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Japan is to test a blockchain-based solution for government procurement operations

01 July 2017 09:59, UTC
Japanese administration is on its way to implement blockchain technology in online systems for procurement operations — Nikkei Asian Review reports. The test period to be implemented by the Ministry of Internal Affairs and Communications and will take the fiscal year from April 2017 to March 2018. The tested solution is a system for participating in tenders led by government and is designed to make process easier.

Japanese government representatives collect a massive base of data from participating vendors, and on the basis of accepted information they assess who will be granted a project. First of all, the integration of blockchain is intended to raise efficiency of current processes, particularly in accepting bids from participants. The technology is to boost the connection between offices which keep the essential data.

Thus, the implementation of blockchain will help in creating a back-end system for information sharing. This tends to be really essential, as the amount of Japanese government procurement market is estimated about 600 billion USD annually. The project is considered to be a part of greater strategy of incorporating the technology in digital government systems.