Rostec, the Russian state-owned manufacturing conglomerate, is entering the blockchain fray
The corporation, which holds stakes in 700 industrial entities in Russia, is working with the Waves platform to develop a blockchain system to manage data on its large holdings, including the automakers Autovaz and Kamaz and the firearms manufacturer Kalashnikov.
Announced Thursday, Rostec signed an agreement with Vostok, a startup founded by the Waves platform team. The two partners will invest a total of $ 2 million to start the project, but the share of Rostec has not been disclosed. Over the next month, the joint team will present a roadmap for the project.
The project will pave the way for the application of blockchain technology to Rostec operations, in particular for the standardization, collection and analysis of data relating to products manufactured by Rostec supervision, which includes both goods military than civilians.
Information from these disparate sites at the Rostec headquarters is not standardized and therefore difficult to analyze. It is expected that Blockchain will improve the organization and security of this data, some of which are sensitive military information.
The project will also seek to develop solutions for so-called smart cities, which exploit data to manage resource cities more efficiently. To this end, the project would facilitate the sharing of data via blockchain between government bodies and federal and municipal citizens.
Rostec has already experimented with smart city technology in several Russian cities designed to automatically adjust and adapt energy consumption, traffic management, the work of street cameras with facial recognition and other systems. These systems will be migrated on blockchain rails, Vasiliy Melnikov, Rostec press representative, told CoinDesk
For Waves, the agreement is a high-profile partnership that offers the opportunity to reach important players in the Russian economy.  "Working with Rostec, which is the leading provider and driver for digital economy projects, will not only allow us access to a wide range of corporate and government customers, but will also give us a strong impulse for further development, "Waves" and Vostok's CEO, Sasha Ivanov, said in a statement.
Rostec was created in 2007 as a state-funded company responsible for accelerating development technology in Russia and is chaired by Sergey Chemezov, one of the public officials closest to President Vladimir Putin.
Rostec has been assigned a key role in the digital economy, the national development program designed by the Russian government to promote Innovation in the country In March 2017, blockchain technology was officially included in the program when Prime Minister Dmitry Medvedev issued an order to explore the possible use of technology for the management of economic and government practices of Russia.
Rostec CEO Sergey Chemezovm (center) shows a model of a tank for Russian Defense Minister Sergey Shoygu, image via Shutterstock