Blockchain-based e-government in Developing Economies: Public Trust, Legislation, Transparency and Social Dynamics

Abstract

Background: While emerging distributed ledgers like DAG and Hashgraph gain prominence, blockchain technology remains a critical tool for enhancing transparency, accountability, and public trust in the government sector. In developing economies, where institutional trust is often fragile, these technologies offer significant potential to reform electoral integrity, public service delivery, and digital identity management.

Objective: This study evaluates the capacity of blockchain to support effective and fair digital governance. It specifically examines the interaction among technological features, legislative obstacles, and social dynamics that influence adoption in developing contexts.

Methodology: A systematic analysis of international literature (2020–2025) was conducted, complemented by a qualitative comparative and interpretative analysis of empirical cases from Romania and Canada. The research triangulates technological trends with legal regulations and socio-behavioural responses to assess implementation outcomes.

Results: Findings demonstrate that when embedded in clear institutional designs supported by cybersecurity and interoperability, blockchain significantly improves administrative transparency and reduces corruption vulnerabilities. Case studies highlight successful implementations in election monitoring in Romania and public finance in Canada. However, critical challenges persist regarding General Data Protection Regulation (GDPR) compliance—specifically, the "right to be forgotten",—scalability, and public acceptance.

Conclusion: Blockchain and new distributed technologies are valuable tools for modernising public administration, but require robust legislative support, digital education, and ethical governance. For sustainable integration, these technologies must be accompanied by compatibility with international standards and a focus on maximising benefits for citizens.

Unique Contribution: This research provides a transdisciplinary perspective, bridging technology, law, and society. It synthesizes public policy lessons by comparing blockchain with other distributed technologies, offering a strategic framework for countries undergoing digital transition.

Key Recommendation: The study recommends implementing well-monitored pilot projects and proactive legislative adjustments, such as the creation of regulatory sandboxes. Furthermore, digital inclusion campaigns and the establishment of a legal regime that recognises the evidential value of digital records are essential to maximise technological impact in e-government.