Smart contracts for creating transparent transactions to reduce corruption

Abstract

Corruption is widely spread and not easy to avoid. Blockchain-based smart contract technology enables the opportunity to develop transactions in such a way that corruption should not be possible. In this paper, we develop and evaluate an arrangement based on blockchain-based smart contracts to avoid and reduce corruption. Smart contracts are used for buying and selling goods, in which the public must agree that the goods arrived and are used to contribute to the creation of societal value. Only then will the supplier be paid. Al transaction data is stored in a blockchain and opened to the public to create transparency. In this way, the price of the good and the sellers can be inspected to avoid price manipulation and nepotism. The smart contract avoids the likelihood that corruption will happen, and it can be spotted if it happens.