Blockchain in action: Bitfury helps to lift Ukraine’s funds

The deployment of blockchain technology in partnership with a state-run company allowed to lift the proceeds from auctions of seized property and land leases in Ukraine.

In the first year of the implementation of the technological know-how, SETAM, a state-owned company, held 12,338 successful auctions with a mixed total valued at exceeding 2.5 billion hryvnas (USD 89 million). Making use of blockchain answer, offered by the London-based Bitfury workforce, a blockchain technology manufacturer, has allowed SETAM to raise the public sale costs, encouraging the science’s deployment to land lease auctions, in step with Viktor Vyshnov, the chief government officer (CEO) of SETAM.

"The normal growth of costs modified from 12% before blockchain to 18% [after the technology was deployed]. In September 2018, SETAM launched cooperation with StateGeoCadastre on a pilot mission [related to] land hire auctions. In October 2018, the first electronic land lease auctions took situation. Nine out of ten proposed lots have been offered with an common expand in yearly lease payments [at the level of] 34.3%. The hire payment for some of the tons surpassed the state normative evaluation price of that land," Vyshnov advised Cryptonews.Com.

In keeping with him, making use of blockchain has drastically multiplied the general public’s believe towards the system.

"In September 2017, we held the first digital auctions in the world with using blockchain science. The identical day, we introduced the rebranding and started to provide offerings to our consumers under the OpenMarket trademark. From the very opening of using blockchain technology, we experienced a giant broaden within the stage of believe to our procedure of digital auctions. This has helped us to expand the amount of participants and we launched cooperation with many neighborhood authorities and banks," Vyshnov stated.

The auction information is constant on a blockchain developed on the Bitfury’s Exonum platform, and each participant obtains a special hash to check the knowledge about their bid on the public sale internet site, consistent with the CEO.

"This made the system truly transparent. The information replica is saved in a network of four independent servers [that are] blockchain nodes. The connection among the servers is ensured by a specified protocol, which provides the public sale with the risk-free defense, even in the case of an attack or partial gear failure," Vyshnov stated. "The expertise is customarily copied to the public blockchain. This prevents the probability of the information changing, in view that any attempts of the blockchain-nodes collusion could be apparent because of the principle of the procedure operation. An impartial auditor, East Europe foundation, displays the method. The method [can] even be demonstrated through different auditors."