BLOCKCHAIN TECHNOLOGIES AND THEIR ROLE IN MODERN FINANCE: ESSENCE, PROSPECTS AND RISKS OF USE

Abstract

In today’s digitalized world, information technologies are intensively integrating into all spheres of public life and are an integral part of various processes in both the public and private sectors. This ranges from providing services to individuals and legal entities through online platforms to organizing business processes. One of the key solutions within the modern FinTech ecosystem is blockchain technology. This article explores the essence and evolution of blockchain, examines aspects of its use abroad, and discusses the prospects for its implementation into Ukraine's financial system. The study outlines directions for the technology's integration and its role in the development strategies of both the state and the private sector, taking into account Ukraine's approved programmatic and strategic guidelines for financial sector development. It is determined that the key advantages of using blockchain in business processes are: ensuring a high level of information security against external interference, and increasing the efficiency and speed of operations. The main disadvantages are: the high cost of maintaining the technology due to its decreasing energy efficiency as significant amounts of data accumulate, and regulatory challenges and standardization obstacles in the provision of public services. The emphasis on the risks of using blockchain simultaneously forms the basis for a deeper study of the prospects for its implementation, particularly in Ukraine, within the context of the ongoing digitalization of the economy and the progress of FinTech. Thus, there are grounds to predict that in the coming years, Ukraine can expect a wider integration of blockchain technologies both in the work of state institutions and regulators, and in the functioning of the private sector. However, in this process, it is important to take into account the experience of other countries, conduct a detailed analysis of potential risks, and the possible consequences of implementation in specific industries and sectors. This necessitates the expansion of the programmatic and strategic vision for the development of blockchain technologies in Ukraine, potentially through the adoption of specific strategies and programs.