The State Corporation “Government for Citizens” was the first to introduce Blockchain technology into the processes of providing public services. So far we are only talking about registering a real estate pledge agreement for individuals. However, it is quite possible that this experience can be used for other government services.

The Blockchain system itself is a technically constructed chain of blocks, which completely eliminates the possibility of transferring data to third parties. This allows us to ensure complete reliability, safety and quality assurance.

According to the Chairman of the Board of the Government for Citizens state corporation, Asemgul Baltasheva, the use of Blockchain technology has made it possible to simplify the process of registering a pledge agreement as much as possible. “Previously, citizens had to go through several authorities to register a pledge agreement. In particular, it was necessary to contact the Public Service Center or the egov.kz portal to obtain a certificate of registered rights (encumbrances) on real estate, and then provide it to the bank. Now, checking data on the service recipient’s rights to real estate and the presence of encumbrances on it occurs automatically when a bank employee submits an application. Now it’s data, not people, running around,” said Baltasheva.

She also added that through the use of Blockchain technology, it was possible to reduce the period of service provision from three working days to one, as well as significantly optimize the package of documents required for submission to the bank.

Now the service recipient, having read the pledge agreement in the bank’s information system, signs it with his digital signature, and the finished result in the form of a notification of state registration of encumbrance of rights to real estate is received in the service recipient’s personal account on the e-government portal egov.kz.

In the process of choosing Blockchain technology, the advantages of this method were taken into account: transparency of the actions of network users, decentralization, and a reliable security system.

By the way, so far in Kazakhstan a similar process of providing government services for registering a pledge agreement has been implemented as a pilot project only with one of the commercial banks.

The government for citizens is also negotiating with other second-tier banks to implement this type of service on their platforms. After all, the use of Blockchain technology serves as a guarantee for the implementation of secure bilateral transactions without the involvement of a third party and simplifies the issuance by banks of loans secured by real estate in terms of online processing of loans, reducing costs and reducing the terms of their issuance.