First All-Ukraine Auction 3.0 Access Platform Announced

Developers of Coinessa and BTCZoo from EMK have announced launch of all-Ukraine platform for access to Auction 3.0, a blockchain-based platform for public property auctions. The platform has been developed in cooperation with IDF Reform Labs,  and the project leaders were David Kiziria and Lasha Antandze, while the platform’s API has been supplied by PrivatBank.

The exact date of the platform’s launch is unknown, as it depends on when the first lots are to be placed. However, the developers believe the first auction will be held this summer.

“The first auction will be launched as soon as the system has its first lots of public property or land cadastre items. It all is most likely to start with collateralized bank property. People took out loans putting real estate and property items in pledge. The loans weren’t repaid, so banks have to sell the collateralized property in order to bring the money back. Also, there probably will be seized property from customs. First test auctions are to happen in summer,” Coinessa’s CEO Vlad Kogan told ForkLog.

A specialized blockchain-based platform eAuction has been earlier developed in Ukraine to hold public property auctions. The platform’s functionality also fits private auctions, so the system is intended for both public services and commerce. The platform is open-source, so anyone may launch their own access point and establish their own business.

Each platform is, in fact, a node whose reputation and system weight depend on a set of parameters. The more platforms there are, the more transparent and decentralized an auction will be. Entire information on auctions, lots, and bids will be public to minimize corruption risks, which usually arise due to presence of closed data.

“Documents from administrative authorities, like certificates of incorporation, tax clearance certificates, certificates of absence of bankruptcy proceedings etc. are provided only in the end, and only by the bidder who had offered the highest price. As a result, we have a ranking of bidders for a lot, which determines the winner,” Kogan says.

An auction’s starting price will be known in advance, so bidders will not be able to offer a lower price. Information on lots related to lease or sale of property will be available online to everyone. In case a bidder opts to appeal against outcome of the auction, he or she may use all open data from the system to seek legal redress.

Using distributed ledger technology in Ukraine’s public service is among the country’s most crucial reforms of last six months.

More details on Ukraine’s blockchain initiatives and projects are available in the overview of Blockchain Conference Kyiv.

by Platon Andreev and Tanya Otter