Blockchain Technology for Public Services: A Polycentric Governance Synthesis

2026-02-04

AI Summary

This study addresses the frequent oversight of institutional and organizational factors in governmental applications of blockchain for public services, which often stems from an inadequate understanding of their governance mechanisms. Drawing on polycentric governance theory and following PRISMA guidelines, the authors conduct a systematic review of peer-reviewed literature from 2021 to 2025 in the fields of digital government and information systems, with a focus on use cases such as digital identity, e-voting, public procurement, and social services. The work proposes the concept of “controlled polycentricity,” revealing a hybrid governance model wherein governments leverage permissioned blockchains to achieve selective decentralization alongside centralized oversight. By reconceptualizing blockchain as a governance infrastructure that encodes coordination rules, this research offers policymakers both theoretical grounding and practical guidance for the sustainable design and scalable deployment of blockchain-based public services.

Technology Category

• Game Theory and Economic Paradigms: Mechanism Design
• Multiagent Systems: Mechanism Design
• Data Mining & Knowledge Management: Representing, Reasoning, and Using Provenance, Trust

Application Category

• Security and Privacy: Blockchains and distributed ledgers
• Economics, Online Markets and Human Computation: Economic aspects of blockchain and cryptocurrencies
• Social Networks and Social Media: Media and governance, opinion dynamics, filter bubbles, polarization

Abstract

National governments are increasingly adopting blockchain to enhance transparency, trust, and efficiency in public service delivery. However, evidence on how these technologies are governed across national contexts remains fragmented and overly focused on technical features. Using Polycentric Governance Theory, this study conducts a systematic review of peer-reviewed research published between 2021 and 2025 to examine blockchain-enabled public services and the institutional, organizational, and information-management factors shaping their adoption. Following PRISMA guidelines, we synthesize findings from major digital government and information systems databases to identify key application domains, including digital identity, electronic voting, procurement, and social services, and analyze the governance arrangements underpinning these initiatives. Our analysis reveals that blockchain adoption is embedded within polycentric environments characterized by distributed authority, inter-organizational coordination, and layered accountability. Rather than adopting full decentralization, governments typically utilize hybrid and permissioned designs that allow for selective decentralization alongside centralized oversight, a pattern we conceptualize as"controlled polycentricity."By reframing blockchain as a governance infrastructure that encodes rules for coordination and information-sharing, this study advances digital government theory beyond simple adoption metrics. The findings offer theoretically grounded insights for researchers and practical guidance for policymakers seeking to design and scale sustainable blockchain-enabled public services.

Problem

• blockchain governance
• public services
• polycentric governance
• digital government
• institutional factors

Innovation

• polycentric governance
• blockchain for public services
• controlled polycentricity
• permissioned blockchain
• digital government