To modernize its pension management, the United Nations has embraced blockchain technology. A detailed examination of this implementation determined the distributed ledger system to be an exceptional tool for verifying digital identities. This has prompted the UN to consider widening the system’s application and offering it to other global organizations.
Having investigated blockchain’s potential in various capacities, the UN specifically tested its efficacy with the United Nations Joint Staff Pension Fund (UNJSPF). According to a recently published white paper, blockchain’s ability to confirm identities offers improved security, greater efficiency, and increased transparency. Working alongside the Hyperledger Foundation, the UN aimed to “upgrade and safeguard the UN pension administration on a global scale by deploying a blockchain-backed digital identity infrastructure.”
The UN pension fund previously operated with a 70-year-old method for validating beneficiaries across 190 countries. This system relied on physical paperwork to confirm that over 70,000 recipients were who they claimed to be, still living, and located where they stated. This manual process was susceptible to mistakes and misuse, leading to approximately 1,400 payment suspensions annually, the document noted. Consequently, the organization transitioned to a blockchain-driven digital authentication system, starting with a pilot initiative in 2020, followed by its full introduction in 2021.
“The move away from traditional paper documents has noticeably decreased the time spent processing paperwork, including receiving, opening, scanning, and storing these documents,” the white paper highlighted.
The blockchain design eliminated the risk of single-point failure inherent in a centralized system, as detailed in the report outlining the procedures and outcomes. The authors suggest that the successful outcome could be replicated in similar situations. The researchers pointed out that open access and shared usability among different groups reduce the duplicated need for numerous identity checks.
The UN is now exploring the possibility of extending similar technology throughout its various divisions and offering it as a “digital public asset,” with plans to widen the Digital Certificate of Entitlement strategy to include other international bodies.
“This initiative has delivered not only a working technical model but also a practical strategy for how entities within the UN system can work together to develop secure, scalable, and inclusive digital infrastructure,” commented Sameer Chauhan, Director of the United Nations International Computing Centre, in his conclusion within the paper.