Illinois Blockchain plans for IDs and tokenizing public assets

Identity verification and handling of public assets through the blockchain

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The Illinois Blockchain Task Force presented a report to the General Assembly on ID verification and handling of public assets through the blockchain. The task force outlined a potential direction for applying blockchain technologies in government-related operations in the state of Illinois.

On the report filed on 31st of January 2018, by the Illinois Blockchain Task Force to the General Assembly, the state is eyeing the use of blockchain technologies. The scope is to at least manage the identification of residents of the state. Further, there are plans to tokenize assets in the public sector to improve efficiency and reduce entitlement fraud.

Report of Illinois Blockchain Task Force

The report mentions on the use of a blockchain-powered platform that would enable state citizens to access and store all their identification information. This include details such as tax, voting, and driver license, etc. These can be stored as decentralized nodes. This user-centric model would then let citizens own the information and share with different government agencies for public services.

The report states the following;

“This new model would re-imagine the relationship between state and individual, as government would become the verifier, rather than the custodian, of people’s public service identity. Government would move from providing data storage to verifying identity, allowing users to store access to personal data securely on devices.”

Further, the team suggests on using blockchain technology for Illinois’ public sector in digitalizing assets such as tax credits, social benefits and municipal bonds.

The report describes that by tokenizing these asset through blockchain technology, such as the Ethereum blockchain, can bring transparency to each transaction. This improves efficiency by reducing manual paperwork while avoiding benefit entitlement fraud.

As part of the research initiative, the task force published a database that tracks worldwide initiatives that are currently exploring blockchain and distributed ledger technologies in public sectors.

In June 2017 by the law, the group sees joint efforts from the Illinois Department of Financial and Professional Regulation (IDFPR), the Department of Innovation and Technology and the Cook County Recorder of Deed. Leaders from both the state’s House and Senate and appointees by Illinois’ secretary of state are also in collaboration with these efforts.

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