Blockchain systems have a major role to play when it comes to governance. Governments around the world are seriously giving it a thought and implementing these systems gradually – in a limited capacity. Mexico has become the latest country to have set up a blockchain based system for governance where the country’s public tender bidding would be done over a blockchain system – thereby reducing chances of a fraud and corruption.
This project is being called Blockchain HACKMX and is currently being tested. The country has been working on this technology since September 2017 and it is finally taking shape. Once it goes into action – all the bidding data would be available for the public and auditing authorities to monitor and ensure no suspicious, fraudulent activities take place in the bidding process.
The concept was originally developed by students from a Mexican university who won the Digital Government Hackathon – following which this idea was taken further. "With blockchain applied to public contracts we'll be able to know whether a company that provides services to the government is trustworthy," Mexico's national digital strategy coordinator Yolanda Martinez tweeted.
As of now, the technical details of this project are quite limited. However, a local media outlet from Mexico, ‘Debate’, provides some details as to how it would function: “The intelligent contracting system validates the proposals and sends them to the evaluators via email to verify that they meet the necessary criteria. In the end, the system selects the proposal that generates the greatest social benefit to grant the tender.”
Many nations in the South American continent have been marred with a number of corruption scandals over the years. One of the recent such allegations involved that of a major South American construction firm bribing for tenders by funding the Presidential campaign of President Enrique Pena Nieto. With a blockchain based system coming into effect, such scandals and corrupt practices would decline.