THEORETICAL AND ORGANIZATIONAL ASPECTS OF BLOCKCHAIN TECHNOLOGY APPLICATION IN ENTREPRENEURSHIP

Abstract

The article considers the blockchain as a distributed, decentralized database, which is shared between the nodes of a computer network, and stores reliable and unchanging data in digital format. In the most general form, blockchain technology should be understood as a chain of blocks (English Blockchain, from block - block, chain - chain), each of which is a specific operation in a special distributed register. The distribution is that the database (English ledger - register of transactions) is stored by participants in the form of a large number of equal (English peer) copies. The use of the blockchain includes the following three main stages: verification of transactions by network members, identification of the owner of the declared assets, distribution of the transaction among all network members. It is established that the unconditional advantages of blockchain technology are: data integrity and reliability, system decentralization, monitoring, transaction control, operational transparency, system stability, security and fast data processing. Like any other new technology, blockchain can not only destroy existing stereotypes and schemes, but also promote the development of large ecosystems that combine existing and innovative approaches. This will be the beginning of the process of forming a qualitatively different, progressive model of the economy, which will be regulated through the use of digital assets. However, the shortcomings of the above technology have been identified. These include: significant electricity costs, imperfect regulatory framework, inability to correct errors, the complexity of protocols to reach consensus and the complexity of scaling the unit. Timely consideration of the strengths and weaknesses of the blockchain will allow to develop scientifically sound measures to expand its application in Ukraine, in particular in business, finance, banking, insurance.