Blockchain Papers

Yanhong Wu, Xiao Wang

No abstract is available for this record.

Pilevych Dmytro S.

The aim of the article is to study the theoretical and applied bases of using blockchain technology in the national accounting system. The article proves that digitalization, as one of the main trends in the development of the national economy, causes a change in business models, approaches to organizing, carrying out and managing a business and also modifies the communication channels between enterprises and partners, regulators and consumers. These changes lead to the need for modernization of accounting as a system for collecting, processing and storing information on enterprises' activities. The author identifies blockchain technology as a prospect instrument for the modernization of an accounting system; blockchain technology is defined as a distributed database of all transactions carried out by enterprises. The article outlines the priority areas of using this technology in accounting (international settlements; accounting of the asset flow within an enterprise; real-time transaction accounting, etc.). The advantages of using blockchain technology in accounting are transparency, security, reliability, speed, saving time and resources, decentralization, increased trust between system participants, improved workflow, advanced training of accountants and auditors. The author concludes that, despite the high requirements for technical support and modernization of enterprises in the context of the digitalization of the national economy, blockchain technology should become one of the priority areas for the development of the accounting system.

Oleh Senyk

Сеник О.І

Belen Suarez Lopez, Antonio Vargas Alcaide

Today, the coronavirus infection COVID-2019 deals a devastating blow to the economies of most countries due to disruption of production chains, the bankruptcy of small and medium-sized businesses, increasing the number of unemployed, and more. Under these conditions, the coverage of digitalization of all sectors of the economy and basic spheres of life of citizens becomes especially important. The article is devoted to the analysis of the possibilities of the latest blockchain technologies, artificial intelligence, and the Internet of Things in view of their impact on the transformation of the business process management system. The study used methods of bibliographic analysis of scientific publications and analytical reports of international organizations related to the concept of “Industry 4.0” and diseases of coronavirus infection, analyzing from the audit point of view, how to reinforce the principles of transparency, responsibility, and participation. It has been proven that blockchain technology is able to service online payments without intermediaries, receipt, and transfer of digital assets, as well as political elections and voting. Artificial intelligence models can help map, manage, predict, and model complex processes, reducing uncertainty, and supporting professionals in decision-making. The Internet of Things allows you to transfer information, improve control and automation, and provide opportunities to optimize the company’s operating costs. The result of the study can be practically valuable for many stakeholders: auditors – conducting audits by artificial intelligence; public administration – developing measures to address the economic, social and political crisis triggered by the pandemic, by building trust between government and citizens through communication, and by ensuring transparency and accountability. Keywords: blockchain, artificial intelligence, Internet of Things, COVID-19, health care crisis, economic crisis, political crisis, control, public administration, financial management.

Elisabeth Noble

No abstract is available for this record.

Андрій Макурін

The article compares the concepts of virtual currency (cryptocurrency) and electronic money. It is established that such assets, although different from each other, have certain similar features. Electronic money, unlike cryptocurrency, has a legal status, a legally defined issuer, a fixed offer and is regulated and supervised. It is established that there are four qualitative characteristics that increase the usefulness of financial information that is relevant and accurately presented - it is comparability, reliability, timeliness and clarity. Thus, the issue of reflecting in the financial statements of digital assets that affect the assets of the enterprise, determining the liquidity of the balance sheet, understanding of the transactions in connection with which the company has acquired digital assets. Based on this, cryptocurrency assets have every chance to become an integral part of the world economy, as some countries are already inclined to introduce such currency in the process of use and exchange for goods or other funds. If an enterprise is able to control certain assets, such as cryptocurrency, and to carry out storage and accumulation operations with it, this affects the reflection of such assets in the financial statements of the enterprise and the assessment of the solvency of such enterprise. It is established that the liquidity of digital assets depends on their recognition in the accounting policy as a certain asset. If they are recognized as cash, they are the most liquid assets of the first group, but if they are recognized as digital goods, then this is the third group of liquidity. It is determined that the risk of using cryptocurrency has an economic and legal nature. Its essence is that the value of cryptocurrency is set by the ratio of supply and demand for it. When investing real money in cryptocurrency, the demand for it may not increase or decrease due to its unpopularity. But it should also be noted that such economic risk must be associated with legal, as the state can legalize transactions with cryptocurrency, but not with all, but only with a specific one, such as bitcoin and its "forks". Thus, based on the peculiarities of the use of cryptocurrency, the following risks can be identified, such as legal, economic, technical and others.

Андрій Макурін

No abstract is available for this record.

Serhii Smerichevskyi, Olena Suzdalieva

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Н. П. ЛЕВКОВЕЦЬ N. Levkovets

The purpose of the article is to explore the concept of Bitcoin and its economic nature and history, as well as current trends in implementation in Ukraine. Methodology of research. The tasks assigned to the article were solved by means of analysis, systematization, generalization and abstract-logical methods of research. Findings. Cryptocurrency is an interesting link for investment, and its popularity is growing today. Many economic processes take place with the help of digital bills, and their percentage increases significantly with each passing day. With Bitcoin, you can integrate new technologies into an existing financial system. Ukraine has enormous prospects for developing cryptocurrencies, and with the right approach, the country may have dividends from pursuing a rational policy on the circulation and use of Bitcoin, in particular from taxation in this area. Legalization of the cryptocurrency market in Ukraine can stimulate the economy and significantly accelerate GDP growth. The Ministry of Digital Transformation intends to launch an international PayPal payment system in Ukraine and determine the legal status of cryptocurrencies at the state level. PayPal is currently used by more than 230 million people in 190 countries. It is the intermediary between seller and buyer, ensuring the reliability of payment with VISA, MasterCard, American Express and other payment systems. Determining the legal status of cryptocurrencies will help legalize related activities, such as buying and selling cryptocurrencies, as well as extracting them, and will bring market players out of the shadow zone, which will stimulate additional tax revenue from the budget. The Ministry of Digital Transformation of Ukraine plans to legalize cryptocurrency mining activities in 2019–2022. Practical value. The article deals with the concept of «cryptocurrency» and its most common currency – Bitcoin, and the prerequisites for its emergence and use in Ukraine. One of the main features that distinguishes cryptocurrency from other electronic funds is the private nature of the issue, as well as the technological features of their production and putting into circulation. All transactions made within these payment systems are publicly available. This preserves the anonymity of their members, because electronic cryptocurrency wallets used to transmit cryptocurrency do not allow users to be identified as they are not personalized. Keywords: Bitcoin, cryptocurrency, virtual money, digital currencies, mining, payment system. REFERENCES 1. A short history of Bitcoin and crypto currency everyone should read. www.forbes.com.Retrieved from https://www.forbes.com/sites/bernardmarr/ 2017/12/06/a short history of bitcoin and crypto currency everyone should read/#6265a4953f27 (accessed 11 December 2019) [in English]. 2. Site of journal Bitcoin consultant. bitcoinist. com. Retrieved from https://bitcoinist.com/bitcoin down google searches bigger beyonce (accessed 11 December 2019) [in English]. 3. Bez dobra nema zhyttya. Ekonomist dav prohnoz shchodo rozvytku kryptovalyuty [Without good there is no life. Economist gave forecast on development of cryptocurrency]. obozrevatel.com. Retrieved from https://www.obozrevatel.com/eng/economics/without dollars nemae zhittya ekonomist dav forecast schodo rozvitku kriptovalyuta.htm (accessed 01 December 2019) [in Ukrainian]. 4. Vinya, P. & Casey, M. (2017). Epokha kriptovalyut. Kak bitkoin i blokcheyn menyayut mirovoy ekonomicheskiy poryadok [The era of cryptocurrencies. How bitcoin and blockchain are changing the global economic order]. Moscow : Publishing house Mann, Ivanov and Ferber [in Russian]. 5. Haber, S. & Stornetta, W. S. (1997). Secure names for bit strings. In Proceedings of the 4th ACM Conference on Computer and Communications Security, 28–35 [in English]. 6. Liu, Y. & Tsyvinski, A. (2018). Risks and returns of cryptocurrency. National Bureau of Economic Research, 111 [in English]. 7. Proekt Zakonu Ukrayiny «Pro vnesennya zmin do Podatkovoho kodeksu Ukrayiny shchodo opodatkuvannya operatsiy z virtual’nymy aktyvamy v Ukrayini» № 9083 vid 14.09.2018 r. [Draft Law of Ukraine «On Amendments to the Tax Code of Ukraine on Taxation of Operations with Virtual Assets in Ukraine» from September 14, 2018, № 9083]. ligazakon.ua. Retrieved from http://search.ligazakon.ua/l_doc2.nsf/link1/JH70B1AA.html (accessed 13 December 2019) [in Ukrainian]. 8. Rynok kryptovalyut potrebuye pravovoyi vyznachenosti vid rehulyatoriv [The cryptocurrency market needs legal certainty from regulators]. brdo.com.ua. Retrieved from http://brdo.com.ua/top/rynok cryptovalyut the necessary legal definition of sight regulyatoriv (accessed 04 December 2019) [in Ukrainian]. Published: 2020-07-17

Svitlana Yermak, Margaryta Satanievska

No abstract is available for this record.

Valentyna Kostyuchenko, Alyona Malinovskaya, Anastasiia Mamonova

The rapid development of digital technologies affects the national and international economy. It has been 11 years since the launch of the innovative Bitcoin payment system, the first cryptocurrency. Despite certain risks of use the number of e-wallet owners is constantly growing. Each country has a different perception of the spread of this innovation. The Government of Ukraine is no exception and showing a positive attitude to the cryptocurrency market. At the moment there is no legal regulation of cryptocurrencies in Ukraine despite the fact that a number of bills were submitted for review. Due to the lack of legal framework the order of reflection in the accounting of cryptocurrency is complicated.

A. Blinov

The article describes current trends in the global financial market development as well as the formation of fundamentally new, innovative financial resources within the peering economy, such as cryptocurrencies. Its capitalization reached almost 1/100 of global gross domestic product. The purpose of the study is to analyze both the status of cryptocurrencies in different countries, including the United States of America, Japan, People’s Republic of China, and the European Union and the peculiarities of the cryptocurrency circulation development, as well as the money functions they are able to perform. The author has formulated the dilemma of this market regulation at the national and global levels. One should consider that the long-term role of crypto units depends upon the resolution of such a dilemma. And there is no unified approach of states and international organizations to the status and prospects of cryptocurrency regulation in our days. This creates a unique field of opportunities for further development of such instruments as the big economic and market movements undulate in big swings that were due to a sequence of actions and reactions by policymakers, investors, business owners, and workers. Given that state control over the emission of fiat money in the world can only be ensured to the extent that they control the banking system, the study provides an analysis of the legal status of such financial engineering products as cryptocurrencies. The author also accents on the three-tier blockchain technology. Finally, the domestic component is thoroughly analyzed, i.e. the regulation field of such instruments in Ukraine. The draft Concept of State Regulation of Cryptocurrency Transactions is also explained. Keywords: cryptocurrency; blockchain; status of crypto units; financial regulation; functions of money.

Valerii Yankovskyi, Мaryna Shendryhorenko

The article is aimed at studying the essential component of decentralization and budget revenues; determining the main results of the implemented reform of budget decentralization in Ukraine; analyzing the current situation of own revenues of local budgets. The following general scientific methods were used in the research process: theoretical generalization, comparison and grouping – to determine the essence of the concepts of «budget revenues», «decentralization» and disclosure of components of budget revenues; analysis – when considering own revenues of local budgets for 2014–2020 and the structure of incomes in the revenues of local budgets for January – July 2020; system approach – in the formation and disclosure of the essences of the main stages of the reform of budget decentralization in Ukraine. The views of various scientists on the concepts of «budget revenues» and «decentralization» are examined. It is determined that budget revenues are an aggregate of financial relations that participate in the process of distribution of part of GDP in order to form targeted cash funds at the level of the State and local self-government bodies, designed to finance their own functions and obligations defined in accordance with the current legislation. The main components of budget revenues are determined and their classification is provided. The main stages of the budget decentralization reform in Ukraine are defined and systematized, their detailed characterizations are provided. The analysis of own revenues of local budgets for 2014–2020 and revenues in local budget revenues for January – July 2020 was carried out, during which it was determined that local taxes, despite the introduced budget decentralization, comprise only about 30% in the structure of incomes in the revenues of the general fund of local budgets, while in some countries of the European Union this figure reaches 50–60%. Practical steps towards further implementation of the budget decentralization reform for local self-government bodies are proposed.

Hanna Danylchuk, Oksana Kovtun, Liubov Kibalnyk, Oleksii Sysoiev

The paper focuses on monitoring and modelling of the cryptocurrency market. The application of the chosen research methods is based on the analysis of existing methods and tools of economic and mathematical modelling of time series research on the example of the cryptocurrency market. It is proved that the use of individual methods is not relevant, as they do not give an adequate assessment of the specified market, so a comprehensive approach is the most acceptable. Therefore, monitoring and modelling of some cryptocurrency pairs with different capitalization degree were implemented by fractal and recurrent methods of the financial markets. The daily values of currency pairs for the period from September 2015 to November 2019 were chosen as information basis for monitoring and modelling. The use of R /S modelling method make it possible to conclude the persistence of time series of the selected cryptocurrencies indicating that the market trends are clearly defined, the currency pair of XRP/USD has the highest level of trend resistance. To compare the obtained results, the comprehensive approach is offered using recurrent diagrams that help to determine the cryptocurrency stability. The results of modelling by the recurrent method show that the most stable cryptocurrencies are the ones with the highest capitalization, namely Bitcoin and Ripple.

Anastasiia Ovcharenko

Овчаренко А.С

Rosa Siliämaa

Blockchain technology has raised a lot of discussions within academia as well as in financial industry. The founder of Ethereum, Vitalik Buterin, was first to introduce the idea of decentralized autonomous organization (DAO), in which blockchain and smart contracts are used to form a new kind of organization. This concept is at the center of this study: could DAO disrupt the insurance industry?
\nDAO in this thesis is referred to as a system which utilizes transparent blockchain technology and smart contracts while being both governed and owned in a decentralized manner. This qualitative research focuses on providing a comprehensive view on DAO’s potential in insurance industry on a conceptual level. The findings combine expertise gathered from 17 informants in semi-structured interviews. This research describes the changes in insurance value chain. Additionally, several possibilities for DAO utilization in insurance industry were identified. The DAO potential is also reviewed from the perspective of a disruptive innovation, as the main research question of this study aims to understand the disruptive potential (if there is such) of DAO in insurance industry. 
\nThe main finding of this research is that DAO’s disruptive potential in insurance industry cannot be completely denied. However, there are still many open questions which stem from mindset change, regulation, governance, social construction, consumer perspective, quality of information, and technological maturity. The study did not find challenges that would have been seen as unsolvable barriers for DAO adoption. Furthermore, markets where DAO would not have any potential could not be identified. Another key finding concerns how DAO could affect insurance value chain — in essence, DAO has potential to affect all parts of the insurance value chain, depending on the chosen implementation strategy.
\nBased on this research, DAO seems to have manifold potential in insurance industry. Three main categories arose from the expert interviews regarding opportunities to exploit DAO in insurance: (1) peer-to-peer insurance models, (2) new markets, and, most notably, (3) existing companies could also act as DAO exploiters. Specifically, it seems that existing companies may utilize DAOs in three different ways: (1) as internal startup for certain products, (2) as an entity to which a particular part of the value chain is outsourced to, and (3) in a way, we don't know yet.

R.L. Sopilnyk

The article examines the legal aspects of applying blockchain technologies in the field of legal application and public administration. The concept and technical characteristics of distributed ledger technology (DLT) as the basis of blockchain are analyzed and its legal significance for ensuring immutability, transparency and verifiability of legally significant data is determined. The practice of applying blockchain technologies in the system of state registers of Ukraine is examined, in particular the implementation of distributed ledger technology in the State Register of Real Property Rights and in the electronic auction system ProZorro.Sales, as well as the pilot project of the Central Election Commission regarding the use of blockchain for recording electronic voting results. The legal nature of smart contracts as a type of agreements that are automatically executed upon the occurrence of specified conditions is considered, and their relationship with the institution of contract in civil law in accordance with the provisions of the Civil Code of Ukraine of January 16, 2003, is determined. The Law of Ukraine "On Virtual Assets" of February 17, 2022 (signed by the President on March 15, 2022), is analyzed and its significance for the legalization of blockchain infrastructure in Ukraine is determined. The necessity of forming a comprehensive legal framework for the application of blockchain technologies in legal practice is substantiated, including the normative definition of the legal status of blockchain records, the procedure for their use as evidence in court proceedings, the legal qualification of smart contracts as a type of agreement and liability for errors in their program code, taking into account the potential of blockchain for enhancing transparency and trust in state institutions.

A. A. Makurin

The stages of formation and theoretical background of cryptocurrency have been explored in the article. It has been established that the focus of the operation and use of such a specific financial asset is the protection of cash against the depreciation that occurs during political and economic fluctuations. But this is another kind of modern money, namely, stalk line. The main processes that have taken place in the IT field, which has influenced the further development of the monetary system worldwide have been reflected in the article. There is no unified system in the EU for cryptocurrency transactions. The technologies used to create any kind of cryptocurrency have been researched by the scientists of the advanced countries in the last century. Nowadays, modern blockchain technology is an improvement of the past. Each country has its own peculiarities and approaches to the recognition or non-recognition of cryptocurrency. The problem with the use of modern money is to determine the issuer. Cryptocurrency and electronic money have some things in common and distinctive. It has been determined that the use of cryptocurrency for the purposes of storing savings and payments is gaining popularity despite the problems of economic, tax and legal regulation. The market capitalization of bitcoin is compared with the leading economies of the world. Bitcoin capitalization is found to be higher than some countries' GDP. The basic aspects of cryptocurrency functioning are revealed. The main method of scientific research is the empirical method, which allowed to make several observations on the changing attitude of countries to cryptocurrency. The measurement process made it possible to understand the volume of the bitcoin market. As a result of scientific literature, cryptocurrency as electronic money is found to be a non-personalized payment instrument and is rotated outside the banking system electronically, which is why it implies that the state cannot control this process, which is why national banks of many countries with distrust treat that kind of money. The countries of the world, at their discretion, make changes in tax and legal law.

Anastasiia Mamonova

Observing the rapid uptake and active use of virtual currencies that are not found in every country in the world, regulators are asking questions about the ability to control and regulate their operations. Therefore, the article describes approaches to determining the economic nature of virtual currencies and analyzes their legal regulation and transactions with them in the world and in Ukraine. The status and official attitude of the regulatory bodies of different countries, consolidation of legislation and taxation of virtual currencies are reflected. In recent years, there have been significant changes in the attitude of most cryptocurrencies in most of the leading countries of the world, from “illegal payment” to “promising financial instrument”. The increasing interest of government in progressive innovation has led to an increase in the influx of new entrants (both individuals and institutions) who are actively using virtual currencies. Yes, cryptocurrencies have caused a lot of concern about the risks they may bring since the first digital currency, Bitcoin. Over a period of time, cryptocurrency exchanges have been steadily increasing their interest in underwriting to ensure the secure process of exchanging and buying cryptocurrencies, reducing theft. Virtual currencies contain a large amount of capitalization in terms of fiat currencies, but the disorder and even the unstable state of cryptocurrencies, as well as the lack of historical loss data, complicate the process of controlling their turnover. However, given the interest, popularity and attention of the media, many, including lawyers, political scientists, economists, are trying to understand the basics of technology and its implications for politicians and other departments. The development of blockchain-based cryptocurrency technology has been introduced in areas that have traditionally been widely regulated, such as capital raising and money transfer. Politicians and other government officials often try to apply laws that have been developed for decades for the latest technology. The US in each state has a different definition and approach to cryptocurrency transactions. A similar situation is observed in the international arena, where some countries have sought to promote the growth of technology and others have sought to remove technology from their jurisdiction. Therefore, the legal field of law requires in-depth research and analysis on virtual currency transactions, the development and implementation of a new cryptocurrency exchange rate verification mechanism that is similar to those existing for traditional financial processes.

Uma V. Sridharan, V. Sridharan, Tobias M. Huning

Since the world’s first virtual currency was issued on the Bitcoin blockchain network in 2009, there has been a proliferation of various other private digital token offerings on blockchain networks—in particular, on the Ethereum blockchain. Milkau and Bott (2018) report that several governments are considering implementing digital currencies as a “complement to cash.” Blockchain technology holds great promise for innovative applications capable of facilitating any number of business operations, and several large companies including IBM, American Express, Toyota, JP Morgan Chase, Goldman Sachs, Walt Disney, Oracle, and Facebook have already invested heavily in the emerging technology. Crowdfunding is also a popular application of blockchain technology. Tech entrepreneurs have issued digital tokens for virtual currency as a means of circumventing the tedious regulations of the SEC governing the raising of capital. The regulatory status of these digital tokens and their associated trading platforms has been approached with a certain degree of ambiguity and controversy. This paper explores and explains the regulatory issues of fintech regarding digital tokens, making a valuable addition to the scarce literature on this topic.

Дмитро Ігорович Погрібний

The article discusses current approaches to determining the legal status of cryptocurrencies in order to create effective mechanisms of economic and legal support for their use in Ukraine. Attention is drawn to such a necessary factor as cooperation in the digital sphere between the state, individuals, and groups in the context of the «digital interdependence» paradigm, which was formulated at the #EuroDig2019 UN Digital Interdependence Report. The process of transformation of existing approaches to defining the economic and legal nature of cryptocurrencies by leading countries and international financial regulators is analyzed. The advantages and disadvantages of using cryptocurrencies have been systematized, as well as the genesis of such cryptocurrency as Bitcoin. It is determined that cryptocurrency is a new stage after the first electronic money, as well as the main advantages of its use, namely: instantaneous speed of payments (from a few seconds to several minutes); absence of transaction commission; anonymity of calculations; irreversibility of payments; no need to convert to the currency of the country of production of payments, a high degree of security of operations. The previous attempts of public authorities in Ukraine to establish a legal regime for the cryptocurrency market by adopting relevant regulatory legal acts in this area are analyzed. The ways of optimization of the legislation on cryptocurrencies in Ukraine are proposed in order to significantly enhance the innovative component of the Ukrainian economy and create competitive advantages for economic entities

L. O. Shvorak, M. V. Hrysenko

The active development of information technology and the spread of globalization processes contributed to the emergence of new varieties of digital money, which today has become a new challenge to the customary traditions of money circulation and is transformed into a purely conditional (virtual) reality and a key element of the virtual economy. Among the digital money it is important to distinguish the cryptocurrency – a digital currency protected by cryptographic technology. The urgency of scientific research on the use of cryptocurrency in the monetary sphere is conditioned by the institutional problems faced by society in the process of information economics and e-commerce development. Mainly those are the problem of trust, volatility, determination of the legal status of cryptography, risks of information attacks, bans from individual states, etc.

Halyna Zabchuk, I. O. Pashchuk

Introduction. The rapid development of information technology is transforming the modern economic system. This is especially true of changes in the area of calculations and payments, as it is directly linked to economic development and the well-being of the population. Today, with the global economy volatile, changing public sentiment, distrust of financial institutions and interest in cryptocurrencies or virtual money is increasing. Governments and central banks of different countries are often very conflicted about the use of these innovations. Therefore, studying the cryptocurrency market and regulating it as a tool for making payments and payments will reduce the risk of cash flow loss to existing institutions and will have an impact on the financial system. Methods. The following methods are used during the study: analysis and synthesis; abstract and logical (theoretical generalizations and formulation of conclusions); methods of induction and deduction, comparative method and system-structural method have been applied in the study of the legal regulation of cryptocurrencies in different countries, to determine the main approaches to such regulation. Results. The nature, history of the phenomenon, as well as the advantages and disadvantages of cryptocurrency are examined in the article. Features of creation and production of this currency are revealed. The cryptocurrency market is growing rapidly, and the state, which has not adapted the tax code to the current challenges of the digital economy, is underperforming budget revenues, as cryptocurrencies are outside the legal jurisdiction. Today, there are over 2,000 different cryptocurrencies, so it is necessary to develop common standards for the regulation of cryptocurrencies. The legal regulation of electronic currency in different countries is analysed and the prospects of using cryptocurrency in Ukraine are investigated. Discussions. Due to technology improvements, legislation and improved infrastructure, cryptocurrency will play a significant role in people's daily lives, reducing cash flow and thus stabilizing inflation and the monetary system as a whole.

Rasa Subačienė, Augustas Subačius

The article deals with the investigation of acquisition cryptocurrency in time retrospective and aspects of its usage taking point to the change of the value and number of transactions by the most popular cryptocurrency Bitcoin, its usage, comparing with the most popular payment platforms and resources consumed per transaction. The methods of analysis of scientific resources and statistical data, systematisation and critical evaluation were used during the research process. Evaluation of the acquisition and usage of cryptocurrency, according to analysed aspects reveals various sides of the processes.