THE USE OF SMART CONTRACTS IN PUBLIC ADMINISTRATION (USINGTHE EXAMPLE OF THE REPUBLIC OF ARMENIA)

This article analyzes the feasibility of implementing smart contracts in the public administration system of the Republic of Armenia. Drawing upon theories of institutional economics, transaction cost economics, and innovation diffusion, the study conducts both theoretical and practical analyses. Based on international experience, the most impactful areas for implementation – public procurement, social services, and budgetary oversight – are identified. A quantitative model estimates potential cost savings ranging from 1.5% to 3% if smart contracts are adopted. Strategic policy recommendations are proposed, targeting legal, technological, and institutional reforms. The findings suggest that phased implementation is both realistic and technologically sound.