What is it about?
This research proposes a blockchain-based framework to improve transparency, efficiency, and accountability in public procurement systems. In many emerging economies, procurement processes are often affected by inefficiencies, delays, lack of transparency, and risks of fraud. These issues can weaken fiscal discipline and reduce public trust in government institutions. The study introduces a hybrid consortium blockchain framework designed to work as a software connector that integrates directly with Financial Management Information Systems (FMIS). Through smart contracts, key procurement processes—such as budget commitment verification and bid validation—are automated. This reduces manual intervention, prevents unauthorized contracts, and minimizes errors and delays. A case study based on Kosova’s Financial Management Information System (KFMIS) and eProcurement platform demonstrates how the framework can address common challenges such as fraud risks and verification delays. By combining public and private ledgers, the system ensures transparency while protecting sensitive data through permissioned access and privacy controls.
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Why is it important?
Public procurement represents a significant portion of government spending, and weaknesses in procurement systems can lead to financial losses, corruption risks, and reduced public confidence. Traditional centralized systems may lack real-time auditing capabilities and are often vulnerable to manipulation or administrative bottlenecks. This research is important because it offers a practical and scalable solution for modernizing procurement systems using blockchain technology. By enabling real-time auditing, automated verification, and interoperable integration with existing financial systems, the framework strengthens accountability and reduces corruption risks. In the broader context of digital governance and public financial management reform, blockchain-based procurement systems can improve transparency, streamline workflows, and enhance trust among stakeholders, including citizens, suppliers, and oversight institutions.
Perspectives
From my perspective, blockchain-enabled procurement systems represent a major step toward accountable and automated public sector governance. The combination of smart contracts and interoperable integration with FMIS demonstrates how emerging technologies can support structural reform rather than merely digitizing existing processes. However, successful adoption depends on regulatory alignment, institutional readiness, and strong governance frameworks. Interoperability standards and data protection measures must be carefully implemented to ensure scalability and compliance with legal requirements. In the long term, this framework could serve as a foundation for broader public sector transformation, including automated contract management, transparent budget execution, and trusted multi-agency financial ecosystems. By aligning technology with fiscal governance principles, blockchain can contribute to more transparent and resilient public institutions.
Dr.Sc. Vehbi Neziri
University for Business and Technology
Read the Original
This page is a summary of: Blockchain-Based Framework for Automated and Accountable Public Procurement, October 2025, Institute of Electrical & Electronics Engineers (IEEE),
DOI: 10.1109/bcca66705.2025.11229478.
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