Ukraine turns to Blockchain solution

Technological empowerment

Blockchain technology gains traction and influences Ukrainian financial and governmental sectors. This technological solution offers colossal prospects, opens up-to-date ways of building innovative public sector ecosystem, making country truly revolutionary.

Blockchain mechanism

The blockchain is a type of decentralised database storing digital assets synchronised via the internet that cannot be edited or deleted backdating due to encoding and advanced caching mechanism.

The algorithm:

1. Transactions are carried out, then extended through the networks.

2. Fresh ones are collected, checked, saved by miners (top level members with computer power) in the blockchain.

3. Validated transactional block is timestamped and kept in chronological order.

4. Fresh blocks are connected to older blocks forming a chain to show the history of every carried out transaction.

Benefits:

• Transparency. Visible in the network digital transactions having hidden personal data.
• Control and Security. Transactions are controlled, protected against identity theft. Extra fees cannot be charged not being informed and have to be discussed.
• Lower costs. Fees of transaction reduce by moving away third-party intermediation.
• Freedom in payment and faster transactions. Money can be sent or got globally.
• High-quality data. Data is full, completely errors free, well-timed, precise.
• Process integrity. Transactions are accurately executed without an intermediary.
• Ecosystem simplification. Transactions, being connected to the social ledger, reduces the multiple ledgers disorder.

Drawbacks:

• Poor awareness. People should be acquainted with technology to use it daily.
• Risk and instability. Current events influence leads to price movement.
• Further Evolvability. Making technology more secured, new features and services are still being evolved and implemented.

Challenges to widespread blockchain in Ukraine

The present governmental and economic systems need further development, placing emphasis on technological solutions. Growing the new technological processes launch is supported by the government, started adopting into existing regulatory system.

Official regulatory plans were announced blockchain technology usage to fight corruption in the governmental sector. Ukraine’s government is planning to build effectively protected government system making great social and economic push and bringing unprecedented accountability and transparency by adopting blockchain solution in Ukraine.