Blockchain Kyiv: Microsoft Official On Blockchain Apps In Consumption Economics

News and Analysis

One of the speakers at recent Blockchain Conference Kyiv was Mikhail Shmelyov, director for technological policy at Microsoft Ukraine. He spoke about changes in software applications, and blockchain’s place in consumption economics.

“IT is increasingly perceived as a kind of assistant in solving business efficiency issues,” he said.

The corporation’s representative exemplified Microsoft Office to illustrate the fact that modern businesses are unwilling to pay for a complete toolkit while actually using two or three functions thereof. However, businesses are willing to pay for the service in the course of consuming, so eventually package solutions will pass away.

The speaker also highlighted the advantages of connecting blockchain and Azure Marketplace for businesses. Shmelyov also referenced private e-trading platforms like Ukrainian blockchain-based auction system for state property privatization, which had been implemented with assistance from Microsoft.

“Say, you have to solve the problem of building e-commerce platforms. Sure, you may make a central database and provide it with interfaces. Apart from usual development expenses, it bears risks inherent in centralized databases. […] If there’s a single unified point, the issue of information’s deviation will always be on the table,” he said.

For that reason, Shmelyov believes, developers should consider using blockchain in the first place, and sell a ready-made image of a distributed system with payable consuming. This would let the customer to use investment more effectively while reducing risks.

“Microsoft [in case of using Azure Marketplace] undertakes credit-in-collection and provides a ready channel for sales, while the developer is paid for their product. In that case, customers don’t bear initial expenses for development, but only expenses for consuming as they continue using the product. How much a customer would pay for the solution depends on how hard they work and provide their services,” Shmelyov remarked.

At the end of the speech, he stressed the necessity of considering the needs of small businesses.

“The whole economy relies upon small and medium businesses. It’s important that businesses would want to do it all. Then the critical mass of businesses providing e-trading services would maintain transparency, jobs, and tax income,” the Microsoft’s manager said.

Earlier, ForkLog wrote about a speech by Roman Sulzhik, chairman at the supervisory council of Ukrainian National Depository and former managing director for futures market at the Moscow Exchange, who stated that bitcoin would be dead as a cryptocurrency, while the crypto-revolution would continue, and blockchain would supersede centralized banking systems.

by Eugene Muratov

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