World's First e Procurement System Powered by Blockchain - AllaAdamenko/e-Procurement-System-on-Blockchain GitHub Wiki

Welcome to the e-Procurement-System-on-Blockchain wiki!

One of the main philosophies behind Blockchain is decentralisation. Rather than trusting a single party, service provider to manage, store and produce data, blockchain is a peer-to-peer system with no central point of failure. It is an accessible public database of records and transactions distributed across the counterparts, who have an economic initiative to sustain the system.

The idea is to give citizens or private statistical agencies the ability to certify data and actions during the administrative service provision. To reduce the risk of manipulation and erasing from the centralised register. As well to provide a completely new approach of private sector inclusion in the process and harvest the advantages of horizontal competition. We offer a redesigned permission based approach of using distributed ledger technology for carrying majority of the administrative service in a scalable and self-sustainable ecosystem. Product is a Blockchain “As a service” that will allow digital notarisation, public records management, digital identity provision, and Entitlement Ledger record keeping for:

Identities and Attestations: Birth, death and change of name certificates, marriage licenses, driving/vehicle licenses, voter registrations, health insurance cards, professional licenses, social security numbers. Ownerships: Land registries, property titles, academic credentials, vehicle registrations, and gun registrations.

Every party in a blockchain network gets a "golden copy" of the document containing the embedded block. If the document changes, a new block is added and the revised file is synchronised throughout the network, a process that usually takes just seconds. As more changes are made, new blocks are added, forming a chain. That blockchain is both an audit trail and a version tracking system. Each block represents an earlier version of the document, enabling anyone to backtrack to see what was changed.

Protocol is universal distributed ledger, permissioned blockchain where the public is allowed to participate and network nodes and participants are authenticated. Building the authorised ecosystem will provide the reputation layer, where each participating entity is an traceable, registered counterpart and is responsible for every carried transaction in the network.

The key advantage is immutability, and getting a decentralized proof which can't be erased or modified by anyone (third parties or governments). Your document's existence is permanently validated by the blockchain even if any of the participating node is compromised or down, so you don't depend or need to trust any central authority.

Reductions in departmental budgets for central and local government bodies alike: sweeping cuts, shrinking headcount and reduced services on the one hand or wholesale transformation of service delivery on the other.

Blockchain would simultaneously provide enhanced security against fraud, increased resilience and improved transparency – since the historical transaction records could be read by the public. A blockchain could also help in resolving disputes over property ownership since each transaction would be verified and stored in the distributed ledger.

Major benefit of using such distributed approach is the model of inclusion and redesign of the existing service provision ecosystem. Private entities participating in the administrative service delivery and building up additional proprietary level of applications that is more user oriented and self-sustainable due to the efficient economical model.

7 Step approach

1. Problem identification – Initially, research and analysis are conducted to identify the problem. Once the problem is identified, the tasks are defined and project team is assigned respectively. Besides project team, with the use of crowdsourcing methodologies, different stakeholders are engaged in the working process. To illustrate, a project team consisting of 5 members can be assisted by 50 external contributors throughout the working process.
2. Stakeholder identification and As Is analysis - In depth analyses of the current state of affairs and process streamlining.
3. Big picture development – Formation of the “big picture of tomorrow”. At this stage, vision and general concept is elaborated and presented to to stakeholders in several phases. After several discussions and receiving of feedback, Final big picture view is drafted.
4. Detalization and Action Plan – The Action Plan details scope, specific activities, time frames, and resources necessary for achieving project objectives.
5. Public discussions – Once the project is formulated, next step is to actively engage in communication process with different stakeholders through public discussions, presentations, and other forms of communication. Receiving feedback from stakeholders.
6. Initiation of implementation – A bill (draft law) is submitted to the parliament, followed by lobbying activities with the objective of bill adoption.
7. Implementation – The final step is the execution of a project. Reforms Lab is responsible for a project management until the implementation phase. However, to facilitate project implementation, we devise mechanisms that enable project execution through the cooperation of business community and civil society. To illustrate, in the scope of Prozorro project, the government did not have to spend any financial resources on the project implementation, as the Lab deliberately developed a model that would attract the business community.

roject target - analyze the system of governmental procurement of Ukraine, determine weak points and based on that provide references for further development. Methodology - underlines the system, diversified approach of analysis, which shall provide the real picture of the system, in line with challenges that were were determined during the system work and those risks which are currently present in Ukraine, as well as the potential of actively growing new technologies. Project stages 1.1. Analysis if the current situation 1.2. Development of concept-model ProZorro 3.0 1.3. Gap-analysis 1.4. Strategy development and implementation road map - references 1.5. PR development strategy - references The project team of experts consists of international and Ukrainian professional from different spheres (governmental procurement, business process and IT systems analysts), the core part of which is an expert group of Innovation & Development Foundation.

Activities - the document consists of the following parts:

1.1. Present situation on Ukraine’s government procurement market

**1.2. Situation analysis: ** identification and prioritization of interested parties initial problem analysis (collection, validation, prioritization, validation with third parties, deep analysis of prioritized problems) business process analysis validation of business process documentation with third parties economic and management model of governmental procurement system development validation of the document “economic and management model of governmental procurement system development” with third parties technological sphere and system architecture post validation with third parties

1.3 Development of concept-model Opened Procurement 3.0 analysis of international expertise in line with governmental procurement development of general system concept-model (preparation for development, initial stage of development, deep detalization of concept-model, finishing stage of development) concluding international conference

1.4. Gap analysis present system reflexy short description of planned situation (concept-model) gaps identification between two stages factor analysis: positive vs negative document draft validation with third parties

1.5. Strategy development and roadmap of implementation transformation alternatives relevant strategy selection roadmap of activities action plan - stages document draft validation with third parties

1.6. PR strategy of development - references

In the blockchain, assets are held by the owners of private keys, the cryptographic ‘identity’ created when a user first registers for the blockchain. The title deeds and identity documents proving ownership do not themselves need to be stored on the blockchain.

Demonstrating data ownership without revealing actual data: You can publicly reveal the digest and if conflict arises you can prove you had the data that generates the digest. Useful for copyrighted material, patents, etc. Document time stamping: You can prove certain data exists at a certain moment of time, certifying the existence of your document without the need of a central authority. Checking for document integrity: If you store a proof for your document and later re-upload it, the system will only recognize it if it is completely and fully the same document. The slightest change, and we'll recognize it is different, giving you the security that certified data can't be changed.

Cost savings - This is the most obvious benefit. Because blockchain transactions don't require intermediaries, processes can be made more efficient and less expensive. There's no need for auditors or legal professionals to validate the authenticity of information, so those costs come out of the process. Security - The fewer participants there are in a transaction, less risk there is that something could go wrong. Handoff points are a prime vulnerability, and blockchain effectively eliminates them.