Enhancing E-Procurement Efficiency Using Blockchain and NFTs

Abstract

The increasing demand for transparency, efficiency, and security in e-procurement has necessitated the exploration of blockchain technology as a new solution. In this work, a permissioned blockchain model is proposed that is aimed at enhancing the integrity of the data, ensuring secure participant enrollment through digital ID verification, and supporting automated purchase processes through smart contracts. The proposed solution utilizes Non-Fungible Tokens (NFTs) for supplier qualification authentication and the Interplanetary File solution (IPFS) for secure, distributed storage of contract and tender files. The proposed architecture utilizes the decentralization, immutability, and cryptographic protection features of blockchain technology in order to reduce the threat of fraud and establish stakeholder trust. A comparative study through existing studies and case studies illustrates that this system is capable of reducing the tender assignment period, eliminating unauthorized manipulation of information, and enhancing the overall effectiveness of e-procurement processes. This article identifies the socioeconomic advantages of adopting blockchain-based e-procurement, providing a cost-effective, secure, and transparent alternative to conventional e-procurement procedures.