Transparency of Political Party Financing Through Blockchain: Designing a Blockchain System to Generate Transparency for EU Finances

Recent corruption scandals have led to a call for increased transparency in political party financing. This chapter discusses the possibility of organizing political party financing through a blockchain. A blockchain design can increase the transparency of political party financing and increase enforcement against illegal donations. Through a permissioned blockchain the possibility to make donations to political parties can be limited to EU eligible voters. The system could automatically limit the donations a person is allowed to make and publish the necessary data when high donations are made. Furthermore a blockchain system would increase transparency before elections, thereby allowing voters to hold their parties accountable. The blockchain, however, should be limited to registering donations and not become the platform for political discussions. Therefore this chapter recommends that any decisions are made off-chain and through public debate.