BLOCKCHAIN AS A FACTOR OF DIGITAL TRANSFORMATION OF UKRAINE'S ECONOMY

Abstract

The article is devoted to the issues of digital transformation of the economy and how blockchain technologies can help it. The transition to such technologies has recently become more frequent in the world. Quite a few well-known companies in the field of trade in goods or services have already made significant progress in this direction. Therefore, this paper provides suggestions for Ukraine on what needs to be done in practice so that the situation moves in the improvement. Blockchain is an area where the European Union and Ukraine can work together and then use this technology to strengthen economic ties and digitally transform their economies. The experience of the European Union countries in this direction and how it can be used in Ukraine are considered. The strengths and weaknesses of the introduction of the blockchain in the economy of Ukraine are analysed and the areas of digital infrastructure that may be interesting for investors are proposed. The advantages that Ukraine has in terms of investing in cryptocurrencies and mining are substantiated. In particular, it is more profitable to mine cryptocurrencies in Ukraine because of lower costs for operating mining farms comparing with the largest countries of the European Union by gross domestic product (Germany, France, Italy, Spain). The benefits of cooperation between the European Union and Ukraine in the digital transformation of economies based on blockchain technologies are analysed. It turned out that the introduction of the blockchain promotes the development of trade, industry, finance and energy. In addition, significant benefits can be gained from the introduction of blockchain technologies in the activities of customs authorities at the borders of the European Union and Ukraine. Blockchain is just a tool, its impact on the digital transformation of the economy depends largely on the basic vision and strategies that businesses choose to manage their day-to-day operations. Therefore, further research is needed to optimize the set of business strategies along with the choice of technology to achieve sustainable development goals. Future analysis should consider the complexity of multi-layered supply chains and the needs of many stakeholders.