Blockchain Papers

A.V. Yanovytska

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A.V. Generalov

The purpose of the article was to study the approaches of foreign countries inrelationtothelegalregulation and circulation of cryptocurrencies. To achieve this goal, the method of chronological researchwasused, during which an analysis of the legislative framework of a number of foreign countries, their methodologyfor developing laws, policies and legal frameworks in relation to cryptocurrencies was carriedout. Thepeculiarities of the development of the ecosystem of cryptocurrencies and startups in the use of cryptocurrenciesontheterritory of a particular country, as well as the relationships that arise between intermediaries, startupsandinvestors in these countries, are studied. The opinions of experts, politicians, scientists concerningthefutureprospectsof cryptocurrencies in the legal field of foreign countries are noted. Complementing this withanassessment oftherisks and prospects in the use and integration of such a new "technological phenomenon". It is concludedthatcryptocurrencies will be able to become part of the global system if aspects of the licensingactivitiesof exchanges, as well as the administration, issuance of virtual currencies, storage and management of thirdpartiesbecomeacoordinated and controlled process.

Denys Yu. Lukianchuk

The article is aimed at studying the evolution of money. The article examines the history of the emergence and evolutionary development of money and cryptocurrencies. Blockchain technology is analyzed, as well as the technological difference between Bitcoin, Ethereum, Solana cryptocurrencies is considered. The issues of the operation of the Ethereum blockchain and smart contracts are covered. An analysis of blockchain technology and the use of cryptocurrencies as a means of payment is carried out. The type of cryptocurrency such as a stablecoin is revealed in its variety. Comparisons of native blockchain coins and stablecoins as a means of payment, further of USDC and USDT stablecoins, are made. An analysis of differences between the centralized and decentralized stablecoins is carried out. It is specified what the stablecoins USDC, USDT, DAI are backed by. It is analyzed what share of the market is occupied by USDT, USDC, and DAI. The advantages and disadvantages of stablecoins are identified. A characterization of activity of the Central Bank Digital Currency (CBDC) with its connection to central banks is presented. It is determined that stablecoins are an attempt to objectively eliminate the high volatility of traditional cryptocurrencies such as Bitcoin or Ethereum by tying the value of a stablecoin to one or more other assets, such as fiat currency. Blockchain technology along with stablecoins can increase the efficiency of cross-border payments. With the growing demand for use, a stablecoin can become one of the important elements of the payment infrastructure. As result of the study, a comparison between cryptocurrencies and the companies Visa, Paypal in terms of processing speed and the amount of payment commissions is made. It is determined that blockchain and cryptocurrency technologies are a new evolutionary stage in the development of money. It is substantiated that the effect of using blockchain technology allows to cheaper and faster money transfers. It is noted that blockchain technology is young, but cooperation between traditional financial companies and cryptocurrencies is already visible.

Radostin Vazov, Gennady Shvachych, Boris Moroz, Leonid Kabak · 7 authors

No abstract is available for this record.

Ірина Олександрівна Цимбалюк, Наталія Павліха, Войчук. Максим Володимирович

The chapter examines the theoretical foundations of regional development governance in the context of financial decentralization. It reveals the essence of decentralization as a process of transferring powers, resources, and responsibilities from central authorities to local self-government bodies. Particular attention is paid to financial decentralization as an important factor in strengthening the capacity of territorial communities, ensuring the effective use of financial resources, improving the quality of public services, and stimulating the socio-economic development of regions. The study analyzes the main scientific approaches to understanding decentralization, its forms, advantages, and potential risks. It substantiates that financial decentralization contributes to strengthening local autonomy, increasing citizens’ participation in solving local issues, enhancing the responsibility of public authorities, and creating prerequisites for the inclusive development of territories. At the same time, the chapter emphasizes the need for a balanced distribution of powers and financial resources between different levels of governance, the improvement of inter-budgetary relations, and the consideration of regional specificities in the implementation of decentralization reforms. The chapter is of scientific interest to researchers, specialists in public administration, regional economics, local self-government, and public finance, as well as to practitioners involved in the development and implementation of regional development policy.

Mykola M. Kitsak, Ruslana Bilyk

The completion of the decentralization of authority and finance in Ukraine has opened up new horizons for the creation of innovative approaches to territorial community management. Local governments were granted significant powers and financial resources, which creates new opportunities for the development and expansion of the capacity of communities. The rights of local governments in the organization of community management were expanded, which contributes to a more effective and balanced solution to local problems. Thus, the management of competitive advantages of territories is an important topic in economics, management, and regional development. The study of this issue is becoming increasingly relevant as more and more regions around the world compete to attract investment, develop entrepreneurship and tourism, develop transportation infrastructure, create jobs, and improve the quality of life. The article aims to examine new approaches to the development and management of competitive advantages of territories based on foreign experience. The article analyzes the peculiarities of competitive advantage management in local communities of several EU countries. Based on the study, the authors identify and substantiate the advantages of foreign experience and reveal the shortcomings that should be taken into account when implementing this experience. The author substantiates the process of decentralization reform and its impact on the development of territorial communities in terms of the use of management tools to increase the competitiveness of territories. The article shows that clustering, strategic planning, and public-private partnerships are the main tools for improving the competitiveness of communities. The main directions used by a number of countries to improve the efficiency of territorial development are characterized.

Volodymyr Mishchenko

The work examines the main trends in the functioning of the domestic IT sector and the formation and development of digital infrastructure. The main directions of the digital transformation of the national economy include support and stimulation of the development of the IT sector, development of the national digital infrastructure, expansion of the scale of digitization of business, state administration, social sphere and livelihood of the population, as well as the development of digital skills and digital culture of citizens in order to overcome the “digital divide”. It has been proven that digital infrastructure should be considered as an interconnected set of technical and technological means, software, services and processes that ensure the use of IR technologies in all sectors of the economy and spheres of social life. According to the performed functions and tasks, two types of digital infrastructure are distinguished – technical-technological and software-service, which, constantly developing and becoming more complicated, support and complement each other. It was determined that the main criteria for assessing the level of development of digital infrastructure should be compliance with technical, technological, ethical and regulatory standards, systematicity, complexity, transparency, controllability, legitimacy and inclusiveness. The need to ensure effective state regulation, supervision and control over the functioning of the national digital infrastructure as a component of the state’s digital sovereignty has been proven. It was determined that the development of the national digital infrastructure should become a strategic priority of the state, and its main objects should be broadband Internet, 5G mobile communication, the infrastructure of the Internet of Things and cyber security, as well as “Industry 4.0”. It has been proven that in order to combine centralized and decentralized management mechanisms for the processes of formation and development of digital infrastructure, it is necessary to use a system approach that ensures a high level of functionality of all technical and technological components of digital infrastructure, programs and services. The main principles of the introduction and use of the “Industry 4.0” technology and promising sectors of the domestic economy for its implementation are determined. The potential sources and forms of financing the development of the IT sector and the development of IR technologies are characterized.

Vasyl KOVAL

Introduction. The change of the administrative-territorial system at the basic level and the reform of the public administration system in Ukraine in 2014–2020 took place on the basis of the experience of the EU countries regarding the decentralization of administrative and financial powers in favor of local self-government. Today, the first stage of reform has already been com­pleted, because territorial communities as the basic units of the administrative-territorial system have been formed throughout the territory of Ukraine, as well as redistribution of spending powers and revenue sources between different levels of management. Accordingly, the issue of ensuring financial self-sufficiency of territorial communities for the long term is being updated. Decentralization in European countries took place in different periods, and therefore, the tasks that today face the Ukrainian state and local self-government in particular, these countries have already solved with one or another measure of efficiency, which makes it possible to talk about the possibility of adapting the acquired experience to domestic realities. The purpose of the article is to study European practices of ensuring financial self-suffi­ciency of basic administrative and territorial formations for the further implementation of the most effective practices in domestic realities. Results. The practice of developing the public finance system on the basis of decentral­ization in the EU countries was studied, the difference between the levels of decentralization of territorial communities in different countries and the tendency to exceed the level of decen­tralization of expenses over the level of income decentralization was revealed. Emphasis is placed on the key principles of ensuring financial self-sufficiency of territorial communities in the European Charter of Local Self-Government. The existence of a financial "cushion" for territo­rial communities in the form of distributed resources from supranational funds is substantiated. Given the lack of such a mechanism in Ukraine, the need to study European practices for accu­mulating sufficient financial resources for community development is argued, including taxes on economic activity (personal income tax, corporate income tax, local business tax, property taxes on commercial real estate and land) and local borrowing.

Ігор Гонак

Introduction. Economic development of Ukraine in the third decade of the 21st century largely depends on the development of digital technologies, on which the cryptocurrency busi­ness directly depends. According to the Index proposed by chainalysis.com, Ukraine is one of the leaders in the world and the undisputed leader in Europe in the adoption of cryptocurrencies. This became possible thanks to the active development of financial and information technol­ogies in Ukraine, and the financial, economic and military-political crises only give additional impetus to the development of the cryptocurrency business due to its global nature and full or indirect independence from attempts at state regulation. One of the areas of cryptocurrency business development is cryptocurrency mining. The purpose of the article is to reveal the algorithm of conducting business in the field of cryptocurrency mining and the economic efficiency of mining in Ukraine and the possibility of its impact on economic growth in the country. Results. Cryptocurrency mining is the process of creating cryptocurrency coins. It has been investigated that the cryptocurrency mining process is not a financial pyramid or some kind of virtual game, but is one of the newest types of business activity, which requires significant the­oretical and practical economic and technical knowledge, is economically expedient both in the short and long term. When mining, you can use a variety of computer equipment, depending on the miner’s economic tasks and desired results. ASIC equipment has been developed for mining on an industrial scale. Cloud mining is used for investing. If there is no knowledge about mining and limited financial resources, you should use browser mining or mine on your own PC, laptop or smartphone. However, the most efficient and widespread mining takes place on video cards. It was found to be a by-product of mining. It is estimated that there is a slight correlation between the earnings of miners on the Ethermine mining pool and the daily mining profit. Conclusions. Although the history of cryptocurrency business is only one and a half decades, mining, as an object of business activity in Ukraine, is a significant economically effective type of business activity, which is noted in the world rating of the perception of cryptocurrencies, according to which Ukraine is one of the world leaders. Attempts to implement legal regulation of cryptocurren­cy mining both in Ukraine and in other countries, and its gradual implementation do not significantly harm the creation, distribution and use of cryptocurrency coins, however, will create transformed conditions for the economic attractiveness of cryptocurrency mining as business objects.

Valentyna Gapon, Olena Barabash, Kateryna Chytaieva

The article considers theoretical and practical aspects of financing general secondary education in Ukraine and the European Union member states, in particular in Finland, Estonia and Germany. Studies of Ukrainian and foreign researchers on the problems of the decentralization of secondary education management, expanding the autonomy of education authorities at the local level, and establishing the rights and responsibilities of the institutions both in educational processes and in financial support were analyzed. The article justifies the importance of implementation of the reform of decentralization in Ukraine, as a result of which the rights of local self-government bodies in making managerial decisions, in particular in the system of financial resources and control, have been expanded. Analytical indicators of the efficiency of the use of funds of educational subsidies allocated for payment of salaries of teaching staff in 2021 are provided, and the relationship between the cost of education per student and the number of classes in the general secondary education institutions is established. The example of the rural territorial communities helped to prove that the larger the number of classes in the general secondary schools, the lower the cost of education per student. The most common factors of mismanagement and misuse of public and local budgets were identified, in particular the lack of sound forecasting and planning; the misuse of financial resources; unreasonable management decisions; long-term maintenance of the balances of educational subvention funds without the use of the accounts of budget fund managers and the current accounts of educational institutions, etc. The planned amounts of the educational subvention and the subvention for the provision of support for persons with special educational needs for 2022, as well as the remaining unused funds under these subventions, were analyzed in detail. The volumes of the sequestration of subventions, which took place as a result of the military aggression of the russian federation against Ukraine are given. Further research will include the systematization and development of financial reporting forms for a comprehensive analysis of the use of financial resources at all levels of school education management.

Husan S. UMAROV

The cryptocurrency market has been developing dynamically in recent years. The rapid development of the market is the result of an increased interest in cryptocurrencies, both from those who consider it as a means of payment, and from investors who purchase cryptocurrencies for speculative purposes. Blockchain technology, on which cryptocurrencies are based, has gained acceptance in the financial industry, and many companies are engaged in the work on using it in their activities. On the other hand, numerous supervisory authorities, including the European Banking Authority, the European Central Bank, the National Bank of Poland and the Polish Financial Supervisory Authority, warn against investing in cryptocurrencies, pointing out the numerous risks associated with such investments. The purpose of the article is to analyze the benefits and potential risks of investing in cryptocurrencies. The object of the research is investing in cryptocurrencies. The subject of the research is cryptocurrencies as investment. The author used the methods of analysis, synthesis, generalization and deduction. As a result of the study, the advantages and potential risks of investing in cryptocurrencies were analyzed. In addition, countries that have fixed the management of the bitcoin cryptocurrency at the legislative level have been reviewed.  

Bogdan Derevyanko, Olha Turkot

The paper aims to study some aspects of the legal regulation of relations with cryptocurrency in Ukraine and the EU and suggest improvements for Ukrainian legislation on virtual assets.

Валерій Тарасов

The article is to research the possibilities and prospects of using graphical technical analysis for forecasting the movement of asset prices by an Internet trader using the example of Bitcoin (BTC – BitCoin). The theoretical and methodological aspects of cryptocurrency technical analysis in the conditions of modern financial markets were analyzed. A comparative analysis of short- and medium-term technical analysis strategies in Internet trading was carried out. Cryptocurrency-applied technical analysis was used to determine current trends of the Bitcoin growth cycle. The research methods included comparative analysis, and graphical and analytical methods of technical analysis such as the method of observing price movement, capitalization analysis, pattern identification, support/resistance levels identification, indicators use and comparison, and bars analysis (Japanese candles). Cryptocurrency analysis used the Traidingview platform data from BINANCE, BITSTAMP and CRYPTOCAP exchanges. Considering the example of the analysis of the medium-term agreement with patterns and indicators of the BTC instrument, the most likely movement of the asset price is calculated in several stages. In the first stage, the classification of analysis tools and the possibility of applying several of them were investigated. The second stage involved analyzing the difference and risk of using different time frames for investment and finding rational ways of applying the available information to analyze the subsequent deal. In the third stage, a comparative analysis of the transaction with the BTC instrument was carried out, and the likely movement of the cryptocurrency price was determined. Based on the research, the only possible scenario for the behavior of the BTC instrument has been developed, namely: a drop in price and accumulation in the further bearish market. It is substantiated that the best option for analysis is the collection of all available information from the chart and its further analytical summation to obtain the most likely trend of the instrument's movement, as well as the analysis of the speculative value of the deal. The considered approaches to the technical analysis of the Bitcoin cycle create a scientifically based practical tool for Internet trading.

Vasyl KOVAL

Introduction. The decentralization processes have updated the need to solve two interdependent tasks: to substantiate the role of local governments in meeting the needs of the population and thus determine public goods that have to be secured at the level of territorial communities, regions, and the country and sources of financial resources for their provision; to outline the ways of territorial communities’ development in a long run and achievement of their self-sufficiency as an efficiency criterion of administrative-territorial reform. For that matter, the substantiation of theoretical foundations of territorial communities’ self-sufficiency is an important scientific task. The purpose of the article is to substantiate the theoretical foundations of territorial communities’ financial self-sufficiency and determine its place in the structure of communities’ self-sufficiency. Methods. The methods of dialectical analysis, synthesis, and logical generalization, as well as comparison and formalization, were used in the research. Results. The nature of the territorial community concept is defined and its economic features are outlined. The theoretical foundations of territorial communities’ financial self-sufficiency are examined and on this basis, the definition is interpreted considering the interrelated concepts of socio-economic systems’ self-sufficiency and territorial communities’ self-sufficiency. A territorial community is financially self-sufficient if its financial system is characterized by self-reliance in conditions of vertical integration into the system of public finance, and if it is capable to maintain and/or improve the achieved development level and secure normativity of providing social goods to the population due to efficient use of financial tools under the impact of external and internal factors. The paper emphasized the role of vertical integration of the community’s financial system with the system of public finance and the top priority of internal capacity to develop in the community for achievement of financial self-sufficiency. It also substantiates the need to determine the normativity of public goods provision to the population in the process of the use of financial tools.

Bohdan Strilets

The author analyzes the existing legal regulation of relations related to the use, issuance, trade and other operations with cryptocurrencies in the European Union law. It was noted that the development of cryptocurrency markets in the EU requires a well-built legal framework clearly defining the regulation regime for all cryptocurrencies that are not subject to current legislation on financial services. The main directions of regulatory influence on the cryptocurrency market in some EU Member States are identified. The problems of the system of legal acts covering legal relations with cryptocurrencies are analyzed. It was stated that creating a high-quality and effective legal framework within the EU internal market is an extremely important though challenging task. Perspective directions of legal regulation of crypto-assets according to the Proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937, COM/2020/593 final, are analyzed. When analyzing the draft Regulation, it was found that its adoption would be an important step towards maximum harmonization of cryptocurrency legislation. A number of problems of the future legal act have been revealed. These include ambiguous legal regulation of cryptocurrency market participants’ cybersecurity. In addition, the legislative bodies should bear in mind that cryptocurrencies are in the process of constant transformation and transition from one type of token to another. In this case, the rules of the upcoming Regulation should be more flexible to future changes. It was concluded that according to the current draft Regulation, it is extremely unlikely that any types of crypto-assets will remain unregulated in the EU.

Liliya Filipishyna, O. Lomakina

The territorial organization of the state plays a key role in ensuring optimal solutions to the problems and functions of society and the state. Most modern countries differ in their internal organizational structure, i.e. the method of territorial division, the number of administrative-territorial units, autonomous units, their authorities, the method of formation, as well as the degree of centralization (decentralization) of state power. The organization of public power, stability of inter-government relations, ensuring sustainable development, meeting the needs and interests of the population depend on the administrative-territorial structure 1 . The Constitution of Ukraine defines the basic principles of the territorial structure of Ukraine, the system of administrative-territorial units of our country, taking into account economic, historical, geographical, environmental, demographic characteristics, ethnic and cultural traditions. However, since the declaration of independence of Ukraine, discussions have begun on the need to reform the existing administrative-territorial structure 2 . Attempts to implement constitutional, administrative, municipal, and other reforms in Ukraine have not yet led to successful results in this area. This issue is important in the current situation when the search for the optimal model of the administrative-territorial structure of Ukraine is being carried out. History shows that destructive trends in countries are a consequence of the lack of a balanced management system, its territorial organization, primarily a balanced administrative-territorial division, and the status of administrative-territorial units 3 . Optimally organized geographically and

Alina Vysochyn, Ihor Fedorovych Molotok, Vitalina Babenko, Volodymyr Merezhko · 6 authors

Reform of fiscal decentralization is one of the most effective modern tools to improve the efficiency of public and local finances, as it involves the transfer of some powers from central to sub-central governments according to the principle of subsidiarity.Therefore, one of the top priorities in public finance development nowadays is to ensure municipal financial resilience (financial capacity).In the paper it is proposed to measure municipal financial resilience (financial capacity) as an integral indicator of fifth parameters (ratio of revenue / cost / tax revenue of local budgets (excluding transfers) to revenue / cost / tax revenue of the consolidated budget, "1" reduced by the ratio of net intergovernmental transfers to own revenue of local budgets; ratio of own revenue of local budgets to their own expenditure) aggregated based on Fishburn formula.It is proposed to chose as a proxies of municipal sustainable economic development such indicators as consumer price index, current account balance, volume of credits to the private sector, net foreign direct investment, GDP growth, GDP per capita, gross capital formation, business density, employment ratio, R&D expenditures, trade turnover.Testing the hypothesis on relationship between municipal financial resilience (financial capacity) and its economic development is realized on data for Ukraine for the period 2008-2021.Method of modellingregression analysis in Stata software.Based on the empirical research results it might be concluded that there are national peculiarities of relationship between municipal financial resilience (financial capacity) and its sustainable economic development in Ukraine, which might be considered in terms of fiscal decentralization reform implementation, counteraction to negative consequence of coronavirus disease pandemic and municipality post-pandemic recovery strategy.

Сергій Михайлович Фролов, Volodymyr Orlov, Regional State Administration, Yevhenii Kozmenko

The paper notes that at the present stage, research primarily by foreign scientists defines decentralized finance as based on the cryptocurrency ecosystem. The development of new financial technologies, which led to the emergence of digital currency, and its attractiveness, primarily as an asset for investment, have already formed a certain ecosystem of cryptocurrencies. In particular, the functioning of crypto-exchanges, which include various participants: issuers providing mining, agents and a kind of intermediaries in cryptocurrency transactions during the circulation of stablecoins. The dynamics of market capitalization of cryptoassets was analyzed according to the statistics of the International Monetary Fund (IMF), which increased more than 10.5 times (from USD 191.6 bln at the beginning of 2020 to USD 2,027.5 bln as of the end of September 2021). At the same time, it should be noted that the structure of the cryptocurrency market is unstable, which is typical for the new market that is in its infancy. This is confirmed by the market capitalization structure of bitcoin, ethereum, and stablecoins for the above period. Based on IMF data, indicators characterizing the state of formation of the cryptocurrency ecosystem, namely, bitcoin volatility and market capitalization of tokens, are analyzed. It is noted that the fairly rapid spread in the global financial space, and especially the growing attractiveness of cryptocurrencies in emerging financial markets, require the study of possible risks, arising from the formation of an ecosystem of cryptocurrencies and decentralized finance to ensure the stability of the centralized financial system. The main financial stability risks associated with the cryptocurrency ecosystem are systematized and grouped into key blocks: operational risk, cyber risk, misappropriation, bribery and corruption, as well as risks related to financial imbalances. The emphasis is on a problem that is formed purely in the field of decentralized finance and is associated with the development of peer-to-peer lending, crowdfunding and crowdinvesting. A generalization is made about the understanding of the ecosystem in the financial system (financial ecosystem), which is used in modern research at two levels: at the micro level it reflects the business model of a financial institution, and at the macro level it reflects the transformation of the financial system under the influence of financial technology. The formation of the financial ecosystem was the result of the intensive development of financial technologies (FinTech), among which neobanks are the most popular today. In addition, a classification of neobanks is proposed with an emphasis on the level of digitalization.

Ihor Honak, Stepan Babii

Purpose. The aim of the article is to study types of cryptocurrency wallets, their features and advantages. Methodology of research. The following special research methods were used during the writing of the article: direct observation was carried out – collection of information about the number of addresses and the value of Bitcoin crypto-coins; the graphic method of constructing the Lorenz curve is applied; generalization – in the process of formulating conclusions based on the results of the conducted analysis. Findings. It has been established that when carrying out cryptocurrency business in any form (mining, trading, investing), in order to receive or send cryptocurrency coins, it is necessary to register a cryptocurrency wallet, which is a tool that can be used to interact with the blockchain network, and has an address that is an alphanumeric identifier created on the basis of public and private keys (such an address is, in fact, a “place” in the blockchain where it is possible to send cryptocurrencies). It was found that there are a large number of different wallets on the cryptocurrency market, which can be divided into five groups: electronic wallets (web wallets), which are created on cryptocurrency exchanges or online exchanges; desktop cryptowallets, which is a program that is downloaded and run locally on a personal computer and this program can be downloaded from public sites (desktop wallets are of two types: “thin” (crypto wallets enable the crypto user to quickly carry out transactions, however, have a limited amount of options) and “thick” (represent a full-fledged program with a significant amount of functions and, in particular, with the possibility of mining); smartphone versions (mobile wallets) have advantages and disadvantages similar to desktop cryptowallets; hardware cryptocurrency wallets, which is a physical electronic device, uses a random number generator (RNG) to generate public or private keys and can be stored in the device itself, not connected to the Internet (is a type of cold crypto wallet and is recognized as practically the safest crypto wallet); crypto wallets on a paper medium - mediums the size of a banknote, on which a private key in the form of a QR code and a public access key (crypto address) are placed, and in order to carry out transactions with cryptocurrency coins, these codes must be scanned. Originality. The basic requirements for ensuring the optimal security of an economic entity in working with cryptocurrency wallets have been formed, compliance with which will enable: secure access to the cryptocurrency wallet; withdrawal address management; ensuring effective protection of private access keys to the cryptocurrency wallet. Practical value. In the author’s opinion, with insufficient study of the advantages and disadvantages of various cryptocurrency wallets and non-compliance with security rules when registering a crypto wallet and accessing it, restoring unhindered access to wallet assets will be problematic due to the extremely strong protection of cryptocurrency wallets from cyber criminals. The obtained research results will be useful for application in the practical activities of conducting cryptocurrency business. Key words: cryptocurrency, cryptocurrency wallet, crypto wallet, Bitcoin, cold crypto wallet, hot crypto wallet.

Bhooma Devi A

The purpose of this article is to develop and substantiate a conceptual and analytical model of the structure of energy generation and consumption at the local level in the context of the decentralisation reform in Ukraine on the basis of an analysis of current world-wide and European trends as to ensuring a sufficient level of energy efficiency. The current trends of world energy consumption are illustrated, the forecast for the development of renewable energy is built, the energy efficiency analysis of the national economy is carried out. In order to form a holistic system of energy management on the local grounds, a model of generation and consumption for use at the local level is proposed, the financing of which is provided for by the results of the use of a comprehensive mechanism. A number of normative and organizational-institutional proposals on the normalization of energy efficiency improvement processes are suggested. The factors of energy efficiency of this model, financial instruments for its effective functioning in the form of a mechanism of interest-making budget revenues and specialized funds are disclosed; organizational and institutional support of such reform is proposed; the functional dependence of the target function of the model of energy generation and consumption is detailed, taking into account the methods of generation and the main consumers at the appropriate levels. The analysis of the main risks is carried out and the flaws of this process are defined; a number of regulatory and institutional transformations are proposed to improve the effectiveness of the implementation of an effective policy of energy efficiency of hromadas thus ensuring the energy security of the State. It is recognized as expedient to adopt a package of bills and resolutions on energy cooperation, organization of a biofuel exchange. The model of organization and functioning of a cooperative for the generation and consumption of solar energy, which is based on the regulatory framework, is presented. The above mentioned allowed to develop scientific and applied recommendations for improving regulatory provisions, which will enable the hromada to become an effective player in the wholesale electricity market, marketing the energy according to the green tariff.

T. V. Kozhukhova, Yu. H. Bocharova, О. В. Ищенко

Objective. The objective of the present article is to identify the benefits and risks of stablecoins for the financial stability of sustainable development. Methods. In the research process, the following general scientific methods and techniques of cognition were used: methods of scientific abstraction, analysis and synthesis (to study the essence of decentralized finance, stablecoins), systematic generalization (to systematize the categorical apparatus of decentralized finance research, to determine the essence of stablecoins and their types, the positive aspects of stablecoins, highlighting the risks of using stablecoins, measures to reduce the risks associated with their use). Results. Based on the results of the conducted research, the essence and types of stablecoins, the advantages and disadvantages of stablecoins by category were determined; the advantages of stablecoins (reliable, transparent, secure decentralized structure, low volatility, technical and physical security against manipulation, automatic execution of contracts, no need for an element of trust, reduction of the cost of transactions when increasing their speed, protection of capital from market instability, use by traders and investors for hedging risks, protection against high inflation rates, automation and lack of regulation, economic efficiency); the risks of using stablecoins are highlighted (market risks (vulnerability to the volatility of the crypto market), liquidity risks, cyber risks (asset theft, undermining the reputation of platforms, which can lead to withdrawal of funds by depositors), money laundering and terrorist financing risks, legal and legal uncertainties; the issue of regulation is considered stablecoins; measures to reduce the risks associated with the use of stablecoins are defined.

I.V. Kalnitskaya, O.V. Maksimochkina

2.4, 5.2.5)

Maryana Bortnikova, Yuliia CHYRKOVA

The emergence of cryptocurrencies and blockchain technology, the development of information technologies and international electronic commerce have led to the formation of a new type of civil law contracts, namely smart contracts. The use of mathematical algorithms in the implementation of smart contracts contributes to reducing the costs of organizing business relations, speeding up the implementation of agreements between business partners and increasing the level of security in the process of their cooperation. Investigating the issue of conclusion and implementation of smart contracts, its key elements are given, namely: the parties to the contract, who, on the basis of an electronic digital signature, agree or reject previous agreements; the subject of the contract and the availability of tools necessary for its implementation; an algorithm that accurately describes the conditions for executing a smart contract; a decentralized platform in which the algorithm of the smart contract itself is written, the algorithm in which the specific conditions for the execution of the smart contract are described. The article highlights the program-coordinating, protective, guarantee and security functions of smart contracts. The comparative characteristics of a smart contract with a civil law contract are given. The main advantages and disadvantages of the formation and implementation of smart contracts in Ukraine are grouped. The conclusion of smart contracts in Ukraine entails certain risks associated with the legal regulation of such contracts, in particular when determining their legal status. A technology for the development and signing of a smart contract as an innovative tool for contractual relations has been formed, which provides for the implementation of the following stages: determining business conditions and requirements for a smart contract, choosing a blockchain platform, selecting tools for developing a smart contract, developing a smart contract and auditing smart contract, deploying and signing a smart contract. Smart contracts are successfully used in various fields, such as: international settlements, securities transactions, banking, real estate, international e-commerce, recruiting, insurance, marketing and logistics, public and administrative services, agricultural sector, energy, medicine, etc.

Черкаський державний технологічний університет, Р.В. Манн, В.В. Данилевський, Черкаський державний технологічний університет · 6 authors

The analysis of the main aspects of the development of the NFT market and crypto art as components of the development of the Ukrainian economy was carried out. The trends in the implementation of cryptocurrency and NFT are analyzed to achieve new horizons in economic development. It has been proven that in order to expand the social barrier and provide access to crypto art, everyone needs to solve two problems: the limited revision of individual works and the impossibility of duplicating them so that each copy has the same value. Today, thanks to digital art, there is a chance to make crypto art truly democratic and accessible, meeting real economic needs. It has been established that thanks to the spread of new technology, artists expand their field of activity and there are more chances to increase income, and viewers will be able to enjoy a universal work. A description and analysis of the trends in modern crypto art, which are a manifestation of digital art, is given. It has been proven that the authenticity of digital art can be verified using an NFT or non-fungible token. The possibilities and limitations of the development of the NFT market are highlighted. It has been proven that the NFT market can become the engine of the modern economy, as it creates a balance between art and economics.