BUSINESS INFORM JOURNAL.

УКР

ENG

Search:

REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

PUBLISHER

Liburkina L. M.

SITE SECTIONS

Blockchain as a Tool to Strengthen the State’s Financial Security
Ivasenko M. V.

Ivasenko, Maksym V. (2025) “Blockchain as a Tool to Strengthen the State’s Financial Security.” Business Inform 1:219–229.
https://doi.org/10.32983/2222-4459-2025-1-219-229

Section: Finance, Money Circulation and Credit

Article is written in Ukrainian
Downloads/views: 0

Download article (pdf) -

UDC 336.7+004.9

Abstract:
Traditional financial services are characterized by high complexity, multi-level structures, and dependence on intermediaries, which create significant operational costs, lengthy settlement times, and system risks. The article analyzes modern financial systems such as SWIFT, clearinghouses, central securities depositories, and central counter-parties, highlighting the key drawbacks of a centralized approach: data fragmentation, the need for synchronization, failure risks, and high compliance costs. The article also addresses contemporary challenges, including slow settlement times (for example, T+2 for equities), reliance on correspondent banking networks, and costs associated with risk management. The aim of the article is to survey the impact of blockchain technologies on the financial sector, assessing the opportunities and challenges of implementing blockchain to optimize financial processes. The article compares traditional financial systems with innovative approaches based on distributed ledgers, such as blockchain, in terms of performance, transparency, security, regulatory compliance, and cost. The research methodology includes a review of the relevant literature, an overview of existing platforms (Ethereum, Hyperledger Fabric, R3 Corda, Quorum), and their applications in the financial sector. The article examines the technological aspects of blockchain, including distributed ledgers, consensus algorithms, smart contracts, and asset tokenization. The advantages of blockchain technology are identified, particularly the automation of processes, reduction of reliance on intermediaries, increased transparency, and shortened settlement times. The prospects of decentralized finance (DeFi) and corporate blockchain solutions are analyzed, particularly the use of smart contracts and tokenization to enhance liquidity. The research results indicate that the implementation of blockchain can significantly reduce operational costs, enhance transaction transparency, and ensure the speed of financial settlements. In particular, blockchain shortens the T+2 settlement cycle to seconds, improving liquidity and efficiency in financial markets. The conclusion of the article offers recommendations for selecting blockchain platforms based on the needs of financial institutions. Key criteria such as confidentiality, scalability, transaction throughput, and compliance with regulatory requirements are discussed. The necessity of creating a unified regulatory framework to support the implementation of blockchain in finance is particularly emphasized. Future research prospects include the development of interoperability tools, enhancing the security of smart contracts, and long-term evaluation of the efficiency of blockchain solutions in production environments. Thus, blockchain is an important tool for the transformation of financial systems, ensuring a significant increase in their efficiency, resilience, and transparency.

Keywords: blockchain, traditional finance, distributed ledger, decentralized finance, cryptocurrency.

Tabl.: 1. Bibl.: 48.

Ivasenko Maksym V. – Postgraduate Student, Department of Finance, Banking and Insurance, Sumy National Agrarian University (160 H. Kondratieva Str., Sumy, 40021, Ukraine)
Email: [email protected]

List of references in article

Steigerwald, R. S. “Central Counterparty Clearing and Systemic Risk Regulation“. World Scientific Handbook in Financial Economics Series, vol. 5 (2015): 181-246. DOI: 10.1142/9789814566926_0007
Persaud, A. “The Unintended Consequences and Possible Mitigation of the Clearing Mandate for OTC Derivatives“. SSRN Electron. J. (2015). DOI: 10.2139/ssrn.2643501
Grody, A. D. “Infrastructure issues in the financial services industry: a case for a central counterparty for data management“. Journal of Securities Operations & Custody, vol. 2, no. 3 (2009): 202-224.
Bech, G. “Central bank cryptocurrencies“. BIS Quarterly Review September 2017. https://ssrn.com/abstract=3041906
Ioannidis, S. D., de Keijzer, B., and Ventre, C. “Clearing Financial Networks with Derivatives: From Intractability to Algorithms“. arXiv (2023). DOI: 10.48550/ARXIV.2312.05139
Csoka, P., and Jean-J., Herings P. “Centralized clearing mechanisms: A programming approach“. J. Mech. Inst. Des., vol. 7, no. 1 (2022): 45-69. DOI: 10.22574/jmid.2022.12.002
Domanski, D., Gambacorta, L., and Picillo, C. “Central clearing: trends and current issues“. https://www.bis.org/publ/qtrpdf/r_qt1512g.htm
Biradar, R. R., and Dakshayini, M. “Blockchain Enabled KYC Solutions using Hyperledge Fabric“. 2020 International Conference on Mainstreaming Block Chain Implementation (ICOMBI). Bengaluru, India: IEEE, Feb., 2020. 1-3. DOI: 10.23919/ICOMBI48604.2020.9203407
Udeh, E. O. et al. “Blockchain-driven communication in banking: Enhancing transparency and trust with distributed ledger technology“. Finance Account. Res. J., vol. 6, no. 6 (2024): 851-867. DOI: 10.51594/farj.v6i6.1182
Mills, D. et al. “Distributed Ledger Technology in Payments, Clearing, and Settlement“. Finance Econ. Discuss. Ser., vol. 2016.0, no. 95 (2016). DOI: 10.17016/feds.2016.095
Varma, J. R. “Blockchain in Finance“. Vikalpa J. Decis. Mak., vol. 44, no. 1 (2019): 1-11. DOI: 10.1177/0256090919839897
Loader, D. “The role of the clearing house and central securities depositories“. Clearing, Settlement and Custody, Elsevier (2002): 19-23. DOI: 10.1016/B978-075065484-5.50002-5
Friesz, M., and Varadi, K. “Clearinghouses Versus Central Counterparties From Margin Calculation Point Of View“. ECMS 2021 Proceedings edited by Khalid Al-Begain, Mauro Iacono, Lelio Campanile, Andrzej Bargiela. ECMS, Jun. 2021. 75-81. DOI: 10.7148/2021-0075
Priem, R. “Distributed ledger technology for securities clearing and settlement: benefits, risks, and regulatory implications“. Financ. Innov., vol. 6, no. 1 (2020): 11-. DOI: 10.1186/s40854-019-0169-6
Milne, A. “Central Securities Depositories and Securities Clearing and Settlement: Business Practice and Public Policy Concerns“. In Advances in Finance, Accounting, and Economics, 334-358. IGI Global, 2015. DOI: 10.4018/978-1-4666-8745-5.ch017
Berndsen, R. “Five Fundamental Questions on Central Counterparties“. SSRN Electron. J. (2020). DOI:10.2139/ssrn.3709691
Saguato, P. “The Ownership of Clearinghouses: When 'Skin in the Game' Is Not Enough, the Remutualization of Clearinghouses“. Yale J. Regul., vol. 34 (2017).
Polikarpova, M., and Sandal, L. K. “Settlement risk in cross-border transactions: traditional and new approaches“. 2018. https://core.ac.uk/download/249949247.pdf
Yang, Y. Yu. Y., and Jing, F. “The role of the third party in trust repair process“. J. Bus. Res., vol. 78 (2017): 233-241. DOI: 10.1016/j.jbusres.2017.01.015
Beck, R. et al. “Blockchain Technology in Business and Information Systems Research“. Bus. Inf. Syst. Eng., vol. 59, no. 6 (2017): 381-384. DOI: 10.1007/s12599-017-0505-1
Chaudhry, N., and Yousaf, M. M. “Consensus Algorithms in Blockchain: Comparative Analysis, Challenges and Opportunities“. 2018 12th International Conference on Open Source Systems and Technologies (ICOSST). Lahore, Pakistan: IEEE, Dec. 2018. 54-63. DOI: 10.1109/ICOSST.2018.8632190
Wall, E., and Malm, G. “Using Blockchain Technology and Smart Contracts to Create a Distributed Securities Depository“. 2016. https://lup.lub.lu.se/student-papers/search/publication/8885750
Watsky, C. et al. “Tokenized Assets on Public Blockchains: How Transparent is the Blockchain?“ FEDS Notes, no. 4/3/2024 (2024). DOI: 10.17016/2380-7172.3444
Andoni, M. et al. “Blockchain technology in the energy sector: A systematic review of challenges and opportunities“. Renew. Sustain. Energy Rev., vol. 100 (2019): 143-174. DOI: 10.1016/j.rser.2018.10.014
Chaleenutthawut, Y. et al. “Practical Blockchain-Based Financial Assets Tokenization“. 2021 4th International Conference on Blockchain Technology and Applications. Xi'an China: ACM, Dec. 2021. 51-57. DOI: 10.1145/3510487.3510495
Kazi, J. et al. “Decentralized Cryptocurrency Trading Application“. 2024 5th International Conference on Innovative Trends in Information Technology (ICITIIT). Kottayam, India: IEEE, Mar. 2024. 1-6. DOI: 10.1109/ICITIIT61487.2024.10580104
Frolov, S. et al. “Interaction between decentralized financial services and the traditional banking system: A comparative analysis“. Banks Bank Syst., vol. 19, no. 2 (2024): 53-74. DOI: 10.21511/bbs.19(2).2024.05
Qin, K. et al. “CeFi vs. DeFi - Comparing Centralized to Decentralized Finance“. arXiv (2021). DOI: 10.48550/ARXIV.2106.08157
Shivam, J., Gunwant, H., and Dahiya, K. “Decentralized Finance“. Int. J. Res. Appl. Sci. Eng. Technol., vol. 11, no. 1 (2023): 255-261. DOI: 10.22214/ijraset.2023.48543
Kumar, A. et al. “Smart Contract Security: A Review with a Focus on Decentralized Finance“. 2024 3rd International Conference for Innovation in Technology (INOCON). Bangalore, India: IEEE, Mar. 2024. 1-5. DOI: 10.1109/INOCON60754.2024.10511387
Werner, S. et al. “SoK: Decentralized Finance (DeFi)“. Proceedings of the 4th ACM Conference on Advances in Financial Technologies. Cambridge MA USA: ACM, Sep. 2022. 30-46. DOI: 10.1145/3558535.3559780
Schar, F. “Decentralized Finance: On Blockchain- and Smart Contract-based Financial Markets“. SSRN Electron. J. (2020). DOI: 10.2139/ssrn.3571335
Teng, H. “Applications of the Decentralized Finance (DeFi) on the Ethereum“. 2022 IEEE Asia-Pacific Conference on Image Processing, Electronics and Computers (IPEC). Dalian, China: IEEE, Apr. 2022. 573-578. DOI: 10.1109/IPEC54454.2022.9777543
Durigan, Junior C. A., and Barbin, Laurindo F. J. “IT strategic alignment in the decentralized finance (defi): cbdc and digital currencies“. 19th CONTECSI International Conference on Information Systems and Technology Management. TECSI, 2022. DOI: 10.5748/19CONTECSI/PSE/ITM/6915
Frolov, S. “Analysis of the impact of central bank digital currency on stock markets: Dynamics and implications“. Banks Bank Syst., vol. 18, no. 4 (2023): 149-168. DOI: 10.21511/bbs.18
Busayatananphon, C., and Boonchieng, E. “Financial Technology DeFi Protocol: A Review“. 2022 Joint International Conference on Digital Arts, Media and Technology with ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunications Engineering (ECTI DAMT & NCON). Chiang Rai, Thailand: IEEE, Jan. 2022. 267-272. DOI: 10.1109/ECTIDAMTNCON53731.2022.9720373
Zhou, L. et al. “On the Just-In-Time Discovery of Profit-Generating Transactions in DeFi Protocols“. 2021 IEEE Symposium on Security and Privacy (SP). San Francisco. CA, USA: IEEE, May 2021. 919-936. DOI: 10.1109/SP40001.2021.00113
Wang, B. et al. “BLOCKEYE: Hunting for DeFi Attacks on Blockchain“. 2021 IEEE/ACM 43rd International Conference on Software Engineering: Companion Proceedings (ICSE-Companion). Madrid, ES: IEEE, May 2021. 17-20. DOI: 10.1109/ICSE-Companion52605.2021.00025
Ngozi, Samuel Uzougbo, Chinonso, Gladys Ikegwu, and Adefolake, Olachi Adewusi. “Regulatory Frameworks for Decentralized Finance (DeFi): Challenges and opportunities“. GSC Adv. Res. Rev., vol. 19, no. 2 (2024): 116-129. DOI: 10.30574/gscarr.2024.19.2.0170
Yan, T. et al. “Analyzing Reward Dynamics and Decentralization in Ethereum 2.0: An Advanced Data Engineering Workflow and Comprehensive Datasets for Proof-of-Stake Incentives“. arXiv (2024). DOI: 10.48550/ARXIV.2402.11170
Franke, L., Schletz, M., and Salomo, S. “Designing a Blockchain Model for the Paris Agreement's Carbon Market Mechanism“. Sustainability, vol. 12, no. 3 (2020): 1068-. DOI: 10.3390/su12031068
Schar, F. “Decentralized Finance: On Blockchain- and Smart Contract-based Financial Markets“. SSRN Electron. J. (2020). DOI: 10.2139/ssrn.3571335
Baliga, A. et al. “Performance Evaluation of the Quorum Blockchain Platform“. arXiv (2018). DOI: 10.48550/ARXIV.1809.03421
Robinson, P. “Requirements for Ethereum Private Sidechains“. arXiv (2018). DOI: 10.48550/ARXIV.1806.09834
Howard, J. P., and Vachino, M. E. “Blockchain Compliance With Federal Cryptographic Information-Processing Standards“. IEEE Secur. Priv., vol. 18, no. 1 (2020): 65-70. DOI: 10.1109/MSEC.2019.2944290
Hao, Y. et al. “Performance Analysis of Consensus Algorithm in Private Blockchain“. 2018 IEEE Intelligent Vehicles Symposium (IV). Changshu: IEEE, Jun. 2018. 280-285. DOI: 10.1109/IVS.2018.8500557
Ambarka, A., and Djara, T. “Department of Laboratoire d'Electrotechnique de Telecommunication et d'Informatique Appliquee (LETIA/EPAC), Universite d'Abomey-Calavi (UAC). Institut d'Innovation Technologique (IITECH), Cotonou, Benin., A.-A. Sobabe, and Department of Laboratoire d'Electrotechnique de Telecommunication et d'Informatique Appliquee (LETIA/EPAC), Universite d'Abomey-Calavi (UAC). Institut d'Innovation Technologique (IITECH), Cotonou, Benin., “Patient Medical Records: Implementation of a Security Solution Based on the Hyperledger Fabric Blockchain,”“. Int. J. Innov. Technol. Explor. Eng., vol. 12, no. 11 (2023): 20-28. DOI: 10.35940/ijitee.K9728.10121123
Foschini, L. et al. “Hyperledger Fabric Blockchain: Chaincode Performance Analysis“. ICC 2020-2020 IEEE International Conference on Communications (ICC). Dublin, Ireland: IEEE, Jun. 2020. 1-6. DOI: 10.1109/ICC40277.2020.9149080

FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

INFORMATION

The Plan of Scientific Conferences

OUR PARTNERS

Journal «The Problems of Economy»

The site and its metadata are licensed under CC BY-SA.

Write to webmaster