Ukrainian Project Develops a Blockchain-based Platform for Property Privatization

News and Analysis

A Ukraine-based project is in the process of developing an automatic system for holding online auctions for leasing and selling of state-owned property using blockchain technology.

Some of the project’s details became public during BIP001 conference and Blockchain Conference Kyiv back in September 2015.

The project’s representatives Lasha Antadze and David Kiziria stated that the essential goal of the system is to maintain transparency and equal opportunities for state property leasing/selling market players. Among other aims of the project they cited removal of corruption components in state assets management. According to the project’s spokespersons, the system is set to employ smart contracts.

According the information provided by Lasha Antadze, the system’s release is scheduled to February 2016. Experimental operations will take place in Odessa oblast of Ukraine. Should the experiment return positive results, the blockchain auction system will be subject to implementation in other Ukrainian regions.

The platform itself is a private blockchain incorporating diversified authentification and identity proving system. The developers’ current task is to make access of fake / malevolent participants to the bidding impossible or at least complicate it to the greatest possible extent.

Blockchain popped up to the surface of e-gov projects in Ukraine back in September 2015. Back then Bitcoin Foundation Ukraine signed a memorandum with the managing board of the e-government program. Some other countries also show interest in using distributed ledgers in government operations.

As of December 1, 2015, online residents of Estonia may use several notary services. The system has also been implemented on the basis of blockchain technology. The program was launched by the government of Estonia in cooperation with BitNation.

Back in May 2015, department for economic development of the Isle of Man launched one of the first distributed ledger projects for government operations. In particular, it established a register of cryptocurrency companies operating on the island.

As blockchain-related interest from government institution increases, the extent of controversy around reasonability of using private blockchains for those purposes also grows. The question of bitcoin’s place in such initiatives becomes burning as well.

Even now some experts believe that using blockchain technology separately from bitcoin may often have purely marketing justifications.

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