For many governments, blockchain was a blaze in their eyes until they dove deep into the real use cases of the technology. Now, you can see countries uploading GDP data, national budget, and other significant information to the blockchain. Time speeds by, and technology speaks volumes!
And here is another organization that has already peeked into blockchain and proven its efficiency. In 2021, the United Nations (UN) embraced the technology to enhance its identification system within its global pension program. The international organization leveraged blockchain to efficiently track and monitor the identities of pension recipients.
UN’s blockchain move signals innovation
In a white paper titled ‘Transforming Public Digital Identity’, the UN has clearly stated this successful move, as part of its broader agenda on digital transformation and inclusive governance.
Its pension program, known as The United Nations Joint Staff Pension Fund (UNJSPF), has introduced a blockchain-based Digital Certificate of Entitlement (DCE) to
- Modernize pension verification
- Replace paper-based processes
- Enhance security, operational efficiency, and fraud prevention.
The benefits are magnificent
Adopting the Digital Certificate of Entitlement has made things easier for the UNJSPF. It could save administrative costs, implement a tamper-proof system, enhance operations, bolster fraud prevention measures, and more. The organization firmly believes that using AI, biometrics, cryptographic validation, and geo-location data can DCE can enhance the security and safety of data.
The 2021 -2024 period proves efficiency
“Prior to the DCE implementation, UNJSPF processed more than 60,000 paper certifications annually”, read the whitepaper. Since the UN adopted blockchain, the overtime expenditure lowered by 76.5% during 2021 -2024, meaning employees did not have to stay late or work weekends to manually do the paperwork, and the amount of overtime work dropped.
That’s not the end. Transition from physical documentation has “substantially reduced processing times previously spent on receiving, opening, scanning, and archiving paper documents”.
Why blockchain?
As you may know, the answer to why blockchain is being used is quite clear. The unique use cases of blockchain – security, immutability, decentralization, interoperability, and seamless verification — have attracted the attention of the UN to adopt the technology.
Path forward
The United Nations has proven that blockchain can improve its pension fund distribution operations, curbing outdated paper processes for verifying identities. Its Digital Certificate of Entitlement saw digital issuance reaching over 38,800 certificates. That’s a successful move from the organization, where retirees get their pension faster and more securely with less bureaucracy. For the UN, the path forward is to “offer DCE-as-a-Service to other international organizations, allowing them to benefit from a proven, cost-effective, and interoperable solution.”
