Blockchain-Powered Tendering: Building Trust and Transparency in Public Procurements

Nowadays, technology is changing and reshaping every bit of our lives. It is everywhere, which is why the public procurement system has also not been an exception. As we all know, worldwide governments handle a lot of projects for the overall development of their nation. That is why almost all major projects, including building infrastructure, procurement of necessary supplies, etc., are managed through the procurement process. But flaws are always there. And in the tendering process, many variants including inefficiency, non-transparency, corruption, and other factors have infested it.

Just think about a system where transparency, security and honesty is followed. A system where there is transparency in transactions and bid submission process is tamper-proof. Yes, this is not only a dream, but it is possible with the blockchain-powered tendering. This innovative idea is committed towards the transformation of Government Tenders, eTenders, and Sector Wise Tenders, on a global level.

The Traditional Challenges in Public Tendering

Currently, there are a lot of drawbacks that are faced in the procurement process. So, before moving forward and discussing about blockchain's role in detail, let us first understand what this system lacks:

• Lack of Transparency:  It is difficult for many of us to track any progress in the current tendering process. Since most of the things are paper-based, it becomes difficult to keep a timely check on the process.

• Manipulation Risks: Since everything is paper-based, the risk of tampering with the original documents and bids becomes higher. In the present system, documents can easily be altered prior to the deadlines.

• Delayed Processes: Unnecessary administrative indulgence due to excessive regulations, and paperwork becomes a reason for delays in awarding of contracts

• Limited Accessibility: Due to lack of information and knowledge about eligibility criteria, small and medium enterprises miss the opportunities to apply for better opportunities.

Because of these major issues and drawbacks, the present procurement system lacks fair competition and efficient usage.

Blockchain: A Quick Refresher

Ever wonder what Blockchain is and why it is so much in news nowadays? To be precise, blockchain works as a decentralised digital ledger. A wide range of information regarding public records and transactions can be stored through this across a network of computers. This is becoming famous because, as a bulk information regarding something is stored through the blockchain, it becomes impossible to alter and change it without permission of the network. This feature makes it impossible to tamper with the original information.

At first, this blockchain technology was introduced for safekeeping cryptocurrencies like Bitcoin. Later, this was implemented in our day-to-day arenas and in general sectors ranging from finance to healthcare.

At present, blockchain is slowly making its way through the public procurement system. This technology is promising as it offers security, transparency, and efficiency on a high level.

How Blockchain Reinvents Tendering Processes

Here's how blockchain can revolutionise how eTenders, Government Tenders, and Sector Wise Tenders are conducted:

1. Immutable Bid Records

The traditional method used in the tender process was a witness to bid tampering. But under blockchain, once a bid is submitted, it is recorded and stored with time stamp. This step makes the alterations and changes in the bid nearly impossible, which is why all parties come on the similar level while competing for the same tenders.

2. Transparent Evaluation Process

The blockchain technology fuels smart tendering process. This leads to the digital contracts that are based on already set rules, making it possible to self-execution. Since it makes the evaluation process to work automatically, human interference becomes less and chances of tampering and corruption also reduce.

3. Real-Time Access to Information

Have you ever thought about a public procurement portal, where everybody has access to gather the information? Blockchain allows this to happen with its decentralised processing. With this everyone including contractors, government officials, and citizens, can keep a track of their tender status in real-time. They can get timely information about the whole process starting from the publication of tenders to final award.

4. Enhanced Security

Earlier, the eTendering and digital platforms, used to work according to centralised databases. This process was more vulnerable to cyberattacks. But, the advent of blockchain has distributed the data across multiple networks. This simple process has significantly marked its place and reduced the risk of breaches and corrupt practices.

5. Inclusive Opportunities for SMEs

It is usually noticed that Small and medium enterprises (SMEs) hesitate while applying for high-value or large tenders. This often happens because of lack of fairness towards small businesses in comparison to larger enterprises. But this issue has now been resolved by the tendering platforms like Tender Grid. It uses blockchain-powered technology which makes the process transparent and encourages participation of small businesses by offering fair processes.

The Role of Platforms Like Tender Grid

Innovative platforms like Tender Grid are at the forefront of modernising tendering processes. By aggregating Sector Wise Tenders, eTenders, and Government Tenders, they have already simplified access to opportunities for businesses across industries.

• Integrating blockchain into such platforms can:

• Instil greater confidence among bidders.

• Reduce administrative overhead for government agencies.

• Promote a culture of trust and fair competition.

• Provide historical audit trails for accountability.

As governments worldwide embrace digital procurement, Tender Grid's vision aligns perfectly with the evolution towards secure, blockchain-powered tendering.

Overcoming the Barriers

However, the blockchain-powered tender process is not completely free from drawbacks. Various challenges can be experienced in this which include:

• Technical Readiness: There is a lack of advanced digital systems and infrastructure. A robust system is significant for effective implementation of blockchain technology in this system.

• Regulatory Frameworks: Current legal framework is not adaptive to recognise contracts that have been awarded through a blockchain-assisted tender process.

• Cost Considerations: In the long run blockchain offers an economically safe process, but initially it requires a significant amount of cost for proper implementation.

• Capacity Building: Currently, the relevant workforce needed for the implementation of blockchain-powered tendering is less trained. Properly trained officials are required in this process for a smooth workflow.

No matter how much these challenges are affecting the digital transformation process under eTenders. But, the right vision and strategic approach can make it the most reliable system by curbing these drawbacks.

The Future: A Transparent, Trustworthy Tendering Ecosystem

The tendering process powered by blockchain technology is not merely limited to security and transparency. If this technology can be implemented efficiently, it can mark significant changes, including:

• Curb Corruption: Since the blockchain technology makes tender and bid records immutable, it becomes hard to perform unethical practices. Such acts can be easily detected and the persons involved can be prosecuted on that behalf.

• Boost Investor Confidence: This system builds a trust among all types of businesses, as they rely more on a fair and transparent environment.

• Drive Economic Growth: Since a wide range of small, medium and large businesses participate in tendering, the overall economic growth of the region boosted because of that.

• Empower Citizens: The real time information regarding relevant interest allow public to get information about how well the public funds are spent.
  
  

Final Thoughts

If we talk about tendering process in which blockchain technology is being used, then we can not say that it is only a technological upgrade. Instead, it is a significant change that has been seen towards a fair and more transparent public procurement system.

It is a well-known fact that tender variants are responsible in the overall growth. Use of blockchain technology in this process ensures that the amount of trust and transparency can be increased.

At present, platforms like Tender Grid are leading the charge in the current procurement process. Through such technology incorporated in these platforms, openness to innovation, and the dream of a secure, efficient, and equitable procurement ecosystem can be easily achieved.