Blockchain is considered a technological trend with a unique and unprecedented foundation of ways of working, and has the potential to fundamentally change society in conducting activities related to the public or private sector. Although the academic literature on blockchain is generally focused on cryptocurrencies, in recent years, literature with different perspectives has begun to emerge regarding the use of blockchain in the context of the public sector. The unique characteristics of how blockchain technology works make it an innovation that is expected to change many activities, structures, and processes related to the implementation of public sector activities, especially in public services such as administrative processes, welfare provision, and regulatory practices. This article discusses through a systematic literature review about the potential use of blockchain in public services. This literature review identifies the types of public services most likely affected by the introduction of blockchain. In addition, this article highlights the benefits, potentials, and challenges and risks of blockchain for governments and citizens/society in general. Governments, in general, can optimize efficiency and tracking through the use of blockchain, but regulatory uncertainty and scalability capabilities being major challenges, which are still poorly researched in the literature, can benefit from reduced bureaucracy and improved coordination through blockchain adoption, despite the lack of blockchain knowledge and skills being significant barriers to its implementation. For citizens or the public, security and transparency are key benefits, while the main risk lies in data security concerns. The article closes by noting a number of limitations in the existing literature and providing suggestions and recommendations for future research.