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This is where private blockchains come into play.

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But if its a private blockchain maintained only by government agencies, then you may as well just use a more efficient database ;)

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I think there's ways to do a private blockchain and have it not operate like a government thing. Maybe have the chain data private, but the ability for the public to verify hashes for transactions that happened on chain. Example - If the host of the private chain provides the transaction hash to the user, they can verify the data in that particular transaction. Maybe? I dunno.

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