Year: 2023 | Month: December | Volume 68 | Issue 4

Blockchain Technology and the Transformation of Financial Systems: From Decentralization to Innovative Solutions in the Global Economy

Oleksii Tonkykh Viktoriia Derhachova Svitlana Palii Sergiy Bratushka and Andrii Zolkover
DOI:10.46852/0424-2513.4.2023.30

Abstract:

The article outlines the essence of blockchain and the peculiarities of its application in the financial
sector of the global economy in the context of its innovative development. The authors determined the
directions of blockchain application in the accounting and audit of fuel and energy companies. These
directions include smart contracts, collateral management, the use of stablecoins, tokenization of real
assets, invoice factoring, crypto staking, transactions in the virtual world and reward tokens, the support
of new types of B2B networks, simplification and tracking of data flow in a financial institution, and
the replacement of paper money. The risks of using blockchain technologies in the financial sector were
systematized and grouped into the following areas: the lack of familiarization and standardization; the
high energy intensity of the system, cybersecurity, and other technical issues; financial practice issues,
and technological barriers.

Highlights

  • The study delves into diverse applications of blockchain technology in finance, encompassing crossborder payments, remittances, authentication, insurance, trade finance, smart contracts, auctions, and foreign exchange. It notes the technology’s rapid growth in Western countries, emphasizing its key roles in digital asset registries, cryptocurrencies, and trading platforms.
  • The research provides a nuanced analysis of blockchain’s benefits and challenges, underscoring its potential to enhance transparency in financial services. While acknowledging its transformative impact, the study addresses obstacles, including the need for organizational changes in accounting, limitations in smart platform functionality, and concerns about security and associated risks.




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