9 April 2025
Abstract
This study examines the applicability of blockchain technology within the framework of Québec’s public services. The main objective was to develop proof-of-concept on a distributed ledger to manage the lifecycles of VDE-23 certificates, essential documents used by the Société de l’assurance automobile du Québec (SAAQ) to establish the taxation for vehicle registration.
Beyond this specific implementation, the study had several complementary objectives: to fully analyze the use case of VDE-23 document sharing between public authorities; to identify the actual added value of blockchain in this context; to recommend a system adapted to the needs of the public sector.
Results of this experiment highlighted two critical aspects toward the successful adoption of blockchain for the public sector. First, each use case must be evaluated to ensure that blockchain brings real added value to the existing process. Second, blockchain projects would benefit from a broader vision within an integrated government ecosystem.
Introduction
Public sector institutions operate in a rapidly changing environment, transforming the way services are delivered. To ensure positive outcomes for citizens, governments need effective public institutions that can keep pace with emerging trends and adapt to changing expectations. New technologies offer innovative opportunities for the public sector, enabling improved interaction between citizens and institutions, and the development of truly user-centric services.
The emergence of blockchain technology has inspired a new information exchange infrastructure based on a peer-to-peer model. This paves the way for numerous use cases in sectors seeking to improve efficiency, reliability, security and transparency. The public sector is mainly characterized by administrative processes involving many institutions. Blockchain can support various types of integration within an organization. Yet its applicability and interoperability in the complex integration of an inter-organizational public process remain to be seen.
Blockchain and Public Services
The properties of blockchain—which redefine the foundations of trust and value exchange—align with the technological modernization of government organizations transiting to a citizen-centric model. Blockchain is positioned as a potential solution to society’s demands for transparency, participation and citizen cooperation [1]. It facilitates disintermediation by automating transactions via smart contracts, while enhancing document security and traceability.
With the advent of blockchain, smart contracts have become a most sought-after application due to the high degree of customization they bring to transactions [2]. They enable peer-to-peer transactions, and the database can be maintained publicly and securely in a trusted environment. A smart contract is fundamentally blockchain-based, and its prerogatives depend on the nature of the blockchain.
A smart contract on a blockchain makes it possible to build decentralized applications implementing programmable logic to define customized and tailored rules for ownership, transaction formats and state transition functions [3]. This makes it possible to represent the logic governing transactions on the network, and to regulate agreements between organizations. These are stored and executed on the blockchain.
Beyond the benefits of introducing blockchain into a government framework, smart contracts establish programmed trust, enabling predefined rules to be applied while complying with confidentiality requirements. This ensures process transparency and verifiability for all stakeholders. It provides an indisputable track record thanks to the underlying blockchain technology. It also streamlines the procedure by guaranteeing that the process is carried out according to strict guidelines encoded in the smart contract [4-5].
Technical Architecture
The proposed architecture is based on the private blockchain platform Hyperledger Fabric, to which organizations participating in an inter-organizational process can connect to form a consortium network. This architecture relies on member services functionality to maintain an access control layer, enabling the management of participants and authorized actions. It uses the principles of immutability to ensure transparent collaboration in case transfers, when all stakeholders share a process definition and each performs different activities for a case. To comply with the principles of autonomous and peer organizations, the architecture has three layers. One is an application layer comprising specific applications, or portals, for specific organizational activities. Each group of end users accesses the portals with different functions, according to the logic defined in the smart contract. Next comes an interaction layer, which provides the interfaces responsible for communications between the network layer and the application layer. Finally, a network layer comprising a blockchain includes a set of nodes that form a network.
Figure 1. Technical architecture
Since blockchain technology is generic, it can be used to design many different systems. We had to steer the design toward an architecture focused on flexibility and confidentiality—where the details of private processes need not be publicly visible. We chose the public-private approach, in which a public workflow serves as a contract between the stakeholders. The stakeholders can select private configurations, use in-house solutions or apply specific processes for their parts of the process, as long as these are compatible with the public contract.
Figure 2. Public-private approach of the case study
Revenu Québec’s local processes, such as document analysis and verification, as well as eligibility determination, are separate from the SAAQ service. Only the required information on citizens is transmitted via a public process. Similarly, the SAAQ’s internal processes are separated from Revenu Québec, and only the issuance of the certificate is shared in a public process. Citizens use a single interface to request and check the status of their application. This template provides clear information on process ownership at all times. Private processes remain the property of the respective departments.
Results and Benefits
The proof-of-concept carried out on the vehicle registration process validated the potential of blockchain to transform public services, while establishing real benefits for the various stakeholders.
For citizens, the experiment demonstrated the possibility of significantly simplifying administrative procedures. The prototype validated the feasibility of real-time file tracking and reduced the need for physical visits to counters, paving the way for more accessible administration.
On the administrative side, the proof of concept highlighted the opportunity for coordination between the SAAQ and Revenu Québec on a distributed ledger. The prototype reveals how the automation of information exchanges could optimize current processes.
In terms of security and traceability, our tests confirmed blockchain’s ability to guarantee the authenticity and inalterability of exchanged data. The experiment also corroborates the possibility of tracking transactions, which would facilitate auditing processes.
These preliminary results, although obtained in an experimental context, are encouraging and suggest that blockchain could indeed leverage the modernization of public services.
Recommendations
Our proof-of-concept led to several key recommendations for the successful deployment of blockchain in the public sector. These lessons provide a basis for future digital transformation initiatives.
Governance appears to be a fundamental element. Our experiment highlights the importance of establishing a clear, centralized governance framework prior to any deployment. This framework must define exactly the roles and responsibilities of each stakeholder, especially in the management and updating of smart contracts.
Integration with existing systems is another major challenge. Proof of concept suggests that a phased approach based on well-defined interoperability standards is needed to ensure a smooth transition. This integration must preserve existing technological investments while enabling innovation.
Managing digital identities is also a critical point requiring special attention. We recommend developing a unified approach to authentication, enabling citizens to access all services consistently and securely.
Finally, our study underlines the importance of a long-term vision for the progressive development of a global governmental blockchain ecosystem. This approach would optimize investments and maximize the benefits of the technology across the public sector.
These recommendations provide an initial basis for further reflection on how to guide the digital transformation of the public sector through blockchain.
Additional Information
For a more in-depth look at this topic, please refer to these two complementary papers:
Academic Paper
A detailed chapter is available in “Tendances récentes en chaîne de blocs : les infrastructures gouvernementales et sociétales du futur,” published by Thomson Reuters in 2025. The chapter entitled “Une preuve de concept sur un registre distribué pour le service public : Taxation — immatriculation d'un véhicule SAAQ – Revenu Québec (VDE-23)” presents this case study.
Scientific Paper
The technical and methodological aspects of this research were published in a scientific paper presented at the Fifth International Conference on Blockchain Computing and Applications (BCCA):
Sion, S. I., Zhang, K., & April, A. (2023). "Towards Citizen-Centric Services using Blockchain-Powered Digitalization of Public Sector Processes." BCCA 2023, pp. 361-368. DOI: 10.1109/BCCA58897.2023.10338883
References
[1] Casallas, J., et al. (2020). "Smart Contracts with Blockchain in the Public Sector." International Journal of Interactive Multimedia and Artificial Intelligence In Press: 10.
[2] Macrinici, D., et al. (2018). "Smart contract applications within blockchain technology: A systematic mapping study." Telematics and Informatics 35(8): 2337-2354.
[3] Buterin, V. (2014). "Ethereum Whitepaper."
[4] Krogsbøll, M., et al. (2020). Smart Contracts for Government Processes: Case Study and Prototype Implementation (Short Paper). Financial Cryptography.
[5] Negara, E. S., et al. (2021). "A Survey Blockchain and Smart Contract Technology in Government Agencies." IOP Conference Series: Materials Science and Engineering 1071(1): 012026.
