Introduction. The functioning of decentralized autonomous organizations (DAOs) is based on the principles of blockchain technology and smart contracts. The functioning of the DAO is based on the understanding and compliance of smart contracts, the activity and participation of participants, as well as the development and resolution of emerging challenges in this experimental field. The purpose of the presented work is to determine the main features of the functioning of decentralized autonomous organizations and to present a conceptual approach to the development of the presented organizations. Materials and methods. The main information base of the research is the works of leading scientists in the field of digital economy, the implementation of digital technologies, the problems of the management decentralization system at its various levels, and the use of modern management and digital tools to ensure the optimization of management decisions. The main methods of research are methods of analysis, synthesis, comparison, induction, deduction and a graphic method for visual display of the presented research results. Results and discussion. The essence of decentralized autonomous organizations is to create an ecosystem in which management and decision-making is carried out on the basis of blockchain technology and smart contracts. The basic idea is that DAOs have no centralized governing body or leadership. Decisions are made collectively by members of the organization. The main mechanism of management and interaction in the DAO is smart contracts, which are software codes on the blockchain. They automate the execution of agreements and define the rules of the organization. Cryptocurrency and tokens are used for funding and participation in DAOs. Members can purchase tokens that give them the right to vote and participate in the organization's decisions. All transactions and decisions are recorded in the blockchain, which guarantees transparency and irreversibility of actions. Information is open to all participants. Conclusions. Decentralized autonomous organizations are a paradigm of a new approach to organizational management and interaction of participants, aimed at increasing transparency, democratization and autonomy in resource management and decision-making. Success largely depends on the ability to understand risks and resolve technical and legal issues, as well as community support and participation of qualified professionals in the development and evolution of the DAO concept.
The article considers cryptocurrency as a new type of intangible assets and the regulatory and legal support for its implementation. Particular attention is paid to defining the content, legal status, features of accounting, and taxation of transactions with such assets. The market capitalization and bitcoin forecast are analyzed. The interdependence between the exchange rate of bitcoin and pairs of the most influential world currencies, world prices for precious metals, and securities rates on the largest stock exchanges is determined. The most significant influencing factors on the bitcoin price are determined using correlation and regression analysis. The advantages of using cryptocurrencies have been identified, including high speed of transactions, reduction of the intermediaries number, and low fees. The threatening nature of the crypto-industry development for the economic potential of the state is also determined, taking into account available with current global challenges such as cyberattacks and fraud and data theft. Real fraud schemes in the field of crypto-circulation are considered. It is noted that without determining the clear legal status of cryptocurrencies in the country, it is impossible to resolve the legal, accounting and tax consequences of these transactions. It was determined that for the legal circulation of cryptocurrencies, the creation of a financial institution or a special state body, which should exercise control over the cryptocurrencies circulation, must be ensured as a minimum; introduction of taxation for companies whose activities are related to the crypto industry; establishing the obligation of users to declare their income and profits from crypto-assets, etc. Because of this, the functions of state authorities in regulating operations with cryptocurrencies are characterized, and the changes that will be introduced to the Tax Code of Ukraine are analyzed, regarding the taxation of transactions with cryptocurrencies, which in the future will make it possible to increase budget revenues, regulate and facilitate accounting and taxation of transactions with cryptocurrencies, use legal remedies for virtual assets, reduce possible tax evasion, etc.
Today, a crypto economy is actively developing throughout the globe based on the use of cryptographic technologies for the creation of new digital products, including the issuance of digital financial instruments. The topic of regulation of digital financial assets (hereinafter referred to as DFA) is relevant in the world: since 2019, some countries, including Russia, began to introduce legal norms regarding the issuance of DFA, as well as the sale and turnover of such assets on the market. This article compares approaches to the regulation of DFA in Russia and globally, including the issue of determining financial instruments that will be related to these assets, aspects of the procedure for issuing, storing, and trading them, including the basic rights and obligations of issuers and investors in such assets, and the features of the operation of trading floors and platforms for issuing DFA. In general, two approaches to the regulation of DFA can be distinguished. The first approach is the application of existing rules to tokenized assets (for example, laws on securities and financial instruments); this approach is used in the United States. The second is regulation through the introduction of a new framework for the application of distributed ledger technology in financial services, for example, in Russia, Germany, Luxembourg, the European Union (EU), and Switzerland. This article examines the second approach, which is currently implemented in Russia, to identify differences with foreign regulation, for example, the use of custodian institution for accounting and storing digital assets, converting DFA into traditional financial assets, and creating rules for trading digital financial assets.
This study considers the problem of the formation of the cryptocurrency market as an element of the financial market in Russia. Our study aims at solving the problem of trust in cryptocurrency and finding new ways to use it in the Russian economy. During the study, the main trends in the development of the cryptocurrency market both in Russia and abroad were identified, the main comparative characteristics of the cryptocurrency market with other elements of the financial market were identified, and the stages of the formation of the cryptocurrency industry were explored. The purpose of the study is to identify problems in the development and implementation of the cryptocurrency market in the Russian economy against the background of an increase in the number of sanctions restrictions and currency barriers to prevent a severe economic crisis and stagnation of the country's leading industries. The main events and statements of regulatory bodies that lead to an increase in the demand for cryptocurrencies among the Russian population are considered.
The detailed analysis of the Bitcoin network and its main participants. The expert authors (Igor Makarov, London School of Economics, Antoinette Schoar, MIT Sloan School of Management) completed the study authorized by the National Bureau of Economic Research (NBER), the US-based private agency. The Bitcoin network is defined as a new database comprising many of public and proprietary sources to link bitcoin address to real object, and an extensive set of algorithms to extract information on market key players behavior. Three major pieces of analysis of the Bitcoin eco-system were conducted. First, the authors analyze the transaction volume and network structure of the main participants on the blockchain. Second, they document the concentration and regional composition of the miners which are the backbone of the verification protocol and ensure the integrity of the blockchain ledger. Finally, they analyze the ownership concentration of the largest holders of Bitcoin. The researchers found that 1/3 of all bitcoins issued were owned by 10,000 individual investors. They conclude that the high concentration makes the first cryptocurrency market vulnerable to hypothetical hacker attack. The translator notes that paraphrasing English text in Russian was rather challenging due to the newness of the financial agenda and introduction of the term entity extensively used in the Western countries though new to Russia. Nevertheless, it is necessary to introduce readers to the bitcoin technology which will be also practical and useful for the library and information community.
Objective: to analyze the transforming socio-economic relations of the new “digital normality”, to which end the task is solved of bringing into line the terminology used in business turnover between various participants in the digital assets market, in the practical financial activities of economic entities arising in a specific territory, in a certain legal field, and contained in the recommendatory technical documentation (standards). Methods: the article uses systematic and analytical approaches, logical and comparative methods. Results: despite the active use of distributed ledger technologies, theory and practice are currently characterized by a large number of legal and business definitions describing the organization of business processes in this area. Based on the analysis of scientific literature, the meaning of various terms of the digital economy was studied. In the course of studying technical terminology, such concepts as a distributed ledger, network nodes, blockchain, etc. were defined. The analysis of financial and economic terms is based on fintech definitions, such as digital asset, cryptocurrency, digital currency, digital financial asset, token, etc. The terms of the digital economy are considered from the perspective of so-called tokenomics, including such as token ecosystem, DLT user, DLT platform, decentralized application, etc. Scientific novelty : the terminology obtained was structured as a theoretical basis with a specification for the digital asset market and use in financial market reform. Practical significance : this review has been prepared: 1) to systematically familiarize the professional community with existing trends; 2) to harmonize socio-economic relations by developing common local recommendations (standards); 3) to develop the market for digital assets produced using distributed ledger technologies through understanding basic concepts.
Статья посвящена теме криптовалют. Описываются возможности использования, хранения, передачи цифровой валюты. Рассмотрены риски российских пользователей и пути их избежания. The article is devoted to the topic of cryptocurrencies. The possibilities of using, storing, and transferring digital currency are described. The risks of Russian users and ways to avoid them are considered.
Abstract— In this work, the problem of ensuring the auditing of granular transformations in heterogeneous big data processing systems is considered. Distributed ledger technology is proposed for tracking transformations of data fragments. Technological options for solving this problem are compared, and analytical and experimental estimates and recommendations on how to apply the results of the study are given. Unlike other similar works, the application of various types of distributed ledger technology is considered and the requirement for multiplatformity is included for the problem to be solved. The proposed solution is universal and can be used in heterogeneous multiplatform big data processing systems.
A bifurcation point has arisen in the transformation of the global monetary and financial system, associated with its further digital transformation: will it be based on private digital currencies like Bitcoin, or on the basis of central bank digital currencies (CBDC)? To a large extent, this depends on the willingness of economic agents to use virtual currencies. The purpose of the study is to explore the factors determining the attitude of economic agents to digital currencies and the impact of financial literacy on using these instruments as an investment object and means of payment. The authors use the following research methods : content analysis, retrospective analysis, methods of comparative cross-country analysis, and empirical research in the form of an online survey of graduate financial students. This study is one of the first to reveal differences in the assessment of their knowledge and readiness to use digital currencies of financial and non-financial students, as well as to confirm an adequate assessment of the risks and opportunities of different types of virtual currencies if students have financial knowledge. The research shows that the situation with the decisionmaking of economic agents on the use of cryptocurrencies and the CBDC differs: in the first case, the initiative comes from the economic agents themselves, who make decisions at their own peril and risk; in the second case, economic agents are confronted with the fact of the existence of the CBDC and the need to use them. The authors conclude that the population’s low financial and digital literacy can create a mental barrier to the use of CBDC, complicating their implementation in national monetary systems. The lack of financial literacy leads to an exaggeration of their knowledge by participants in the cryptocurrency market.
Andrey Zubarev, Natalia Makeeva, Elena Sinelnikova-Muryleva, Kirill Shilov
The paper discusses various issues related to both theory and practice of the world of digital currencies. The growing popularity of the sector of services based on the technology of a distributed ledger, called decentralized finance (DeFi), is considered in detail, which has grown over the last year from 700 million to 11.5 billion US dollars. Different analogs of traditional financial and banking services are being built in this sector, in which, instead of the corresponding institutions, there is a set of smart contracts operating in an automatic mode. In addition, the paper analyzes the theoretical risks and potential benefits from the emission of digital currencies by central banks, and considers the world experience of the pilot projects of digital currencies in different countries.
Open access
Economic and Technological Developments in Russia
Economic Development and Digital Transformation
Economic, Social, and Public Health Issues in Russia and Globally
The study attempts to assess the interim results of the digital transformation in Russia and legislative changes that make it possible to include various digital assets in civil circulation. Special attention is paid to the problems of legal regulation of cryptocurrencies. Based on the analysis of a number of international documents, Russian policy documents defining the main trends in the development of digitalization, the significance of digital transformation is revealed, the problems slowing down the processes of the formation of the digital economy in Russia are identified. A review of research by Russian and foreign scientists devoted to the formation of the cryptocurrency market is conducted; the advantages and disadvantages of cryptocurrency trading are outlined. Cryptocurrency trading is a developed system in which trading goals, risk control, honesty and transparency must be present, and the capital market, the underlying asset, the investment plan and successful strategies must be taken into account. The analysis of changes in civil legislation allowed us to come to the conclusion that many important issues related to the use of digital currency and digital assets have remained unresolved. The lack of clarity in legal regulation will naturally lead to problems in law enforcement practice, which in turn will slow down the implementation of the designated goals for creating a competitive digital economy that occupies a leading position in the world and will not allow achieving the goal of forming an information space taking into account the needs of citizens and society in obtaining high-quality and reliable information, the development of information infrastructure. It was also noted that the restriction of cryptocurrency turnover does not correspond to the policy pursued by the FATF and the goals and principles that were outlined in international and regional documents.
ABSTRACT Cryptocurrencies are traded between consenting parties with no broker and tracked on digital ledgers. On June 7, 2022, two bipartisan U.S. senators introduced a bill, named the Responsible Financial Innovation Act, which classifies cryptocurrency as commodities and gives the Commodity Futures Trading Commission the primary responsibility to oversee the cryptocurrency market. However, Kim et al. (2022) has used a non-Euclidean approach to show that cryptocurrency acts more like securities than commodities according to their price movement. In this paper, we present several non-Euclidean distances, in addition to the Riemannian distance adopted by Kim et al. (2022), which can be used to classify cryptocurrency in the financial market. The computational experiments show that all of the non-Euclidean distances show consistency in the classification analysis to a certain extent. However, their comparison results are different from that of Euclidean distance. For instance, all non-Euclidean distances identify unanimously that shares of large-cap information technology companies are correlated the most with cryptocurrency, but the Euclidean distance suggests that real estate is the most correlated sector of the economy with cryptocurrency. Keywords Commodities, Correlation Matrix, Cryptocurrency, -Means Clustering, Multi-dimensional Scaling, Non-Euclidean Distances, Securities
ABSTRACT A cryptocurrency is a form of digital asset. There has recently been a growing public interest in trading cryptocurrencies as part of their financial portfolio. However, its identity as an asset class is not clear. In this paper we examine the proximity of cryptocurrencies as an asset class to traditional ones. To estimate the proximity we select five representative assets from each of twenty-eight subcategories of asset classes and compute the corresponding 5×5 correlation matrices of asset returns. Using the fact that these correlation matrices belong to a mathematical structure, called Riemannian manifold, we compute a non-Euclidean distance between the 28 correlation matrices representing the 28 subcategories of asset classes. To visualize relative positions of the 28 subcategories in the 2-dimensional Euclidean space, we use the multi-dimensional scaling. For clustering of the 28 projected points in the 2-dimensional Euclidean space, we use k-means clustering. This clustering illustrates that cryptocurrency acts more like securities than commodities when it comes to price movement. Our study of comparing cryptocurrency with the other asset classes using Riemannian distance provides investors with the information that is useful to construct a well-diversified portfolio. Keywords Commodities, Correlation Matrix, Cryptocurrency, k-Means Clustering, Multi-dimensional Scaling, Non-Euclidean Geometry, Riemannian Distance, Securities
This article is devoted to the study of the economic nature of cryptoassets, the development of their original classification, and the determination of the main directions of regulation of their turnover. These topics are the objects of modern discourse of international organizations such as the International Monetary Fund (IMF), the World Bank (MB), the Group of 7 (G7), the Group of 20 (G20), the World Trade Organization (WTO), the Organisation for Economic Co-operation and Development (OECD), the Bank for International Settlements (BIS), and the Financial Stability Board (FSB). The study reviews the modern discourse of international organizations regarding cryptoassets, presents an interpretation of cryptoassets as a new class of financial assets, justifies the classification of cryptoassets, and identifies the main types and economic characteristics of digital assets. The study was conducted using a system-functional and system-structural method. As a result of this study, it is concluded that the activities of international organizations are focused on developing recommendations and principles for regulating transactions with cryptocurrencies and global stablecoins, prudential supervision of their issuers, unifying approaches to taxation, and countering illegal transactions using cryptoassets. The study concluded that crypto-assets are private digital assets that are recorded digitally in a distributed ledger and can be used as a means of exchange and/or investment tool and/or means of access to goods and services of issuer. According to the authorʼs classification crypto-assets are divided into two main types: virtual currencies and digital tokens. Virtual currencies are a means of exchange or payment as well as a means of saving. The two main subtypes of virtual currencies are cryptocurrencies and stablecoins. Digital tokens are issued for specific investment functions or consumer purposes. Tokens can be divided into investment tokens and utility tokens. The study also finds that there is no international regulation of cryptoassets turnover. National regulation is significantly differentiated between countries due to the lack of common interpretation and classification of cryptoassets and different assessments of economic risks of their turnover for national financial systems. In most developed countries: the USA, EU countries, UK, Switzerland, etc. – a flexible approach to regulating various types of cryptoassets and their issuers prevails. In emerging market countries such as China, Turkey, and Russia, regulation is more stringent and characterized by the widespread use of prohibitive measures. The main problem of the legal regulation of cryptoassets in Russia is its fragmentation and the predominance of a prohibitive bias. Modern regime of regulation of cryptoassets in Russia is weakly related to their economic nature and is not equivalent to the risks of turnover of cryptoassets.
Electronic health information exchange allows providers to healthcare providers and patients to securely access vital medical information of the patient and share it in electronically with other healthcare providers. The paper considers the electronic health system eHealth. The patient's medical records will be stored in a distributed ledger, and not on the server of the medical institution. So no one can change patient data or deny him access to his own data. The use of DAG is considered on the example of the transfer of medical patient data to the doctor. The process of creating and sending medical data to DAG is illustrated with a specific example.
The cryptocurrency market is not regulated, people and companies wishing to invest in cryptocurrency do not have the same protection as when investing in other assets. In the absence of information and regulatory laws, investors should decide if cryptocurrencies make sense for their financial goals and what kind of investment strategy to choose not to go bankrupt. The aim of the study is to determine the probability of “tail events” and to assess in this way the probability of bankruptcy when investing in cryptocurrency using the Monte Carlo method. The analysis is carried out on the period from September 1, 2014 up to July 1, 2022. Despite the fact that today there are more than 10,000 types of cryptocurrencies, Bitcoin was chosen to assess the probability of bankruptcy. The reason is that Bitcoin is the world’s first decentralized cryptocurrency and its data is stored in a long-term history, which allows testing a long-term investment strategy. Besides, Bitcoin has not gone through a period of persistent inflation that makes the result of testing a short-term investment strategy more reliable. To date, there are around 25 million Bitcoin holders, representing 42.2% of the crypto market. Almost all cryptocurrencies have been proven to follow Bitcoin. The probability of bankruptcy for a short-term cryptocurrency investment strategy is about 17%-23%. For a long-term cryptocurrency investment strategy, the probability of bankruptcy fluctuates from 13% to 16%. Contrary to popular belief, investors looking to avoid bankruptcy should prefer a long-term strategy. The best way for cryptocurrency investors to protect themselves from bankruptcy is to alternate long and short investment periods.
The article analyzes the correspondence of bitcoin, most common cryptocurrency, to the concept of "money". The analysis was carried out from the point of view of the possibility of explaining the origin of bitcoin from the standpoint of competing approaches (evolutionary, charter and debt theory) and the performance of bitcoin functions of money. It is concluded that despite the partial fulfillment of monetary functions, bitcoin is not a universal medium of exchange, i.e. money. Potentially it could reach such a state in the case if the state abandoned the monopoly on money and allowed free competition of all instruments of exchange, and bitcoin would win the competition from other possible applicants for the role of money.
The article is devoted to the study of cryptocurrency and its impact on the shadow sector of the economy. Operations related to cryptocurrencies are anonymous, so it is very difficult to control all operations, which is why it has become so actively used in the shadow economy. This raises the problem of how to control transactions and what laws should be applied to regulate the digital currency
Subject. The article presents a theoretical analysis of foundations for building a new financial market infrastructure based on distributed technologies. Objectives. The focus is on theoretical elaboration of the framework for a new model of financial market infrastructure on the basis of distributed technologies. Methods. The study draws on general scientific research methods through logical and comparative analysis. Results. We analyzed the main channels of digital transformation, noted the growing role of new intermediaries in the form of ‘aggregators’, ‘showcases’, and ‘marketplaces’, companies providing customer identification (onboarding, KYC) and remote risk management. The paper systematizes intermediaries in the infrastructure of decentralized finance. Based on the analysis of new business models of banks, we highlighted their key features and capabilities and stressed the growing need for transformational processes under strengthening sanctions pressure on the financial market of the Russian Federation. Conclusions. Transformation processes of financial intermediation models are driven by the high rate of progress in technological solutions and rapid digitalization of the financial services market. This enables to extract the synergy of financial and non-financial services by forming a new infrastructure. The provisions of this study may serve as a theoretical basis for applied research by financial market specialists.
В статье рассматривается криптовалюта как способ современного инвестирования. Приведена попытка авторов применить инструменты портфельных инвестиций для формирования оптимального портфеля криптовалют, представлены расчеты составления диверсифицированного портфеля, проведен сравнительный анализ криптовалюты и акций. The article discusses cryptocurrency as a way of modern investment. An attempt by the authorsto apply portfolio investment tools to form an optimal portfolio of cryptocurrencies is given, calculations are presented for compiling a diversified portfolio, and a comparative analysis of cryptocurrencies and stocks is carried out.
In the context of the rapid growth of international cash flows under the influence of globalization and digitalization of the world economy, the disadvantages of the correspondent banking network for crossborder money transfers are becoming increasingly obvious. Cross-border payments continue to be largely based on the old correspondent banking model, which has not quite benefited from the flow of innovations. New technologies have the potential to facilitate fast, low-cost, transparent and scalable payments. There is a need to modernize international payment systems and to develop alternative payment instruments based on new financial technologies. Central banks and the payments industry are considering ways to improve cross-border systems. One of the most relevant and widely discussed new payment instruments is the central bank digital currency (CBDC). А consensus has been reached in the global community on the expediency and profitability of introducing this new form of fiat money into retail payments, and a large number of countries are implementing relevant projects. In contrast, the promotion of the CBDC in the field of wholesale payments is lagging behind. However, studies confirm viability of using the CBDC in wholesale cross-border payments. A number of central banks are working on wholesale cross-border payment models, and international cooperation among central banks on wholesale CBDC, including for cross-border payments, is intensifying. The article discusses how cross-border wholesale CBDC can address challenges of the existing correspondent banking arrangement. The main purpose is to analyze the results of the most advanced international projects aimed at creating cross-border payment systems based on CBDC and distributed ledger technology. The design features of the proposed payment models, their effectiveness and potential risks are considered.
Open access
Economic and Technological Developments in Russia
Digitalization and Economic Development in Agriculture
This document considers crypto currencies as a new form of economic asset that gains more and more popularity. They show elements of “money” and although are not recognized as official means of payment they can be used for selling and buying goods and services. As such, they could be considered as competitive to “fiat” money and can influence world economy and country’s national security. Alongside the positive aspects of the cryptocurrencies, they are a good foundation for illegal activities.
The growing demand for secure and tamper-proof academic credential management has exposed the limitations of traditional systems, including susceptibility to fraud, inefficiency, and dependency on centralised authorities. Blockchain technology, with its decentralisation, immutability, and cryptographic security, offers a transformative approach to issuing, storing, and verifying academic credentials. This paper explores blockchain architectures—public, private, and consortium—and their application in academic systems. Applying smart contracts and decentralised architectures, blockchain improves trust and transparency and optimises credential checking. OpenCerts and eScroll are presented, referring to existing implementations, to demonstrate possibility and impact on the real world. The study outlines issues such as scale, privacy and interoperability Lastly, the study outlines directions for future research for enhanced blockchain use in managing academic credentials globally.
Cryptocurrencies are a new technology that has given impetus to the modernization of the entire economy. Already, a huge number of people use cryptocoins for payment, participate in their production and earn on market volatility.To date, cryptocurrencies are at the stage of formation and improved versions are released annually, which try to eliminate the shortcomings in the technology. But it is already obvious to many experts that cryptocurrencies are the money of the future with great potential for development.