The government of Ukraine uses a System of Electronic Trading in Seized Property, or SETAM, to auction seized property.
This system is being moved onto an Exonum Blockchain that will enhance citizen trust in the system and provide an extra layer of security.
Ukraine will be the first country in the world to introduce blockchain-based electronic auctions. This innovative technology utilizes decentralized information storage and security while ensuring full transparency of state registries and services, which allows for public control of all actions.
Exonum Blockchain can be used to store data like:
Exonum's cryptographic algorithms and data storage also enable users to verify the authenticity of the Exonum Blockchain by timestamping its status to the Bitcoin Blockchain.
In a blockchain-based auction project, Exonum would be installed as an intermediary layer between the back-end system and the front-end interface for users. All transactions are verified using smart-contracts and then logged permanently into the blockchain. Any discrepancies between the information stored on the blockchain and stored in the original database (e.g., SETAM) are monitored and audited. In the case of Bitfury's work with the State Agency of eGovernance of Ukraine, both public notaries, auction participants and the highly respected NGO Transparency International can all audit the blockchain. Finally, the decentralized design of this blockchain-based auction allows for constant accessibility to the data, even in case of malfunctioning nodes or bad actors.
Bitfury's work with SETAM to create an Exonum Blockchain-based state auction system is only the first of many pilots that will take place in Ukraine. Bitfury signed an MOU in April 2017 to move many e-government services to blockchain, including cybersecurity, land registries and more.See next case