Blockchain based E-procurement system to eradicate corruption in public sector

Abstract

Public procurement is a basic function of the government for providing services to its citizens. A digitalized, tamper proof public-procurement function not only helps a country to make progress but also helps in economic growth of that country. We analyze the importance of having a blockchain based e-procurement system to maintain transparency and make the e-procurement process more effective and less complex, in this research. We identified the current problems Bangladesh are facing in this process like, tempering in transactional records , documents, complex process structures, intervention of multiple parties, massive corruption etc. So, we propose to have a blockchain based e-procurement system where public procurements will be monitored using Delegated Proof of Stake (DPoS) and Proof of Work (PoW) consensus algorithms. Implementation of this technology helps in efficiency when compared to the traditional way of working and adds a layer of transparency among the stakeholders and government authorities, which will eventually contribute to the development of our country, Bangladesh. In this paper we will use the health ministry as an example. As health is one of our most basic rights, our government allocates a huge budget every year in this sector. Our proposed blockchain based allocation system in the health ministry will ensure effective and rightful distribution of money.