Decentralization of the digital economy as a condition for exiting from the structural and systemic crisis

Обушний, Сергій Миколайович and Віровець, Денис Володимирович (2020) Decentralization of the digital economy as a condition for exiting from the structural and systemic crisis Формування ринкових відносин в Україні (7-8). pp. 62-74. ISSN 2522–1620

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The economy of Ukraine faced challenges, on the one hand, instability of politics and lack of professionalism of senior officials, on the other hand, war in the east of the country and the СOVID-19 pandemic, causing damages to the economies of the whole world. In the conditions of shocks and instability, the implementation of decentralization elements in the country's economy seems to be one of the most rational decisions to preserve and adapt economic relations, as well as maintain economic relations between the actors. The pandemic crisis revealed deep structural inadequacies in our health systems as well as in our supply chains. As the practice of some countries has shown, the use of decentralized applications accelerated coordination of participants during the COVID-19 pandemic and contributed to the targeted use of resources. Such and derivative approaches could be developed for their implementation on a permanent or temporary basis in order to ensure rational relations between participants in economic relations during crises. This paper describes the methods and examples of decentralized techniques in the economy, the purpose of which is to significantly simplify and reduce the cost of economic processes, the result of which is an unconditional economic effect, and also focuses on identity, governance, supply chain, healthcare and incentives for behavioral change, in which innovators in both public and private sectors have already demonstrated blockchain’s utility in addressing the challenges we face. Cutting costs, improving efficiency, effectiveness and increasing revenue through different products, services and offerings are just some benefits of blockchain that the economic system will potentially witness. The implementation of digital decentralization methods in the form of permanent or temporary solutions, can be a significant factor in accelerating the recovery from systemic economic crises. This can be confirmed by already implemented projects using blockchain technology, some of which were actively used during the COVID-19 pandemic. A digital environment with a high degree of trust for household interactions, a lack of regulators and borders, may have great potential in the future for the emergence of numerous projects based on blockchain technology with a high degree of flexibility in times of crisis, also capable of changing today's economic paradigm

Item Type: Article
Uncontrolled Keywords: digital economy; cryptoeconomics; decentralization; blockchain; economic crises; COVID-19; decentralized digital solutions
Subjects: Статті у журналах > Фахові (входять до переліку фахових, затверджений МОН)
Divisions: Факультети > Факультет інформаційних технологій та управління > Кафедра фінансів та економіки
Depositing User: Сергій Миколайович Обушний
Date Deposited: 02 Nov 2020 12:27
Last Modified: 02 Nov 2020 12:27

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