Abstract:
The increasing demands for more transparency in management of public funds globally has necessitated the requirement for open data, application of modern technology to enhance management capacity, and better controls and governance mechanism. In most developing countries, public-sector corruption is the main challenge battling social, economic and environmental development. Often, corruption centers around a lack of transparency, inadequate record-keeping and low public accountability. Blockchain is the next disruptive technology that presents potential that can be used to protect organizations from corruption. Blockchain and distributed ledger technologies, when applied to corruption prone government processes, can potentially increase transparency and accountability in these systems, thereby reducing the prevalence of corrupt activity. Using cryptography and distributed consensus mechanisms, blockchain provides the unique combination of permanent and tamper-evident record-keeping, transaction transparency and auditability, automated functions with "smart contracts", and the reduction of centralized authority and information ownership within processes. These properties make blockchain a high-potential emerging technology to address corruption. This paper explores the possibilities of blockchain applications in Nigeria by examining where it can be used to leapfrog fraud detection and anticorruption in public finance.
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