Ukraine To Become a Global Blockchain R&D Hub

Serhiy Ovcharenko

CBDO Alcor

Blockchain can scarcely be dubbed innovative nowadays. Facts are facts: it’s gaining momentum and permeating every sector, just like an iconic Jack Nicholson’s character in 'The Shining'. Present in finance, logistics, and education, blockchain is a building block of the future. Thus, understanding what 'tomorrow' holds is crucial for every company set on carving out its place under the sun.

The Potential of Blockchain

At its inception, blockchain was presented as a distributed database made up of chains and blocks. Now, it’s a completely global mechanism upheld by four pillars: decentralization, security, innovation, and transparency.

Initially envisioned for the financial and banking sectors, blockchain has turned out to boast a significantly broader scope thanks to its advantages. For instance, it enhances healthcare by streamlining data exchange and electronic medical records setups.

CareCloud and MediBloc are both striking examples. The former has developed a SaaS platform for medical institutions using blockchain, while the latter provides secure health data access via blockchain platforms Panacea and Akiri. The education sphere is also catching up — the University of Nicosia and the Massachusetts Institute of Technology (MIT) use blockchain for digital storage and diploma verification.

PwC anticipates that by 2030, blockchain could increase the global GDP by $1.76 trillion, accounting for 1.4% of the world’s total. Such prospects and revenues serve as substantial incentives for businesses not to stay on the sidelines.

Oasis Amidst the Talent Desert — Ukrainian Blockchain Devs: Salaries, Education, and Demand

Today, businesses all but fight for talented blockchain software developers. In 2022 alone, the demand for blockchain programming skills surged by 552%. Plenty of IT companies, particularly from the U.S., are on the hunt for these experts in countries offering cost-effective services. No wonder Ukraine has emerged as a prime blockchain talent hub.

A proper blockchain coder’s skill stack encompasses several programming languages and a deep understanding of blockchain technology, web development, cryptography, cybersecurity, etc. American Blockchain software engineers who possess this number of skills make $93K-$118K per year, while their Western European colleagues earn from $41K to $125K. As for Ukrainian Blockchain developers with the same skill set, their annual salaries range from $32K to $82K, according to Alcor’s data. And this is one of the reasons why our market is so appealing to foreign blockchain companies looking to set up their own R&D teams.

However, Western tech companies value Ukrainian developers not only because of lower wages. We’ve become #1 in Europe in terms of the number of technical graduates, while most of our software engineers are Middle and Senior specialists who constantly enhance their qualifications. Not to mention that we’re 3rd in Europe and 15th worldwide when it comes to tech skills. Plus, the recent programming language rating confirms that our professionals excel in skills geared toward blockchain. Ukraine is the 'Klondike' for the global IT market, so the influx of foreign companies into our market is only a matter of time.

At Alcor, we’ve experienced this trend firsthand. For example, just in recent months, our IT recruiters hired four Senior Blockchain developers for a client ready to consider Ukraine as one of the top locations for sourcing such specialists.

How Ukraine Leverages Blockchain for Growth

It’s evident that boxing blockchain in and expecting ‘an industry boom’ barely makes sense. The overall environment is key to fostering the growth of professionals in both quality and quantity. Luckily, in that regard, we’re positioned pretty well.

In June 2022, Ukraine was granted observer status in the European Blockchain Partnership (EBP). Soon enough, this move will bear fruit by contributing to creating a highly effective regulatory environment and implementing the technology in state registries and services. The education sector of Ukraine has also risen up to the challenge: Taras Shevchenko National University of Kyiv and Igor Sikorsky Kyiv Polytechnic Institute offer courses on blockchain technology and cryptocurrencies. Blockchain studies are also available in full-time programs at Kyiv-Mohyla Academy. As for legislation and its implementation, everything is in order: cryptocurrencies are legalized in Ukraine, and around a million Ukrainians are already investing in virtual assets.

Regarding the Ukrainian blockchain market, the mere fact that more than 80 Ukrainian Web3 startups have raised almost $1 billion over the last 5 years speaks for itself. Smart City (Bloqly), CODEX, Attic Lab EOS Block Producer (Attic), and other products have demonstrated that our professionals are all set not only to work for foreign companies but also to launch their own successful products to appeal to the global market. Thus, the foundational development triad of state regulation, education, and the market is one more feather in Ukraine’s cap.

Riding the Crest of Blockchain

According to PWC forecasts, blockchain technology could create over 40 million jobs worldwide by 2030. And such breakneck growth is a chance that Ukraine should definitely seize. There’s no better push towards Ukraine’s progress than blockchain product tech companies setting up their new R&D offices in the country. At the same time, professional full-cycle service providers capable of creating such centers from scratch will play an integral role in this process. After all, they understand the specifics of the local market, can select candidates with the necessary hard and soft skills, and offer financially viable ways to enter Ukraine's market.

It’s highly likely that if Ukraine sets the right stage, a wave of foreign blockchain companies will flood the country, propelling us toward Eastern European or even global leadership. No doubt that the growth of the blockchain industry will also help our country to recover its economy. But what matters most is that Ukraine continues to firmly believe in itself and its potential, which makes it possible for us to turn challenges into real wins that benefit not only our country but also the world.