Navalny, $ 22 million in bitcoins and blockchain – telling where the connection is

CONTENT

  • A politician can use blockchain to achieve his goals

  • Navalny accepts donations in cryptocurrency

  • Navalny’s donations may be outlawed

International consortium of news organizations developing transparency standards.

All means are good in love and war – this proverb has become a leitmotif of political struggle in many countries, and Russia is no exception. To defend their position, politicians use all available tools. Many of them are not transparent.

Against the background of a discussion in society of the recent arrest of the main oppositionist of Russia Alexei Navalny and the aggravation of political confrontation in the country, the editorial staff of BeInCrypto thought about what tools of the cryptoindustry policy could use to achieve their goals.

Navalny and the crypto community – where is the connection

Despite the fact that the opposition leader Alexei Navalny has nothing to do with the cryptoindustry, his surname often appears in the specialized media. One of the reasons is the Anti-Corruption Foundation (FBK) – an organization headed by a politician – openly accepts donations in bitcoins (BTC).

Screen from the official website of FBK

In total, since the beginning of accepting donations in cryptocurrency, 653.47959162 BTC (over $ 22 million, at the current exchange rate) have been sent to the FBK bitcoin wallet. Coin donations continue to flow, according to Blockchair.

Information about the FBK crypto wallet from the transaction explorer

Navalny and his cryptocurrency operations have attracted the attention of regulators and market participants. For example, in the summer of 2019, the editor-in-chief of the Federal Investigation Agency (FLB) Sergey Sokolov submitted a statement to the Investigative Committee of the Russian Federation with a request to check the crypto transactions of FBK founders Alexei Navalny and Leonid Volkov for possible fraud.

What’s wrong with cryptodonates

From the point of view of the authorities, cryptocurrency is an unregulated financial instrument with high risks. The anonymity of digital assets allows illegal transactions with their help. This includes financing terrorism and money laundering. This feature of bitcoin and other coins attracted the attention of the authorities to their owners..

Despite the fact that Russians have long been using cryptocurrency for settlements, the financial instrument received legal status in the country only on January 1, 2021. According to the new rules, citizens of the Russian Federation are prohibited from using bitcoin and other cryptocurrencies as an alternative to the ruble.

The volume of purchases of bitcoins for rubles. Data: CoinDance

In the adopted laws, there are no clear boundaries of the legality of operations. Such omissions leave room for interpretation. Technically, donations in digital assets can also be banned. At the same time, how exactly the authorities will go to the “criminals” is not entirely clear.

The fact is that bitcoin is only partially anonymous. In the event that regulators get hold of the wallet address and information about its owner, the authorities will see all transactions. In the case of FBK, this is exactly the situation..

It turns out that from 2021 the receipt of donations by the Fund may turn out to be illegal. As a result, the organization risks facing new challenges. Every cloud has a silver lining – Alexey Navalny and his struggle with the current government may “shed” light on the possibility of performing certain operations with cryptocurrencies in the country.

Donates in Bitcoin are not the only point of contact between the oppositionist and the cryptoindustry. One of the goals of the FBK is to hold fair elections in the country. Some of the tools available on the digital asset market can help the Fund in this..

Navalny, $ 22 million in bitcoins and blockchain - telling where the connection is

How to make smart voting smarter

One of the developments of the FBK, with the help of which the opposition wants to establish a system of fair elections, is the “smart voting” strategy. Its meaning is to unite the forces of the electors for the victory of one candidate. To do this, FBK determines in advance the candidate for whose victory the representatives of the organization recommend voting to their followers..

Unfortunately, the FBK strategy is united with the traditional electoral system by the lack of transparency – people cannot control the counting of votes and see all the details of the process. Due to the fact that the followers of the Foundation, as well as in the case of elections organized by the current government, do not receive evidence, doubts may arise about the integrity of the system..

Screen from the official site of “smart voting”

There is a solution to the problem – decentralized elections. To do this, the organizers will need a blockchain system with the help of which all voice movements can be made transparent and available for analysis by anyone. In parallel, the technology opens up a number of additional advantages:

  • Data in a decentralized system cannot be hacked. This approach guarantees 100% fairness of elections with a guarantee of the reliability of the results..
  • The digitalization of the process allows the use of additional tools for collecting votes. For example – tokenization. The voice of each citizen can be represented in the form of a token, with which a person can confirm his identity and the fact of participation in elections during the collection of opinions. For this, different approaches can be used – from transferring tokens to electronic wallets, to issuing unique QR codes to the electorate. This way you can confirm the participation in the voting of each specific person, solving the problem of “dead souls” and theft of votes.
  • Digital elections will speed up the scoring process. Technically, information about the voting process, with a full set of tools to confirm the integrity of the process, can be accessed online.

It is noteworthy that the Russian authorities are aware of the existence of the blockchain and even collected votes according to a scheme close to the one presented above. For example, this is how opinions were recorded during voting on amendments to the Constitution of the Russian Federation in 2020.

Despite the fact that the Russian authorities positioned their blockchain system as a reliable, proven tool, there was a failure during the export of data. Information about this appeared in the media. According to observers, during a certain period, the blockchain extracts became empty. So out of 600 thousand votes, about 100 thousand were not taken into account.

Representatives of the initiative confirmed the failure, but assured users that the data was not damaged. To believe or not in such blockchain elections with suspicious technical problems is everyone’s personal business..

Do you think FBK should consider the possibility of using blockchain technologies to improve the “smart voting” system? We propose to discuss the issue in our Telegram channel.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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Navalny, $ 22 million in bitcoins and blockchain - telling where the connection is
Navalny, $ 22 million in bitcoins and blockchain - telling where the connection is

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Navalny, $ 22 million in bitcoins and blockchain - telling where the connection is

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