Implementation of blockchain technology in the system of accounting and analytical support for the public sector

Tetiana Larikova (), Volodymyr Ivankov and Liudmyla Novichenko
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Tetiana Larikova: Kyiv National Economic University named after Vadym Hetman
Volodymyr Ivankov: Forensic Research Institution
Liudmyla Novichenko: National Academy of Statistics, Accounting and Audit

Eastern-European Journal of Enterprise Technologies, 2023, vol. 5, issue 13 (125), 77-87

Abstract: The study addressed the problem of developing a mechanism for introducing blockchain technology into the system of accounting and analytical support for public sector entities. In the course of the research, the volumes and types of financial violations by public sector entities were analyzed. Identified violations were committed by public sector entities, and their significant share fell on the system of accounting and analytical support, in particular, financial reporting, budget execution. Legal restrictions on the introduction of blockchain technology for public sector entities were outlined. The absence of a number of acts in the field of digitization, protection of state secrets, cyber security, international standards, etc. in the legal field was established. The characteristics and mechanisms of blockchain technology were described, the types of blockchains based on permission models (open, closed) were defined. The technological characteristics of the use of blockchain platforms in the system of accounting and analytical support of public sector entities have been determined. The need to use blockchain applications such as smart contracts was indicated. It is noted that the use of smart contracts can be developed on blockchain platforms such as Ethereum, NXT, and Hyperledger; their key characteristics were described. A comparative description of transactions of state funds in the traditional accounting system and with the use of blockchain systems is given. The problem of the materiality of the transaction cost when transferring large volumes of data was outlined using the Ethereum platform as an example; its shortcomings were identified. The development of a mechanism for introducing blockchain technology into the system of accounting and analytical support using the Hyperledger platform, which has an open-source community focused on the development of a set of stable frameworks, tools, and libraries for deploying enterprise-level blockchains, was described. The advantages and disadvantages of introducing blockchain technology into the system of accounting and analytical support have been determined.

Keywords: accounting and analytical support; information technologies; blockchain; transactions; smart contracts; public sector (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:baq:jetart:v:5:y:2023:i:13:p:77-87

DOI: 10.15587/1729-4061.2023.290024

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