Blockchain

Russia’s Pension Fund is Gearing Up to Make THE Move to Blockchain

Technology has been making constant progress in the field of data science. At first, the records were tangible, and then came databases, then cloud computing and now blockchain has garnered everybody’s attention. Russia’s FIU pension fund has made the decision to move its data to the tamper proof distributed ledger too. The FIU seeks to use blockchain technology to maintain the information about employment contracts between the employers and their employees. The main problem with handling huge amounts of data is the maintenance cost. You need to acquire a drive that is able to record huge amounts of data and is expandable as the data keeps on piling on. It was told in the press service that the FIU is currently accepting proposals, and by the end of this year, it will be ready to incorporate all information systems into a single digital platform based on blockchain technology.

The FIU plans to introduce smart contracts, which can be only provided to individuals after accumulating a digital signature from parties who may provide approval for this. In order for this whole process to go through, the user must get himself certified from MFC or any other certifying center.

Currently, the FIU stores data on tax deductions and insurance premiums on its servers, which as previously mentioned is not the most efficient method of maintaining and securing data but in the future they plan to move this data to a distributed ledger which would make information easily accessible to all and disable hackers from getting their hands on classified information.

The chairman of the government Dmitry Medvedev announced that the development of the distributed network will only begin after 2020 and all operation will be conducted through paperwork before that. It was mentioned in the press service that,

The introduction of smart contracts into labor relations will allow in the future to refuse compulsory conclusion of them in paper form, but to have information about them at any time, as it happens today with the right to real estate.

The FIU stands to achieve a number of objectives through the incorporation of smart contracts. The fraudulent individuals who draw up fake employment contracts could be apprehended with ease with blockchain technology because where it provides transparency, it also enables the users over the network to keep track of these transactions. Additionally, a large amount of data can be stored and secured by using this platform. However, it can be said without exemption, that organizations all over the world are delving and experimenting in the field of blockchain, but there is a delay yet for the much anticipated global transformation and adoption of blockchain technology. The press service also mentioned,

The digital platform of the FIU should become an aggregator of digital services in the field of social security of the population. The platform should provide integration of even such services, about which we do not yet know anything, and this will be its uniqueness. The digital platform of the FIU should, on the one hand, significantly reduce the transaction costs of the fund, and on the other hand, ensure its proactive development in conditions of digitalization of the Russian economy.

The Professor of the Department of Labor and Social Policy of the Institute for Public Administration and Management of the Russian Academy of Science and Technology, Alexander Shcherbakov, also had some insight to provide on the matters of classified data being vulnerable to attacks, both in the private sector involving small scale organization as well as the larger government institutions. In the past year more than 465,000 appeals from citizens for violations of labor rights were filed. In addition, state inspectors from employers collected more than 20 billion rubles. Shcherbakov said,

There is a sense in the initiative of the Pension Fund. The more opportunities to improve efficiency and convenience in the field of personnel management, the better. Today, the level of violation of labor agreements between employees and employers is very high. This mainly applies to small and medium-sized enterprises. The employee’s rights to them are often violated from the very beginning, when certain conditions are immediately determined not only when applying for a job, but also when they are laid off. Documents are prepared that facilitate the dismissal of the employee in the event of any conflicts with the employer.

To conclude, many of the pro blockchain entities, both on the government and the private sector have expressed their approval of blockchain and how it will transform various industries as we know them. Not only will these decentralized platforms provide the much wanted transparency but also regulate the system in order to ensure all transactions are legit.

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Habibah Shahid

A Computer Science student but a writer at heart. Habibah writes about Cryptocurrencies and the underlying technology, Blockchain, with the perspective of a Computer Scientist. Email: habibah@blockpublisher.com or contact the editor at editor.news@blockpublisher.com

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