The United Nations is making significant strides in modernizing its pension system by leveraging blockchain technology. A recent study highlighted the potential of this innovation, describing it as the “ultimate technology for digital identity verification.” This revelation has prompted the UN to consider extending the blockchain system and sharing it with other international organizations.
The initiative began with the United Nations Joint Staff Pension Fund (UNJSPF), which was historically dependent on a 70-year-old paper-based system to verify the identities of over 70,000 beneficiaries across 190 countries. This outdated method not only contributed to inefficiencies but also led to approximately 1,400 payment suspensions annually due to issues with identity confirmation. In response, the UN partnered with the Hyperledger Foundation to implement a blockchain-supported digital identification infrastructure, kicking off a pilot program in 2020 followed by a full-scale launch in 2021.
According to a white paper released this week, the transition has drastically reduced processing times that were previously consumed by the manual handling of paper documents. By applying blockchain technology, the UN could eliminate the risks associated with a centrally managed system, which was vulnerable to single points of failure. The decentralized nature of blockchain has also streamlined the identity verification process, making it more efficient and secure.
The authors of the study emphasize that the success achieved through this project could serve as a model for other organizations. With its open-access capabilities and usability across various entities, blockchain technology diminishes the repetitive need for identity checks, thereby enhancing overall efficiency.
In light of these promising results, the UN is aiming to adopt similar blockchain solutions throughout its operations and promote them as a “digital public good” for other international organizations. Sameer Chauhan, director of the United Nations International Computing Centre, concluded in the paper that this project has not only developed a technical prototype but also crafted an operational model that demonstrates how different UN organizations can collaborate to create secure, scalable, and inclusive digital public infrastructure.
