The role of blockchain and smart contracts in receiving donations towards financing of political parties : use case : Malta

Abstract

In a healthy functioning democracy, transparency is the hallmark of good politics. Finance is vital in running a successful electoral process. In elections, money allows for the expression of political support and encourages competition. Money significantly impacts who can get into a political conversation and run for office. As elections get more expensive to contest and win, it is harder for individuals and ideologies with limited financial resources to get into the office. Elected representatives in many democracies often choose between voter aspirations and sponsor-backed agendas. This conflict of interest diminishes the voice of the voters. The state needs to ensure and protect its citizens' sovereignty. The more transparency and actors in the system, the more the voters and other constituents will trust the actors at play, and Blockchain may have a role to play. It is a long-standing debate on how Blockchain, where necessary, drives value to any business through transparency. Blockchain may signal a new era of transparency and reward best behaviour in political financing, as it has been doing in business applications. A Blockchain and Smart Contract solution may be considered for political actors to report their financial activities in real-time under the watchful eye of the state and its citizens.