Ukraine to partner with blockchain firm to prevent corruption

[Abstract] Ukrainian Finance Minister Oleksandr Danilyuk announced at a national blockchain conference last week that the Ministry of Finance plans to use Distributed Labs' eAuction platform (a transparent auction management platform based on blockchain technology) to sell government assets and combat official corruption in the current system.

When talking about Ukraine, most people are more familiar with its history of being invaded by Russia, but now that the entire country has fully introduced blockchain technology, it hopes to change people's impression of Ukraine.

Ukraine’s Finance Minister Oleksandr Danilyuk announced at a national blockchain conference last week that the finance ministry plans to use Distributed Labs’ eAuction platform to sell government assets and combat official corruption in the current system.

Minister Oleksandr Danilyuk explained that blockchain technology could completely eliminate government interference in the bidding process, hinting at the fact that officials were bribed to manipulate the bidding process.

The minister said that the assets of eAuction, the first company to use blockchain technology to conduct online bidding, could be transferred to the state-run Personal Deposit Guarantee Fund, which is said to have received $18 billion in government assets, including real estate and other state-owned assets.

Minister Danilyuk also said: "We hope that Ukraine can become the first country in the world to use blockchain to sell state assets: to sell products in an open and transparent manner, at a reasonable price, and to prevent corruption. I believe that blockchain technology will definitely provide such an opportunity."

Distributed Lab updated a statement on its official website, stating that the original purpose of establishing eAuction was to use the company's own blockchain system based on the Stellar open source blockchain code.

Dr. Pavel Kravchenko, a developer at Distributed Lab, said: “The most basic feature of eAuction is the interaction between multi-functional blockchains and the consistency of local blockchains. In addition, the website does not provide built-in currency. Therefore, the function of the website is only to provide a choice of transaction protocols and create conditions for financial transactions, such as serving as a platform for transaction settlement, etc.”

The sale of tickets for this conference was completed on this platform, and this transaction was the first since the establishment of the platform.

Blockchain Solutions

Prior to this meeting, Ukraine had also discussed the use of blockchain to manage government assets many times. In February this year, several Ukrainian government officials jointly signed an agreement to cooperate with E-vox (a platform jointly established by Ambisafe, Distribute Lab and Kitsoft) to use the Ethereum blockchain for multi-level management.