Blockchain-based Infrastructure Private Financing in the Least Developed Countries: A Conceptual Framework

Abstract

Infrastructure financing in least-developed countries (LDCs) faces various obstacles, including fragile economic conditions, inadequate regulatory frameworks, and concerns over transparency and investor security. This deters private sector involvement, impeding vital infrastructure development and long-term economic progress. Blockchain technology, on the other hand, has demonstrated its ability to enhance transparency and improve operational efficiency. To bridge this gap, this study presents a novel blockchain-based framework for private financing governance in such projects. The proposed framework was built on three components: a foundational blockchain layer for secure transactions, a DAO layer for governance, and a node layer for user interaction. Moreover, a decentralized decision-making structure was outlined, which allocates voting power according to roles and reputations. The framework also introduces well-defined entry and exit criteria to ensure commitment and transparency. Further, it incorporates a member-driven proposal process and a reputation-based compensation system to encourage active involvement. Finally, a real-world case study was used to assess the framework's practicality and efficiency. According to the findings, the proposed framework has the potential to address and improve the identified gaps. The results of this study provide conceptual insights for LDC infrastructure project stakeholders to enhance the efficiency of infrastructure development in these nations.