By now, the world knows all about blockchain technology and its benefits. It is applied by banking institutions, commercial establishments, ICO projects, and other ventures. Now, governmental institutions are starting to realize its potential.
The latest nation state to express interest in applying blockchain solutions to augment levels of trust in performed transactions is Russia. After all, the ledger provides an open and trustworthy network infrastructure, as well as decentralization and savings. Russia’s most significant public and government-controlled social service, which is the State Pension Fund (PFR), suggested this week that it would be willing to experiment with the blockchain technology to optimize labor relations according to a report from Russian news site, Izvestiya, with statements from the Fund’s press department. The intention is to introduce smart contracts between employees and employers to avoid irregular situations in which the latter group takes advantage of the former.
Solutions for All Departments
The smart contracts can apply to any state unit that offers public services, not just the pension fund. That would be a critical point in Russia’s and blockchain’s history, as that network covers more than 95% of the nation’s population.
The blockchain technology, among its numerous benefits, is prepared to eliminate unnecessary paperwork and to store vast amounts of data while significantly cutting costs when compared to more traditional approaches. That, according to Russian officials, is their primary intention.
As a bonus, the smart contract’s immutability will protect employees from greedy employers that violate the law when finalizing deals with their workers. An astonishing 465,000 Russians complained that their labor rights were dishonored in some way in 2017. Almost $300 million were issued in the form of fines to try to combat offenders.
The country is decided to take the next step regarding the use of blockchain. As the Prime Minister Dmitry Medvedev recently explained, Russia wants to store employment records from 2020 on, and feed this data to the State Pension Fund at its request.
Russia recently implemented reforms in labor that have caused varying levels of discomfort in the nation and the European Union. After the government proposed to push back the retirement age for both men and women starting from 2028 and 2034, respectively, protests were held throughout the nation. Fortunately, the president Vladimir Putin announced that the restructuring would be revised.
Moscow Will Use Ethereum to Promote Transparency in The Farmers’ Market
In the same line as the State Pension Fund plans to use blockchain technology, the Moscow government also announced its plans to implement Ethereum in their build-up of an allotting trading spots system on the farmers’ markets.
Farmers will issue applications, and the platform will record them to optimize the process. There are more than 15,000 trading spots available for farmers from Russia, Kazakhstan, Belarus, Kyrgyzstan, and Armenia.
The intention of using Ethereum is to create a record of applications that lasts the rigors of time and can’t be altered. Depending on approvals and denials, the information can be updated, explains Moscow’s City Hall blockchain product manager Andrey Borodyonkov.
by Andres Chavez