PREDICTIVE ANALYTICS FOR DECISION-MAKING IN DECENTRALIZED SYSTEMS

Abstract

Currently, the relevance of using crypto assets is growing rapidly. In recent years, cryptocurrencytrading has become one of the most discussed topics in the world of finance and investment.Cryptocurrencies such as Bitcoin, Ethereum, attract the attention of millions of people due to their innovativeness,high profit potential, and decentralization possibilities. The blockchain technology, on whichcryptocurrencies are based, is one of the most innovative and promising technologies in the market. Studyingcryptocurrency trading helps understand how private investors and companies can use blockchaintechnologies for investment and business development. One of the main reasons for the popularity ofcryptocurrency trading is its high level of volatility. The cryptocurrency exchange rate can change quickly,providing opportunities for profit. This article focuses on exploring the use of predictive analytics fordecision-making in decentralized systems using cryptocurrency trading on centralized and decentralizedexchanges as an example. The research conducted in this work aims to investigate decentralized and centralizedsystems to further develop decision support systems. A general description and operation schemesof decentralized and centralized dynamic systems are provided using cryptocurrency exchanges as a researchexample. This scientific article examines the typical structure of centralized and decentralizedcryptocurrency exchanges, analyzing the fundamental components and principles of their functioning.The article discusses the internal organization of the exchange, including the system for storing digital assets, transaction execution mechanisms, security provisions, and risk management. It also examines theinteraction between the exchange and market participants, as well as regulatory bodies. Furthermore, thisscientific article explores the rules and principles of operation for traders and market makers on centralizedand decentralized cryptocurrency exchanges. It covers the main strategies and tactics used by marketparticipants to ensure liquidity and optimize trading operations. The article compares the trading approacheson different types of cryptocurrency exchanges considering their specific features and impact oncryptocurrency price dynamics. The presented results can contribute to a deeper understanding ofcryptocurrency trading processes and optimize decision-making strategies for investors and traders in thecrypto asset market.