The new system of the Russian Pension Fund will record all conditions of labor agreements in the decentralized register. This will help reduce costs of storing this data.

The Russian state-run Pension Fund decided to implement the blockchain technology into its systems in order to record, store and track contracts between employers and employees. The Pension Fund intends to combine all existing information systems into a single digital platform that will use blockchain. The organization will write its technical task by the end of 2018, the Russian newspaper Izvestia reports.

Currently, The Pension Fund accumulates data on tax deductions and insurance premiums of employers on its own servers. In the future, all this information is expected to be stored using distributed databases.

Instead of the traditional paper-based labor agreements, the employer and employee will enter into a blockchain-based contract. It is possible that, for some time after system's launch, labor agreements will be duplicated both in paper and in digital form.

By implementing the blockchain technology, the Russian Pension Fund expects to reduce costs of storing and servicing large data.

"Citizens will be additionally protected from negligent employers who draw up employment contracts in violation of the law," the Pension Fund representative added.