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'Lost $1 Million in Revenue in 3 Years': NJ City's Record-Keeping Crisis Reveals Broader Problem
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12 Aug 2025
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A New Jersey municipality discovered nearly $1 million in missed revenue over just three years due to disconnected government record-keeping systems, highlighting a widespread problem that one tech company says is costing local governments nationwide.
“We were working in the city of Orange, New Jersey, and by bringing all their systems together and cross-referencing things, we were able to find almost a million dollars in missed revenue over the past three years that they let slip through the cracks,” says Dan Silverman, CEO of blockchain real estate company Balcony.
The Hidden Cost of Fragmented Systems
According to Silverman, the revenue loss stems from a fundamental problem in local government: departments operating in isolation. “What we’re doing is going into municipalities or counties and uniting all the different departments that don’t speak to each other,” he explains.
This siloed approach means critical data connections are missed, leading to uncollected fees, permits, and other revenue sources. The problem extends beyond just financial impacts, it affects everything from property records to citizen services.
“None of the systems speak to each other,” Silverman says, drawing from his background in real estate development. “It’s difficult to really do anything you need to do as a property owner, from paying taxes to paying fines to pulling permits to getting things approved.”
The Technology Gap
Many local governments are operating on decades-old technology that wasn’t designed for modern needs. “A lot of the systems were built on COBOL in the 80s,” Silverman notes. “It just doesn’t stand the test of time. It wasn’t built for today’s world.”
This technology gap has created vulnerabilities beyond just missed revenue. Silverman points to increasing cybersecurity threats targeting these aging systems. “Even Hoboken, where we’re based, just got hit with a pretty significant cyber attack only a few months ago, their second attack.”
A New Approach to Government Records
Balcony’s work with Bergen County represents what Silverman calls a paradigm shift in government record-keeping. The initiative uses blockchain technology to create a unified, secure system for property records and related government data.
“We’re able to just unite all the different departments to provide better insights,” Silverman explains. “Finding missed revenue opportunities is just one benefit.”
The Future of Local Government Operations
According to Silverman, government attitudes toward new technology are evolving rapidly. “There’s been a real sentiment shift in government. They want to embrace technology. It’s bipartisan now, there are efforts on both sides to embrace this technology.”
The company is now expanding beyond its initial focus in New Jersey, New York, and Wyoming. “We’re specifically targeting states that are already blockchain forward, where there isn’t as much of an education component required,” Silverman says.
He believes the transformation of government record-keeping is inevitable. “The government needs to be two steps ahead. They need to be more proficient in this technology than the cyber criminals so that they could protect citizens from exploitation.”
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