High-quality data resources will turn into a key driver of economic growth in the future. According to the National Data Resource Survey, the development and utilization of data resources in China is still in its early stages, with prominent problems such as insufficient supply, poor circulation, and limited application of high-quality data.

Professor Zhou Xianghong from the Department of Public Administration of Tongji SEM has recently published an article in Social Sciences Weekly, holding that blockchain technology has substantial potential for national governance, and it can play a crucial role in empowering social governance and contribute to Shanghai’s goal of becoming an international center for economy, finance, trade, shipping, and sci-tech innovation. The published original text is as follows.

Reducing information asymmetry and improving efficiency through the transition from single-center to multi-center governance

Blockchain technology’s decentralization, along with its features of asymmetric encryption, anonymity, and immutability, facilitates the organization of data into chronological chains and enables the full sharing of governance-related information. This helps ensure that all governance subjects receive equal access to community governance data, participate equally in urban governance, and avoid the centralization of urban governance.

Building an efficient regulatory system from the burden of proof to self-proving, to prevent “the bad from driving out the good”

The use of open, transparent, and traceable blockchain data can improve regulatory efficiency, promote fair competition, and foster a healthy market ecosystem.

Eliminating the “free-rider” problem and resolving the dilemma of collective action by transitioning from a passive approach to an active approach

Improving administrative efficiency has long been a key goal for government departments, and blockchain technology enables data sharing by simplifying the complex and often slow processes of transferring information between departments, integrating the original business data from various units.

Institutions exist to reduce uncertainty in human interactions, which stems from incomplete information about others’ behavior in interaction processes. Trust compensates for this incompleteness, lowering uncertainty and thus reducing the costs of social governance and operations. As a next-generation infrastructure built on trust, blockchain is widely used in industries and scenarios that rely on trust, collaboration and information sharing. The real-time transfer of governance-related data to the blockchain helps to clarify rights and responsibilities, fosters accountability, and influences the behavior of governance subjects using technical tools. This, in turn, further strengthens transparency in urban governance and builds a credit system based on smart contracts. Smart contracts, in particular, can effectively resolve the lack of trust in urban governance, transforming interactions between governance subjects from being mediated by individuals or government agencies to being mediated through technology.

To sum up, blockchain technology well integrates data production, verification, and processing, while also meeting the evolving needs of urban citizens by creating innovative products and services. It leads to more efficient management, greater transparency in market information, and more accessible service modes. Blockchain technology has become an indispensable part of building an integrated, multi-tiered, cross-regional, cross-system, inter-departmental, and cross-business governance framework. It plays a pivotal role in empowering social governance and contributes to Shanghai’s ambitions of becoming an international hub for economy, finance, trade, shipping, and sci-tech innovation.