BLOCKCHAIN TECHNOLOGY: FEATURES, PROSPECTS

• Main Authors: Tetiana Girchenko, Ivan Semeniuk, Liudmyla Girchenko
• Format: Article
• Language: English
• Published: Consilium LLC 2020-08-01
• Series: European Cooperation
• Subjects: digital economy; bank; cryptocurrency; blockchain; digital technologies; bitcoin
• Online Access: https://european-cooperation.eu/index.php/EC/article/view/86

The article examines the features of blockchain technology and the construction of its structural elements. It is based on the principle of structuring and working with databases, which was developed by Satoshi Nakomoto in 2008. A feature of its model is the reliability of transactions and the creation of a decentralized register of data accounting and key blocks of information. The article also examines the main types of operation of the blockchain system, from Blockchain 1.0 to the concept of Blockchain 4.0. Given the high level of interest of the world in building reliable information accounting, the blockchain has become an important tool for ensuring reliability both for the financial world and for the wider areas of application considered in the work. The stages of development are characterized and the process of formation of blockchain technology on the world market is analyzed. The paper presents examples of major cryptocurrencies in the world, which are currently considered the most stable and relevant for investment or settlement. The study shows a tendency to accelerate the emergence of various types of cryptocurrencies developed by the world's largest digital giants, such as Libra 2019 from Facebook, Gram from the most popular messenger Telegram, and many others. The wide range of cryptocurrencies on the market encourages users to increasingly use the blockchain system and increase the turnover of cryptocurrency, because as of 2019 the market value is about 420.5 billion dollars, which is growing every year. The basic principles of information protection and ensuring the reliability of its accounting are considered. Considerable attention in the article is paid to the peculiarities of the construction and operation of the blockchain system itself. The operating model is the most important for improving the operation of the blockchain system and encouraging users to use modern technologies. Much attention is paid to the system of accounting for information blocks, access to it, the use of hashes and ensuring the reliability of the connection of chains of blocks with each other. An important area of work is the analysis of accounting systems PoW and PoS, as well as combining them into a single, which provides more effective protection of information. Prospects for further development of Blockchain technology at the corporate and state levels are outlined. The paper identifies the main prospects for the use of blockchain technology at the corporate level, provided the use of effective financial instruments and ensuring the transparency of financial transactions, increasing the number of innovative technologies and calculation methods based on this technology. At the state level, among the promising areas of blockchain technology, attention is paid to social security, accounting and registration of tax information, introduction of the system in the military-industrial complex, archive of vehicle operation, issuance of certificates, voting system and other areas