04:08 GMT +317 November 2019
Listen Live
    Russian Blockchain Week 2017 conference

    Experts Test Russians for Blockchain Acceptance

    © Sputnik / Evgeny Biyatov
    Get short URL
    0 30

    MOSCOW (Spuntik) - Experts from the Plekhanov Russian University of Economics (PRUE) have conducted a survey to establish whether the Russian public is ready to accept blockchain technology, Assistant Professor Diana Stepanova of the Department of Finance and Prices told Sputnik.

    They came to the conclusion that blockchain-based cryptocurrency (a type of digital currency controlled by cryptographic methods) "gradually ceases to be perceived by the public as a marginal payment instrument for illegal transactions." The survey has also demonstrated that this is happening thanks to industry solutions based on smart contracts.

    Smart contracts are blockchain entities with their own code of functions that define a set of rules obligatory for all those involved in a transaction. That a financial transaction is performed in accordance with the set rules is guaranteed by a mathematical algorithm rather than a human, something that obviates the human factor.

    READ MORE: Russia is Wise to Embrace Blockchain, Shouldn't Restrict Bitcoin — Specialist

    According to Stepanova, Russian financiers and experts from a wide range of occupations will soon be able to benefit from smart contracts. As a case in point, she cited a decentralized, cryptocurrency-based social medium enabling users to be in full control of their accounts and thus derive income from advertising.

    Besides, these smart contracts can regulate the making of a securities market without the involvement of a stock exchange or a clearing center. Healthcare is another sphere where smart contracts can be applied.

    READ MORE: Russia May Become World Leader in Blockchain Technology Adoption in 2018

    Generally, both private and public companies have more and more trust in the blockchain technology. "The technology's success is due to the fact that it makes it possible to store information in a distributed state rather than on just one server. This advantage is of particular value when financial confidentiality is required. Blockchain keeps records of all transactions users perform in various blocks, while distributing them in a network composed of millions of PCs," Stepanova said.

    "In a few years' time, it is quite likely that the blockchain technology will become an industrial standard, and Russia must be ready for that," she said in conclusion.


    Bitcoin's Black Friday: Blockchain Prices Plunge
    New Viral Sensation on Ethereum Blockchain Has Cost People Over $1 Million
    'Re-Purposing the Blockchain Concept': New Cryptocurrency to Tackle Fake News
    transactions, blockchain technology, Blockchain, technology, hi-tech, Russia
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik