Blockchain Technology: The Essence and Prospects for Use in the Public Finance System of Ukraine

Анотація

Historically, new investment projects, advanced technologies and financial innovations appear during the crisis period. However, the issues of using modern technologies in the public finance system are at the formation stage, which actualizes the task of arguing the use of innovative technologies that can provide simplicity, speed, and most importantly, the security of most financial transactions in the sphere of public finance. The article is aimed at researching and systematizing existing approaches to defining the essence of the concept of «blockchain» in order to substantiate the directions of improvement of the public administration system and the implementation of blockchain technology in the sphere of public finance. The definition of «blockchain» is studied and its interpretation is proposed as follows: this is a distributed database with registered and ordered economic transactions which, subject to certain conditions, can be connected and to which a specific transaction can be performed. The advantages and disadvantages of using blockchain technology are determined. It is established that blockchain has significant potential for use in various spheres of public life and, despite certain shortcomings, allows to improve the system of public administration. It is argued that to ensure the efficiency, information transparency and security of operations with budget funds, it is advisable to use innovative blockchain technology. It is proved that the implementation of this technology in the sphere of public finance will contribute to solving accumulated problems. It is determined that the modern paradigm of blockchain technology has become the basis for the implementation of smart contracts, but the issue of the use of this technology in such contracts is under formation and needs to be improved in terms of developing the conceptual basis for signing smart contracts by various economic entities.

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