, safe, and quick. First, government administration can utilize the blockchain to create a unified system of identification for residents, organizations, and other entities (Moura et al., 2020). For example, many people have records of their birth certificates, marriage licenses, passports, and other documents in different departments, cities, and even countries. With blockchain, the system can hold all documents and track their changes regardless of one’s physical location. Moreover, government employees may be able to access this data without the need to send requests to other authorities. Other records can be kept in similar networks, improving information sharing in healthcare, financial services, insurance, and more,

Another potential application is a system for tracking financial transactions, including benefits, aid, contracts, and bids. In this case, blockchain can ensure transparency as all authorized users see every operation. Moreover, as these operations require significant information and have strict eligibility requirements, they take a long time to complete (Tan et al., 2022). The implementation of blockchain technology can streamline all processes and help the government approve or reject applications quicker, record all information about payments, and share it across agencies automatically.

Conclusion

Blockchain is an interesting technological advancement that offers many opportunities to the public administration segment. It can become a system of shared information storage and transfer. Government administration should use blockchain to increase efficiency, overcome the issue of slow interagency cooperation, and become more transparent. Among the many uses of this technology, the two most notable are the creation of a system for resident identification and a record of all financial transactions.

References

Berryhill, J., Bourgery, T., & Hanson, A. (2018). . Web.

Moura, L. M. F. D., Brauner, D. F., & Janissek-Muniz, R. (2020). . Revista de Administração Contemporânea, 24, 259-274. Web.

Tan, E., Mahula, S., & Crompvoets, J. (2022). . Government Information Quarterly, 39(1), 101625. Web.

Blockchain in UAE’s Federal Authority for Identity

Executive Summary

Blockchain technology permits a combined category of select actors to share data. Its importance is gaining momentum as governments and public agencies are beginning to integrate the process for their daily transactions. One of such entities is FAICCPS, an agency in UAE that decided to invest in the creation of a new data management system using the BT. Therefore, this paper reviewed and discussed the impact of BT on the federal authority for identity, customs, and port security in the UAE. The research was formulated and executed through a case study design, and the study relied on secondary data generated through the document analysis technique. This was followed by analysis guided by comprehension, synthesis, theorising, and decontextualizing of the facts as they were presented in various materials. The findings revealed that FAICCPS managed to enhance accuracy and efficiency and provided timely and transparent delivery of services. Thereby reducing time for service delivery, lowering operating costs, improving work efficiency, enhancing data security, and reducing operating costs. However, FAICCPS still needs to invest heavily in cybersecurity to curb fraud and criminal activities.

Introduction

Background Information

Blockchain is defined as a ledger of decentralized data that is securely shared. The technology enables a collective group of select participants to share data. With Blockchain cloud services, transactional data from multiple sources can be easily collected, integrated, and shared (Hayes, 2022). Further, it is a distributed database that keeps data electronically in digital format and is very important for maintaining safe and decentralized information and transactions in cryptocurrency systems. This technology guarantees the accuracy, trust, and security of data (Hayes, 2022). Unlike a conventional database, Blockchain is structured such that it collects details in groups called blocks, with each having a specific storage capacity. However, the filled block is linked with one another so that they form a chain of records. The primary reason for Blockchain is to allow the capturing and distribution of data without editing them (Hayes, 2022). Thus, it is the foundation of permanent ledgers of transactions that are not changed, deleted, or erased.

Over the years, Blockchain has exploded through the creation of several cryptocurrencies, decentralized finance applications, non-fungible tokens, and smart contracts that allows full transparency, efficiency, and cybersecurity. The importance of Blockchain technology is gaining momentum as governments and public sector organizations are beginning to adopt and integrate the process for their daily transactions. For example, the FAICCPS, operating in the UAE, is using it to enhance its responsibilities.

Federal Authority for Identity and Citizenship (ICP) was established on September 29, 2004, under the name “Emirates Identity Authority.” Its core functions included keeping an electronic database of personal and vital data for all people in the country as well as issuing Emirates ID cards to individuals’ incorporation with other government agencies (About ICP, 2022). Since its creation, ICP has specialized in giving identification and confirmation services to individuals within federal and local governments and all other entities. Further, it is authorized under the law to ask for the necessary information from other state agencies to fulfill its mandate (About ICP, 2022). The Federal Decree-Law No. 3 of 2017 necessitated the change of its name to “Federal Authority for Identity and Citizenship (FAICP).” Additionally, the agency portfolio increased to include functions such as citizenship Affairs, passports, and entry and residence of foreigners in the state (About ICP, 2022). The terms of reference and powers assigned to the Ministry of Interior were equally transferred to FAICP.

In 2021, the UAE’s leader issued a further order to merge the Federal Authority for Identity and Citizenship with the Federal Customs Authority and the General Authority for Ports, Borders, and Free Zones Security. The new entity was then called the “the Federal Authority Identity, Citizenship, Customs and Ports Security (FAICCPS) (Expat Media, 2021). In addition, the new mandate for the agency was spelled as regulating privileges, passports, access, and dwelling of foreigners in the country, upgrading ports, boundaries, and open areas security, and elevating their efficiency and readiness. Consequently, it was given the role of arranging and overseeing customs work in the country in line with global standards.

Further, FAICCPS is expected to formulate policies, strategies, and laws associated with recognition and people’s affairs, passports, entry and residence of immigrants, customs, and dock safety, along with other business for Cabinet concurrence. Along the same line, FAICCPS should establish, develop and upgrade the population registry and personal data system in the country and manage it in line with the best practices (Khaleej Times, 2021). To actualize these tasks, the agency was therefore decided to set up systems, programs, and procedures to enhance the accuracy, security, efficiency, and competent delivery of its responsibilities. Essentially, the resources of FAICCPS end up with a lot of digital data that needs to be effectively managed and fully transparent. Adopting Blockchain technology, thus, was meant to eliminate any possibility of its data being compromised, and it inculcates transparency in its processing procedures. Additionally, FAICCPS recognized that it works incorporation with other organizations, both public and private, to accomplish its mandate. Therefore, it must constantly exchange necessary information through secure channels with other public sector bodies and stakeholders.

FAICCPS needed a technology that could help them keep information in blocks protected by hashing. The idea was to replicate a process that has tight cybersecurity to prevent unauthorized persons from gaining access to the system. In addition, FAICCPS wanted a system that could allow the creation of a “digital profile” of each citizen, with data stored as multiple copies in blocks of the distributed network (Khaleej Times, 2021). Purposely arrange data in blocks that give room for improving data processing speed. This necessitated the selection of Blockchain technology, which simplified the bureaucratic part of administrative work at FAICCPS and ensured effective automation of data sets through distributed databases, eliminating errors.

Problem Statement

FAICCPS, as a newly created multi-agency government organization, needs to handle large amounts of data of strategic value. The administrative work associated with the need for bureaucratic paperwork impedes the efficiency of FAICCPS (About ICP, 2022). Additionally, the increased economic speed of the UAE, combined with the investment and tourism attractiveness of the country, creates the need for secure, precise, efficient, fast, and transparent data management for the country’s national security. However, there were gaps between the anticipated changes related to improving the organization’s operations and efficiency and the real work going on within FAICCPS (About ICP, 2022). This enormous task and responsibility called for the review and adoption of a new pragmatic and efficient data management system by FAICCPS. Consequently, FAICCPS invested in the development of a new data management system using Blockchain technology (BT). Therefore, this paper reviewed and discussed the impact of BT on the federal authority for identity, trade, and dock safety in the United Arab Emirates.

Research Questions

The paper looked into the research questions such as the operational challenges that FAICCPS currently faces, the expected KPIs performance indicators in the agency, and the benefits that the implementation of Blockchain technology created for the organization. Additionally, the paper tried to answer the question of the challenges that FAICCPS might face by adopting and implementing the Blockchain system as a mechanism for improving its operational efficiency.

Objective/Aims of Research

The project aimed to explain in detail the practical framework of the benefits and opportunities of Blockchain technology in the FAICCPS. In addition, it focused on conducting a literature review and identifying the key challenges facing population registration companies. Further, it explored the existing examples of intelligent solutions for public companies to improve their operations and assessed the possibilities of using Blockchain technology in public sectors. Lastly, the study analysed the opportunities and challenges that could become relevant to the FAICCPS after the operational changes.

Expected Outcomes

The paper is expected to come up with the conclusions on the challenges FAICCPS currently faces and reveal the performance level of BT automation at the agency. Further, it demonstrates the benefits that FAICCPS has so far realised as a result of going digital in its service delivery and then highlights the issues that could impede the organisation from improving Blockchain technology efficiency during its implementation. Lastly, the research will, after the findings, make recommendations on how FAICCPS could improve on the grey areas which prevent smooth operations currently and in the future.

Literature Review

The president of UAE ordered the merging of the three government entities: The Federal Authority for Identity and Citizenship, Federal Customs Authority, and General Authority of Ports, Borders, and Free Zones Security. A new agency called the Federal Authority for Identity, Citizenship, Customs, and Ports Security was formed (Expat Media, 2021). FAICCPS is responsible for formulating laws, regulations, standards, and requirements for passports, citizenship, entry affairs, and foreign residency for cabinet approvals. Further, it manages affairs of citizenship, entry into the country, as well as customs and port security. To meet this challenging task, FAICCPS adopted Blockchain technology to enable it to execute its mandate accurately and efficiently (UAE, 2021a). This followed the launching and adoption of BT by the UAE government in its strategy to transform 50% of government transactions into the BT platform (UAE, 2021a). The aim was to make Dubai the first city fully powered by BT by 2020, and it was anchored on efficiency, industry creation, and international leadership standards. The UAE government, through FAICCPS, has been proactive in implementing this approach to actualize its dual goal of improving services and citizen engagement.

FAICCPS Company Analysis

Currently, FAICCPS is responsible for coordinating services such as citizenship, passports issues, entry and residence of foreigners in the UAE, as well as customs and port security. The agency prepares laws, regulations, standards, and necessities in its various categories of responsibilities and sends them for cabinet approval (Expat Media, 2021). It sets up procedures for issuing IDs to all citizens and residents. Further, it promotes and enhances the efficiency of the ports, borders, and free zones security and manages customs work. According to the set standards, the authority develops unified processes related to inspection, control, tariffs, data, and combating smuggling and frauds (Expat Media, 2021). Additionally, it issues, renews, suspends, withdraws, closes ports, and freezes licences for individuals and companies. FAICCPS develops and updates the country’s population register and personal data system (Expat Media, 2021). Internationally, the organisation represents the UAE government in signing treaties and agreements with other countries and global bodies in several relevant fields.

In trying to actualize these activities currently and in the future, FAICCPS launched a digital transformation strategy based on improving its competition in technology and integrated processes and services. Further, to promote innovation, improve the efficiency of digital tasks, and infuse automation culture within the agency. FAICCPS has so far managed to remodel and automate its services 100% (Khaled, 2021). In addition, it witnessed an 80% reduction of customers in service centres by 2021 (Khaled, 2021). Consequently, FAICCPS now has electronic platforms where customers register with digital UAE pass, besides accessing information and performing all transactions on its online network and smart channels. Furthermore, the organisation has an explicit digital charter that supports the culture of automation and institutional digital innovation among the employees to increase their ambitions and develop their competencies. This is meant to retain the best workforce to help actualize the change (Khaled, 2021). To build true digital tradition, FAICCPS is working with partners to create awareness among individuals, firms, and companies in line with the vision of the UAE government.

SWOT Analysis

SWOT analysis is a framework used to investigate the competitive situation of an organisation or a company so as to develop a strategic scheme of operation. This method examines the internal and external factors, as well as current and future potential (Kenton, 2021). It is data-driven and not influenced by existing beliefs but focuses on the real contextual position of the firm. The FAICCO’S strategy draws from the Federal government of UAE’s plan to be the largest technologically advanced country in the Middle East by implementing and utilising state-of-the-art technology to improve its performance. Therefore it sought to analyse its internal environment by looking into its strengths, weaknesses, opportunities, and threats to its service delivery.

Strengths

FAICCPS has support from the federal government of UAE, key stakeholders, and other partner organisations. The agency prides itself on clear prerogative based on federal laws and leadership in favour of making changes to achieve intended results and outcomes. It has excellent communication channels with both the federal and local governments and all stakeholders. Further, FAICCPS has an express mandate to initiate the development of work systems, protocols, and the improvement of both internal and external business relations (UAE, 2021b). Lastly, it boasts of a uniquely valuable and integrated BT system and employees who are ready to learn and serve the customers.

Weaknesses

On this front, FAICCPS is experiencing the inability to reach its target every year. In addition, they suffer due to the limited number of skilled BT engineers and human resources to operate the system, thus impeding its growth and expansion (UAE, 2021b). It has inadequate mechanisms for linking with external entities, thereby preventing automatic data and information updates. So far, it has a good link only established with the federal government of UAE.

Opportunities

Federal government moves towards e-government service provision, UAE’s commitment to and planning for a knowledge-based economy creates conducive room for improvement in Blockchain technology by FAICCPS. The need to provide comprehensive, accurate, transparent, and efficient services to citizens and foreigners as well makes it easier for the organisation to explore and innovate new ideas (UAE, 2021b). Additionally, the gaps in the provision of secure and fraud-free services to individuals and companies necessitate the importance of enhancing service delivery. Senior management backs the initiatives to keep abreast of best practices amid global information sharing and competition.

Threats

FAICCPS is faced with poor linkages of its system with other agencies and partners, and this undermines faster and more effective delivery of services. It lacks enough technical and managerial personnel specialised in Blockchain technology within the UAE and, therefore, cannot function optimally sometimes. There is a lack of proven understating of the customer needs and expectations by the management and its staff, this leads to the delivery of unsatisfactory outcomes (UAE, 2021b). In addition, poor legislative and legal coordination on enacting laws required to regulate the BT operations at the national and local levels leaves room for misunderstandings that negate service delivery. Lastly, the increasingly costly investment needed to implement Blockchain technology fully to digitise FAICCO’S services could slow down the digital transformation of the agency.

PESTLE Analysis

PESTEL analysis is a tool used in situation analysis to examine the external or factors outside the company (macro environment level) that might affect its performance. It identifies the situations that may change in the future and take advantage of the opportunities which could exist or try to mitigate the firm against the threats posed (Jurevicius, 2022). The FAICCPS used the PESTLE tool to identify a series of political, economic, social, technical, legal, and environmental factors that may influence its strategic operations and performance currently and in the future.

Political

FAICCPS must enhance coordination with other government agencies, both national and local, to improve its efficiency and eliminate barriers that could derail service delivery. It must comply with the federal government on the activation and implementation of e-government services by following the laid down policies (Jurevicius, 2022). Further, FAICCPS must study the trends in the market and understand what other competitors on Blockchain technology locally are doing so that they could match up to them or even do better than all.

Economic

There is a need for FAICCPS to have an advanced financial management system to enhance accountability and efficiency for maximum profits. The agency must source funds to build the state-of-the-art BT system that functions at minimal cost but with optimal financial benefits (Jurevicius, 2022). Additionally, FAICCPS should strive to provide BT services that are affordable to the larger segment of the UAE population, taking into account their income levels, inflation, exchange rates, and disposable income levels.

Social

The system must be flexible to the extent that it should accommodate the expected surge in the number of locals and foreigners that it will serve in the future. Further, BT services provided by FAICCPS must be fast, accurate, and effective to meet the demands and preferences of the clients (Jurevicius, 2022). The system put in place must meet international standards in terms of language use and take into account the cultural diversity of individuals within UAE and foreigners as well.

Technical

FAICCPS must build a BT infrastructure that is safe, secure, and sophisticated but with elaborate instructions on how to rectify errors. The agency must recruit and train enough staff to handle the technical issues so that it will achieve optimal performance most of the time each day. In addition, FAICCPS must invest in research and development so as to be up to date with trends and new innovative ideas in BT digital domain (Jurevicius, 2022). The firm’s management and general staff should be flexible enough to embrace all the new changes in technology they have adopted.

Legal

FAICCPS should formulate legislation on how to cooperate with other national agencies, partners, and private entities implementing the BT system. The agency must have a reliable legal mechanism to resolve challenges such as fraud and contractual obligations (Jurevicius, 2022). Further, there is the need for a legal framework on key responsibilities of all key stakeholders who are involved with the provision of services. It must put in place policies on data security and protection and the rights of individuals, firms, or companies to the confidentiality of their information.

Environmental

The organisation must look into the impact it creates on its immediate surroundings and neighbourhood. It should strive to create the least pollution and destruction to the atmosphere in which it operates. FAICCPS must have proper waste management and disposal mechanisms that keep its premises clean and habitable (Jurevicius, 2022). Lastly, it would be excellent if the organisation goes completely paperless in its operations and service delivery to have zero impact on the environment.

Analysis of Operation Functions

There have been a number of claims in the recent past that Blockchain has the potential to revolutionise many sections of international trade, including finances, customs procedures, and intellectual property. The argument is based on the fact that BT is transparent, decentralised, and immutable in nature (Ganne, 2018). Therefore, it could elicit the interest of private sector players and governments to explore the potential of this technology to enhance the efficiency of trade processes. International trade involves movement and multiple actors and continues to rely on paperwork.

For example, in 2014, a shipping company called Maersk followed a refrigerated container carrying roses and avocados from Kenya to the Netherlands to document the procedures involved. It revealed that 30 organisations were involved with over 100 people throughout the journey who made more than 200 interactions, and the shipment took 34 days to complete (Park, 2018). It showed that several documents must be filled out, and the process took many days to complete. Further, these paper-intensive proceedings increased the administrative costs and were found to be prone to errors, losses, and fraud. This complexity has necessitated many companies and governments to experiment with how BT can be used to reduce paperwork and improve transactions.

Blockchain is excellent at administering import and export licences more precisely and effectively. Normally, these permits are delivered to cover a specific period of time and for a set period of time. When they are stored on the BT, it saves the importer or the exporter the burden of having to look for a safe place to keep them, so they do not get lost. In addition, Blockchain allows the customs authorities to easily check the authenticity and validity of the documents and, in the process, eliminate the possibility of admitting individuals with fake certifications (Tapscott & Tapscott, 2018). Likewise, the use of a smart contract within BT creates room for parties to instantly render all imports/exports invalid once the validity period is over, thus, assisting in fighting deceit. Such a scenario was once witnessed in the Philippines in 2016 when the Agricultural division terminated and recalled all imports of meat products to solve the fraud whereby old permits were being recycled to smuggle commodities.

Key Challenges Facing Population Registration Companies

BT is capable of facilitating the verification of identities of ventures and people. It can improve the efficiency of border regulations between companies and governments (Ganne, 2018). Due to this enormous potential, many organisations such as UN/CEFACT, and the World Customs Organization (WCO) are investigating how Blockchain technology could be integrated with the existing customs systems and certification processes. They are partnering with different governments and IT firms on this venture. However, there is a real challenge in making cross-border government-to-government processes effective. For instance, there is a risk such as sharing of information related to authorising economic operators (Ganne, 2018). Whereas the BT can facilitate the various dimensions of border government to government interactions involved with customs clearances, there are regulatory legislation issues existing in different countries which Blockchain could do little to solve.

There is the technical interoperability challenge that comes with the digitization of documents. While using the traditional paperwork way, the transactions are usually presented in copies to the right and competent agencies for verifications. However, digital papers require the creation of “ad hoc e-bridges” between authorities in different countries, and this process is complex and difficult to implement (Ganne, 2018). It is not clear whether BT can facilitate such technicalities as much is dependent on real technical setups that exist at the national levels of two bordering countries. The best way to solve this is when both governments and their agencies would be part of the same Blockchain so that no coordination would suffice.

Consequently, data would be moved directly from one authority to the other based on the BT platform rules only. This scenario is at its initial stages and is being tested by several players in the BT field. An example is the Singapore Customs Declaration system that was rolled out in cooperation with IBM. These two entities developed a Blockchain customs portal that facilitated the agency to send customs declarations from New York to Singapore (Ganne, 2018). The technology has a ledger permitting members of the network to access all customs data in real-time from one single place.

Additionally, going paperless needs more than the technology and the interfaces involved because there must be a regulatory framework for the electronic authentication of e-signatures, e-documents, and e-transactions. The process should be able to permit the authority of other government entities (both national and foreign) to issue required documentation and allow the sharing of specific types of information (Ganne, 2018). This is not the case at the international or cross-border levels, as only a few countries have legal provisions for such recognition. Likewise, in a number of countries, national laws must be amended to allow the access and sharing of data with other administrations even within their borders. There is the difficulty of language simplification and standardisation which impedes several companies from implementing BT (Ganne, 2018). It prevents efficient working of Blockchain due to variation in the formats that exist in different countries because currently, there is no standardised semantics.

The case of Blockchain Technology Globally

Companies are increasingly using artificial intelligence (AI) in business, and there are signs that it will accelerate further in the near future. The advances in AI tools have created room for firms to access these intelligent solutions (Pratt, 20221). They use AI mostly for data security, process automation, and customer care. There is evidence that AI adoption helps lower the cost, increase efficiency, boost productivity, and provide avenues for new products and services. For example, chatbots use both machine learning algorithms and natural language processing (NLP) to understand the customer’s request and respond correctly (Pratt, 2021). Further, these solutions work faster than humans and at a lower cost. AI solutions have functions that employ customer data and predictive analytics to suggest what they want.

Organisations, including public companies, use intelligent solutions to detect fraud that is postulated to cause about 5% of revenue losses every year. This algorithmic security is applicable to many situations, including cybersecurity and tax evasion (Wellers et al., 2017). For instance, Firms are nowadays building models based on historical transactions and social network data using machine learning algorithms to spot anomalies, exceptions, and outliers in operations. The process enables the ventures to prevent fraudulent business in real-time (Wellers et al., 2017). It further helps firms to discover suspicious patterns of payments and transfers between networks of individuals with overlap.

The process automation (PA) of digital and physical tasks at companies for back-office administrative and financial services is done effectively by robotic technologies. Robots act as humans inputting and consuming information from many systems (Davenport & Ronanki, 2018). The activities it could perform include transferring data from email and call centre into systems of records and reaching into several structures to update documents and handle client communications. Further, process automation helps with reconciling failures to charge services by generating data from multiple files (Davenport & Ronanki, 2018). Additionally, it assists in reading contractual and legal documents to create provisions using natural language processing. PA cognitive technology is cheap, easier to use, has a higher return on investment for companies, and can work across many back-end systems.

Further, an increasing number of companies are turning to Blockchain to further improve cross-border payments. The need for transparency, accountability, and effectiveness is prompting governments and their agencies globally to leverage technology to improve services, reduce costs, and better management and procurement processes (Ganne, 2018). This drive has escalated following the successful implementation of e-government procurement (e-GP) in Canada in 1991. Currently, electronic systems have been designed, developed, and launched across the world. For example, in October 2017, MasterCard introduced its Blockchain network to address the challenges of speed, transparency, and cost in cross-border payments (MasterCard, 2017). This BT is accessible via an API, making it easier for users to get linked without creating their own distributed ledger server nodes.

Benefits and Opportunities of Blockchain Technology in FAICCPS

There is the opportunity that FAICCPS could benefit from Blockchain technology because it improves the transparency of its operations and services, thereby enhancing trust among the public and foreigners. BT will help the agency to achieve this through data monitoring and by creating new mechanisms for tracking the processes (Ganne, 2018). Consequently, providing the mechanisms for tracking all aspects of their transactions. Further, BT will enable FAICCPS to have a highly secure system that is capable of proving the authenticity of identities of all individuals and corporations they are handling and help curb fraud.

Blockchain could assist FAICCPS in reducing the cost of doing business, such as verification (the ability to determine the attributes of a transaction cheaply) and networking expenses. There is evidence that BT could have a significant effect on the overall tariffs (Ganne, 2018). Additionally, BT enables the information that is added in to be automatically screened on the basis explained in a smart card contract, for example, processing applications and records for customs. This technology makes it easy for data to be tracked and audited; likewise, it facilitates the validation of individuals’ identities and financial documents of companies (Ganne, 2018). The decentralisation traits of BT allow many entities to coordinate undertakings in real-time in an open, accountable, and secure manner, hence, improving the efficiency of FAICCO’S services (UAE, 2021). In addition, a Blockchain-based digitised agency will be able to protect its data, streamline operations, and eliminate waste and misuse of resources.

Challenges Experienced by FAICCPS when using Blockchain Technology

The challenges faced by FAICCO’S cut across all other government agencies and organisations in the UAE. They are essentially related to the strategic, operational, and regulatory aspects of implementation. There was a survey conducted by the Centre for the Fourth Industrial Revolution in the United Arab Emirates (Muhairi et al., 2020). The study recruited 100 from over 60 governmental and non-governmental entities across the country. The objective of the research was to explore the implementation of Blockchain technology and to investigate the evolution of the ecosphere and the appropriate issues and key attainment factors applicable. One of the findings was that it was difficult to bring stakeholders to the table, as was affirmed by 62% of the respondents (Muhairi et al., 2020). Further, there were issues to do with the alignment of interests and communication between parties. Lack of proper knowledge about BT by employees of various entities was confirmed by 52% of the participants, and this was more pronounced among employees in the public sector (Muhairi et al., 2020). On the other hand, those working in private firms were concerned about the problems around regulatory uncertainties.

Other challenges were witnessed in authenticating individual and company’s identity, safeguarding the integrity of data entering the Blockchain, and managing compliance and security standards. Results revealed further that organisations were still learning to design project management in a federated and democratised manner to be in line with the nature of Blockchain architecture and administration. Therefore, regulating the engagement among companies on a co-owned platform that needs funding, hosting, operating, and maintaining was proving difficult (Muhairi et al., 2020). Due to differences in methodologies used by separate entities, unconventional management requirements were not easy to achieve. Lastly, there were differences in timelines and priorities between organisations.

Innovative Approach and Transparency Framework

Blockchain’s influence within the public sector has the potential to create security and efficiency and speed up services and processes. Its benefits are very much applicable in all organisations and government agencies, as evident by the growing number of government leaders who are exploring how they could tap it into running their affairs. In the UAE, the state at the national and local levels is examining cases of its application in business registration, trade, and central bank operations (White et al., 2022). BT has the ability to settle and verify transactions very fast in minutes and in real-time with specific codes that meet conditions and act accordingly. This technology eliminates inefficiencies and creates clarity that allows for automated execution of tasks after meeting set criteria between parties to the ledger.

Present Knowledge Gaps

BT is still an emerging technology, and the skills required to design, develop and use it are scarce. A survey carried out by the Blockchain Council in 2019 revealed that demand of more than 500% for BT engineers (Brown, 2021). This has created a challenge for the companies and organisations, including FAICCPS, that are currently adopting, integrating, and implementing the system (Brown, 2021). Trust deficit among firms using BT is another gap that impedes its implementation. This problem cuts in two ways; firstly, organisations have issues with the security of the technology itself and so fail to trust those other entities they are dealing with.

It is expected that each BT should be secure, private, and verifiable. However, this is not the case because there is no central authority to validate the transactions since the network is decentralised. Further, with many firms and companies moving to BT, they do so by developing their own structures with different characteristics (Brown, 2021). They create variations in governance regulations, variations in BT versions, and consensus models. Thus, these separate BTs are not able to work together, and currently, there is no standardised mechanism that can allow dissimilar networks to communicate with each other. The lack of interoperability makes it hard to access and share information. Additionally, BT ecosystems need board adoption for them to function properly. Currently, only about 29% of companies are piloting it or have fully developed BT (Brown, 2021). Lack of large-scale usage limits the effectiveness of the technology.

Research Methods

This research paper was formulated and executed using qualitative design. This plan involved collecting and analysing data to understand the concepts, opinions, and experiences, gather in-depth insights, and generate new ideas (Busetto et al., 2020). A case study was therefore selected as the best layout to generate data for analysis, gather information, and draw conclusions on the impact of Blockchain technology on the delivery of FAICCO’S services. This strategy enables the researchers to carry out an in-depth exploration of a phenomenon within a specified context (Rashid et al., 2019). A case study analyses issues within the boundaries of a particular environment, situation, or organisation.

It allows for the integration of both qualitative and quantitative aspects of generating data. Further, the techniques capture complexities of real-life occurrences giving room for a detailed analysis of the incident or the experience. The design brings out the understanding of a complex idea through in-depth contextual analysis of the parameters of the study. Its flexibility gives space for applying a variety of methodologies and necessitates the use of many sources to investigate a research problem (Rashid et al., 2019). However, a small number of cases could offer little ground to reliably generalise the findings to a wider population. Additionally, this design does not allow the researcher to examine the cause and relationships of the study variables and may not represent the larger problem under investigation.

Sampling Strategy

This study used secondary data to come up with the findings and conclusion on the research topic. Second-hand facts are information that is already available, that was previously collected by primary sources, analysed, and has been documented, and anyone can access them (Harappa, 2022). In other words, secondary data is generated by a researcher as a third party from books, journals, articles, internet sites, and reports. What is required is just gathering a variety of information from different authorities with themes similar to the study topic or research question, then collating and summarising them into insightful results. In this case, the researcher does not require participants to answer specific questions (Harappa, 2022). However, they only need a list of topics from various authors to extract the right data for their analysis, categorization into themes, triangulation, and make conclusions as appropriately as possible. Further, the strategy involved collecting information from both qualitative and quantitative sources.

Data Collection Strategy

The data was collected using a document study or analysis method. This is a systematic procedure to analyse documentary evidence and answer specific research questions. It is used to explore, group, and analyse physical sources, most frequently written reports, in the social, public, private, or digital domain. This technique allows the researcher to gather information on the subject to which they have limited physical access (Morgan, 2022). Further, it needs a reiterated review, assessment, and explanation of the data so as to gain the context and empirical mastery of the variables being assessed. In addition, a document study creates room for the researcher to either conduct a stand-alone investigation or carry out a mixed methods research (Morgan, 2022). Thus, allowing triangulation of results and findings generated from a variety of data sources such as interviews, focus group discussions, observations, and surveys. Consequently, documents are corroborated, refuted, elucidated, and expanded and thereby helping the researcher to guard against biases.

In this paper, the researcher relied on public documents from the federal government of the United Arab Emirates. Secondly, the official records of the activities of the FAICCO’S agency, such as handbooks, reports, strategic plans, digital policy documents, and e-service documents (Indeed Editorial Team, 2021). The information contained in these materials was key in putting the research context into its perspective. Further, they assisted in proposing the situations that needed additional observation and gave extra insights that were valuable to the study topic. In addition, the sources made it easy to track and validate the evidence found in other research elsewhere.

Data Analysis Framework

The process involved listing and deciding on the types of documents that were used, as explained in the immediate last paragraph. All the sources were extracted either from the UAE government website, online newspapers, or magazine reports. Secondly, the data was organised into units of meaning (such as words, phrases, or images) and a set of categories (characteristics of the content) (Indeed Editorial Team, 2021). This was followed by coding, which establishes the themes emerging from each set of information. Thirdly, the researcher created the authenticity of the sources by looking into their credibility, dependability, confirmability, and transferability (Indeed Editorial Team, 2021). Fourthly, checking was done to confirm the biases that could exist in the data in terms of opinions, perceptions, and wordings.

The researcher then asked questions to assist in examining the background of the materials and how best they could be used to answer the study topic. For example, the following quiz was used in the analysis framework, who created the document, the material is about what, the time when it was written, the origin of the document, and its importance. Finally, the records were evaluated to identify the patterns in the data, and key information was extracted (Indeed Editorial Team, 2021). For each source used, a determination on how it responded to the research topic was made. Thereafter, the results were interpreted as findings for reporting, making conclusions, and recommendations for the study.

Research Limitations

This study and the final paper purely relied on qualitative case study design, and data was generated using document analysis techniques. Therefore, it had limitations in the sense that the researcher could not verify the primary data, which formed the basis of the findings in the documents used. Secondly, this method does not allow for examination of the causal relationships of the variables at hand, and so it is difficult to formulate a hypothesis of the study (Christiansen, 2021). Additionally, qualitative research is not statistically representative; thus, its outcome cannot be generalised outside the organisation, place, or the environment in which it was conducted.

Data Analysis

Much of the data analysis procedure is captured in the framework sub-section. However, there was a particular focus on the comprehensive analysis steps due to the fact that multiple sources were used to extract the evidence that tried to respond to the topic. This process was guided by comprehension, synthesis, theorising, and decontextualizing of the facts as they were presented in various materials (Morgan, 2022). Thus, each stage of the analysis was examined by looking at the examples that were revealed in every material used.

Results

Key Changes Observed

There is an integrated e-service called Basher that enables investors to establish their ventures fast through an online platform. Trade licences and establishment card numbers from the Federal Authority for Identity and Citizenship are among the bundles of services (TDRA, 2021). Further, the system offers membership numbers from the Ministry of Human Resources and Emiratisation, a quota for three work permits, and so far, it has renewed commercial licences for more than 1,200 commercial activities. There is another platform called Usrati (My family), which is a government service that was developed based on the outputs of 7 interactive workshops (TDRA, 2021). It was designed with community participation in mind and is being implemented through more than 40 interactions between agencies and 32 work teams (TDRA, 2021). This facility is currently four stages of family development such as marriages, pregnancy, birth, and child progress. Additionally, an employment bundle called Tawtheef enables firms to complete all activities related to hiring and employment in one visit. Through this, companies get a quote for the new employees, work permits, and labour contracts for workers.

The introduction of BT has so far enabled the UAE, through its agencies, to provide more than 6000 federal and digital services. The activities are broken down into 2126 online transactions, 180 informational activities, 110 commercial tasks, 134 social solutions, and 85 seizures (189 of them being priority utilities) (TDRA, 2021). Further, as a result of the operationalization of BT, FAICCPS has witnessed an increase in eServices in the following categories in the year 2020. There were 5073 243 entry permits issued, 1732403 residency certificates were renewed, 1737885 traffic fines were made, and another 844174 contract/mission work licences were renewed (TDRA, 2021). In addition, 681779 new work contracts were given to individuals and firms, 374197 Emirates IDs were renewed, and 77175 new IDs were processed (TDRA, 2021). All these statistics point to a remarkable improvement in the authority’s performance due to BT implementation.

BT has boosted the number of customers who are served by FAICCPS per day. For example, on the first working day, it implemented a new system, and the authority received 5822 clients through various departments and customer happiness centres (Gulf Today, 2022). Those who checked in to the intermediaries constituted 15.1% of the total services (Gulf Today, 2022). Further, FAICCPS completed 32549 transactions per day. A record 84.9% of the applications were submitted electronically through its new online smart services portal, giving another indication that BT improved its operations (Gulf Today, 2022). This shift in performance means technology was proving worth the investment.

The integration of Blockchain technology in the operations of FAICCO’S has enabled the agency to tighten security and curb the fraud that existed before its implementation. For example, on March 1, 2022, the authority foiled the smuggling of banned dairy goods worth AED 25, 239,000 through its port at Fujairah (Lucas, 2022). Further, its General Administration of Customs officials arrested individuals both of Arab and Asian origins who made attempts to bribe the staff on duty with AED 280,000 (Lucas, 2022). The use of advanced technology inspection devices played a key role.

FAICCPS, with the help of the UAE federal ministry of foreign affairs, replaced visa stickers on the passports of visitors with electronic Emirates ID cards to prove their residence status. This is done through apps in a new unified form which includes issuance and renewal; all merged in a single application (Godinho, 2022). This step has helped FAICCPS to greatly reduce the link with the process of issuing and renewing permits for immigrants. It has assisted the agency in enhancing its flexibility for individuals who use the identity card as an alternative during their periods of transition (Godinho, 2022). The new process has made it possible to get the electronic copy of the ID card with the new generation featuring all the details previously found in residence stickers given to visitors. In addition, it has all their information, including personal and professional data and issuing entities, among other readable facts.

A combination of superior legislation and innovation in BT has set the UAE federal government and its public agencies to make the country a global digital hub. Through its well-developed and comprehensive regulatory framework, it has several features that position it as an excellent global centre for the Blockchain technology industry (Buehler, 2022). It has a comparative advantage in terms of existing business networks, and so far, it is leading in connectivity in the Middle East, North Africa, and India. The UAE federal government, through FAICCPS, so far has managed to net Dh 11 million in transactions and document processing through the BT system (Buehler, 2022). Consequently, the country has successfully proved to be a leader in BT as a foundational mechanism for improving public operations.

Key Trends in operational changes

The successful implementation of BT in their operations has increased the appetite for FAICCPS in cooperation with the UAE federal government to strive to be the leader in the services sector and position it as the best in the world in rendering public services (UAE, 2021c). Currently, the agency is focused on implementing a strategy that aims to render its responsibilities to customers efficiently. FAICCPS is seizing the opportunity and is committed to achieving global leadership in the provision of eServices through the BT system. It expects this trend to be actualized and be the benchmark for advanced and effective digital solutions that are accessible to all from any part of the world, at least 24 hours a day by 2023 (UAE, 2021c). The trend in its performance will be guided by the need to put people and their needs first, being proactive in performance, creating and rendering unified and diverse services, and carrying out tasks on time or in advance and with more flexibility.

Further, FAICCPS intends to integrate all operations and enhance data security and confidentiality between all entities and parties whom they serve. Consequently, it will centre its activities on the client’s voice transparency when measuring and evaluating its performance towards delivery to the customers. It ensures precise records of data and creates a data-sharing platform with other government agencies. Therefore, FAICCPS intends to deliver 90% of its services through the BT system, design 100% proactive online services, and create 100% service partnerships with all sectors of the country and international organisations (UAE, 20221c). Additionally, the trend is to have 100% eServices that are accessible from anywhere around the world all the time (UAE, 20221). The end goal is to maintain the leading role in Blockchain technology across the globe.

Connection to FAICCO’S problems and operational efficiency

The problems faced by FAICCPS before the implementation of BT were related to the strategic, operational, and regulatory aspects of service provision. The latter is part of the legislation and laws required to enhance the security of data and client confidentiality and to protect the agency’s activities from fraud. Therefore, regulation would much be solved by FAICCPS in conjunction with the federal government of UAE and other organisations through the formulation of relevant policies. However, strategic and operational aspects of FAICCO’S performance were directly solved by the BT mechanism, and the impact was realised in terms of efficiency of the delivery of tasks. Currently, FAICCPS is almost achieving full BT potential in all aspects of cross-border transactions. The firm has digitised all its services and operations, including finances, customs, logistics, and aligning language semantics in recognition of the diversity of its users (Muhairi et al., 2020). Additionally, the implementation of BT has enabled FAICCPS to increase its transparency, thereby reducing operational costs such as verification, networking, coordination, and exchange rates significantly.

To uproot the challenges, FAICCPS has, over time, identified the right Blockchain technological application and created awareness among key stakeholders. In addition, it has sensitised and educated its staff on the BT system and put the correct structures in place that catalysed the effectiveness of its services (Muhairi et al., 2020). Further, the organisation has embraced emerging technologies through innovation and taking the initiative to actualize the Dubai and Emirates BT strategies as outlined by the federal government of UAE. This has created a conducive atmosphere for FAICCPS to collaborate with other public and private entities to make the technology work seamlessly (Muhairi et al., 2020). Their approach has scaled up the BT implementation in less than three years and increased its service competencies. FAICCPS has successfully used BT for transparent, end-to-end transactions, thereby eliminating delays in definitively identifying shippers moving through customs and improving inspection target compliance via greater data accessibility (Buehler, 2022). Further, by using distributed and secure BT, it has improved security, record keeping, inspection rates, and visibility of inbound international shipments.

Discussion

Blockchain technology is an important aspect of technology that has helped FAICCPS to improve its service delivery, efficiency, data security, and timely operations. Through BT, the agency has, in less than three years, been able to provide advanced digital services that are accessible to all individuals and corporates from all parts of the world at any given time of day (White et al., 2022). This trend has been refocused to be the driver of FAICCPS in all its operations and will inform how it collaborates with other sectors of the economy, both public and private. BT has necessitated FAICCPS to deliver one-stop-shop integrated eServices as ‘bundles’ that give the customers excellent experiences without the need to physically visit offices (White et al., 2022). The features give the users the opportunity to upload their documents, save their requests and submit them later, and get electronically signed documents.

The technology allows FAICCO’S clients, such as businessmen, researchers, and individual customers, to get instant, latest, accurate and comprehensive information about economic licences and data, statistics, and reports. The benefits realised so far have convinced FAICCPS and the entire UAE federal government to stamp its authority as the world leader in Blockchain technology and its applications. Currently, across the globe, from almost three years back, many agencies in several countries, including Canada, the UK, Brazil, China, and India, are intensively running pilot studies and trials on BT systems. The tests are based on architecture’s broad utility as a foundation for government service delivery, procurement, and development of individual BT-based applications (Ganne, 2018). However, each country is striving to create BT apps that are unique to its own internal operations and circumstances within its borders.

In Estonia, the government is piloting BT solutions for voting, identity management, and healthcare (Ganne, 2018). On the other hand, in the United States, the state of Delaware is testing the Blockchain corporate registry system. Further, US federal agencies such as the General Services Administration, the Department of Homeland Security, and the Health and Human Services Department—have announced BT programs (Ganne, 2018). Additionally, New York, Illinois, and Texas are among the states that are trying Blockchain applications to determine their potential to improve service efficiency.

BT’s proliferation of experiments across the world shows that governments have realised its benefits and impact in the long run. FAICCPS, just like other agencies in the UAE and the rest of the world, must therefore invest in long-term strategic innovations that are needed to maintain BT architecture for effective outcomes. Agency heads, directors, and managers will be required to work closely with BT-based solutions to scale up its adoption and adaptation (Ganne, 2018). Meanwhile, governments, agencies, and private entities must strive to bridge the knowledge gap in understanding BT matters, how it works, and why it is relevant to their operations.

Assessment of Research Results

It is clear that Blockchain technology is key and fundamental to the FAICCO’S strategy of improving its operations and service delivery. BT has enabled the agency to transform its work by providing precise, efficient, timely, advanced, and secure customer data (About ICP, 2021). This could not be further from the as FAICCPS was awarded “the Platinum Award for the best smart application in the electronic and smart services category in the region for the year 2021.” The recognition was organised by the Global Excellence Award, based in the United States of America (About ICP, 2021). The honours were given to FAICCPS because it demonstrated its innovative traits in BT, artificial intelligence, ease of use of its system through interactive screens, simple design, and various security protection standards. Further, the reward acknowledged that FAICCO’S eServices were easy to access and available to all people and corporate bodies around the world (About ICP, 2021). This was a clear testimony that FAICCO’S BT implementation was a success and has had a big impact not only with the UAE but on the global stage as well.

Key Conclusions and Implications

FAICCPS has an integrated e-service called Basher that enables investors to establish their ventures within 15 minutes. Trade licences and establishment card numbers are among the bundles of services. The introduction and implementation of BT have accelerated accurate, efficient, secure, and timely operations at the agency. This has, over the last three years, increased the number of customers the organisation has been managing to serve per day. Further, through the integration of Blockchain technology in its activities, FAICCPS has been to tighten security and curb the fraud that existed before its implementation.

BT enabled FAICCPS to replace visa stickers on the passports of visitors with electronic Emirates ID cards. This, in turn, helped the firm to reduce the link with the process of issuing and renewing permits for immigrants. Likewise, it has assisted the agency in enhancing its flexibility for individuals who use the identity card as an alternative during their periods of transition. The well-developed and comprehensive regulatory framework, with several features, positions FAICCPS as an excellent global centre for the Blockchain technology industry. Essentially giving it a comparative advantage in terms of existing business networks, and so far, it is among the leading agencies in BT connectivity in the Middle East, North Africa, and India.

The successful implementation has raised FAICPS’s interest in implementing a strategy that aims to render their responsibilities to customers efficiently. It is seizing the opportunity and committed to achieving global leadership in the provision of eServices. Additionally, FAICCPS is focused on continuing this trend and making it the benchmark for advanced and effective digital solutions that are accessible to all from any part of the world, at least 24 hours a day by 2023. Further, the implication of all these advances and developments is that FAICCPS has reduced time for service delivery, lowered operation costs, improved work efficiency, enhanced data security, and reduced operating costs. Lastly, the agency managed to go fully paperless, thereby aiding in environmental conservation. However, this process has, in the long run, rendered a good number of its previous staff jobless, thus, losing their sources of livelihood.

Research Limitations and Their Effects

This paper purely relied on a qualitative case study design, and data was generated using document analysis techniques. Therefore, it is limited in the sense that the researcher could not verify the primary data which formed the basis of the findings in the documents used. The effect of this is that there are chances the evidence presented was fake or false and in which case, this study could be presenting non-accurate information. Secondly, this method does not allow for examination of the causal relationships of the variables at hand, and so it is difficult to formulate a hypothesis of the study. Consequently, the findings in this research are not statistically verifiable and are merely descriptions of opinions as presented by entities in their reports. Additionally, most of the information in the paper is qualitative, lacks statistical representation, and the results cannot be generalised.

Recommendations

Tangible evidence shows that BT increased benefits for FAICCPS; however, the agency still needs to gauge and evaluate what applications can work for it better before scaling up the investment. Due to massive cybersecurity issues across the globe, the agency should in the future enhance its system security to avoid the risk of losing its data and clients’ confidentiality to frauds and criminal activities. Lastly, FAICCPS must strive to implement BT in an optimal manner that does not deprive it of the human element required to ensure progressive engagements in the applications.

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Blockchain Technologies and Illegal Transactions Risk

Introduction

Launched in 2009, after the introduction of the first cryptocurrency, blockchain technology attracted more and more interest as the popularity of cryptocurrencies grew. Apart from the world of finance, blockchain technologies are increasingly being used in marketing, video games production and different other industries, allowing them to identify, store and process data. However, the first blockchain was implemented as the “public ledger for transactions using bitcoin”, and is still most commonly used in finances (ICAEW, n.d.). Blockchain technologies are extremely helpful in reducing the risk of crime-related financial transactions because they provide a decentralized, persistent, anonymous and auditable system.

Analysis

The main reason why so many companies have introduced blockchain technology is the fact that it provides them with better cybersecurity, unavailable in other technologies and databases. One of the most common financial crimes in global crypto markets is currently money laundering (Idmerit, 2019). Blockchain is an essential tool to reduce the risk of money laundering, mainly because the data stored in each framework is immutable, and only the members with permission can access it (Idmerit, 2019). Because of the way new blocks are connected to the previous ones, it is almost impossible to tamper with this system, which is decentralized because of the distributed network of its participating members. No one can edit or modify data within the blockchain: people can only append data entries after they have entered the system (ICAEW, n.d.). Thus, blockchain technology “prevents criminals from trying to mask their transactions” to avoid being detected (Idmerit, 2019, para. 4). Consequently, the technology makes it more difficult to evade the anti-money laundering process, damaging the reputation of the given organization.

It is highly important for financial institutions to implement blockchain technologies, and a number of recommendations can be used to do that. Blockchain is often considered to be “the foundational technology for the future of risk management” (Deloitte, 2019, para. 2). The institutions can apply risk treatment strategies such as avoidance, mitigation, transfer and acceptance to implement this technology.

First, the system allows removing the activities that increase the risk of the company’s data being accessed by criminals, therefore avoiding the risk situation. Second, within the blockchain framework, action is taken to minimize or eliminate the likelihood of the risk situation, as well as its consequences (Deloitte, 2019). Finally, all the parties within the blockchain system are responsible for the parts of or all of the blockchain (ICAEW, n.d.). Therefore, the likelihood and consequences of the risk situation are reduced by transferring a portion of it. All this enhances the security, traceability and transparency of the blockchain technology as well, which, in turn, will benefit the financial sector and other industries in the long run.

Conclusion

All this allows the conclusion that blockchain technologies are going to be the most efficient way to ensure security in financial transactions for years to come. This is because this system is transparent, available, immutable, and decentralized, and it can only be accessed by the participants who have permission. It is highly recommended for the institutions that have not implemented the blockchain system to do so because it would ensure the security of their data on many levels. Money laundering and other crime-related transactions can be successfully avoided in the blockchain system, and strategies like risk avoidance, mitigation, transfer and acceptance can be applied to introduce this system.

References

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ICAEW. (n.d.). Web.

Idmerit. (2019). Web.