Innovative digital technologies in improving the efficiency of economic systems’ coordination

Abstract

Subject. The article discusses innovative digital technologies in improving the effectiveness of coordination of economic entities. Objectives. Based on the theory of transaction costs, the new institutional economics and the theory of public choice, the study aims to identify specifics of the impact of distributed ledger technologies on economic institutions, their transparency, and effective coordination in economic systems. Methods. We employed methods of theoretical analysis of literature on the new institutional economics, the theory of public choice, and constitutional economics. Innovative digital technologies are considered from the perspective of transaction cost reduction. Results. The paper shows that innovative digital technologies are not limited to a narrow application in the field of digital currencies and smart contracts, but represent a fundamental institutional mechanism that helps reduce transaction costs, increase transparency of transactions, and form more perfect market orders. Special attention is paid to the role of distributed registry systems in spontaneous and polycentric management according to E. Ostrom, and in "constitutional choice" according to J. Buchanan. Conclusions. The decentralized nature of distributed ledgers, backed by cryptographic methods and economic incentives, has the potential to transform organizational and political institutions, stimulating increased trust and inclusivity in collective decision-making processes.