Blockchain technology in public governance systems

Introduction. The digital transformation of public governance is accompanied by the active implementation of distributed ledger technologies, with blockchain occupying a special place. Despite the high potential of decentralization, immutability, and algorithmic enforceability of rules, the question of blockchain’s actual capabilities and limitations within hierarchical state structures remains open. Objective – to critically analyze the dual nature of blockchain in public administration, identify institutional conflicts arising from the integration of network technology, and substantiate strategies for the state's adaptation to the new technological reality.

Materials and methods. The theoretical and methodological foundation of this study was established through the analysis of scientific publications and expert reports on the implementation and potential applications of blockchain as a tool for optimizing and improving public administration systems, as well as a comparative analysis of 25 blockchain implementation cases in various countries.

Results. Effective domains of blockchain application are identified (land registries, digital identification, automated regulated payments); consortium (private) blockchains dominate the public sector (the vast majority of cases). A five‑dimensional typology of institutional risks is developed: technical, legal, political, ethical, and strategic.

Discussion. The findings refute the techno‑optimistic narrative of complete state replacement by blockchain. Hybridization is observed: the state retains control over network nodes, the legal framework, and enforcement mechanisms, transforming into a «platform state» model where routine functions are algorithmized and public authority focuses on strategic regulation. The proposed recommendations are of practical value for ministries of digital development, data regulators, the judicial system, security agencies, and international organizations.

Conclusion. Blockchain is effective only for a narrow class of tasks requiring absolute record reliability. The main implementation barrier is institutional, not technical. The promising model is controlled decentralization through consortium blockchains.

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