Asian Development Bank Is Interested In Public Contracts Blockchain System
According to a report prepared by experts particularly for the Asian Development Bank (ADB), rationalization of blockchain technologies will increase efficiency in the public procurement system, Coindesk reports.
Two researchers, Ramanathan Somasundaram, who specializes in electronic supply systems, and S. M. Quamrul Hasan, a senior public procurement specialist at the World Bank Group, presented a blockchain implementation scheme in ADB in their report as of October 18, 2018.
About 200-250 digital systems for public procurement have already been introduced around the world to improve public procurement. Despite this, due to contradictory information about the exact mechanics of this technology, its development is significantly hampered. Nevertheless, the ADB has already shown interest in the proposed blockchain system for improving state operations in the Asian economy.
In the report, the authors consider the scheme in which each blockchain system of government procurement acts as nodes, providing access to data on suppliers. In this way, state systems will be able to avoid many issues, in particular, when suppliers have to iteratively apply for access to databases related to different supply areas. In addition, with the help of blockchain technologies, the government will be able to fully automate the procure-to-pay process and monitor the delivery status.
This blockchain network will allow banks worldwide to accept Electronic Performance Bank Guarantees from other banks on behalf of suppliers.
As previously reported, a blockchain project was launched to track supplies for small and medium-sized businesses in South Korea.