Co-founder of Blockchain research and development hub (Blockchain R&D Hub) Arman Aleksanyan said today that the application of blockchain technologies will strengthen trust between parties to a contract and reduce the role of mediators.

Arman Aleksanyan said this during the discussion on “Armenia- Blockchain Technology Development Center”.

“Blockchain builds trust between the parties to a contract. This is a priority for any kind of relations, especially when parties do not know each other well and have to turn to a third mediating party,” he noted.

07.12.2016 | 11:12 Matej Michalko: Armenia has a huge potential in Blockchain Technologies

According to Arman Aleksanyan, there is a demand for blockchain technologies among both international and local companies, which try or research the possibilities of incorporation of these technologies in their sectors.

Blockchain research and development hub has already developed and released the first digital asset distribution platform DECENT several months ago and currently works on creation of PUBLIQ, a platform of distributed media environment.

“One of the most important projects of blockchain is bitcoin, the reason why this technology is mostly associated with fintech. Currently the possibilities of money laundering and financing of terrorism are actively discussed, taking into consideration the fact that the data on the participants of deals are kept secret in blockchain platform. Naturally people raise concerns about possible illegal deals, but in my view, this is just a technical issue, which will be solved in 1 year. Certain structures have already started discussing regulation mechanisms. Anyway, blockchain does not aim at becoming a field for illegal deals. It intends to create a tool for organizing various processes more efficiently,” he emphasized.

CEO at the same hub, Gagik Yeghiazarian believes that application of other new technologies will allow reducing blockchain-related risks.

“Blockchain is one of the most transparent systems nowadays. It’s much easier to trace a concrete person behind money laundering or other criminal activity through the blockchain, also using artificial intelligence, than it is in the current systems. In this technology, you leave a trace you cannot erase,” he remarked.

Head of Economy and Values Research Center Manuk Hergnyan put the emphasis on blockchain’s possible big role in creating money.

“Any trust mechanism in deal making involves a third party. For instance, banks play that part in money transfer. The blockchain technology ensures transparency of the deal, bypassing the mediators. This is a fundamental issue and the reason central banks are so concerned,” he noted.

Manuk Hergnyan touched upon Armenia’s prospects at becoming a regional center of blockchain development, saying it’s a little too early to have that conversation and such prospects require certain foundation.

“The only realistic strategy in the rapidly changing environment of technologies and solutions is to test a lot in the beginning to see what actually works and to popularize successful initiatives. Armenia needs to test solutions as much as possible to become a real participant of the world’s revolutionary processes. By our estimation, using life-changing technologies in Armenia can have a probable economic impact of up to USD 220 million,” Manuk Hergnyan stressed.

The partner of Fintech section is