THE USE OF BLOCKCHAIN TECHNOLOGY IN THE PROCESS OF DIGITALIZATION OF SOCIETY: ADVANTAGES AND RISKS

Abstract

The application of blockchain technologies, as well as the identification of their potential benefits and risks, is an important process of digitalization of society. The authors present a comprehensive view of how blockchain can change traditional processes in various areas, such as finance, healthcare and public administration, and assess the impact of these changes on the social structure and economic models. Aspects of decentralization, increased transparency and data security are considered in detail, along with challenges, including tech-nical, legal and ethical issues. The results of the study show that despite significant benefits, such as reduced costs and increased trust, blockchain also carries risks associated with ineffi-ciency in case of mass application, lack of a regulatory framework and the possibility of using the technology to “circumvent” laws.