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Blockchain technology provider BayaniChain recently announced a significant step in enhancing governmental transparency through its “Digital Bayanihan Chain” (DBC). This blockchain-based national budget monitoring system aims to offer a robust mechanism for tracking and verifying the Philippine government’s financial activities. The initiative was highlighted by the Department of Information and Communications Technology (DICT) during a press briefing held at Malacañang last week, emphasizing the importance of transparency in government spending.
The statement from BayaniChain comes in light of recent inquiries concerning how the DBC utilizes public blockchain standards and the implications this has for data sovereignty. While the announcement shed some light on the operational framework of the DBC, it notably omitted details regarding its “no-cost” agreement with the government. As a result, industry professionals are left pondering serious concerns about the potential for vendor lock-in and any underlying commercial incentives that may not be publicly disclosed.
DBC: A ‘Public Reference Layer’
BayaniChain has characterized the DBC as a “public reference layer” rather than a replacement for existing governmental databases or legal workflows. This framework anchors official budget records, starting with the General Appropriations Act (GAA), onto a cryptographic ledger. The core function of this system is to provide a means for citizens, auditors, and the media to independently verify whether a document corresponds with the version approved by the legislature, eliminating the need to rely solely on institutional assurances.
The company asserts, “Most transparency systems focus on publication. Publication alone does not establish whether a record remains final, whether it has been modified, or whether a copy matches the original.” This perspective highlights the inadequacies of existing systems and the importance of providing a verifiable trail of official documents.
Addressing Sovereignty and Neutrality
The nature of the DBC’s funding and infrastructure has prompted lively discussion among professionals in technology and cybersecurity sectors. Earlier, technologist Ann Cuisia expressed concerns, emphasizing the need for transparency about the terms of the “no-cost” deal. Cuisia noted that grants from private entities often come with strings attached, casting doubt on their neutrality and potentially compromising digital sovereignty.
In response, BayaniChain championed the use of a public blockchain for financial data, positing that it creates a “neutral verification environment” where no single institution controls access to the ledger. They stated, “This allows citizens… to confirm record integrity without credentials, permissions, or intermediaries.” However, the absence of further elucidation on the specifics of the deal leaves lingering questions among the tech community, particularly regarding the long-term implications for data sovereignty.
Clarifying the Use of ‘NFTs’
The technical framework underpinning the DBC involves the use of ERC721A, a standard frequently associated with Non-Fungible Tokens (NFTs). Yet, BayaniChain has been explicit in clarifying that this isn’t being employed to create financial assets or collectibles. Instead, the choice of this standard serves a critical purpose: to ensure “one-to-one uniqueness” for official records.
“There is no marketplace, no private ownership, no transferability, and no price mechanism. ‘Ownership’ in this context refers to institutional accountability, not economic right.”
Under this architecture, cryptographic hashes and timestamps are linked to each record, meaning that any alterations become “immediately detectable.” This creates a robust security framework and enhances the overall integrity of the data involved.
Context: Scrutiny and Support
The DBC project, which was co-developed with the DICT, has been met with both support and skepticism. While DICT Secretary Henry Aguda and the Philippine Chamber of Commerce and Industry (PCCI) have praised the initiative as a significant advancement in governmental transparency and confidence for investors, some tech experts remain critical. They voice concerns regarding the reliance on grants from private entities like the Polygon ecosystem and the risk of vendor lock-in.
BayaniChain, however, maintains that the DBC functions as a “public infrastructure pilot” aimed at making official documents consistent and auditable over time. They’ve pointed out that “Public data carries public consequence,” stressing the necessity of verifiability and resilience in context to political and institutional changes.
Full Statement of Bayanichain:
PRESS STATEMENT
On the Digital Bayanihan Chain
The Digital Bayanihan Chain establishes a public reference layer for official budget records that can be independently verified over time.
Most transparency systems focus on publication. Publication alone does not establish whether a record remains final, whether it has been modified, or whether a copy matches the original. The Digital Bayanihan Chain anchors official data to a cryptographic ledger that allows any party to verify integrity without relying on institutional assurances.
This system was co-developed with the Department of Information and Communications Technology, beginning with the General Appropriations Act. BayaniChain designed and delivered the blockchain infrastructure at no cost to the Philippine government, providing the specialized cryptographic and public-verification systems required to make official records independently verifiable over time, while preserving government control, data sovereignty, and long-term operational flexibility.
The system does not replace existing databases, workflows, or legal processes. It adds a public verification layer that makes alterations detectable, establishes a stable reference point, and strengthens auditability.
The first phase anchors the enacted national budget to a public blockchain, creating a permanent cryptographic reference that corresponds to the version approved through the legislative process. Future phases extend this structure across the budget lifecycle, including releases, execution, and program-level records, so that official documents remain consistent and traceable over time.
A public blockchain was chosen because public financial data requires a neutral verification environment. No single institution controls the ledger. This allows citizens, auditors, journalists, and civil society organizations to confirm record integrity without credentials, permissions, or intermediaries.
Each anchored record is represented using a smart-contract structure derived from ERC721A.
This standard was chosen because it enforces one-to-one uniqueness, ensuring that each official record has a single, non-duplicable identity. Public records only work when there is one clear, authoritative version.
The structure binds cryptographic hashes, timestamps, and provenance references to each record. Any alteration becomes immediately detectable.
Records evolve through append-only references rather than edits, preserving a verifiable historical trail required for audit and dispute resolution.
The standard is also optimized for large-scale issuance, making it suitable for national systems that must anchor millions of records predictably.
In this architecture, NFTs function as an immutability framework—not as an application.
They establish a permanent cryptographic anchor for records, while the surrounding systems determine access, meaning, and legal effect.
These representations do not function as financial or collectible assets. They operate as cryptographic containers for public records. There is no marketplace, no private ownership, no transferability, and no price mechanism. “Ownership” in this context refers to institutional accountability, not economic rights.
All records are issued, controlled, and maintained by public institutions as part of official recordkeeping. The structure exists solely to guarantee integrity, provenance, and independent verification. In this system, ERC721A is not used to tokenize assets. It is used to anchor verifiable public truth.
The Digital Bayanihan Chain strengthens record integrity and auditability. It does not replace governance, enforcement, or cybersecurity practice. It provides a stable public reference when records are questioned, narratives diverge, or trust erodes.
This initiative operates as a public infrastructure pilot. It is designed to support future capabilities such as deeper traceability, analytics, and expanded public access while remaining under government authority.
BayaniChain will continue working with government partners, auditors, civil society, and the public as this system evolves. Public data carries public consequence. It must remain verifiable, consistent, and resilient across political and institutional change.
This article is published on BitPinas: BayaniChain Defends ‘No-Cost’ Blockchain Budget System; Explains Use of NFT Standards for Verification
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