World’s First Village To Adopt Blockchain In Its Farming & Management

Aug 02, 2016 at 11:25 // Blockchain
Nina Lyon

The small village of Kolionovo, outside of Moscow Russia, has become the first in the world to integrate Blockchain technology into its farming business and agriculture management.

Kolionovo uses a decentralized Blockchain system for some local organizational, financial and legal issues.

Moreover, people in this village launched their local cryptocurrency tokens called “Kolions” to manage their economy and business by themselves.

Kolion tokens – local tool against crisis world cryptocurrency news outlet contacted the inspirer of the project in the village, Mikhail Shlyapnikov, and asked for details.

Mikhail Shlyapnikov said:

“For us it's a logical continuation of a two-year project of the local form of economy, which has become a real tool against the crisis. Given the devastation of farmers [in other regions], we do not just keep up, but also progress.”

In 2015 Kolionovo began its local project by creating paper money that worked as bill of exchange between farmers. Now villagers have moved to a new form of currency – digital crypto tokens, while the old paper money is used as souvenirs.

Speaking about the plans Mr. Shlyapnikov said that the first month they will hold in trust mode with a few friends, customers and partners. In September Kolionovo plans to open the opportunity for the participation of 20-30 more shareholders.

“I’m not ready to become one of the saviors of Russia and its agriculture. But I’m interested in my city, its workers, clients, friends and family,” said Mr. Shlyapnikov.

To make Kolions useful for the whole system in the village, Mr. Shlyapnikov said to ForkLog, there are several forms of this token - like non-volatile Kolions that are used for inner agriculture production and development, and “operational” Kolions that are used in business financial turnover, investments, charity and social projects in the village. The third are “external” kolions that are pegged to fiat and cryptocurrency.

Kolionovo village, Photo by Newspaper 'Bumaga'.jpg

Blockchain-backed phenomenon

Ivan Tikhonov, a Bitcoin and Blockchain expert and founder of the Bits.Media information site in Russia, commented on the phenomenon of the Kolionovo village:

“The phenomenon of Shaymuratovo and Kolionovo villages shows that private money can breathe new life into the rural lifestyle, and significantly improve the quality of life. However, it is much easier and safer to experiment exactly in small village microeconomics. For example, to launch demurrage currency or other pretty bold ideas.
On the other hand, new problems arise. You need to have the required hardware and software to implement Blockchain technology in the village, as well as a very high level of technical understanding of how it works.”

He continues: “You can easily imagine the way how local people are paying for chicks with printed “Kolions” on paper, but not in every village can people sign a transaction via mobile device, or are engaged in the security of their private key.”

Mikhail Shlyapnikov

Mr. Shlyapnikov says that some of the farmers find it difficult to understand how the whole Blockchain-based system works. However, he tries to explain it to the villagers. He believes that everyone can do it.

He noted:

“Who wants to find opportunities understand it – find it, who doesn’t want to – will also always search for a reason not to do it.”

While the attitude of Russian government is rather negative to cryptocurrency, the use of Blockchain systems in business does not violate Russian laws, said the farmer.

However Ivan Tikhonov commented: “The second question, due to which they were looking for alternative solutions, including the transactions via Blockchain, is law. By law, the only official currency in Russia is the Ruble. A similar to "Kolions” banknotes are treated as quasi-money, which is banned in Russia. If enthusiasts overcome these limitations by transferring money into Blockchain? This is a question for the lawyers.”


Partnership with Emercoin

To make transactions easier and safer, new Kolions are based on the Emercoin platform. This allows fast and cheep transactions between distributed businesses and the ability to make payouts on the Emercoin network instead of a natural product if farmer wants to.

Ivan Tikhonov also commented: 

“I can only welcome the choice to use Emercoin in this case. Using a large public Blockchain is more reliable and safer than the invention of their private Blockchain solutions within the same village.”

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