Blockchain as One of the Elements of Digitalization of the State and Transition to the Digital Economy

Abstract

In the near future, digitalization will cover all areas of life and can provide tangible benefits to the government and citizens in the orderly and timely development of this industry. One of the fundamental tools that will contribute to the development of digitalization of the States is the blockchain. This is the technology of storage of information: any data that you need to document and verify. In the database, you can save the records of the register of diplomas, Bank statements, or government procurement. In the foreseeable future with the help of the blockchain will be possible to receive various benefits from the simplification of document flow to reduce financial costs. At the modern stage, the issue of digitization not only for the economy but also for the state as a whole has become one of the priorities and considerations for the economically developed and developing countries of the world. State programs for the development of digitization are being developed, issues of legal regulation of new state models, ensuring information security of new solutions are being discussed, and infrastructure is being created for mastering and effective use of advanced technologies. The Government of Georgia has set a very ambitious goal: to gradually move from the traditional economic model to the digital economy throughout the country. It is planned to achieve this as a result of the complete modernization of state departments using modern technologies, which will allow digital transformation to be achieved in the near future in various socially important sectors: starting with healthcare, banking, education, housing, and communal services, and ending with energy. When considering the issue of the practical use of blockchain by the state, it is worth noting that a number of countries already have a number of positive experiences with the mentioned technology in terms of resource distribution. At the same time, the number of currently active projects continues to grow, and the interest of world governments in this topic is growing exponentially. So, countries such as Estonia, Canada, Honduras, the United Arab Emirates, and others have already achieved significant success in implementing a decentralized data registry. Thus, blockchain is one of the main technologies for the successful formation of the digital economy in the state. But at the same time, it is necessary to discuss the technical implementation of such an ecosystem within the specifics of each country. This requires not only the creation of certain infrastructure and the transformation of the legal base, but also the proper training and retraining of personnel, the creation of conditions, and opportunities for the widespread dissemination of fundamental technologies of the information society. As for Georgia, `the country has the necessary potential to use this technology in state governance. In today's reality, a country's innovation receptivity can play a huge role in carving out its niche in various industries. Key Words: blockchain; digitalization; a decentralized registry; and the digital economy; the government.