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  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>A blockchain-driven e-participation for substantial democracy*</article-title>
      </title-group>
      <contrib-group>
        <aff id="aff0">
          <label>0</label>
          <institution>University of Brescia</institution>
          ,
          <addr-line>Via S. Faustino, 41, 25122, Brescia</addr-line>
          ,
          <country country="IT">Italy</country>
        </aff>
      </contrib-group>
      <fpage>0000</fpage>
      <lpage>0003</lpage>
      <abstract>
        <p>Bearing in mind the underlying opportunities and risks of the Internet as well as the European stance on “Better Regulation” - according to which consultations and impact assessment are an intertwined essential feature for more democratic legitimacy (i.e. input and output legitimacy) - this essay tries to reshape the approach to e-participation. In this regard, it enters the matter of the deployment of a specific technology endowed with capabilities that comply with open and transparent peer participation relying on verified and tamper-resistant information and data stored on it (i.e. blockchain and DLTs). Then, the essay enters the specific domain of the social impact assessment where public participation and - specifically - e-participation through blockchain technologies is deemed to assume an added-value. Indeed, in this case (social impact assessment), storage in such a technological tool of civic knowledge, expertise and public spirit becomes even worthier because of its architectural features. In this sense, its deployment may smoothen the transition from a procedural democracy to a more substantial democracy, and recent studies such as recent initiatives have proved the awareness of the EU of the potentiality of blockchains and DLTs for participatory and democratic purposes.</p>
      </abstract>
      <kwd-group>
        <kwd>E-Participation</kwd>
        <kwd>Blockchain</kwd>
        <kwd>Social Impact Assessment</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>-</title>
      <p>
        embedded in current reality goes hand in hand with public consultations[
        <xref ref-type="bibr" rid="ref4">4</xref>
        ]. More
specifically, the involvement of technical expertise is integrated by the participation of
citizens and civil society due to the fact that the contribution of political and technical
expertise is often not enough for fully understanding the issues at stake[
        <xref ref-type="bibr" rid="ref5">5</xref>
        ], as new forms
of criticalities and fragilities requires the support of civic expertise to the decision
making process[
        <xref ref-type="bibr" rid="ref6">6</xref>
        ]. Against this backdrop, the architectural features of the internet have
smoothened and underpinned the creation of communicative channels between public
power and civil society, along a bottom-up and top-down way of inter-action[
        <xref ref-type="bibr" rid="ref7">7</xref>
        ]. Indeed,
“The design of the original Internet was biased in favour of decentralization of power
and freedom to act. As a result, we benefited from an… extensive participatory
activity”[
        <xref ref-type="bibr" rid="ref8">8</xref>
        ].
      </p>
      <p>
        Consequently, as stressed by Stefano Rodotà, deliberative democracy seems to
follow the mandatory ways of “technopolitics”, therefore the administrative and political
process as a whole is becoming an ongoing democratic process due to the deployment
of information and communication technologies[
        <xref ref-type="bibr" rid="ref9">9</xref>
        ].
      </p>
      <p>
        The reverse side of this phenomenon implies different scales of risks. On the one
hand, misleading information, manipulation[
        <xref ref-type="bibr" rid="ref10">10</xref>
        ] and control over data and the behavior
of internet users[
        <xref ref-type="bibr" rid="ref11">11</xref>
        ]. These risks are double-sided, as they involve the relationship
between citizens and institutions as well as consumers and market powers. In this regard,
the dispute of the US President, Donald Trump and Twitter and his relevant executive
order as well as the EC’s legislative initiatives to regulate online platforms are telling.
On the other hand, it is the “digital divide” and the implied equality in access to internet
that are called into question.
      </p>
      <p>
        Against this brief overview, our starting point is a well settled question already posed
by the current Italian Data Protection Authority: “How much power can a democratic
system delegate to technology without denying itself?”[
        <xref ref-type="bibr" rid="ref12">12</xref>
        ].
      </p>
      <p>The answer obviously depends on the purposes and ways of technological
deployment. In this respect, the essay deals with the capabilities implied in an on-going
technology (blockchain) for the sake of participatory democracy in a domain that more than
others needs “civic engagement” (i.e. the social impact assessment).</p>
      <p>
        Consistently, recent studies entrusted by the European Commission[
        <xref ref-type="bibr" rid="ref13">13</xref>
        ], its initiative
for the EU Blockchain Observatory and Forum, as well as the opening (in May 2018)
of the European Innovation Council Horizon Prize on blockchain for social goods,
highlighted the potentiality of a blockchain system for participation in democratic
decision-making.
2
      </p>
    </sec>
    <sec id="sec-2">
      <title>E-participation: a premise</title>
      <p>
        As stressed by doctrine, participatory democracy is different from participation and
does not require any specific and explicit constitutional or statutory provision, as it is
an essential prerequisite for democracy and popular sovereignty[
        <xref ref-type="bibr" rid="ref14">14</xref>
        ].
      </p>
      <p>
        By means of participatory democracy, people take part in the decision-making
process, not as a substitute for representative democracy but to improve its performance[
        <xref ref-type="bibr" rid="ref15">15</xref>
        ].
      </p>
      <p>
        In this regard, doctrine has stressed the added value and the practical benefits of
doing consultation by means of electronic tools in respect of different ways of
participation[
        <xref ref-type="bibr" rid="ref16">16</xref>
        ]. As a consequence, electronic participation is not deemed an end in itself, but
rather a means to better perform democratic purposes, and as such it entails a new
horizontal organizational model between public power and civil society through
continuous processes of communication, information sharing and exchange for more aware
and coherent public policies[
        <xref ref-type="bibr" rid="ref17">17</xref>
        ].
      </p>
      <p>
        More specifically, e-consultations differs “from other spaces in the informal virtual
public sphere. In informal discursive e-spaces such as virtual communities, topical
forums, chat rooms or newsgroups, participants interact as equals and may but do not
explicitly seek to wield political influence. The raison d’être of e-consultations is to
affect formal (institutional) political and decision-making processes”; furthermore,
“econsultations are also more formal and structured than discussions in the informal
virtual public sphere. They tend to have a set duration, agenda, employ the use of
moderators, with topics for discussion pre-defined by the host”[
        <xref ref-type="bibr" rid="ref18">18</xref>
        ].
      </p>
      <p>
        At this point in time, it is crystal clear that electronic tools may integrate and benefit
the decision making and its democratic scope, as they may improve openness,
transparency and information by means of communicative channels between different
governmental levels and society[
        <xref ref-type="bibr" rid="ref19">19</xref>
        ].
      </p>
      <p>
        It is equally clear that this bottom-up and top down flow of communication
adequately performs only if it stands on complete, reliable information and data, which –
once again – call into question the issue of misinformation. Indeed, civil society builds
its opinion on both channels of information, whether fed by public institutions or
privates. This is an ongoing and open issue that the European Commission is currently
trying to cope with[
        <xref ref-type="bibr" rid="ref20">20</xref>
        ]. Another implied risk in electronic participation is the digital
divide that adds to already existing risks of public consultation at large producing
further asymmetry and inequality in participation. As such, it requires a broad and
structural intervention to be implemented by various tools (i.e. right to internet as a
fundamental social right[
        <xref ref-type="bibr" rid="ref21">21</xref>
        ], the definition of standards and guidelines for best practices in
public consultations[
        <xref ref-type="bibr" rid="ref22">22</xref>
        ]). A further risk is the delay in the decision making as well as
the efficacy and effectiveness of public consultation in respect of the deliberative
outcomes[
        <xref ref-type="bibr" rid="ref23">23</xref>
        ].
      </p>
      <p>
        Bearing this premise in mind, the essay does not intend to underestimate or shadow
the multifaceted difficulties that need to be overcome for a well-functioning electronic
participation[
        <xref ref-type="bibr" rid="ref24">24</xref>
        ]; it rather aims at reshaping the approach focusing on a particular
technology endowed with potentialities that can comply with open, trusty and transparent
peer participation. Moreover, the architectural features of this technology are suitable
for the addressed substantial matter, i.e. social impact assessment.
      </p>
      <p>
        Re-shaping the technological architecture of e-participation:
blockchain technologies
By means of on-line platforms, different types of electronic participation tools may be
deployed, such as question and answer discussion forums, editorial consultations or
others[
        <xref ref-type="bibr" rid="ref25">25</xref>
        ].
      </p>
      <p>
        On-line platform for dialogue with the civil society is a practice well known at the
European level. In April 2001, the European Commission issued a Communication on
Interactive Policy-Making[
        <xref ref-type="bibr" rid="ref26">26</xref>
        ] for the improvement of the European governance system
by using the internet to facilitate open consultations on new initiatives (beyond other
purposes). It was an open source application, freely accessible for Member States
administrations and privates. Then, the European Commission created a single access
point website called “Your voice in Europe” for public consultations, lately replaced
by https://ec.europa.eu/info/consultations_en[
        <xref ref-type="bibr" rid="ref27">27</xref>
        ].
      </p>
      <p>At the national level, Article 9 of the Digital Administration Code (Italian
Legislative Decree No. 82/2005), headed “Electronic Democratic participation”, fostered
electronic consultations on normative or administrative proposal drafts.</p>
      <p>
        Across different countries, different forms of participation and e-participation have
been experienced[
        <xref ref-type="bibr" rid="ref28">28</xref>
        ] but it is not for the limited purposes of this essay to analyse them;
our aim is rather to focus on the features of a particular technological infrastructure that
fits the purposes of transparent and reliable information and consultations. The
reference is to the blockchain technology and its way of action.
      </p>
      <p>
        It is a peer-to-peer network, disintermediated and transnational that “enables people
to store non-repudiable data, pseudonymously, in a transparent manner”[
        <xref ref-type="bibr" rid="ref29">29</xref>
        ]; in a few
words, it is a distributed ledger technology.
      </p>
      <p>
        More specifically, a blockchain is supported by a network of computers (called
nodes) without any centralized party for maintenance or operation, thus “anyone with
an Internet connection can retrieve information stored on a blockchain simply by
downloading freely available open source software”[
        <xref ref-type="bibr" rid="ref30">30</xref>
        ]. Indeed, a blockchain is public and
open when everyone can access and read information recorded to it and permissionless
when anyone can store, verify and validate information in the blockchain.
      </p>
      <p>
        Consequently, on the one hand, there is no central point of failure and the system is
very difficult to attack; on the other hand “trust between participants is based on the set
of rules that everyone follows to verify, validate and add transactions to the
blockchain”[
        <xref ref-type="bibr" rid="ref31">31</xref>
        ]; these rules are steered by an algorithm which defines the way to reach the
“consensus”. In this sense, a blockchain is “tamper-resistant”, because information
stored is hard to change or delete without the consent of the other nodes. Accordingly,
because of the “consensus mechanism”, data in the blockchain is transparent,
authenticated (relying on digital signatures and public-private key cryptography),
non-repudiable and non-falsifiable[
        <xref ref-type="bibr" rid="ref32">32</xref>
        ]. “More generally, a blockchain can be regarded as a shared
repository of information – an open, low-cost, resilient, secure storage system that
nobody owns but many people maintain”[
        <xref ref-type="bibr" rid="ref33">33</xref>
        ].
      </p>
      <p>
        Consequently, even though blockchain and distributed ledger technologies still have
flaws due to their recent origins and pose multiple legal challenges, nonetheless they
“could be a far-reaching innovation”[
        <xref ref-type="bibr" rid="ref34">34</xref>
        ], and could be deployed for different
applications (beyond their original use for cryptocurrencies).
      </p>
      <p>
        The capabilities of a blockchain may encompass e-government and e-democracy
tasks, and may thus improve public services and benefit the society at large[
        <xref ref-type="bibr" rid="ref35">35</xref>
        ].
      </p>
      <p>For our specific purposes, it is relevant to highlight the features of blockchain
technologies that are suitable for broad, transparent and reliable participation.</p>
      <p>In this respect, not only the information stored by the institution that opens the
consultation can be verified by the other nodes (according to a peer-to-peer approach),
thereby reducing the risk of disinformation, but all the nodes can interact with each
other and access and read different opinions or information recorded to the distributed
ledger and already verified and validated by the participants (the so called miners).
Moreover, its transnational scope allows a broader cross-checking of information and
data. This is a fundamental feature that makes the participation process more
transparent, democratic and trustworthy.</p>
      <p>
        Consequently, it is worthwhile to recall that information stored in a blockchain “is
open to every user, and the information asymmetries between two users are minimized.
Thus, it’s not possible for one user to cheat or hide information from another user” [
        <xref ref-type="bibr" rid="ref36">36</xref>
        ].
      </p>
      <p>
        Accordingly, a blockchain technology may improve and foster the relationship
among institutions, citizens and civil society by means of enhanced confidence of the
latter in the former, as may thus strengthen their participation and increase the
performance of public policies[
        <xref ref-type="bibr" rid="ref37">37</xref>
        ].
      </p>
      <p>
        In this regard, it is worth remembering that in May 2018, the European Commission
opened the European Innovation Council (EIC) Horizon Prize for Blockchains for
Social Good, which was aimed at leveraging decentralized solutions based on DLTs for
(among other goals) “participation in democratic decision-making by enabling
accountability, rewarding participation and/or anonymity”[
        <xref ref-type="bibr" rid="ref38">38</xref>
        ]. On 29th June 2020, the European
Commission announced six prize winners, including projects on participation in
democratic decision making[
        <xref ref-type="bibr" rid="ref39">39</xref>
        ].
4
      </p>
      <p>
        Re-shaping the contribution of e-participation to substantial
democracy: Social Impact Assessment
The opening of the decision-making process to citizens and civil society can occur for
a double layer of reasons: on the one hand, for democratic legitimacy (input
legitimacy); on the other hand, for “better regulation” purposes (output legitimacy)[
        <xref ref-type="bibr" rid="ref40">40</xref>
        ]. In
this last respect, impact assessment and consultation, at the European level, are jointly
concerned and considered as mutually improving[
        <xref ref-type="bibr" rid="ref41">41</xref>
        ], but beyond the evidenced
criticalities on the effectiveness of consultations with respect to the outcomes of the
deliberative process[
        <xref ref-type="bibr" rid="ref42">42</xref>
        ], there is a preliminary issue to tackle. It deals with the distinction
between the procedural contribution of participation in democracy[
        <xref ref-type="bibr" rid="ref43">43</xref>
        ] and its capability to
contribute substantially[
        <xref ref-type="bibr" rid="ref44">44</xref>
        ].
      </p>
      <p>
        On the one hand, the possibility for participants to substantially feed the process is
(also) due to the targets of the consultation. When it entails the specific target of the
“social impact” of the provisions in process of adoption, the added-value of a
“dialogue” within the civil society at large and between the latter and public institutions
becomes more evident because of the relevance of the contribution of “civic
knowledge”[
        <xref ref-type="bibr" rid="ref45">45</xref>
        ], as the contribution of experts is not enough.
      </p>
      <p>
        Indeed, in this case (i.e. social impact assessment) the opening of the deliberative
procedure to the participation of civil society seems worthier than in other cases, as
anybody else than the addressed people may highlight their actual needs and the
existing social shortcomings[
        <xref ref-type="bibr" rid="ref46">46</xref>
        ]. Consequently, the intervention of expert’s advice and their
technical viewpoint require to be complemented by the common understanding and
knowledge of the matter because of the welfare goals encompassed within the
arrangements in process of adoption. This means that when the wellness of society comes into
play (through the social impact assessment), a comprehensive evaluation that
overcomes the mere technical and economic measurement of well-being in terms of
revenues, wealth and domestic product is more functional[
        <xref ref-type="bibr" rid="ref47">47</xref>
        ].
      </p>
      <p>
        On the other hand, the potentiality implied in this sort of consultation may be
facilitated by means of a technological system which is able to support a distributed network
of peers that store information within censorship-resistant blocks (i.e. the blockchain
operative system). Indeed, the architecture of a blockchain, its peer-to-peer structure,
fits the equality principle, more specifically the equal, trusty and transparent exchange
of information which is visible to all. In addition, “because blockchains help people
reach consensus, they may help solve some of the issues traditionally associated with
shared common-pool resources”[
        <xref ref-type="bibr" rid="ref48">48</xref>
        ].
      </p>
      <p>
        Consequently, it is the structural feature of the technology itself that smoothen the
path towards an effective contribution to the collective dialogue that qualify
consultations, and thus it contributes to building the basis for the transition from a procedural
to a more substantial output[
        <xref ref-type="bibr" rid="ref49">49</xref>
        ].
      </p>
      <p>
        In this regard, a social impact assessment carried out by means of a
blockchaindriven public participation matches with multiple purposes: not only it equally voices
broad, different information and data for the sake of a better tailored and comprehensive
public policy choice, but also it fosters confidence in people and institutions due to its
tamper-resistant, transparent and visible way of action. Moreover, as recent studies
have shown, the blockchain operative system allows the use of tokens “as a tool to
increase civic engagement by supporting citizens’ extrinsic motivation”, as such
finding new forms of democratic commitment because “technological deployment in the
last decade has not been accompanied by greater participation or greater resilience of
our democracies given the space of uncertainty generated by our complex societies”[
        <xref ref-type="bibr" rid="ref50">50</xref>
        ].
      </p>
      <p>
        Consequently, participation of citizens and civil society in a social impact
assessment (ex-ante and ex-post) by means of blockchain technologies, enhances both,
procedural democracy and substantial democracy[
        <xref ref-type="bibr" rid="ref51">51</xref>
        ].
      </p>
      <p>In this respect, it is worthwhile to recall that one of the 11 topics of well-being
included in the OECD’s Better Life Index is “civic engagement”, which takes into
consideration not only “voter turnout” (percentage of the registered population that voted
during an election) but also “stakeholder engagement for developing regulations” by
means of public consultations.</p>
    </sec>
    <sec id="sec-3">
      <title>Conclusive Remarks</title>
      <p>
        The European stance that makes “Better Regulation” perform by means of the mutual
involvement of impact assessment and participation (which we still deem valid) may
receive improvement by the deployment of a specific technology (i.e. blockchain) in
reference to a specific purpose (i.e. social impact assessment). Indeed, the potentiality
embedded in a blockchain system in terms of equality – by means of its peer-to-peer
architecture –, transparency – since the stored information and data are visible to all the
nodes –, reliability – due to its tamper-resistant features – are suitable for broad, open,
transparent and trusty consultations. Moreover, this “architectural” added-value for
eparticipation may receive implementation when deployed for social impact assessment
because of the essential support – in this domain more than in others – of civic
knowledge, expertise and public spirit. Furthermore, the mentioned possibility of a
reward for e-participation may strengthen civic engagement. Consequently, beyond the
theoretical e-democracy models one may adopt[
        <xref ref-type="bibr" rid="ref52">52</xref>
        ], the described potentiality of a
blockchain technology, as well as its deployment for a specific objective (i.e. the social
impact assessment) close to citizens’ sensitivity, is deemed to fulfill legal purposes that
put into practice fundamental democratic values. Indeed, it carries out a
technologydriven procedural path that fits the aim of an improved substantial civic contribution to
the decision-making process in terms of equal, reliable, transparent e-participation.
      </p>
      <p>The European Union has proved aware of the capability of blockchain technologies
for e-participation and e-democracy at large (as shown by the aforementioned studies
and initiatives), in this sense its endeavor is to regulate and standardize this ongoing
evolutionary technology without hindering its development and usefulness. In this
regard, our concluding remarks intend to underline the relationship between the
potentiality of a blockchain technology and a social impact assessment for the (procedural and
substantial) improvement of participatory democracy as a whole.</p>
    </sec>
  </body>
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