Waves (WAVES), a cryptocurrency platform that allows users to issue their own blockchain-based tokens, has surged over 20% in the past 24 hours according to data from CryptoCompare.
The significant increase in the Waves token’s price comes shortly after the announcement that Russia’s giant manufacturing firm, Rostec, will utilize the Waves platform to manage its data. Founded in 2007, Rostec is a state-owned holding conglomerate with an annual revenue of around $19 billion.
Russian companies operating under Rostec include automobile manufacturer, AvtoVAZ, which produces over 400,000 vehicles a year, and trucks and engines producer Kamaz. Rostec’s holdings also include an ownership stake in Russian firearms manufacturer, Kalashnikov.
$2 Million Initial Investment
According to an agreement Rostec signed (on September 13th) with VOSTOK, a commissioned version of the Waves platform, the two parties will reportedly invest $2 million to initiate development of the conglomerate’s data management system.
A preliminary roadmap for Rostec’s blockchain-powered database is expected to be released next month. The Waves platform will reportedly be used to standardize Rostec’s data collection and analysis process.
Data managed on the distributed ledger technology (DLT) based platform will also contain information related to the various products manufactured by Rostec’s subsidiaries such as civilian and military products.
The Russian holding company’s existing (legacy) database system does not effectively standardize data, which is obtained from multiple different sources. This makes it difficult to manage and access important information related to Rostec’s ongoing operations.
“Access To Wide Range Of Corporate And Government Clients”
Moreover, one of the expected outcomes of this partnership is to improve the security of the conglomerate’s data as it includes sensitive (or confidential) military information. Another long-term goal of Rostec’s collaboration with VOSTOK is to better manage data that tracks the resources of urban cities.
Additionally, a Rostec spokesperson said that Russia’s current automated system for power conservation and traffic flow management will be migrated over to a blockchain-powered management system.
Commenting on the potential benefits of the partnership, Waves and VOSTOK CEO Sasha Ivanov said:
Working together with Rostec, which is the main provider and driver for projects in digital economy, will not only get us access to the wide range of corporate and government clients but will [also] give us a strong impulse for the further development.
Notably, Rostec’s partnership announcement with Waves’ startup company VOSTOK has come shortly after the blockchain-based asset platform announced (on September 10th) that its smart contract launch process on its mainnet has officially started.