This article is an enhancement of the chapter “About Digital Avatars for Control in Virtual Industries” in the book Big Data and Knowledge Sharing in Virtual Organizations. The article discusses the capabilities of the R language for modeling Levy processes that currently most closely correspond to the nature of the organizational learning movements in sliding mode. The efficient algorithm of the CGMY process simulation as a difference of the tempered stable independent Levy is processed and programmed at R language. The efficient algorithm of variance gamma process simulation using variance gamma random variables is processed and programmed at R language. Overview of CGMY process simulation in practice is use for human capital management in the context of the implementation of digital intelligent decision support systems and knowledge management and for digital intelligent design of avatar-based control with application to human capital management.
Authors research the current problem of innovative development — digitalization of financial assets. They review the key aspects of organizing the information system operator using the distributed ledger technology. The main imperative requirements of the legislation for operators of the information system are highlighted. The main alternatives of IT-infrastructure creation are considered. Also the matters of operational risks management and organizational and economic efficiency of activities are revealed.
В статье приведено исследование курса биткоина на основе двух эконометрических моделей. Одна из которых построена на системе спроса и предложения, а вторая на основе зависимости криптовалюты от положения других финансовых инструментов. The article provides a study of the bitcoin rate based on two econometric models. First model is based on the supply and demand system, and the second is based on the dependence of the cryptocurrency on the position of other financial instruments.
Nov 8, 2020·CEUR Workshop Proceedings, Vol-2732: Proceedings of the 16th International Conference on ICT in Education, Research and Industrial Applications. Integration, Harmonization and Knowledge Transfer. Volume II: Workshops
Hanna Kucherova, Dmytro Ocheretin, Vita Los, Natalia Venherska
Research goals and objectives: to study the series of dynamics of the frequency of requests and the price of bitcoin under the conditions of taking into account the risks of using various forecasting methods. Subject of research: proof of importance of the role, statistical dependence and interdependence of the series of dynamics of the price of bitcoin and the frequency of its online requests. Research methods used: analytical methods, econometric models, nonlinear dynamics methods. Results of the research: The research grounded the approach and the forecasting procedure for the series of dynamics of the price of bitcoin and the frequency of its online requests, which in essence correspond to the basic principles of the implementation of the forecasting methodology, take into account the specifics of the formation of the frequency of online requests for bitcoin prices and the socio-economic meaning of its functioning. The practical value consists in determining that the minimum risks for the study of a time series dynamics of bitcoin price and frequency of requests for bitcoin price were demonstrated by the neural network methodology in comparison with the use of the ARIMA model and other methods of economic and mathematical modeling that proves the proposed methodology for determining the direction of the trend outside the study period.
The article explores the dialectic of determining the legal status of cryptocurrencies. Digital technologies are considered specifically for their application in the financial sector. The features of the use of digital technologies in various countries of the world are analyzed. Due to the variability of the legal regulation of digital technologies, the complex nature of their implementation is noted, which is not reduced to a simultaneous behavioral act. It is concluded that there is no universal way to sell cryptocurrencies in the financial market. The analysis of existing scientific approaches to understanding the concept of cryptocurrency, bitcoin is carried out. The article examines the digital technologies used in the financial sector, which include virtual currencies and — like their kind of cryptocurrency. The cryptocurrency status is not defined, however, there is the prospect of normative fixing it on the territory of the Russian Federation.
The following sections are included:IntroductionPrivate digital currencies as money and their impact on monetary policy and international monetary systemCentral bank digital currencyThe usage of the distributed ledger technology in the financial systemTaking stockA summary of the presentations and discussionsSum-Up
The article presents an analysis of the current level of financial literacy of young people in cryptocurrency. Purpose of work: revealing of the main problems connected with low growth of activity of youth in the market of cryptovoltaic currency. Identification and comparison of the main risks and opportunities on the cryptocurrency market are defined as priorities. In the article the methods of interrogation, the comparative analysis, deductive and inductive conclusions are resulted, and also construction of theoretical model of the relation of a society of the cryptocurrency by means of writing of conclusions and recommendations to this question is made. It was concluded that the low level of financial literacy of young people in the cryptocurrency is largely due to the government's passive policy in this direction, as well as the myths and illusions surrounding the cryptocurrency. There is direct connection between the level of readiness of citizens to invest their money in cryptocurrency and the level of innovation of the state economy.
Umar Aptievich Bachaev, Eliza Aptievna Abdulazizova
This article reveals the economic content of the cryptocurrency, which has recently become widely known and spread. The system of direct payments was a response to the global financial crisis, the consequences of which have shaken the financial system of many countries. The authors analyze the scientific achievements of foreign and domestic scientists, which allows to identify a number of advantages and disadvantages of the new currency based on information. Along with the technological superiority in this direction, there are still questions concerning methodological, methodological and legal components of the cryptocurrency. Bitcoin is characterized by decentralization: a special program code regulates the work of the network members, as well as the schedule of emission, which is limited in itself, because the generation of coins is closed and the number of PTSs is constant. The introduction of cryptocurrency has a number of other positive effects: irreversible transactions, low transfer fees, complete isolation of the currency from inflation, etc. At the same time, the cryptocurrency has negative consequences. For example, the inability to track remittances and the vulnerability of the system create the preconditions for illegal operations: money laundering, capital flight, terrorism, etc. Another negative feature of the cryptocurrency is its dependence on supply and demand. Thus, the legal status of the cryptocurrency in many countries, including Russia, is not fully defined due to its ambiguous attitude. However, it should be admitted that its appearance on the world market is a phenomenon that in theory can fundamentally change the existing financial system.
The study is devoted to the research of design concepts for the development of decentralized payment systems with its own cryptocurrency based on the blockchain platform Ethereum. The study examines the problems associated with traditional models of decentralized payment systems, analyzes the shortcomings in the industry, and proposes approaches to their solution. During the research, the method of creating digital assets was improved by designing a comprehensive solution consisting of a smart contracts part and a web-client part. Also, the expediency of designing its own exchange platform along with the integration of external cryptocurrency exchanges for the possibility of buying developed cryptocurrency for other popular digital currencies was substantiated and visual schemes of the traditional payment system structure with the method of exchange platform integration were presented. The paper substantiates the use of dynamic block size as a method of optimizing system efficiency, which can increase or decrease the maximum block size at the algorithm level, depending on the number of pending transactions, thus providing the required level of bandwidth. Also, the need for one-to-many transfers is justified, which involves the development of new methods of smart contracts for the cryptocurrency transfer from one user to a large number of addresses within a single transaction in order to reduce the load on the network. The problem of high energy consumption required for the functioning of the consensus system in the traditional model was solved by developing a model based on protocols that do not use the computational power of participants as a parameter to maintain consensus. Thus, the results of this study present improved methods for designing decentralized payment systems. The obtained results and generated recommendations can be used in the design of decentralized payment systems.
The aim of the article is to clarify the basics of the digitalization strategy of the competitive businesses and identify features of the institutional environment that ensure the development of cryptocurrency as a new asset (IT product) of the modern economy, analyze the methods of implementing the cryptocurrency business models. The relevance of the research paper is determined by the need to develop a competitive Russian cryptocurrency (including the cryptoruble) with the growing private, state and cross-national cryptocurrencies. The scientific novelty of the study implies clarifying the informal and formal rules of the institutional environment and related methods ensuring the development of a competitive cryptocurrency. The authors consider the following methods to implement the institutional features of the cryptocurrencies business model development: logic and blockchain algorithm that establish trust and collaboration between cryptocurrency developers; logic and blockchain consensus algorithm ensuring that all the parties of the blockchain network come to a common agreement (consensus); logic and blockchain algorithms that form cryptocurrency transactions and control its turnover by generating blocks of cryptocurrencies, by forming the structure of blocks and transactions of cryptocurrencies, by storing cryptocurrencies’ keys and providing security, by mining (forging) cryptocurrency, etс.The results of the study provide a basis for identifying the institutional features and the corresponding methods providing a competitive cryptocurrency development with a detailed analysis of the blockchain consensus algorithms that ensure the competitiveness of the cryptocurrency. The conclusions show that the most promising are the hybrid consensus algorithms which may include both the logic of two or more known algorithms and the original logic of a new algorithm. The authors recommend defining the logic of the blockchain consensus algorithm as a priority when developing a cryptocurrency to ensure reliability of the transactions in the blockchain network, thus increasing the competitiveness of the cryptocurrency.
Blockchain technology and its industrial use cases can be detected worldwide. It is time for the state to think about the blockchain as an opportunity to reduce costs and build trust in the public spending. The paper and the presentation give an overview on how the state can apply the distributed ledger technology (DLT) and blockchain technology in the public administration: there are several countries with best practices already, and even more are in the introduction phase of opening to Industry 4.0 in the public services as well. On the field of FinTech area the state has great responsibility to regulate (or at least define) the phenomena of cryptocurrencies, that is already in use for more than 10 years now without any responsible governmental acts. Within this topic the Central Bank Digital Currency projects are also discussed in the paper, which are supported by IMF, and declared as the next natural step forward on financial markets. Keywords: blockchain, DLT, SDG, public spending
Objective: to consider the evolution of types and forms of money, to classify the varieties of cryptocurrency and its functions, to explain the mechanisms for issuing and circulation of cryptocurrencies, as well as to identify problems in the field of legal regulation of digital virtual currencies in the Russian Federation.Methods: the work used a dialectical combination of the principles of a systematic approach and various ontological knowledge through a range of methods of historical, empirical, comparative, logical, statistical and predictive cognition.Results: it is shown that the modern global monetary system is evolving towards decentralization; it is based on cryptocurrencies issued as part of a functional combination of public and private blockchains; cryptocurrencies require full legalization, not prohibition at the legislative level; cryptocurrencies are types of digital virtual assets accounted for on accounts (crypto wallets) identified within.Scientific novelty: for the first time, the article shows that it is erroneous to consider cryptocurrency to be just a property and to limit its operations just to cross obligations for transferred goods and rendered works (services). Cryptocurrencies are decentralized virtual money based on mathematical algorithms using open-source asymmetric cryptography techniques and consensus-based platforms. Users need both external (cryptocurrency) and internal (tokens) currencies to increase the efficiency of using traditional assets (property, goods and services) in the economy.Practical significance: the main provisions and conclusions of the article can be used to develop a glossary, terms and definitions of cryptocurrency, mechanisms for regulating its issue and circulation in Russia, as well as making amendments to the draft law “On digital currency and amendments to certain legislative acts of the Russian Federation” that are adequate to the economic nature of cryptocurrency.
Changing behavioral skills of consumer financial services and the growing competitive pressure of startups are destroying traditional business models and prompting the creation of new strategies. For this reason, banks and other regulated financial intermediaries strive to quickly master developments in the field of financial technologies and change the formats of customer service, taking into account the capabilities of their budgets. The existing methods of making cross-border transfers and non-cash payments using their traditional forms, as well as new-generation digital financial instruments, are not supported by a high-quality regulatory framework. In this regard, it is important to study the stages of transformation of forms of interaction between participants of non-cash payments under the influence of the scientific and technical process, a comparative analysis of modern methods of international payments, and justification of mechanisms for integrating digital financial instruments based on distributed Ledger technology into cross-border settlement and payment operations. We also analyzed internal Bank programs for organizing internal control and managing Bank risks, using the example of Sberbank. The results of the study of these problems are reflected in this article.
Digitalization and Economic Development in Agriculture
Розкрито сутність діджиталізації як механізму управління місцевими фінансами, визначено особливості його практичного забезпечення, принципи та вимоги. Досліджено основні аспекти розвитку діджиталізації та розширення доступу територіальної громади до процесу управління місцевими фінансами в умовах децентралізації влади. Аналізуються недоліки сучасного стану діджиталізації управління місцевими фінансами з точки зору наповнення апаратними можливостями електронних платформ та програм. Визначено напрями та необхідні умови підвищення ефективності управління місцевими фінансами (планування, організація, контроль, нагляд) усіма членами територіальної громади за допомогою механізму діджиталізації. Зроблено висновок, що механізм діджиталізації в сфері місцевих фінансів демонструє необхідність запровадження важливого тренду — переходу від громадського контролю до громадської ініціативи. На сьогодні, в умовах децентралізації влади великого значення набуває розширення форм електронної демократії за допомогою технологічних можливостей та сучасних гаджетів, які значно спрощують та розширюють доступ громади до сервісів управління в режимі реального часу, в тому числі в сфері місцевих фінансів.
The article explores modern trends in the development of digital money. The purpose of the article is to identify and analyze the risks of digital money, and to study scientific approaches and tools for managing these risks. The authors use general scientific and special research methods, including comparative legal analysis and a systematization method, as well as methods of economic theory: positive analysis and scientific abstraction. The research highlights the strategic challenges and guidelines in the development of digital money in the Russian Federation and shows the difference and common features of digital and electronic money. Based on a comparative analysis of private and national digital money, we conclude that the digital money of Central Banks is more flexible and more reliable for consumers than private cryptocurrencies. We systematize the risks of digital money circulation at the micro, mezzo and macro levels, as well as identify the essential tools for managing them. The authors note that exogenous risk management tools are more typical for private cryptocurrencies, and endogenous tools will apply to digital money of central banks, in particular, the development of an appropriate configuration of Central Bank digital currency. The study may be useful for digital money users, as well as government agencies implementing policies and regulations on the issue and circulation of digital money in Russia.
This article is devoted to cryptocurrency as the newest form of currency in an era of a rapid IT development. The cryptocurrency<br> is substantially known to have a number of advantages, and, thus, could be integrated into the global financial<br> system to increase its effectiveness. However, there are some issues concerning its usage. In particular, a possibility to use cryptocurrency anonymously might cause some issues with taxation and also lead to an increasing number of illegal<br> transactions. In conclusion it is stated that in the medium run cryptocurrency might qualify as the global currency and<br> even replace fiat money.
Blockchain is the emerging technology in the digital era. Blockchain is the extension of distributed concept and not a centralized storage that keeps track of blockchain data. In blockchain the data are stored over millions of computers around the world, and each node in a distributed environment is connected with the blockchain. The data stored in each node are publicly verifiable. Blockchain is defined as a “Non-corruptible digital ledger which can be programmed to record all the financial transactions”. In addition, it is also extended to keep track of the information that has value. Blockchain is considered as a list of blocks where each block contains a number of transactions. It provides a decentralized and immutable data store. Applications of blockchain can be extended to IoT, security, cloud, big data and the data analytics field. Blockchain technology acts as the backbone for Bitcoin. Bitcoin is known as a cryptocurrency, nothing but a form of electronic cash. It is also known as a decentralized digital currency. There is no centralized server or single bank that is responsible for its administration. Digital cash can be transferred from one user to another in a network without the involvement of an intermediary. These transactions are also updated to all participating entities in a network connected with blockchain. Bitcoin was invented by Satoshi Nakamoto in 2009 and released as open-source software. In Bitcoin a public ledger records the transactions of Bitcoins. A chain of blocks is implemented, and each block adds the hash value computed from the previous block up to a genesis block of the chain. Bitcoin software runs on all the communicating nodes in a network to maintain the blockchain. Every transaction is validated by the nodes of a network and a copy is added into their ledger, then broadcasted to others. Whenever the new technology emerges, the security of using it becomes doubtful, even though blockchain is designed to be immutable and tamper-proof. It achieves security through decentralization, cryptography and consensus concepts. Truth in blockchain is achieved through decentralization. If you change one block, you have to change all the subsequent blocks until any new blocks could be mined. Hashing techniques are used to hash the data cryptographically in a blockchain. It uses SHA-256 algorithm to produce a fixed-length hash value. Blockchain achieves this through cryptography primitives. Consensus helps to identify which node to add in a network. This part of the process is called proof of work (POW). It helps to ensure that each block is going through with vigorous mathematical processes before it becomes the immutable part of the blockchain. Blockchain is an emerging technology and it evolves every day. The vulnerabilities arise from the way in which how the blockchain interacts with other entities. In this chapter we will learn the importance of security concepts in blockchain. We will also explain how the CIA triad (confidentiality, integrity and authentication) is applied to blockchain in order to secure transactions and stored data.
For the last five years there has been a global boom of interest in cryptocurrencies, followedby the fall of their rates; at the same time, there was a wave of enthusiasm regarding the publicoffering of tokens (ICO) and disillusionment in them (due partly to the active counteraction byAmerican and other influential regulators). Disputes on doctrine moved from suggestions of anew object of property rights to prohibitive initiatives. As these eventful years have shown, theglobal financial system is sufficiently stable to digest even such a decentralized phenomenonas cryptocurrency. In my opinion, it is now time to recall the tribulations of former discussionsand draw a conclusion concerning their interim (one hopes) normative results.
Cryptocurrencies have become one of the most relevant topics in recent financial and economic issues. Today, the main features of cryptocurrency are decentralization, ability to be considered as means of payment, high liquidity, absence of an issuer as any central authority, irreversibility of payments and transparency. The growth of cryptocurrencies among other world currencies allows them to be a highly profitable asset to invest in and stimulates the interest of new miners. However, there are some risks arising. Firstly, the risk related to governmental restriction and regulating laws about usage of cryptocurrency. Secondly, there is a risk of fraud and no opportunity to accuse those responsible due to the anonymity of users. And last but not least, high volatility of cryptomarket. Keywords: bitcoin exchange rate, cryptocurrency, financial index, currency pair, metal futures, correlation-regression analysis, forecast of bitcoin value dynamics.
This article discusses the role of using distributed ledger technology in the cryptocurrency market. The concepts of «cryptocurrency» and «distributed registries» are analyzed. The mechanism of the operation of distributed registries on cryptocurrency markets is considered.
The aim of this work is to study the pricing in the cryptocurrency market and applying cryptocurrencies by the Bank of Russia for its monetary policy. The research objectives are to identify the cyclical nature of price dynamics, to study market maturity and potential risks that have a long-term positive relationship with the financial stability of the cryptocurrency market. The author uses the Hurst method with the Amihud illiquidity measure to study the resistance of four cryptocurrencies (Bitcoin, Litecoin, Ripple and Dash) and their evolution over the past five years. The study results in the author’s conclusion that the cryptocurrency market has entered a new stage of development, which means a reduced possibility to have excess profits when investing in the most liquid cryptocurrencies in the future. However, buying new high-risk tools provides opportunities for speculative income. The author concludes that illiquid cryptocurrencies exhibit strong inverse anti-persistence in the form of a low Hurst exponent. A trend investing strategy may help obtain abnormal profits in the cryptocurrency market. The Bank of Russia could partially apply digital currency to implement monetary policy, which would soften the business cycle and control the inflation. If Russia accepts the law ‘’On Digital Financial Assets’’ and legalizes cryptocurrencies after the economic crisis caused by the COVID-19 pandemic, the Bank of Russia might act as a lender of last resort and offer crypto loans.
В статье описаны возможные сферы применения технологий блокчейн и распределенного реестра, а также действующие проекты в международной практике и перспективы формирования нормативного поля в РФ. Способность этих технологий обрабатывать несколько цепочек транзакций одновременно позволяет концентрироваться на определенных сферах использования, снижая трансакционные издержки, связанные с поиском информации, на основе скорости и мобильности. Отмечена необходимость учитывать риски и недостатки при реализации безопасности, масштабируемости и удобства использования технологий. The article describes the possible areas of application of blockchain and distributed registry technologies, as well as existing projects in international practice and the prospects for the formation of a regulatory field in the Russian Federation. The ability of these technologies to process several transaction chains at the same time allows you to concentrate on certain areas of use, reducing the transaction costs associated with finding information based on speed and mobility. The need for taking risks and weaknesses into account when implementing the security, scalability and usability of technologies is noted.