Smart Contracts with Blockchain in the Public Sector

Abstract

The appearance of so-called block chains or Blockchain with the promise of transforming trust and the way value is exchanged, joins the expansion of the technological capabilities of organizations to achieve higher levels of productivity and innovation. This is how Blockchain-based techniques are being applied to many fields, focusing in this article on the public sector, as a possible solution to the demands for transparency, participation and citizen cooperation that society demands; due to the possibility of disintermediation based on automated transactions and on the responsibility and security in the management of official blockchain records. This could obstruct corruption and make government services more transparent and efficient. Although, it investigates about applications in the public sector under the Blockchain system, such as transactions, agreements, property registries and innovations, developments and other assets; Special emphasis is placed on the possibility of implementing Smart Contracts (mechanisms that aim to eliminate intermediaries to simplify processes) in public procurement procedures, given that it is in this type of activity where high levels of corruption are generated. It is concluded then that Europe has the largest number of blockchain initiatives worldwide, while Latin America, except for the case of Peru, lacks this type of applications, being this continent exactly where there are the countries with the highest levels of corruption. It concludes with a recommendation to use blockchain along with smart contracts through platforms such as Ethereum or Lisk, mainly given its flexibility and current development on topics with similar functionalities.

Keywords

• blockchain
• smart contract
• public sector
• transparency
• corruption