Background: Despite the growing adoption of hybrid contract models in construction, energy, and agricultural procurement, there remains a significant gap in understanding how lump-sum and unit-price contracts differentially allocate risk across sectors and country contexts. This study addresses this gap by examining risk mitigation strategies through document analysis and thematic synthesis. Objective: The aim of this study was to identify key risk allocation strategies, contractual mechanisms, and the effectiveness of hybrid models in managing uncertainty across developed and developing country contexts. Methods: A qualitative approach based on thematic analysis and cross-case comparison was applied, drawing on 48 peer-reviewed sources published between 2015 and 2025, alongside relevant sector documents and procurement reports. Results: The analysis identified that hybrid contracts reduced cost overrun variability by incorporating performance-based incentives aligned with Expected Utility Theory and Principal-Agent Theory, while developing economies such as Indonesia and Bangladesh exhibited distinct risk profiles requiring adaptive contract mechanisms. However, significant gaps remain, particularly regarding the empirical validation of blockchain-enabled contract enforcement and AI-driven risk prediction, as well as the underrepresentation of developing economy contexts in existing research. Conclusion: The findings carry both scientific and practical implications. Theoretically, this study advances an integrative multi-theory framework combining Expected Utility Theory, Game Theory, and Principal-Agent Theory to analyse contract risk across diverse contexts. Practically, the results provide evidence-based guidance for procurement professionals and policymakers in selecting and designing contract structures that balance cost certainty with adaptive flexibility.
The article presents a comprehensive analysis of the legal framework for public procurement in Ukraine and the European Union through the lens of balancing transparency requirements with the protection of confidential commercial information. The key principles of the Law of Ukraine “On Public Procurement” and Directive 2014/24/EU, which establish the foundations of equal treatment, non-discrimination, proportionality, and procedural openness, are examined. The practical outcomes of the Prozorro electronic procurement system are analyzed; since its launch, the system has saved over USD 8.7 billion in public funds and increased the number of bidding participants from 14,000 to 140,000. The main corruption risks at various stages of the procurement cycle are systematized – from planning and needs formulation to tender evaluation and contract execution. Based on an analysis of international studies using the Analytic Hierarchy Process (AHP) and principal-agent theory, it is established that tender evaluation is the most corruption-prone stage, with information asymmetry being the key factor. It is shown that under martial law conditions, simplified procurement mechanisms necessary for operational efficiency simultaneously expand the space for abuse. The feasibility of applying zero-knowledge proof (ZKP) protocols as a cryptographic instrument that enables combining public verification of participants’ compliance with qualification requirements while preserving the confidentiality of their commercial data is substantiated. The main classes of ZKP – interactive protocols, zk-SNARKs, zk-STARKs, and Bulletproofs – their properties, trade-offs, and practical applications in financial compliance, identity verification, and anonymous whistleblowing systems are examined in detail. Specific scenarios for integrating ZKP into public procurement procedures are considered: proof of financial capacity without disclosing reporting details, confirmation of the absence of conflicts of interest based on encrypted registry data, verification of the correctness of electronic auction results, and authentication of the supply chain. Key implementation barriers are identified: regulatory recognition of cryptographic proofs as equivalents to traditional documents, technical complexity and institutional capacity, performance and scalability concerns, legal liability for protocol errors, and compliance with GDPR requirements. A phased model for integrating ZKP into the Prozorro infrastructure is proposed, and recommendations for necessary legislative and institutional changes are formulated, including updating the Public Procurement Reform Strategy for 2024–2026, establishing independent cryptographic audit mechanisms, and developing methodological guidelines for contracting authorities.
The article presents a comprehensive analysis of the legal framework for public procurement in Ukraine and the European Union through the lens of balancing transparency requirements with the protection of confidential commercial information. The key principles of the Law of Ukraine “On Public Procurement” and Directive 2014/24/EU, which establish the foundations of equal treatment, non-discrimination, proportionality, and procedural openness, are examined. The practical outcomes of the Prozorro electronic procurement system are analyzed; since its launch, the system has saved over USD 8.7 billion in public funds and increased the number of bidding participants from 14,000 to 140,000. The main corruption risks at various stages of the procurement cycle are systematized – from planning and needs formulation to tender evaluation and contract execution. Based on an analysis of international studies using the Analytic Hierarchy Process (AHP) and principal-agent theory, it is established that tender evaluation is the most corruption-prone stage, with information asymmetry being the key factor. It is shown that under martial law conditions, simplified procurement mechanisms necessary for operational efficiency simultaneously expand the space for abuse. The feasibility of applying zero-knowledge proof (ZKP) protocols as a cryptographic instrument that enables combining public verification of participants’ compliance with qualification requirements while preserving the confidentiality of their commercial data is substantiated. The main classes of ZKP – interactive protocols, zk-SNARKs, zk-STARKs, and Bulletproofs – their properties, trade-offs, and practical applications in financial compliance, identity verification, and anonymous whistleblowing systems are examined in detail. Specific scenarios for integrating ZKP into public procurement procedures are considered: proof of financial capacity without disclosing reporting details, confirmation of the absence of conflicts of interest based on encrypted registry data, verification of the correctness of electronic auction results, and authentication of the supply chain. Key implementation barriers are identified: regulatory recognition of cryptographic proofs as equivalents to traditional documents, technical complexity and institutional capacity, performance and scalability concerns, legal liability for protocol errors, and compliance with GDPR requirements. A phased model for integrating ZKP into the Prozorro infrastructure is proposed, and recommendations for necessary legislative and institutional changes are formulated, including updating the Public Procurement Reform Strategy for 2024–2026, establishing independent cryptographic audit mechanisms, and developing methodological guidelines for contracting authorities.
Abstract Civil engineering obras públicas (public works) in Andean procurement systems still resolve their settlement ( liquidación ) through paper binders, manual valorizaciones and notary-mediated arbitration, generating an average certification cycle of 60 to 90 days per milestone [1, 2]. This article designs and qualifies a self-executing smart contract framework deployed on permissioned distributed ledger infrastructure for the verifiable settlement of construction payments, aligned with Peruvian Ley N° 30225, its Reglamento (D.S. N° 344-2018-EF) and the technical norm D.S. N° 011-79-VC (Fórmula Polinómica). A documentary mixed-methods design was adopted, combining (i) systematic review of regulatory and peer-reviewed sources, (ii) a six-attribute by three-regime comparative matrix anchored to quantitative evidence already documented in the literature, (iii) a four-layer audit-by-construction architectural diagram, and (iv) the formal encoding of three Peruvian public-works settlement formulas (price adjustment K, daily penalty P, and final settlement L) as auditable bytecode logic. Three findings are reported: (1) the on-chain verification window for a milestone-triggered disbursement contracts from a literature-documented baseline of 67 days [9] to a theoretical 3.9–4.2 minutes under Hyperledger Fabric with Raft consensus, consistent with benchmarks reported by Yang et al. [5] and Ahmadisheykhsarmast and Sonmez [7]; (2) the F-Polynomial, the 0.10·M/F·t penalty, and the L = M + R − D − A − P − Pc settlement identity become reproducible inside contract bytecode without altering their legal substance; (3) the regulatory gap between academic blockchain prototypes and Peruvian public procurement narrows through a pattern in which each physical milestone is captured on-chain by an immutable evidence row before any monetary disbursement is triggered. The contribution is operational rather than legislative: a reusable architecture that brings cryptographically verifiable evidence to the liquidación de obra process without requiring statutory reform. As the study relied exclusively on public regulatory documents, peer-reviewed literature and open-source code — with no human participants or personal data — it was exempted from full ethics committee review under the Universidad Autónoma del Perú research-ethics protocol for documentary and non-experimental studies.
The ethical and social implications of smart contracts (SC) in the construction industry are examined, with a particular focus on their interaction with the Joint Contracts Tribunal (JCT) suite of standard forms. Using a qualitative, narrative literature review, this article compares blockchain-enabled automation with established contractual mechanisms, concentrating on payment processes, governance and the role of professional judgement. Although the findings suggest that SC can enhance transparency and payment integrity, especially in a building information modelling enabled environment, they also introduce rigidity, reduce the scope for discretionary decision making and raise concerns regarding fairness, inclusivity and legal certainty. A hybrid model is proposed in which SC complement, rather than replace, JCT mechanisms, preserving relational trust and interpretative flexibility while delivering auditable efficiency where automation adds genuine value. The review draws on peer-reviewed academic literature, industry reports and material relevant to contemporary UK construction practice. Academic databases (Scopus, ScienceDirect, Taylor & Francis Online and the ICE Virtual library) were searched using targeted keywords. Sources were selected based on relevance, academic rigour and recency, with priority given to publications from the past decade.
This article examines the potential of blockchain-based state registries toenhance transparency and reduce corruption in public administration. The purpose of the researchis to evaluate how distributed ledger technology can address structural weaknesses inherent incentralized registry systems including data manipulation, lack of accountability and limitedauditability. The article employs a qualitative research design based on comparative analysis andcase study methodology drawing on international experiences and existing scholarly literature ondigital governance and blockchain implementation in the public sector. The findings indicate thatblockchain technology strengthens data integrity through immutability, decentralization andcryptographic verification mechanisms, thereby reducing opportunities for unauthorizedalterations and corrupt practices. Evidence from implemented registry reforms demonstratesimprovements in transparency, traceability and institutional trust. The article concludes thatblockchain-based state registries can serve as a foundational infrastructure for strengtheningpublic sector integrity, provided that legal frameworks, institutional readiness and technologicalcapacity are adequately developed to support sustainable implementation.
Purpose The purpose of this study was to examine perceptions held by direct and indirect stakeholders regarding the use of smart contracts through blockchain technology for public procurement in the United Arab Emirates (UAE). Design/methodology/approach The methodology for this research was a questionnaire that was filled out by members of the public, potential users, government officials and those working with the technology as the use of smart contracts for public procurement in Dubai, UAE. The data collected was analysed using the Statistical Package for Social Science (SPSS), which is used for the statistical evaluation of data. In addition, descriptive analysis, regression analysis, statistical significance and structural equation modelling analysis was used to create in depth analysis of the data. Findings The findings revealed that a significant positive influence could be found on behavioural intention where relative advantage, trialability, observability, perceived compatibility, perceived enjoyment and technology awareness were in place. However, factors such as complexity, perceived risk and perceived constraints from suppliers, regulations and business partners were found to apply a significant negative influence on the behavioural intention. Social implications In terms of blockchain and smart contracts, social impact should be studied so that future design can reflect those areas in which the technology services individuals within the system. As a result, the gap in literature is focused on the way in which perceptions of users impact the efficiency of a system and the way in which the system can service those individuals who would use the process. Originality/value This research is important because it represents the level of acceptance that exists in terms of smart contracts and provides an understanding of how change may be resisted as public procurement is conducted through smart contracts. This study contributes to the literature in several different ways. An analysis of blockchain technology as it relates to performance and efficiency in public procurement within the UAE was found to support the theory that blockchain technology can enhance public projects at the governmental level. The perceptions of the disruptive qualities of the technology as examined through technological acceptance model, Technology-Organization-Environment and Innovation Diffusion Theory supported an understanding of the capabilities of users to adapt to the technology. In turn, recommendations concerning the transition and possibilities of smart contracts for the public procurement process was supported.
Barbara Bigliardi, Virginia Dolci, Alberto Petroni, Benedetta Pini
How are digital technologies transforming public sector supply chains, and what factors condition their effectiveness? Despite the growing interest in this domain, the literature remains fragmented, with a lack of longitudinal studies, citizen-centered evaluations, and cross-country comparisons. This study addresses these gaps through a systematic review of 71 Scopus-indexed articles, combining descriptive mapping with a keyword-based bibliometric analysis. The approach identifies consolidated and emerging themes, particularly within the “Business, Management and Accounting” subject area, where methodological heterogeneity and limited generalizability persist. Findings reveal increasing scholarly attention to technologies such as blockchain, AI, and e-procurement, highlighting both operational modernization and newer concerns such as sustainability, digital governance, and decentralized finance. The paper contributes by structuring dispersed knowledge into a coherent framework, offering a roadmap for research and practical guidance for public administrators seeking value-driven digital transformation.
Globally, the construction industry is faced with several challenges like inefficiencies, disputes, and a lack of transparency. This paper uses the case of Lusaka, Zambia to investigate the impact of adopting emerging digital technologies in the construction industry, with a particular focus on smart contracts and blockchain technology. Drawing on existing literature and theoretical frameworks, Technology Acceptance Model (TAM), this paper argues that through the adoption of smart contracts and Blockchain technologies, the construction industry in Zambia and the world over could result in many benefits. Lusaka was an ideal case study for validating these hypothesized benefits. The findings of this research identified both benefits and challenges to the adoption of smart contracts and blockchain technologies. The identified benefits include the efficiency in construction processes, an improvement in the supply chain management, mitigation of risks, and a fostering of greater trust among stakeholders within the construction industry. Emerging from the research data were challenges relating to technological illiteracy, absence of regulatory frameworks, and high costs of initial investment. The paper concludes by emphasizing that the benefits surpass the challenges hence the need for Zambia and other similar developing economies to consider transforming the construction industry processes through adopting blockchain technologies and smart contracts to revolutionizing construction practices.
Background. The rapid advancement of digital technologies has introduced blockchain as a potential tool in public procurement contracts within the public sector. Smart contracts, particularly within civil law frameworks, have gained legislative recognition in jurisdictions such as France and several U.S. states. This development raises important questions about integrating blockchain-based smart contracts into governmental procurement systems, with a view to enhancing procedural transparency and operational efficiency, while acknowledging the limitations and dependencies on institutional frameworks. The central issue lies in clarifying the legal and technical implications of blockchain-based smart procurement contracts. The research examines their potential to streamline public procurement management and improve procedural efficiency, while recognising the need for legal safeguards that maintain administrative law principles and accommodate institutional constraints. Methods. This study adopts a comparative analytical approach, examining relevant legal provisions, technical requirements, and administrative practices across multiple jurisdictions. Various blockchain models—public, private, hybrid, and consortium—are evaluated for their suitability in procurement processes. Legislative experiences regulating smart contracts are analysed to extract best practices and inform a cautious framework for public sector adoption. Results and Conclusions. The analysis indicates that blockchain-based smart procurement contracts may reduce bureaucratic delays and minimise human errors, while providing immutable records that can support accountability. However, successful implementation requires legal and institutional adjustments to address enforceability, liability allocation, interoperability, and data protection. A practical model illustrating each operational step—from drafting to automated execution—is proposed, emphasising feasibility and legal compliance rather than assuming transformative effects. The study highlights the necessity of tailored legislation, standardised protocols, and targeted training for public officials to support the cautious integration of blockchain in public procurement contracting. These measures aim to guide the legally informed and context-sensitive adoption of smart contracts, contributing to sustainable digital transformation in public sector governance.
Public procurement in Africa is hindered by systemic corruption, inefficiency, and a lack of accountability, undermining economic growth and public trust. This analysis examines the transformative potential of smart contracts, built on Distributed Ledger Technology (DLT), as an innovative solution to enhance transparency and integrity in the continent's procurement systems. The study analyzes how smart contracts, by embedding procurement rules into immutable code, minimize human discretion and create tamper-proof audit trails for processes from bid submission to payment. Drawing on global precedents and emerging African cases (including DLT use in Guinea-Bissau's public wage bill), the paper finds that while smart contracts are technically feasible and highly beneficial, their successful adoption is contingent upon overcoming significant structural barriers. These challenges include adapting outdated legal frameworks to recognize the legal personality of contract code, addressing low digital infrastructure compatibility, and managing cultural resistance from officials who benefit from the existing discretionary systems. The paper concludes with key recommendations for African governments, emphasizing the necessity of parallel legal reform, targeted capacity building, and strong political commitment to leverage this technology for achieving Sustainable Development Goal 16 (Peace, Justice, and Strong Institutions).
Effective ICT governance is essential in the public sector to drive digital transformation and improve service delivery. This research investigates the corporate governance of ICT Policy Framework (CGICTPF) and Public Finance Management Act (PFMA) and State Information Technology Agency (SITA) Act governs the operational activities and strategic directions of Government Information Technology Officers (GITOs) in Eastern Cape, KwaZulu-Natal and Free State provincial administrations in South Africa. Using a comparative case study, the research draws on policy analysis and interviews to reveal governance obstacles in procurement and executive ICT engagement. KwaZulu-Natal shows progress due to strong leadership, while Eastern Cape and Free State face delays from compliance-driven cultures and bureaucracy. The study urges a balance between regulation and agility, recommending GITO empowerment through decentralized procurement and leadership development. It advances ICT governance theory by exposing multi-level implementation challenges.
Khaleel Radhi Hasan Alzlzly, Basim Abdullah Kadhim, Rahim Raad Hameed, Hussein Basim Furaij
"The objective of this study is to analyze the impact of real-time public procurement disclosure through distributed ledger technology (DLT) on reducing the cost of bank financing for public projects in Iraq The importance of this research stems from the growing need to increase financial transparency and reduce information asymmetry between government entities and the banking sector, thereby reducing credit risk and funding a descriptive research." methodology such as An applied field design combining quantitative and qualitative approaches is supported. Data were collected through a structured questionnaire from a sample of 165 senior and middle managers from three major Iraqi banks (Al-Rafidin, Al-Rashid and Trade Bank of Iraq) that finance public projects. Used multiple linear regression and F/T tests to validate the study hypotheses. Had gone The findings show that real-time disclosure via DLT significantly reduces funding costs (α ≤ 0.05) by improving transparency and shortening contract verification cycles. Furthermore the availability of immutable, time-stamped purchasing data increased banks' trust in public agencies The study recommends that Iraq's Ministry of Finance and public procurement authorities improve the security of digital data and government and adopts a pilot DLT-based tender and contract management system with a legal framework to integrate banking platforms
The construction industry in developing countries continues to face significant challenges due to reliance on traditional, paper-based contract administration and management. This approach frequently results in inefficiencies, disputes, transparency issues and unethical practices. Although smart contracts enabled by blockchain technology present a promising solution to these longstanding issues, their adoption in developing countries remains limited. This study investigates the barriers to and strategies for the implementation of smart contracts within the construction industry, using Nigeria as a representative case. Adopting a qualitative research methodology, data were collected through semi-structured interviews with 14 experienced project managers selected via purposive sampling. A thematic analysis of the data identified several critical barriers, including resistance to change, low awareness, privacy concerns, legal uncertainties, technical hurdles, infrastructure deficits and economic instability. To overcome these barriers, the study proposes a strategic implementation framework informed by insights from interviewees and supported by literature. Key recommended strategies include educational and awareness initiatives, governmental support and policy reform, stakeholder collaboration, robust security measures, phased deployment and establishing supportive legal frameworks. The findings of this research offer valuable guidance for developing countries encountering similar constraints, providing a clear roadmap for successfully integrating smart contracts into construction practices.
Abstract The construction industry is among the few industries that contribute to the growth and development of the economy; its size gives a representative potential in contributing to economic development. However, the nature of the construction industry in Egypt is plagued by disputes, which often arise from contractual issues, communication breakdowns, and project management challenges during various stages of the project. Furthermore, construction contracts are always viewed as complex and dense paperwork that makes it difficult to extract necessary information, inhibiting smooth operation. This can be solved by implementing smart contracts. A smart contract can include blockchain technology that executes agreed-upon terms automatically and autonomously. This data-driven mechanism automatically issues payments at the end of each clause, reducing the potential for disputes. The aim of this research is to Investigate the potential of smart contracts in reducing disputes in the construction projects. This study will be performed by adopting a qualitative approach through collecting and analysing data from various literature sources, as books, journals, and existing research, to construct a comprehensive understanding from a holistic point of view focusing on relevant keywords as smart contracts and disputes during various stages in construction projects to identify the relationship between them and present it in a relationship matrix. Second, analysis of case studies to investigate the effectiveness of smart contracts and validate the identified relationship and view its potential in construction projects.
Love Opeyemi David, Marumo Kgomo, Clinton Aigbavboa
Introduction The traditional procurement system in the construction industry has been plagued by inefficiencies, often serving as a significant obstacle to project delivery. Thus, this study examines the dynamics of adopting smart contracts for project procurement for optimal project success and delivery, with insights and recommendations from the South African Construction Industry. Method The study employed a quantitative research approach utilizing descriptive and inferential statistics of Mean Item Score (MIS) and Exploratory Factor Analysis (EFA) for data analysis, based on a purposive sampling technique. Results The MIS results for the benefit, legal & regulatory constraints, and best practices of smart contracts range between 3.73 - 4.41 values, while the Kaiser-Meyer-Olkin (KMO) values were higher than the recommended 0.6 value for the EFA and Cronbach's Alpha value of 0.969 across the indicators. Discussion The study's findings revealed two categorized benefits of adopting smart contracts: administrative and operational efficiency of project procurement and procurement optimization; two components of legal and regulatory constraints: Transactional and legal encumbrance to smart contract implementation and legal gaps and ambiguity and two best practices: smart contract reliability practices for project procurement and consistent stakeholders’ engagement for smart contract protocol standardization. The study concludes that Smart contracts can transform global project procurement within the construction industry. The study recommends the development of a green paper on smart contract adoption and integrating smart contracts into standard forms of construction contracts.
Fiscal decentralisation reforms in lower and middle-income countries are believed to accelerateUniversal Health Coverage (UHC) development. Implementing UHC requires health financing reform.Strategic purchasing is a vital component of health finance that enhances primary healthcare deliveryand improves health system performance. Community participation in strategic purchasing at theirfacilities through local governance structures holds service providers more accountable for implementing strategic purchasing that places the community at the centre of service delivery, thereby improving responsiveness, equity, and financial protection. This study examined how Tanzanian community governance structures under Direct Health Facility Financing (DHFF) participate in the procurement process within health facilities. A cross-sectional design was employed to collect both qualitative and quantitative data from four regions—Mbeya, Kilimanjaro, Ruvuma, and Songwe—chosen based on their 2018-star ratings. Data were gathered through structured questionnaires from 280 respondents who were members of health facility governing committees. Descriptive and multivariate logistic regression analyses were used for the quantitative data. The study found that members of governance structures participate actively in the strategic purchasing of their health facilities under the DHFF arrangement.Members are highly involved in authorising and reviewing health commodities and services for purchase.However, governance structures are less engaged in evaluating, selecting, debating, and awarding bids.Participation of governance members is associated with age, availability of information reports, and themethod of member selection. DHFF enables community members to procure health commodities basedon population needs. To ensure that community governance structures effectively address elements thatsignificantly enhance community access to healthcare, additional efforts are necessary.
ABSTRACT Blockchain technology, when combined with smart contracts, enables buyers to distinguish between greenwashed and genuinely eco‐friendly products. The presence of counterfeit items can severely impact supply chains by diminishing brand value, eroding consumer confidence, and undermining market trust. This article explores how smart contracts can help mitigate the circulation of counterfeit goods and safeguard brands by establishing institutional trust through tamper‐proof data, enhanced transparency, and improved traceability. Information asymmetry on digital marketing platforms significantly contributes to the proliferation of greenwashed counterfeit goods. We introduce an infection‐leakage model based on anecdotal case evidence to explain the interactions between different market types. The transition from relying solely on traditional written contracts, certifications, and brands to incorporating blockchain and smart contract technology is analyzed for its potential to strengthen supply chains and curtail the spread of counterfeit greenwashed products. Blockchain technology provides consumers with detailed product information, empowering them to choose authentic green products over counterfeit “lemons.” Our theoretical framework suggests that this shift to blockchain smart contracts can reduce the transaction costs associated with counterfeit infiltration, thereby protecting brands and the intellectual property rights of authentic sustainable products.
Valentina Villa, Luca Gioberti, Marco Domaneschi, F. Necati Çatbaş
The civil engineering sector operates within a complex ecosystem of stakeholders, requiring efficient management and maintenance of structural and infrastructural assets. In this context, there is an increasing need for robust tools to track critical events (e.g., alerts, unusual behaviors) and support decision-making processes related to maintenance and interventions. At the same time, ensuring secure and prompt payments is essential for timely and effective responses. This paper investigated the potential of smart contracts, integrated with blockchain technology, to automate and optimize asset management and maintenance processes. The proposed framework examines how these technologies can enhance operational efficiency, security, and event traceability, providing a structured approach for both routine operations and emergency interventions. Although smart contracts have been widely applied in the construction phase of infrastructure projects, their use in long-term asset management remains largely unexplored. As a conceptual study, this work does not present a quantitative analysis but instead lays the groundwork for future research and real-world applications of blockchain-based smart contracts in infrastructure management and safety procedures.
Blockchain technology is increasingly recognized as a transformative tool in public sector governance. This paper examines how Morocco’s public procurement process might incorporate blockchain, especially smart contracts. Using blockchain’s primary properties—transparency, traceability, and immutability—the research shows how smart contracts can automate procurement processes, lower fraud, and increase budgetary efficiency. Highlighting its technical feasibility, a simulation of blockchain-based procurement is created using a local Ethereum network. Legal-institutional issues as well as comparative global case studies (Estonia, Chile, UAE) are addressed. Provided that legal, technical, and institutional changes go hand in hand with the deployment of blockchain, the results point to its great potential to enhance governance and service delivery. This study focuses primarily on one of the cornerstones of this technological advance, namely smart contracts, which are true catalysts for automation, securing contractual commitments in public procurement, guaranteeing compliance with contractual stipulations and optimizing budget allocations. These self-executing protocols eliminate intermediaries, streamline bureaucratic processes and establish an immutable audit trail that promotes accountability and public confidence. The study also provides a simulation of the integration of blockchain into a public procurement system, illustrating in concrete terms its potential impact on the efficiency, transparency and accountability of administrative processes. The paper also stresses the importance of interoperability between blockchain platforms and existing administrative infrastructures, which is essential to ensure a smooth and scalable transition. The results highlight considerable potential: the adoption of blockchain in public administration is redefining governance paradigms by fostering trust between stakeholders, including the State, citizens and economic players. This technology not only enhances transparency and accountability, but also paves the way for a fairer, more responsive and resilient administration, capable of meeting the complex challenges of contemporary governance. As such, blockchain can reduce corruption, improve the delivery of public services and optimize the allocation of resources.
With the rise of smart contracts, decentralized autonomous organizations (DAOs) have emerged in public good auctions, allowing "small" bidders to gather together and enlarge their influence in high-valued auctions. However, models and mechanisms in the existing research literature do not guarantee non-excludability, which is a main property of public goods. As such, some members of the winning DAO may be explicitly prevented from accessing the public good. This side effect leads to regrouping of small bidders within the DAO to have a larger say in the final outcome. In particular, we provide a polynomial-time algorithm to compute the best regrouping of bidders that maximizes the total bidding power of a DAO. We also prove that such a regrouping is less-excludable, better aligning the needs of the entire DAO and the nature of public goods. Next, notice that members of a DAO in public good auctions often have a positive externality among themselves. Thus we introduce a collective factor into the members' utility functions. We further extend the mechanism's allocation for each member to allow for partial access to the public good. Under the new model, we propose a mechanism that is incentive compatible in generic games and achieves higher social welfare as well as less-excludable allocations.