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Tue, 06 October, 2020

More than often-used buzzwords like “smart city”, “intelligent city” or even “digital city” might sound catchy, but can also cause ambiguity, creating difficulty in understanding Blockchain technology and its impacts on the quality of life and development in a modern city.

Our partner, RomSoft, currently working on the development of the Distributed Ledger component for WeldGalaxy, attempts to apprehend some aspects of “what a smart city really means,” beyond the obscureness of the term, narrowing the field of research on “How could a city become smart in terms of public procurement, and what would that entail?”

Can Blockchain eliminate corruption in public tendering procedures?

WeldGalaxy recently participated at the Fifth International Conference on Smart Data and Smart Cities (online event), September 30th – October 2nd, 2020 with a presentation from Ana Maria Balan, Romsoft, on “Transparency and Accountability in Urban Public Procurement through the Design of a Self Sovereign Blockchain App”.

The presentation included conclusions of the research done in various projects, in collaboration with Sînică Alboaie (Technical Manager of PrivateSky project, Karima Kourtit (Leader of the Department of Smart Cities at the Jheronimus Academy of Data Science (JADS),) and Peter Nijkamp (Emeritus Professor in regional and urban economics, and in economic geography at Vrije Universiteit Amsterdam).

The theme evolved around the main integrity problems that usually arise in public tendering and procurement and how Blockchain technology could be a solution. To quote:

The elimination of third parties in a tender procedure – the Achilles’ heel in a procurement process – is a major benefit of urban blockchain systems; about half of the corruption acts appear to be caused by the presence of intermediate (third-party) agents. In a blockchain approach, a decentralized and open ledger of records to transact value is employed, based on a peer-to-peer constellation, in which in-between trusted third parties play a role”.

Transparency and Accountability in Urban Public Procurement: Design of a Self-Sovereign Blockchain App – Ana Balan, Sînica Alboaie, Karima Kourtit, Peter Nijkamp

Can the use of Blockchain technologies and smart contracts eliminate at least in part the corruption and bribery that happen most often at the third party level in tender procedures? How can the improve transparency and accountability in urban public procurement?

The work presented extrapolated results and technical solutions that are being implemented in  WeldGalaxy as well as PrivateSky (a separate project with RomSoft)

The concept of SSApp is being used in the WeldGalaxy project, where Bid Manager and Tender Offer Manager are self-sovereign blockchain applications.

In conclusion, the usual fraud methods used in urban public procurement can be fought through the intrinsic qualities of the blockchain technology (distributed, transparent, immutable) but also through the use of SSApps.

To read the entire paper, please click here

Courtesy: Ana Balan, Romsoft.