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Blockchain and smart contracts for secure and transparent salary grade structure management
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  • Citation
    Mensah EE, Ahiable RK, Nud-Worgbah J, Adu-Manu KS. Blockchain and smart contracts for secure and transparent salary grade structure management. Blockchain 2025(2):0011, https://doi.org/10.55092/blockchain20250011. 
  • DOI
    10.55092/blockchain20250011
  • Copyright
    Copyright2025 by the authors. Published by ELSP.
Abstract

Blockchain technology benefits companies in handling various use cases, including real estate, voting, fitness tracking, intellectual rights, the Internet of Things (IoTs), and vaccine distribution. Several technologies proposed in the literature seek to support businesses, enterprises, and state institutions in improving their operations and services, primarily in the financial sector. Although the existing technologies provide the needed service, the “trust” issue remains challenging. This differs from salary management in some state institutions in developing countries, such as Ghana. This paper presents a novel approach by implementing a permissioned blockchain-based system using Hyperledger Fabric integrated with RSA encryption to address the transparency, trust, and fraud challenges in salary-grade structure management. Unlike existing blockchain payroll applications, this work explicitly targets the salary grade adjustment processes within state institutions, providing a real-world prototype validated with actual agency data. In this paper, we implemented the blockchain technology for salary management. We use the Hyperledger Fabric platform to build a trusted platform to aid State Institution X (siX) in sharing data, validating transactions, securing data, and auditing transactions among its stakeholders— a prototype design aimed at reducing the wage bill and ensuring transparency in the public service payroll. The results showed that blockchain operations increased transparency in the payroll system among stakeholders by 100%. The application developed was secure and could track all the changes made by the relevant stakeholders in salary management.

Keywords

blockchain technology; financial security; financial systems; Hyperledger fabric; salary management; institutions

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