Smart contract management using distributed ledger system: a Bangladeshi context

Abstract

The adoption of smart contracts in Bangladesh’s public procurement system presents a transformative opportunity to enhance efficiency, transparency, and accountability. By automating procurement processes, smart contracts can reduce cycle times, minimize human errors, and improve contract execution. This will help tackle long-standing challenges such as corruption and inefficiency, fostering greater public trust. Additionally, smart contracts can reduce administrative costs by eliminating intermediaries and ensuring compliance through self-executing terms. However, challenges remain, including inadequate digital infrastructure, the lack of a supportive legal framework, and digital literacy gaps. To overcome these, Bangladesh must invest in digital infrastructure, update legal provisions, and provide extensive training for stakeholders. Pilot projects, stakeholder collaboration, and enhanced data security are also critical for successful implementation. With careful planning, smart contracts can significantly improve public procurement, contributing to better governance and economic development in Bangladesh.