A Hybrid Blockchain-Enabled Public Distribution System for Transparent, Scalable, and Offline-Resilient Ration Distribution

Abstract

Public Distribution Systems (PDS) play a crucial role in ensuring food security and, despite their successful adoption, current PDS systems encounter issues like food grain leakage, fraudulent claims, insufficient transparency, and reliance on good network connectivity. The research proposes a Public Distribution System (PDS) on Hybrid Blockchains to enhance transparency, traceability, security, and operational resilience throughout the PDS distribution process. The proposed solution combines Hyperledger Fabric as an on-chain permissioned blockchain audit layer, a Node.js application backend, and scalable off-chain operational data management via MongoDB. Instead of all the information and data of operations being recorded on the blockchain, only the key events like ration allocation, dispatch from the warehouse, receipt of stock at Fair Price Shop (FPS) and final distribution to the beneficiaries are recorded on the immutable blockchain as transactions. In contrast, the system keeps high-frequency operational data off-chain. It enables role-based interaction with beneficiaries, FPS dealers, transporters, warehouses and administrators using a web or mobile interface. The system addresses connectivity and authentication challenges by providing several ways to authenticate beneficiaries, such as an offline Transaction Authentication Number (TAN) grid, signed QR codes, and OTP. Further security mechanisms such as record logging (cryptographic), role-based access control, geo-fencing and token validation (monthly) are integrated to minimise duplicate claims, unauthorised claim distribution, and record manipulation. A prototype implementation was tested in a controlled test environment of important PDS operations. The evaluation showed that the offline TAN-grid mechanism is a more responsive alternative to network-dependent authentication methods, particularly in low-connectivity environments. The prototype also showed that the hybrid architecture enabled end-to-end auditability without storing all data on the chain, while still effectively detecting and preventing simulated fraudulent activities through the combined security mechanisms. The results show that the proposed framework offers a viable architecture to enhance accountability, authentication resilience, transaction integrity and traceability in large-scale PDS operations. This strategy can also serve as a basis for future integration with broader e-governance and public welfare distribution systems.