Blockchain-based e-Tendering System

The tendering process is generally used by governments and companies to procure goods or services from manufacturing companies or service providers. However, e-tendering being the mostly used procurement method, there are various security implications present. Blockchain technology can be used to solve these security implications as it heavily focuses on the decentralization of information and is secured by encryption integrated with undeniable block-based architecture for transaction management. In this paper, how smart contracts (based on ethereum blockchain) can be employed to design a distributed e-tendering system is explored. The project is divided into four sections, 1. Tender creation and publishing process, 2.Bidding process on the tender, 3.Evaluation, and Negotiation of the bid and 4.Selection of the Winning bid. Different algorithms are used to implement each process. The security and audibility challenges are evaluated and compared to the current tendering process. The main aim of this paper is to implement a fair, transparent and open tendering scheme.