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Authors: Sofia Terzi (sterzi@iti.gr, sofiaterzi@csd.auth.gr), Konstantinos Votis (kvotis@iti.gr), Dimitrios Tzovaras (dimitrios.tzovaras@iti.gr), Ioannis Stamelos (stamelos@csd.auth.gr), Konstantinos Votis (kvotis@iti.gr) Kelly Cooper (kellycooper.2ds@gmail.com)

Blockchain 3.0 Smart Contracts in E-Government 3.0 Applications


Abstract

The Abstract—The adoption of Information Communication Technologies (ICT) and Web 3.0 have the potential contributes to impact in the e-government sector by transforming the way how public administrations provide advanced and innovative services but also the way citizens to interact with them. In this direction, Blockchain citizens.  Blockchain (BC) and Artificial Intelligence (AI) are nowadays among the most disruptive technologies and will fundamentally reshape how we live, work, and interact with the government sector sectors and industries as well, due to the unique features they bring. In this paper we present . This paper presents how Blockchain 3.0 and Artificial Intelligence can enhance the available means for robust, secure, scalable, and authenticity provenance solutions. Consequently, two Two validation scenarios are analyzed in order to present how the blockchain smart contracts and AI agents can be used practically to support energy and health-oriented e-government services.

Keywords-blockchain 3.0; smart contracts; e-government 3.0; artificial intelligence; energy; e-health; IoT; web 3.0;

...

Introduction

Blockchain (BC) technology has been nowadays characterized is recognized as a critical and important , disruptive technology for many industries and applications. Starting with Bitcoin [7] which is , a finance-oriented extremely ingenious distributed shared ledger and peer-to-peer value transfer technology, BC established trust between unknown stakeholders and automation of automated payments. Bitcoin reformed the finance and supply chain industry by shortening the time needed to complete time-consuming processes as well as removed almost and removing nearly all intermediaries. 

This kind of blockchain Blockchain technology for financial payments automation without intermediaries is known as Blockchain 1.0. The technology acknowledged as Blockchain 2.0 followed with the Ethereum project [8], which differed from BC 1.0 because of with its support to for smart contracts (SC) usage. Other BC 2.0 technology projects followed, such as include Hyperledger’s HL Fabric, Sawtooth, Iroha [9], and R3’s Corda [10] to name a few. Smart Contracts contracts (SC) are computer programs written and to run on the a blockchain to and provide security and automation to the systemsystems, making it possible for participating parties to agree upon certain conditions and according actions to be performed when these the conditions are met. These features of SCs reshaped even more the reshape supply chain processes by enabling additional on-chain actions such as assets tracking and, and in parallel, equipped equip BCs with the necessary characteristics to be used in other for business cases , apart from outside of the supply chain. Actually, BC Blockchain is now used in many industries such as healthcare [1][2], education [3], government [4], charities [5], real estate [6], insurance [16], and banking [15]. This expanded field of applications supported by BC is actually called Blockchain 3.0 , because solutions are no longer not restricted to finance actions and assets transfer , but include the above-mentioned sectors and according expanded actions to support the logic behind them [18] [19].  With the rise of Blockchain 3.0 technology, based on Directed Acyclic Graph (DAG) data structures [39], BC systems are more efficient, scalable, highly interoperable, and have offer a better user experience than before. Among the abovementioned these sectors, government use cases are of special interest , because of due to the implications they introduce when adopting a BC infrastructure to support them. These implications are coming from internal ones may include internal issues related to governmental issues a government such as politicians’ inaction and opposition, as well as or external ones issues such as the unready for digital transformation laws and sensitive citizens’ and civil servants’ personal data [17]. The BC’s characteristics of decentralization providing provide zero down-time, immutability ensuring ensure tamper-proof data , and non-repudiation and security implemented repudiation with immutability, implement security with cryptography establishing to establish trust between participating parties, and utilize consensus algorithms for data integrity, verification, and satisfying scalability on private and permissioned blockchains [20] can be both accelerators and obstacles when applied to e-government EG applications..  

Blockchain It is obvious that BC 3.0 technology will support supports the evolution for E-Government (EG) to become Web 3.0 oriented , by providing the infrastructure, services, and processes needed along with other alongside Information and Communication Technologies [21] such as Artificial Intelligence (AI) agents to secure and enhance communication between governments, businesses, and citizens [22]. EG 3.0 is totally depended to ICT and it evolves dependent on Information Communication Technologies (ICT) to evolve along with Web 3.0 technologies, which include but are not limited to such as blockchain, artificial intelligence, semantic web and text analytics, machine learning, internet of things, and big data analytics [23].

This paper will examine examines BC 3.0 and SC characteristics and features that are expected to affect contribute to EG 3.0 applications , as well as and offers selected best practices on for how to incorporate them while designing and implementing BC 3.0 and SC into the design and implementation of ICT Web 3.0 e-government solutions. 

...

Blockchain

The two major forms of blockchain implementations are public permissionless and private permissioned BCs. The following sections will present the their most important characteristics regarding EG 3.0 of both.

...

Permissionless Blockchains

Permissionless BCs were the first generation of Distributed Ledger Technology (DLT) to provide decentralization decentralized ledgers as opposed to centralized databases. Bitcoin and Ethereum are the most known representatives of this kind of permissionless BCs. The concept Their premise is that all transactions are transparent to every participant and are written on the ledger only after a consensus of the majority of peers has been is achieved. Each participant shares an identical copy of this data, called state, which that is formed of blocks connected to each other through cryptographic hashes. This architecture makes it almost impossible to everyone to make even a small change to change or trick others about the data state and or take advantage of the assets being exchanged without being noticed and the potential change being discarded by the or discarded without notice by other peers. A disadvantage of permissionless blockchains is that they do not have support any control over who enters or leaves the network, this . This lack of control can be detrimental to security, driving for security and may lead to energy-draining and time-consuming block generation techniques [11] in order to enforce security. The effect potential side effects of such block generation techniques has the side effect the system to sacrifice its include system scalability and speed.

Nevertheless, permissionless Permissionless BCs can be ideal for EG 3.0 applications when data must be public and transparent. Such use cases can be at may include the education area regarding sector verified and shared certificates, degrees, and diplomas issued by governmental organizations and academic institutions in order to be worldwide available, shared and verifiable [40][41]. Other uses can be the publishing of use cases include publishing voting results , and disseminating publicly available documents and copyrights.

...

Permissioned Blockchains

Due to BC’s unique characteristics and especially the of immutability and decentralization as argued before, the blockchain technology moved beyond the cryptocurrency aspect to cover other business needs evolved beyond BC 1.0 to business priorities such as asset tracking and logging, consent and agreement enforcement and monitoring, and identity authentication and authorization. The problem with permissionless blockchains is that although they Permissionless blockchains achieve a great deal of decentralization; however, they can not guarantee the privacy and safety needed when dealing with needed for sensitive citizen and government data. This is a direct result mainly from the The lack of control on over permissionless BCs of who can enter and leave the network at any time, making the complete history visible including confidential documents and records, as well as transactions containing personal citizens’ data.  exit and entry of network participants make documents, records, historical data, and transactions containing citizens’ data visible.  

Permissioned blockchains, such as Hyperledger (HL) Fabric, answer the need for private, Permissioned Blockchains as HL Fabric answered the need for private and at the same time decentralized, secure, and verifiable transactions between among governments, citizens, and businesses. The difference from the permissionless BC is that although Although all transactions are still written through smart contracts to the ledger, if someone needs to have access to the information permissions have to be given. A key aspect on permissioned BCs is that the , as they are in BC 1.0, permission must be given to access any data. On permissioned BCs, participants are strictly controlled by a central authority, in . In an EG case a ministry or an independent authority. The participation to the network is completely controlled as well as who can do what with the ledger’s datause case, this may be a ministry or an independent authority. Blockchain policies exist on the network to grant permissions permission to stakeholders to perform specific actions. In For example, a citizen must be informed tha that a public administration service wants to access her or his organization requests specified data and the citizen must consent , otherwise the access is not allowedfor access to be granted. These requests and consent actions are written on the blockchain , providing transparency but only to the participants that have the appropriate permission, in this case the specific public administration that requested the data and the specific citizen. Although permissioned BCs answer to provide transparency for participants. Permissioned BCs address the need for privacy, scalability, security, and speed some compromises have to be , although compromises are made in the terms of decentralization. Because When a central authority is introduced to authorize the private network’s participants the , decentralization is hindered and a BC controlling authority is introduced to accesses the network [12].

Permissioned BC BCs are ideal for governmental applications that require a level of security . It can be used for example to support the such as an internal exchange of documents between among public organization, keep track of inventories, registry organizations for inventories, registries, or other private records.

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Smart

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Contracts

Smart Contracts (SC) [13] are computer programs that are immutably written on the blockchain , can be and called by the BC’s users. They provide the BC participants. SCs provide automation and control flow logic to any system BCs supportsBCs support. Smart contracts must be treated as software functions in every aspect and smart contract BC engines must be deterministic. Determinism The determinism of SCs is the characteristic that maintains the ledger at a stable, consistent state and is necessary to enforce transactions finality and avoid , enforces transaction finality, and avoids soft and hard forks [14]. The determinism of SC’s actions is usually left to the developer. Thus, she must make sure that the she must ensure automated actions are executed as planned and the results of these actions leave the data in a consistent state, despite regardless of the node(s) they are executed on.  Also, the   SC’s actions must have achieve the same result each time the SC is executed. In the writers’ opinionopinions, which derives derived from empiricism, smart contracts can be categorized in into three major kindscategories:

  • Static,
  • Dynamic,
  • Oracle driven

Depending on the kind of the specific use case that has to be implemented, the developer designs either dynamic, or static, or oracle driven smart contracts. Following, is a A definition of each to explain the different characteristics in order to help , below, explores their characteristics to assist researchers, architects, and developers to decide as they determine which is the appropriate one in their per use case.

...

Static standard output

Static SCs are the ones that do not call other smart contracts, do not reside on human interaction, include only take place in one-step, and are never going to change the their predefined number of steps or actions. These are for example Static SCs perform primitive math operations . Such SCs perform operations such as addition, subtraction, multiplication, and division. Other SCs can call them, retrieve, and consume the result results of this their operation. All SCs receive parameters to perform their actions and from this point of view, they are somehow dynamic. However, there are no additional conditions embedded in this kind of static SCs to change their path of actionsaction. Math operations give each time consistently reach the same result and operators follow the same precedence rules every time. Another kind of these SCs can also be a ‘yes/no” SCs can return a "yes/no" response to a specific question or return a standard image returned when a button an action is pressedtriggered. An EG 3.0 application’s application example is a function that accepts a verification number of request for an academic diploma and , looks on to the ledger for the diploma holder, issues the issuing institution name and the date of issuance, and return returns the result to the requester.

...

Dynamic non-standard output

Dynamic are all the SCs that embed various rules allowing that allow them to perform different actions according to these rules. Examples of such dynamic SCs are  functions include functions that monitor certain conditions and trigger according intended actions. This can happen i.e. For example, when a dynamic SC is utilized to monitor the monitors electricity consumption and temperature temperatures logged on the BC of an an energy-smart building. The dynamic SC includes thresholds for different heating and consumption measurements in order to adjust the temperature temperatures in an eco-friendly way , avoiding designed to avoid excessive electricity consumption and costscost. The following pseudocode can be part of the smart contract’s definition showing the offers the logic behind monitoring and execution:

if room_temperature < 18 Celcius {

  if electricity_consumption < 25

...

 Watt 

then turn_on air_

...

conditioner

...


  else send_message: "The

...

 daily 

electricity consumption threshold has been reached. Would you like to turn on the A/C?"

...


    if user_answer == ‘YES’

...

 then 

...


            turn_on air_

...

conditioner

 else do_nothing }

if room_temperature > 25 Celcius {

...


  if electricity_consumption < 25

...

 Watt 

 then turn_on heating_unit

...


  else send_message: "The daily

...

 electricity 

consumption threshold has been reached. Would you like to turn on the heating_unit?"

...


     if user_answer == ‘YES’

...

 then 

...


       turn_on heating_unit

...


  else do_nothing }

This dynamic SC, although deterministic, follows a non-static conditioned flow , which that shows how a dynamic SC might be formed and how it can act. The aforementioned code is very simplistic but and computer functions can be long and very complex. Additionally it , the example involves human interaction , which in certain occasions could which, on occasion, may hinder or cancel the dynamic action feature of SCs. In our perspective the human the SC. Human input is considered dynamic to the in terms of a non-standard, condition-driven final action. There are also other occasions where the The dynamic nature of SCs is may be controlled by with machine-to-machine (M2M) actions. This M2M interactions can have unpredictable outcomes when the Unpredictable outcomes may occur if a developer’s design and implementation of the SC is are erroneous, incomplete, or non-deterministic.

Another area of approach to dynamic SC EG 3.0 applications that dynamic SCs can be used is to interconnect public administrations that need request to exchange citizen data. For example, if the a tax service wants to gain requests access to a citizen’s citizen land titles which are kept held by the a land registry service, then a smart contract . A dynamic SC supplied with a tax service VAT number from the tax service could look the may access land titles tied with this to that VAT number and return them to the tax service officer if he had the appropriate permissions, if appropriate citizen permissions are in place. If a universal BC ledger containing the contains land titles for all citizens, then this could a dynamic SC may help to confront fraud and tax evasion and mediate the secure exchange of data between nations.

...

Oracle driven

Both Static static and Dynamic dynamic SCs handle data that resides on the BC itself. The Oracle, the third major category of SCs is the oracle driven ones which can handle data coming SC, is designed to work with data from sources external to the BC. This kind of Oracle SCs are dynamic in every way plus they and include information brought into the system in by the so-called AI oracles, which are also smart contracts themselves. This special kind of SCs OracleSCs act as AI agents with the ability to inquire request information from the real world and write it on the blockchain in order for other smart contracts to consume it [24]. What is special about this the oracle SC category compared to the other is that SCs in general are generally not allowed to incorporate data external to the BC . The reason for this restriction is due to the determinism of BC functions. Determinism as argued before include the fact that the states the same result must be returned each time a SCs an SC function is called , thus, we cannot reside to and external resources which are often subject to change. Thus, we mainly enforce determinism by using only Determinism is typically enforced by utilizing data that currently exists on our as the ledger’s state. An exception to this is made through the oracles , by writing to write data on the BC to represent how this data was exactly that represents the ledger state at the exact time it was the data is written on the ledger. 

AI oracle driven SCs can be used in apply EG 3.0 to law applications. For example, laws for inheritance can change and notaries or other public servants that are involved into the procedures regarding the transfer of the legacy to the legal inheritor must be formally informed. The oracle can look up information from a governmental repository and write in an oversight role must be formally informed regarding issues such as legacy transfer. An AI oracle accesses information from a government repository and writes to the BC when a specific law changes. After that After this, a notification can be send is sent through a BC 3.0 application to prove the date and time it was sent, to inform the interested parties as well as ask , and to request and record confirmation of receipt on the BC their confirmation of receival.

...

E-Government 3.0

According to EG, by [25] definition, EG is the use of ICT to provide the a means for governments, citizens, and businesses to interact, communicate, share information, and deliver services to the various stakeholders. EG 1.0 utilized the World Wide Web and available by then ICTs to become more efficient than it used to be strive toward efficiency [26]. EG 2.0, through portal services supported by Web 2.0 technologies, became more citizen-centric, promoting citizens’ citizen participation and enhancing e-democracy [27]. It becomes almost obvious by observing the ]. The technological evolution shaping EG , that  EG infers EG 3.0 will use Web 3.0 ICTs such as distributed ledger technology (DLT), AI, Semantic Web, and the World Wide Virtual Web [20][28].    

Artificial Intelligence is another a promising and disruptive technological fieldtechnology. The AI’s technological ability to equip machines with the cognitive capabilities to that learn, infer, and adapt depending on the per consumed data is reinforced by the huge amount of information produced nowadays by smart devices, social media, and web applications [29]. The problems One problem governments, organizations, and companies face while trying to leverage such huge in leveraging this amount of information is the centralization of data as well as the provenance of centralization and provenance, the latter related to information source legitimacy and authenticity. The data used Data in AI projects is are centrally controlled , and can be tampered and prominent to narrow not conscious emotionally driven AI, as the Microsoft’s AI twitter with. For example, Microsoft’s AI Twitter-based bot project showed when it was overwhelmed with racist remarks which, unfortunately, bots repeated back to the users [30].

Taking One argument under consideration [22] which argues that offers AI is thought as the solution of to major governmental obstacles and specifically for , particularly related to issues such as resource allocation, large datasets, experts shortage, predictable scenarios, procedural and repetitive tasks, and diverse data aggregation and summarization, it is crucial . Crucial to research is an analysis of how to overcome the centralization, provenance, and authenticity problems. The combination of BC and AI technologies can solve address current centralization problems while and, in parallel can , provide solutions for resource optimization and return private, personal data control back to their respective owners in a distributed, decentralized, and democratized manner [31]. 

The rest remainder of this paper will examine examines two EG 3.0 scenarios supported by BC 3.0 and AI technology in order , the purpose of which is to provide EG stakeholders and policy makers ways policymakers avenues to exploit current industry BC and AI applications for governmental, public, and social good.

...

Energy data –

...

Scenario 1

In recent years, digital smart city governance with ICT expanded and regional research addressed the increased energy demand that emanated from the multiplication and complexity of Internet of Things (IoT)

...

Governance of smart cities has been digitally enhanced during the last years by the use of ICT so key areas became subjects of research because of the increasing energy demands deriving from multiplication and complexity of the IoT devices. It became crucial for local governments to practice energy management strategies to and use the available energy efficiently [32]. A modern smart city is a combination of applies smart technologies applied to its infrastructures and to citizens’ residences at building or even at home level. The to its infrastructures and to citizen residences. The EG 3.0 scenario includes IoT devices, installed at citizen residences, that produce energy; these citizens are referred to as prosumers. This ability of energy consumers to produce energy from renewable sources and distribute it that energy, through smart grids becoming thus as prosumers increased , increases the difficulty of national energy management techniques. However, in parallel it created an opportunity to make a smart city more sustainable and energy efficient if the additional prosumers also create the opportunity for smart city energy sustainability and efficiency when citizen produced energy is successfully modelled modeled and incorporated to the city’s energy system, into city energy systems along with other energy elements as related to transportation and facilities [33]. This is so crucial that Energy management is critical; the European Commission has published , in the last two years, published two directives for energy efficiency goals for with a 20% energy savings target by 2020 and a 30% energy efficiency target for 2030 along with . Additional, specific national targets focusing on include lowering energy bills, reducing nations nation’ reliance on external suppliers, and becoming eco-friendlier friendly protecting the environment [42][43]. With managing energy smart cities and supporting . EG 3.0 supports citizen-sourcing to achieve increased efficiency at , increases efficiency in all phases of the energy chain, the EG 3.0 will play a crucial role in the supply, and leads energy sector management. BC 3.0 technology used , in conjunction with AI, provides authentication, decentralized intelligence, security, and collective decision making.

The EG scenario is applied to a city, and includes IoT devices installed at citizens houses who are also prosumers. The In EG 3.0, IoT devices produce energy data which that is stored on a private permissioned blockchain. As argued before the data Data stored on a BC is tamper-proof because ; it is cryptographically immutable and authenticated as because each transaction is digitally signed. Energy data is considered confidential though, so the security concerns must be mitigated by using with a private permissioned BC. The Know Your Customer (KYC principle ) compliance is provided enforced through the permission policies enforced on the BC network by setting ; each citizen in charge of what is shared, either regarding personal data determines what personal information or energy production data is shared. More security can be enforced if the registration of prosumers follows Additional security is realized when prosumer registration applicants follow a strict protocol , where the registration applications to participate at the local energy network and approvals from the city ’s local government are also and participate in local energy networks logged on the BC. The whole process This prosumer energy approach is automated through the use of with Dynamic SCs controlling the processes of IoT data logging, registration and approval logging, and available energy dispatching and monitoring. 

A SC is used for gathering collects energy consumption and production measurements form the citizen’s from prosumer IoT devices in order to log and logs them on the blockchain. The citizen has to provide prosumer provides the BC login identity that has been issued to her in order to login. This identity can be self-sovereign in order to be secure and remain at user’s identity (SSI) ensures secure entry and prosumer user control [44]. A SC is used for dispatching of the extra dispatches surplus energy from a citizen’s prosumer residence to the main energy system or to the a  citizen-sourced smart grid she participates. If, for example, daily consumption needs are need is 14kWh and the SC detects that the power produced from renewable sources exceeds 15kWh, it can automatically trigger an action in order to dispatch this available power to the automatically triggers and dispatches this surplus power to a pre-identified local energy system. In addition, there must be a A dynamic smart contract to deposit deposits the required, predefined amount of money payment for the energy dispatched by to the citizenprosumer’s account. Oracle-based SCs can inform citizens when the how their energy dispatching can be more profitable , to and provide incentives for participating to participants on the energy network. Smart grids can be formed , informed by local policies taking under consideration , consider geographic factors, energy needs, and building production capabilities. AI agents will run operate at the citizens citizen residences forming a as collective decision-making mechanism to mechanisms that apply Swarm Intelligence (SI) and achieve a swarm goal goals [34], programmed to decide . SI calculates how much energy can be dispatched to the a city’s central energy system and how much energy can is available to be traded among the participants on a smart grid participants. AI EG applications can read the data written on the BC and make forecasting of city’s forecast city energy needs for the next hours, days, or even months. AI can also analyze the data and recognize trends and analyzes data for trends or peak hours. The results and metadata from AI analyses can be are grouped per district to help governments and policy makers policymakers create more efficient energy management strategies and as they achieve local and national goals.

...

Health data

...

– Scenario 2

National Healthcare systems is another are a sector where e-health strategies must be adopted for governments to control excessive healthcare costs [35]. Healthcare systems include huge amount of data that are mostly confidential, thus, problems arise when trying to process and analyze those big data and AI is a perfect match to provide solutions to these problems. As research shows it is hard for older adults to use the hold massive amounts of confidential data; problems arising in processing and analyzing this big data are solvable with AI. Research shows older adults struggle to use e-health systems [36] [37]. By using With AI chatbots , older people can use speech recognition to make support older adult questions and inquiries and the ; chatbots can provide responses and guidance and responses. Another use for AI agents will be to get citizens’ filled forms and forward them to the appropriate government department also support patient forms completion and submittal to appropriate government departments [38]. As for the confidentiality and authenticity problems of the private e-health data, a A permissioned BC 3.0 as it has been already described can provide the means to confront them. This way 0 secures the confidentiality and authenticity of private e-health data. EG 3.0 can provide provides solutions to the e-health necessities priorities by utilizing ICT and Web 3.0 to transform the legacy systems, in order to increase the their efficiency and effectiveness of these systems, decrease costs, and provide more citizen-centric health care services [36]. 

The EG scenario ecosystem includes IoT wearables that send patient data, i.e. heart beats such as heart rate or blood pressure, to a private, permissioned BC . This that ensures the data’s data security, authenticity, and confidentiality. When a doctor wants to access the patients’ BC data she makes a request, which triggers a SC and this request is logged requests access to patient records and data, the BC triggers an SC and the action logs on the BC. The SC sends an information SC then forwards the doctor’s request message to the patient and if the patient agrees to give access to the doctor the doctor gains access to the patient’s dataapproves data access for the doctor. The SC writes patient approval or denial on the BC the patients answer either it was positive or negative. This way a complete tracking system for requests and consent responses is formed. We can consider how useful and secure this can be when This secure process applies to e-health records must be exchanged between countries at a national or international level levels with intact end-to-end security. 

...

Further Research

We acknowledge that there are restrictions apply in our research, mainly due to the different energy and e-health implementations among countries in Europe. Our research focuses on governments and citizens, and further research has to be made in order to include results  and effects on will include applications and results with public administrations and civil servants. The scenarios demonstrated are focused focus on BC 3.0 support. Thus, EG scenarios that include additional Web 3.0 technologies must be designed, developed, and tested. We hope to be able to contribute more on these subjects as our research projects are still work in progress.

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