The deployment of blockchain technology in collaboration with a state-owned company allowed to increase the proceeds of the auctions of seized assets and rented land in Ukraine.
In the first year of implementation of the technology, SETAM, a state-owned company, has held 12,338 successful auctions with a total of over 2.5 billion hryvnas (USD 89 million). Using the blockchain solution, supplied by London Bitfury Group, a blockchain technology company, has allowed SETAM to raise auction prices, encouraging the use of technology for land-based auctions, according to Viktor Vyshnov, chief executive officer (CEO) of SETAM.
"The average price growth has gone from 12% before the blockchain to 18% [after the technology was deployed]. In September 2018, SETAM started a cooperation with StateGeoCadastre on a pilot project [related to] land lease auctions. In October 2018, the first electronic land lease auctions were held. Nine out of ten the proposed lots have been sold with an average increase in annual rents [at the level of] 34.3%. The rent for one of the lots exceeded the statutory regulatory assessment price of that land, "said Vyshnov Cryptonews.com.
According to him, the use of blockchain has greatly increased public confidence in the system.
"In September 2017, we held the first electronic auctions in the world with the use of blockchain technology, the same day we announced the rebranding and started to provide services to our customers with the OpenMarket brand.blockchain technology, we have experienced a remarkable increasing the level of trust in our electronic auction system, this has helped us increase the amount of participants and we have started cooperation with many local authorities and banks, "said Vyshnov.
Auction data is set on a blockchain developed on the Bitumury Exonum platform and each participant obtains a unique hash to verify information on its bid on the auction website, according to the CEO.
"This made the process truly transparent: data copying is stored in a network of 4 independent servers [that are] blockchain nodes. The connection between the servers is ensured by a special protocol that provides reliable protection, even in case of attack or partial failure of the equipment, "said Vyshnov." Information is regularly copied to the public blockchain. This prevents the possibility that information will change, since any attempt to collude the blockchain nodes would be obvious thanks to the principle of system operation. An independent auditor, the Eastern Europe Foundation, controls the process. The system [can] also be verified by other reviewers. "
A video of the Bitfury group that explains the auction on the blockchain:
Meanwhile, the Bitfury Group continues to expand its portfolio of international projects, as a growing number of state authorities seek to establish partnerships with blockchain technology providers to introduce greater transparency into their real estate and property management systems.
Some of the company's activities are linked to the introduction of blockchain-based solutions in real estate and real estate management systems around the world, such as Bitfury projects in Georgia and Ukraine, where the company is collaborating with local authorities, as reported by Cryptonews.com. Georgia of National public register agency (NAPR) asked Bitfury to develop blockchain solutions to improve the flow of information within its property registration system. The project is to make transactions transparent and encourage public confidence in the agency's actions.
"After the successful first phase of the land title project with the NAPR, Bitfury and the NAPR undertook a comprehensive overhaul to assess the success and growth areas for the land title pilot. We expect to announce the next step soon. of this project with the Ministry of Justice and Bitfury, which will bring the blockchain to the process of transfer of ownership, "said John Mercurio, chief communications officer at Bitfury, Cryptonews.com.