Blockchain Incredible Party, Part 1. Govtech and Financial Infrastructure

July 7, the Ukrainian city of Odessa hosted the third Blockchain Incredible Party (#BIP001), Black Sea Edition. Forklog has visited the event and shares the most interesting findings.

Speakers at the conference addressed the important issues of the blockchain world such as DAO wars, the future of bitcoin, the awesome technology applications as to fighting corruption, reinventing the financial instruments, and further research.

The conference was organized by Distributed Lab, a company engaged in blockchain-based research and development of decentralized platforms.

By the way, the last ticket to #BIP001 has been sold via blockchain auction that has been developed for privatization of public property in Ukraine. Transparency in action!

The Course of Event

The party started not very long before noon with a passionate presentation by Lasha Antadze from Innovations and Development Foundation (IDF) dubbed “GovTech 4.0 or what can you do with blockchain for government”.

BIP+001_+Black+Sea+Edition+-+Google+Chrome+2016-07-09+20.52.30

The speaker shared his views on why usually the govtech projects fail and what should be aimed for to break the system’s inefficiency. The problem is, according to Antadze, in single point of control being imposed by the government and leading to centralization, so the project ends up with a private monopoly that’s just pushing hashes into bitcoin blockchain.

Antadze: The "Gov" prefix has to disappear

Antadze: The “Gov” prefix has to disappear

Antadze reminded the audience of similar projects such as BitFury’s land titling blockchain platform initiative, being on the early development stage in Georgia, and Factom’s now supposedly failed project in Honduras.

“That is not a kind of system we should be using with the govtech. Because, we should create a platform that allows the free competition among the service providers”, Antadze explained.

The speaker also presented his own concept of the decentralized property rights registry infrastructure  being developed in Ukraine.

Antadze’s solution for the specific case of state registries lays in introducing separate layers: an open source consensus layer with no or very small entry barriers (compliance) for service providers (becoming nodes and simultaneously the marketplaces of the system) acting in a decentralized manner and being able to interact with other registries (eg. civil registry) via smart contracts allowing the transition of property titles and API; and the property rights layer pegged to bitcoin protocol via colored coin emission or other similar mechanism for the best security.

Property rights registry general architecture by Lasha Antadze

Property rights registry general architecture by Lasha Antadze

The presentation can be found by the following link.

BIP+001_+Black+Sea+Edition+-+Google+Chrome+2016-07-09+20.53.53

Next speaker was Pavel Kravchenko from Distributed Lab talking about the existing financial infrastructure and its future.

“Bitcoin was like a Jesus for financial guys showing the direction”, he noted.

According to Kravchenko, bitcoin was the first viable solution to control your money and to move value over the Internet, however, the further applications for financial industry are yet to be developed – the world needs Financial Web and it will be eventually created using the blockchain technology.

The vertical stack of the existing financial infrastructure can be rebuilt leading to emergence of Financial Web

The vertical stack of the existing financial infrastructure can be rebuilt leading to emergence of Financial Web

BIP+001_+Black+Sea+Edition+-+Google+Chrome+2016-07-09+20.55.45

Alex Yakovlev from Russian National Settlement Depository presented the audience their e-proxy system for bondholders voting that has been developed from use case to pilot recently. The system is based on NXT Proof-of-Stake consensus mechanism, while the message traffic uses ISO 20022. For those willing to review the code, it is open source and available on GitHub.

In his speech Yakovlev further explained the important steps to be presented in the roadmaps of blockchain development teams that are often missing:

CmwHcd_W8AEvQS8

After a short coffee break the discussion switched to the recent controversy over The DAO, the important questions it has raised and the decisions the community will have to make. However, this will be covered in the next feature, because right now I’d like to have my coffee as well. Thanks for your patience.

by Eugene Muratov