Blockchain for Social Trust: Rebuilding Transparency in Public Sector Transactions through DLT
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Background. The erosion of public trust in government institutions has become a critical global concern, driven largely by persistent issues of corruption, inefficiency, and opaque administrative processes. Amid this trust deficit, blockchain technology—especially Distributed Ledger Technology (DLT)—has emerged as a promising tool to rebuild transparency, accountability, and citizen engagement in the public sector.
Purpose. This study aims to examine how blockchain can be strategically implemented to restore social trust by enhancing transparency in public sector transactions.
Method. This study uses a qualitative method supported by several case studies, this study analyzes the initiative of real world blockchain adoption in countries such as Estonia, the United Arab Emirates, and Indonesia. Data was collected through analysis of policy documents, expert interviews, and comparative evaluation of the DLT -based public administration framework.
Results. The findings indicate that blockchain’s immutable and decentralized architecture significantly mitigates information asymmetry, reduces opportunities for fraud, and enables real-time auditing of government activities. Moreover, smart contract integration allows for automatic enforcement of public service agreements, further reinforcing institutional integrity. However, the study also highlights critical challenges such as legal uncertainties, technological literacy gaps, and resistance to institutional change that may hinder effective implementation.
Conclusion. In conclusion, while blockchain is not a panacea for all governance issues, it presents a powerful foundation for restoring social trust when embedded within a broader ecosystem of legal reform, digital literacy, and civic participation. This research contributes to the growing discourse on digital governance by offering a conceptual and empirical basis for blockchain-enabled transparency in the public sector.
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