Moscow Government Employs Ethereum Blockchain To Bring Transparency In Commerce

by | Aug 30, 2018 | Blockchain

Moscow | Ethereum | Ethereum Blockchain | Farmers Market

Every year the capital of Russian Federation, Moscow welcomes farmers of the nearby countries for the weekend farmers market. With only a limited number of trading spots available, Moscow’s authorities lack a transparent and efficient system for allotting. However, this year the authorities plan you employ the second largest cryptocurrency, Ethereum to end the corruption in commerce by the means of blockchain transparency.

Multiple farmers and organic food producers wait for their turn for a trading spot on the weekend farmers market to provide their goods to the crowded and populous city of Moscow. With the market season stretching between April 20 and November 25 and farmers come from Russia, Belarus, Armenia, Kazakhstan, and Kyrgyzstan. There’s always a push to get a spot as for some 20,000 application submitted each year only 2,736 trading spots are allocated.

The role of Ethereum 

To ease out the process and to keep it corruption free and transparent, Ethereum will be utilized to create an intelligent system that will fairly allocate trading spots to the farmers. The basic idea is to create an immutable record of applications, with updates made for those who are either approved or denied access. According to  Andrey Borodyonkov, the blockchain product manager for Moscow City Hall, he explains in his conversation to CoinDesk.

“Blockchain is an additional guarantee that the incoming applications remain immutable as well as makes the audit of the application history possible.”

While authorities have the freedom to review and control the application, the system is unbaised from the farmers’ side of the spectrum as well. As once the applications are submitted to the blockchain they cannot be removed or altered. The Moscow’s government statement details:

“The entire dataset is publicly viewable, transparent and available for download. In that case, submission time can be confirmed, while the application cannot be deleted or altered by someone once it is submitted.”

While the farmers were unhappy with the current system for reviewing applications, it was a necessity to involve a smarter way. The strategy and innovations advisor to Moscow City Hall’s CIO, Andrey Belozerov hopes that the new system will eliminate most concerns as the information will be publicly accessible. The press release quotes him:

“We believe that farmers should have a transparent system to see why their application is declined or approved. Blockchain is to make sure that the process is fully transparent and no one can alter an application. We hope that blockchain will provide full transparency for everyone.”

The blockchain developers were hired way back in 2016, by the Moscow City Hall but it was in 2018 that the official name of the new division was coined as “Product Blockchain,” as disclosed by Andrei Borodyonkov. According to data from Coinmarketcap.com, Ethereum is trading for $289.74 with a slight 0.79% increase (at the moment of this article was published). How or will the recent announcement would affect the Ethereum price, remains to be seen.

Read more: Top Ten Ethereum Dapps You Should Surely Know About

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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