Dmitriy Pavlenko, Deloitte Ukraine: standardization is a means of blockchain integration in Wild West
According to Director of Tax & Legal Department at Deloitte Ukraine Dmitriy Pavlenko, currently, blockchain needs standardization that means that basic notions should be defined and technology introduction on the market should be seamless. Along with his partner at Deloitte Sergey Bondarenko, the expert gave an interview with Blockchain & Bitcoin Conference Kiev. We talked about blockchain development in Ukraine and the country contribution to the development of global standards of this technology.
Dmitriy Pavlenko is Director of Tax & Legal Department at Deloitte Ukraine, PhD in Law, author of analytical articles on blockchain and member of various legislative initiatives.
Sergey Bondarenko is Head Technology & Integration Consulting at Deloitte, certified IT auditor at Certified Information Systems Auditor (CISA).
Interviewer: Blockchain & Bitcoin Conference Kiev (BCK)
Speakers: Dmitriy Pavlenko (D.P.)
Sergey Bondarenko (S.B.)
BCK: Good day, Dmitriy. Your presentation at our conference is titled ‘Ukraine contribution to ISO/TC 307 standard – Blockchain and distributed ledger technologies’. However, on ISO official website, Ukraine doesn’t appear in the list of participants, observers and secretariat. Do Ukrainian representatives work via legislative framework of other countries or the state finds other ways to take part in the standards development?
D. P.: We have decided to pretend blockchain experts in order to enter your awesome conference but you caught us red-handed! To be serious, first, let me speak some words about the standard.
Standardization of blockchain technology is a vital step towards a unique terminology, interoperability, scaling, audit as well as the technology possible future regulation.
That is the reason why ISO (International Organization for Standardization) began to work on the international standard ISO/TC 307 307 – Blockchain and distributed ledger technologies.
We would like to join this process. For Ukrainians’ participation in ISO committee, the same domestic institution should be established. That is what we are working on right now.
On its website, Ukrainian Agency for Standardization (UAS) has already published the Deloitte initiative to develop Technical Committee for Standardization called Blockchain and technologies of distributed ledger technologies. We are going to implement this project along with our friends at AtticLab, Infopulse, Bitcoin Foundation and others. My colleague Sergey Bondarenko, one of the most active and tech-savvy blockchain evangelists in Ukraine, has been put forward for Committee Head. He will help me to answer some technical questions during this interview.
After establishing the National Committee, we will be able to apply for Ukrainian side active participation in ISO via UAS.
We will act publically so that new participants will have a chance to join us.
BCK: Judging from the website, now, ISO/TC 307 development goes though the stage of terminology formation. Tell us please why it takes ISO so much time to establish standards?
D.P.: We use standards in various spheres on a regular basis, its value is obvious. Standardized services, products and processes give us some guarantee and control possibility.
In Ukraine, various standards are widely applied. For instance, tech-savvies know all about the National Standard of Ukraine ISO/IEC 27001:2015 called Information technologies. Safety methods. Information security management systems.
Standards are important for those who promote innovations on the market. This a way to agree upon basic notions, level up Wild West in the sphere of social relations, make integration of new technologies seamless.
That is how we see the future of blockchain.
Such a tremendous technological consensus needs a lot of global organizations and experts involved. That is why standards development takes time. Any new ISO standard requires multistage international work. It takes at least three years to go through stages of the initial project presentation, final voting and standard publication.
Industries, not ISO, dictate the necessity in standards development and the speed of their appearance. For instance, ISO/TC 307 was elaborated due to the serious investigation of Australian experts that analyzed and proved the need of standardization in the sphere of distributed ledger technologies.
BCK: How do you rank Ukraine technological base for blockchain development and integration compared to other European countries?
S.B.: By the number of activities and events related to blockchain investigation and integration, Ukraine is the list of seven progressive countries. Unlike Europe, Ukraine has qualitative and reasonable Internet access, which is vital for blockchain. The state is working on public data revealing, which is also of high importance for blockchain solutions applicable in the real economic sector.
We have a developed public key infrastructure (PKI) and other technologies that allow to use cryptography for proving legislative documents forceful.
Besides, Ukraine is close to accepting European standards in electronic trusted services. It would broaden Ukrainian digital business over Europe, including blockchain solutions.
Another thing that should be mentioned is a breakneck pace over the last years of the development of digital payments and digital trading.
However, the absence of legislative framework and unreliability of Ukrainian courts prevents Ukrainian business from thriving. Thus, in the majority of cases, its representatives launch their projects abroad.
BCK: Does Ukraine suffer from lack of blockchain specialists? If it does, what are the reasons?
S.B.: You will not find many blockchain specialists because of boosting of blockchain technologies. Along with the shortage of developers we got used to, there is also scarcity of specialists in blockchain solutions for marketing and legal counseling.
We propose establishing several blockchain schools to solve the problem of talents. By the way, Deloitte plans to launch home blockchain course (announces are coming).
Probably, such high demand is only a bubble emerged due to ICO popularity but the increasing interest of various professional groups speaks volumes.
D.P.: Don’t take ICO and ISO for the same things!
BCK: In your opinion, which business spheres will gain most profit from blockchain? In which tasks is blockchain more effective than other conventional means?
D.P.: Those business spheres that clearly define their needs and successfully implement an idea that namely blockchain is their perfect solution. The key is that these companies have to develop deep understanding of this technology. Blockchain business solutions emerge slowly. By pushing them, you will fail. The same is with a blockchain for blockchain approach.
Alternative solutions should also be taken into consideration because the technological competition will define the most effective ones. In distributed data storage there are other variants, for instance, IPFS, in digital document turnover there exist a lot of ready decisions. If a company plans to use blockchain, we often ask why and what is the problem it is intended to solve.
BCK: Which Ukrainian institutions need blockchain the most?
D.P.: Can you name the state institution that is transparent, effective and free from corruption? All the rest desperately need technologies to eliminate these problems. Today, people cannot deal with them individually with strong will power.
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