Blockchain Revolution

Partnering to Create Public Value
We’ve already seen how simply making more trusted information available can be
used for positive economic and social value, and how individuals and communities
can be empowered to improve their own lives. Blockchain-enabled peer-to-peer
networks will require us to rethink how we divide responsibility in creating public
value. When governments publish raw data, they become a platform on which
companies, the civil society, and other government agencies and individuals can self-

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organize to create services. We have used “pay for success” models for a few years
now to engage businesses in solving civic problems. For example, the U.S.
Department of Labor funded initiatives that hire ex-offenders and reduce recidivism,
and the City of Chicago raised education levels among disadvantaged preschoolers.
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This model also encourages innovation and incentivizes achievement of desired
results by releasing funds only when these results have been achieved and are
measurable. Think about the power of ongoing micropayments to a small not-for-
profit group working in a community on sustainable energy initiatives. A government
program could link funding to actual declines in consumption. The not-for-profit
group could support itself without having to rely on complex paperwork for
reimbursement and might even secure financing based on the government’s
commitment to its participation in the “pay for success” model.