How Public Procurement Can Benefit from Blockchain

Categories : Procurement Stages | Implement & Measure | Reduce Risk Published on : Feb 16 2018

By: ProcurementIQ Staff Writer, Ashley McKay

News on blockchain and cryptocurrencies has taken over making consumers and businesses wonder how the new technology will impact them. For the business world, blockchain will present many new opportunities. From smart contracts to increased transparency and streamlined processes, the technology is expected to increase efficiencies across the board.

For public procurement, specifically, "It has wide-reaching applications...especially because government agencies can use this technology to replace existing processes and systems which are inefficient because they are lacking trust and a clear source of truth," says Bertrand Maltaverne in an article published on Public Spend Forum. In fact, "According to The Economist, ‘nine in ten government organisations say they plan to invest in blockchain technology to help manage financial transactions, assets, contracts and regulatory compliance by next year,’” he adds.

But, Have You Considered the Risks & Limitations?

Bertrand highlights three key benefits: streamlined business, increased transparency and fewer risks. However, he also notes that while there are many benefits that some organizations have already begun taking advantage of, there are also risks and limitations that businesses will have to prepare for. A major detail that several articles fail to mention.

To read Bertrand Maltaverne’s article, “What Can Blockchain Do For Public Procurement?” and learn more about the benefits, risks and limitations associated with blockchain technology, click here.