Ukraine to Test Blockchain Asset Auction System

A developer team in Ukraine has released the code to their blockchain-powered state asset auction system. The project dubbed e-Auction, has been released for public testing on GitLab.

In an interview with ForkLog, Lasha Antadze, lead developer of the project, said that the e-Auction system was borne out of the need for “minimising the existing corruption and mismanagement risks” within Ukraine’s current bureaucratic establishment.

Antadze believes that a block blockchain-based auction system can “reduce the state budget expenditure” and give everyone an equal opportunity to participate in the process.

While the project was mainly developed by the Innovation and Development Foundation, a Georgian NGO, several other partners aided the development effort, “With the help of volunteers from Distributed Lab, Oschadbank, Privatbank, Unitybars and Microsoft we developed a blockchain system yet without rivals in the world,” said Antadze.

The e-Auction system was designed on the Proof-of-Stake (POS) blockchain architecture. Node operators act as bridges between auction participants and auctioneers. Participants pay fees to the node operators, and the weight of each node is determined by the amount of fees collected. Auction participants will be able to make digital currency payments and fiat bank transfers via e-Auction’s API, which verifies bank account details.

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According to statement by Lasha Antadze, fruitful negotiations have already taken place between representatives from e-Auction and several Ukrainian government agencies:

“We have successfully negotiated with the State Property Fund [of Ukraine], the State Agency of Land Resources [of Ukraine] and the Regional State Administrations of Odessa, Sumy and Kyiv, as well as Ministry of Economy (Department of state reserves) and the project will be launched in pilot mode,”

The project has not officially launched yet, but Antadze hopes all the legal paperwork will be ready is several weeks, and an official memorandum of understanding can be signed in Kiev, Ukraine’s capital.

 

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Traderman

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