Moscow Plans To Use Ethereum Blockchain To Increase Commerce Efficiency

Announcements, Blockchain, News | August 30, 2018 By:

The government of Moscow is planning to use the ethereum blockchain to develop a system that will fairly allocate trading spots to farmers for weekend market.

The local government intends to use the system to process farmers’ applications as they compete for one of the 2,736 trading spots available during the market season, which take place from April to November. According to the government, more than 20,000 farmers from Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan have submitted their application this year.

“By using ethereum, the government intends to make the records immutable and transparent so that updates will be displayed in an organized and efficient manner,” said Moscow City Hall Blockchain Product Manager Andrey Borodyonkov. “Blockchain is an additional guarantee that the incoming applications remain immutable as well as makes the audit of the application history possible. The entire dataset is publicly viewable, transparent and available for download. In that case, submission time can be confirmed, while the application cannot be deleted or altered by someone once it is submitted.”

Andrey Belozerov, the strategy and innovations advisor to Moscow City Hall’s CIO, said that one reason for implementing blockchain for the market season is the number of complaints the government receives each year from dissatisfied farmers.

“We believe that farmers should have a transparent system to see why their application is declined or approved,” Belozerov said. “Blockchain is to make sure that the process is fully transparent and no one can alter an application. We hope that blockchain will provide full transparency for everyone.”

Moscow has been exploring potential uses of blockchain technology in an effort to increase the efficiency and transparency of the government. In December 2017, the capital of Russian Federation implemented blockchain in its e-voting system Active Citizen. The blockchain-based election system allowed citizens to influence city management decisions and its urban transformation.