The Karnataka government is developing a permission-based blockchain network that is intended to work as a decentralised trust and efficiency layer for all e-Government Procurement (e-GP) systems across the country, according to a press release. In this regard, an IIT-Kanpur-backed startup CRUBN has partnered with the Karnataka government's Centre for Smart Governance. In brief, according to the release, the proposed blockchain network will — Be used for validating claims of suppliers along with their identities. Connect all e-GP systems through a network, which will help retrieve and validate relevant supplier data between various e-GP systems that are in use within India. Digitise bank guarantees by powering them using blockchain. "Tokenisation of bank guarantees would mean that they will become a more acceptable instrument of transaction than they are now," the release read. MediaNama has reached out to Abhay Karandikar, Director of IIT Kanpur, for more clarifications about this blockchain proposal. The report will be updated when we receive a response. The poor security of existing e-procurement portals has increasingly come under the scanner. In 2019, a hacker allegedly tried to steal Rs 46 crore from the Karnataka government's e-procurement cell and succeeded in stealing Rs 11.5 crore, according to an Economic Times report. Blockchain terms and conditions to be decided by consortium According to the release — The blockchain network will be governed by the terms and conditions decided by the consortium of e-GP systems across the country. The blockchain system can be used as the national de-duplicated supplier data…
