The World’s First State Auction on the Blockchain Being Tested in Ukraine

This Monday, February 22, the Ukrainian platform for state e-auctions on a blockchain has been launched for public testing. The supply code is available on GitLab, and the platform integration guide has been detailed in the public note in Ukrainian and in English.

“The aim of the project is to build up a transparent, decentralised e-Auction system for state property privatisation and lease, for minimising the existing corruption and mismanagement risks, reduce the state budget expenditure and give barrierless access for participation in the process,” states Lasha Antadze, the venture’s lead.

The venture is run by Georgian reformers staff from the Innovation and Development Foundation NGO in partnership with Distributed Lab. However, there are lots of different contributors to the venture.

“With the help of volunteers from Distributed Lab, Oschadbank, Privatbank, Unitybars and Microsoft we developed a blockchain system yet without rivals in the world,” mentioned Lasha Antadze.

Key Features

According to e-Auction’s draft concept, the consensus mannequin is predicated on Proof-of-Stake. The “nodes” will often act as non-public buying and selling platforms, offering interfaces for public sale contributors and auctioneers. However, when you don’t belief any service supplier, it’s attainable to arrange a private node, pay the participation charge to a financial institution consumer supplier and begin bidding. In the Consensus, the weight of every node will probably be decided by the sum of ordinary entry charges paid by contributors to specific buying and selling platform.

Entry charges will probably be paid by contributors to buying and selling platforms and may be particular for every lot and platform. Entry charges and built-in extra providers will incentivise nodes to maintain the blockchain system and supply their providers. At some auctions contributors must present a assure deposits in the event that they participate in an public sale with a major beginning worth. Thus the financial mechanisms (Deposits, Participation charges, which as effectively function a KYC) can successfully stop spamming.

e-Auction normal construction

There will probably be two fee choices: cryptocurrency funds on to the platform through API, or “fiat” financial institution funds. Payments are verified through built-in API of financial institution accounts that acquired the participation charge, the transaction ledger is signed electronically and afterwards utilized by the protocol to establish the weight of the nodes.

Before we go

A devoted draft regulation has been ready in order to specify the authorized standing of the e-Auction community. However, as regulatory points often take time, there have been some gadgets preliminarily agreed upon.

“We don’t have to wait for the central legislative validation and we have several options for launching the project. 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,” Lasha Antadze informed ForkLog.

“The ‘coding part’ is ready, and right now the system is being tested on virtual machines. We will be technically ready to launch the system in two weeks, however, it depends on politicians and remaining paperwork. Now we wait for the moment when we’ll gather every participating party in Kyiv and sign the Memorandum. The project’s advantage is that its primary product was built before the memorandum signed, not vice versa. Thus there is a guarantee that the concept will not remain just a piece of paper, and the project will be launched instantly,” he added.

Auction organisers and investors connected via trading platforms in a more transparent way

Auction organisers and buyers will be related through buying and selling platforms or utilizing client-side apps below monitoring of NGOs and normal public

The venture’s code is open supply and “docker file” for launching an e-Auction node is publicly accessible. Right now the system is examined utilizing Microsoft Azure. But clearly customers are usually not restricted to any cloud or server supplier.

by Eugene Muratov

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