An ethical proof-of-authority blockchain framework for anti-corruption in public grant disbursement and fundraising: a multi-level governance and threat-modelled approach

Abstract

Introduction – Public-sector grant disbursement and fundraising systems are vulnerable to corruption due to limited transparency, weak auditability, unauthorized approvals, and poor traceability of financial transactions. This study proposes a blockchain-based framework to improve accountability and monitoring in public financial management. Methods – An Ethereum-compatible ERC-20 test network was used to develop a blockchain-enabled architecture integrating smart contracts, decentralized application (DApp) components, and a Proof-of-Authority (PoA)-based governance mechanism. The framework was evaluated using simulation-based testing, transaction validation scenarios, corruption-detection workflows, and indicative gas-cost analysis under controlled conditions. Results – The proposed framework enabled tamper-resistant audit trails, timestamping, and end-to-end traceability of grant transactions. A hierarchical governance model incorporating multi-level institutional approvals reduced unilateral control and improved transaction accountability. Simulation-based evaluation demonstrated improved transparency, auditability, and transaction monitoring efficiency, while maintaining relatively low indicative gas costs. Discussion – The findings suggest that blockchain-supported governance mechanisms may strengthen transparency and accountability in public-sector financial systems under controlled conditions. The proposed framework demonstrates the potential of combining institutional governance structures with blockchain-based validation to support secure and traceable grant management and fundraising processes.