Blockchain Technology - Research Paper

Abstract

Blockchain technology has in the recent times dominated debate on the next level of revolution in Information Technologies with applications ranging from economics to records management. The study focuses on Information Technology advancements in the nation of Dubai with a particular focus on the country's ambitious goals of adopting blockchain tech for the management of government business in all sectors by the year 2020. The ramifications of adopting a fully digital platform of conducting government business present novel grounds for possible challenges or problems that may arise from such a move. The current study is concerned with the implications that blockchain tech presents to the Dubai government, as pertains to the capacity of the government to adequately manage Information Technologies in a system that is fully dependent on the blockchain. A vast bank of academic literature on the use of Artificial Intelligence, Cryptocurrency, and Blockchain technology present a viable source of data for the report on which the investigation is founded.

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The Ramifications of Security of Personal Information on the Block Chain: The Case of Dubai Block Chain Governance

Introduction

Background of the Study

Simply defined, blockchain is a technology that allows for systematic record keeping of transactions on a digital platform that secures data by reducing cost and complexity associated with record keeping (Mani, 2017). Further, the main advantage of blockchain is that it secures data storage in a tamper-proof series of blocks that are interlinked in a chain of transactions such that no revisions can be made on the chain. As a consequence, the blockchain is secure from data breach characteristic of current digital platforms of storing data as well as old-fashion paper transactions.

The Arab Network for the Fourth Industrial Revolution (2017) reports that Dubai's Crown Prince HH bin Mohammed bin Rashid Al Maktoum has plans to transform Dubai into a futuristic nation with the application of blockchain technology by the year 2020. In his plans, the Crown Prince has started talks with the Director General of the Toads and Transport Authority (RTA) to evaluate the possibility of applying blockchain technologies on the transport networks of Dubai. The Crown Prince hopes to take advantage of blockchain by introducing a combined public and private ledger of transactions that enhance security, transparency, and control despite easing the process of transactions.

Zhao (2017) also reports that the Crown Prince has also initiated talks with a UK startup company dubbed ObjectTech to develop a blockchain-based security system that would be utilized in Dubai's air travel. Airports in Dubai will in the future combine facial recognition and blockchain tech to secure the airports from threats of terror as well as enhance the security of passengers traveling through Dubai's airports. Undoubtedly, the Crown Prince's plans for application of blockchain tech in Dubai is pervasive and one of kind. D'Cunha (2017) adds that the Crown Prince has appointed a minister in-charge of Artificial Intelligence whose mandate not only will encompass the development of the digital passport, he is also tasked with developing blockchain-empowered license renewals and bill payments that all account for over 25 million man-hours of paperwork in the Dubai. Ultimately, moving to the blockchain system will save the nation $1.5 billion annually in paperless processing of transactions.

Although largely in its planning stages, the application of blockchain in Dubai's government is projected to make Dubai among the enhanced countries of the world as pertains to its application of the technology for the ease of business. Another application includes real estate and land registry where land transactions can be recorded in the blockchain and enhance the security of title deeds (D'Cunha, 2018). The Gulf News lauds the Crown Prince's plans to make his government paperless by 2020 noting that the blockchain technology will revolutionize how the government delivers its services to the people of Dubai. Other than saving 25 million work hours, the government will also improve security for transactions while at the same time enhancing transparency and accountability of such transactions (The Gulf News, 2016).

Jenkinson (2018) recognizes and appreciates the resolve of the Crown Prince in enhancing blockchain technology's adoption in Dubai. He further notes that the proposed UAE Dirham based cryptocurrency 'EmCash' will revolutionize business transactions in the UAE. Concerns, however, rage over the risk associated with fraud in the cryptocurrency Initial Coin Offers (ICO) worldwide. To this effect, the Central Bank's Governor of the UAE Mubarak Rashid al-Mansouri announced actions that would lead to the development of legislation for the purpose of enhancing the security of the use of EmCash cryptocurrency.

Although in its initial stages of implementation, The Crown Prince who also doubles as the Chairman of the Dubai Executive Council, has promised a three-step elaborate plan that will ensure that Dubai transacts its last paper transaction by 2021 meaning that Dubai will be the first country in the world to go paperless by then. The three-step plan involves (1) Transferring all government transactions to the blockchain, (2) Establish a blockchain industry and ecosystem, and (3) Become a global leader in the blockchain technology. Already, various Dubai government institutions have operationalized the blockchain technology and are gradually replacing paper-based transactions with blockchain based transactions. Examples include management of vehicle's lifecycle, property trade, issuance of business licenses, school enrollment for students, and issuance of e-prescriptions, among others (Smart Cities World News Team, 2018).

According to Blockchain Council, Dubai is the primary hub for blockchain technology based on the analysis of the steps that it has taken towards becoming a global leader in the management of government services through the blockchain. Smart Dubai's Director General Aisha Bin Bishr has an ambitious goal supported by the Crown Prince of making Dubai the first blockchain powered government by 2020. A government operated on the blockchain will eliminate instances of corruption where government officials squander resources allocated for projects. Hence, improved accountability for the use of citizens taxes can be attained. Moreover, the Dubai government will enhance efficacy in its service delivery by going paperless and save millions of Dirhams that can be refocused on other areas of economic development. At the same time, blockchain offers tight security of transactions, hence, enhancing transparency and accountability in both the private and public sectors (Sharma, 2018).

The Global Blockchain Council in the year 2016 came together in Dubai at the conference to discuss the future application of blockchain. Members of the council's approval of blockchain would bring together multisectoral industries that would position Dubai and the United Arab Emirates (UAE) as a leading market in innovation and knowledge in blockchain tech. The conference projects Dubai to have $9.5 billion worth of global market digital transformations, $300 billion worth of blockchain investments, 105.6 million worth of Bitcoin transactions in 24 hours, and $6.8 billion Bitcoin market cap average upon full implementation of the Blockchain system in Dubai by 2020 (Dubai Future Foundation, 2016). It is based on these progressive moves by the Dubai government in the adoption of blockchain technology that the research is concerned with evaluating the possible implications of blockchain in the governance of Information Technology in Dubai.

Significance and Purpose of the Research

The current study is significant given the concerns that abound regarding the risks associated with the use of Artificial Intelligence (AI). From AI taking over human decisions to the complete risk of annihilation of humanity by AI (Muller, 2014), the implementation of blockchain pervasive technologies in the running of government services in Dubai poses questions on whether the government of Dubai will be in control of the information technologies sector or whether IT would, in turn, be ungovernable. Hence, the study is imperative to the investigation of possible risks that the Dubai government stands to encounter with the implementation of the blockchain tech in the running of government business. As a first of its kind flagship project around the globe, Dubai's ambitious plan to fully rely on the blockchain for private and public sector ledgers presents an ideal case study for the rest of the world to learn from. In that regard, the implications presented in the results of the research will have applications for the Dubai government and world governments, at large, that are all interested in pursuing the implementation of blockchain in the running of government services.

Research Questions

The core of the study seeks to answer the question of whether Dubai's governance of IT will be affected positively or otherwise upon full implementation of blockchain tech in the running of government services. Moreover, it evaluates how the governance would influence security of personal information on the block chain. Ultimately, the research intends to provide formidable recommendations for consideration by the Dubai government in its process of implementing blockchain technology as pertains to its governance of IT in the country, particularly concerning security of personal data on the block chain. Moreover, the recommendations will also act as a blueprint for world governments that are intent on following the steps of Dubai in blockchain tech implementation. The specific research questions are as under.

• What are the implications (negative or positive) of blockchain technology in IT governance to the government of Dubai as pertains to the security of personal information on the block chain?
• What are the risks associated with IT governance on the security of personal information on the block chain through full implementation of blockchain technology to the government of Dubai?
• What solutions are available to the government of Dubai that can ensure effective governance of IT throughout the block chain tech implementation process in enhancing security of personal data on the block chain?

Study Methodology

Due to the novel nature of the research topic, a primary study would make it impossible to yield substantive results. Therefore, the researcher settled on qualitative research that employs secondary sources of information for the evaluation of research outcomes. Moreover, the availability or research papers on AI, IT, the blockchain, and cryptocurrency offer the research a good basis for conducting an investigation from secondary sources of data. The data analysis process will take the form of thematic analysis where recurrent themes in the literature discussed will be organized on the basis of similarities and differences in the arising themes.

Time Schedule

The following Gant Chart illustrates the planned research timelines.

Fig. Gantt chart illustrating planned research timelines (Source: Author).

References

Arab Network for the Fourth Industrial Revolution . (2017, 10 19). Dubai RTA's innovation lab discusses blockchain technology, impact on RTA strategy. Retrieved 04 03, 2019, from 4irarabnetwork.ae: http://www.4irarabnetwork.ae/news/2017/10/19/dubai-rta's-innovation-lab-discusses-blockchain-tech...