Russia’s government embraces the power of blockchain

Blockchain is commonly associated with the crypto industry, and rightly so. It is the underlying technology supporting digital currencies, including Bitcoin.

Even though these cryptocurrencies have been aggressively pushed into the spotlight and recognised for their obvious benefits, it is blockchain that makes them possible. However, this technology can be applied to many industries beside crypto.

Essentially, the blockchain network is like a massive Excel spreadsheet or ledger, with a few major key differences of course. Each record on the network is unchangeable and cannot be deleted. In addition, it acts on a consensus-driven system, meaning that users cannot just add a record when they want to. It needs to be approved by other users first.

Based on these advantages, and the fact that it is highly efficient and accurate, it can be used outside of crypto, in banks and even government.

Russia has jumped on board the blockchain train by using the technology at a government level. The country’s state-run bank, Sberbank, will be teaming up with Russia’s Federal Antimonopoly Service (FAS) to use blockchain for document transfer and storage.

Even though the country has been keenly interested in developing blockchain technology in the country for a quite a few years now, this new move appears to be the first time that the government has successfully implemented it.

However, the benefits of blockchain will not just be enjoyed by the state. Andrey Tsarikovskiy, who is the statе secretary and deputy head of FAS, made this statement in Sberbank’s press release:

“Our country is opening up new possibilities for the economy through the use of advanced knowledge and technology. Making the system launch a reality means we are not only one of the first actual users of Blockchain for government in the world, but also [are pioneering its use] as a practical tool for further growth.”

Russia’s President Vladimir Putin has previously met with Ethereum co-founder, Vitalik Buterin, to discuss using blockchain technology in various sectors of the country. In addition, Russia’s state-owned bank, VEB, has already signed an agreement with the Ethereum Foundation to create and implement blockchain education programs in Russia.

This strong interest in blockchain technology is in sharp contrast to the country’s views on the crypto industry. They have appointed themselves as the forerunners in the crypto crackdown race by aggressively regulating it. Putin has made July 2018 the deadline for new crypto legislations to be defined.

Author : Jack Dean