Institutional Features of the Development of Competitive Cryptocurrency
The aim of the article is to clarify the basics of the digitalization strategy of the competitive businesses and identify features of the institutional environment that ensure the development of cryptocurrency as a new asset (IT product) of the modern economy, analyze the methods of implementing the...
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| Main Authors: | , |
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| Format: | Article |
| Language: | Russian |
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Government of the Russian Federation, Financial University
2020-10-01
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| Series: | Финансы: теория и практика |
| Subjects: | |
| Online Access: | https://financetp.fa.ru/jour/article/view/1067 |
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| _version_ | 1849409997842153472 |
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| author | V. P. Bauer V. V. Smirnov |
| author_facet | V. P. Bauer V. V. Smirnov |
| author_sort | V. P. Bauer |
| collection | DOAJ |
| description | The aim of the article is to clarify the basics of the digitalization strategy of the competitive businesses and identify features of the institutional environment that ensure the development of cryptocurrency as a new asset (IT product) of the modern economy, analyze the methods of implementing the cryptocurrency business models. The relevance of the research paper is determined by the need to develop a competitive Russian cryptocurrency (including the cryptoruble) with the growing private, state and cross-national cryptocurrencies. The scientific novelty of the study implies clarifying the informal and formal rules of the institutional environment and related methods ensuring the development of a competitive cryptocurrency. The authors consider the following methods to implement the institutional features of the cryptocurrencies business model development: logic and blockchain algorithm that establish trust and collaboration between cryptocurrency developers; logic and blockchain consensus algorithm ensuring that all the parties of the blockchain network come to a common agreement (consensus); logic and blockchain algorithms that form cryptocurrency transactions and control its turnover by generating blocks of cryptocurrencies, by forming the structure of blocks and transactions of cryptocurrencies, by storing cryptocurrencies’ keys and providing security, by mining (forging) cryptocurrency, etс.The results of the study provide a basis for identifying the institutional features and the corresponding methods providing a competitive cryptocurrency development with a detailed analysis of the blockchain consensus algorithms that ensure the competitiveness of the cryptocurrency. The conclusions show that the most promising are the hybrid consensus algorithms which may include both the logic of two or more known algorithms and the original logic of a new algorithm. The authors recommend defining the logic of the blockchain consensus algorithm as a priority when developing a cryptocurrency to ensure reliability of the transactions in the blockchain network, thus increasing the competitiveness of the cryptocurrency. |
| format | Article |
| id | doaj-art-452d15f043f940bfa0c55c333fa2309e |
| institution | Kabale University |
| issn | 2587-5671 2587-7089 |
| language | Russian |
| publishDate | 2020-10-01 |
| publisher | Government of the Russian Federation, Financial University |
| record_format | Article |
| series | Финансы: теория и практика |
| spelling | doaj-art-452d15f043f940bfa0c55c333fa2309e2025-08-20T03:35:19ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892020-10-01245849910.26794/2587-5671-2020-24-5-84-99806Institutional Features of the Development of Competitive CryptocurrencyV. P. Bauer0V. V. Smirnov1Financial UniversityFinancial UniversityThe aim of the article is to clarify the basics of the digitalization strategy of the competitive businesses and identify features of the institutional environment that ensure the development of cryptocurrency as a new asset (IT product) of the modern economy, analyze the methods of implementing the cryptocurrency business models. The relevance of the research paper is determined by the need to develop a competitive Russian cryptocurrency (including the cryptoruble) with the growing private, state and cross-national cryptocurrencies. The scientific novelty of the study implies clarifying the informal and formal rules of the institutional environment and related methods ensuring the development of a competitive cryptocurrency. The authors consider the following methods to implement the institutional features of the cryptocurrencies business model development: logic and blockchain algorithm that establish trust and collaboration between cryptocurrency developers; logic and blockchain consensus algorithm ensuring that all the parties of the blockchain network come to a common agreement (consensus); logic and blockchain algorithms that form cryptocurrency transactions and control its turnover by generating blocks of cryptocurrencies, by forming the structure of blocks and transactions of cryptocurrencies, by storing cryptocurrencies’ keys and providing security, by mining (forging) cryptocurrency, etс.The results of the study provide a basis for identifying the institutional features and the corresponding methods providing a competitive cryptocurrency development with a detailed analysis of the blockchain consensus algorithms that ensure the competitiveness of the cryptocurrency. The conclusions show that the most promising are the hybrid consensus algorithms which may include both the logic of two or more known algorithms and the original logic of a new algorithm. The authors recommend defining the logic of the blockchain consensus algorithm as a priority when developing a cryptocurrency to ensure reliability of the transactions in the blockchain network, thus increasing the competitiveness of the cryptocurrency.https://financetp.fa.ru/jour/article/view/1067institutional environmentformal and informal rules of the institutional environmentcompetitioncryptocurrencybusiness modelblockchainlogicalgorithmconsensus |
| spellingShingle | V. P. Bauer V. V. Smirnov Institutional Features of the Development of Competitive Cryptocurrency Финансы: теория и практика institutional environment formal and informal rules of the institutional environment competition cryptocurrency business model blockchain logic algorithm consensus |
| title | Institutional Features of the Development of Competitive Cryptocurrency |
| title_full | Institutional Features of the Development of Competitive Cryptocurrency |
| title_fullStr | Institutional Features of the Development of Competitive Cryptocurrency |
| title_full_unstemmed | Institutional Features of the Development of Competitive Cryptocurrency |
| title_short | Institutional Features of the Development of Competitive Cryptocurrency |
| title_sort | institutional features of the development of competitive cryptocurrency |
| topic | institutional environment formal and informal rules of the institutional environment competition cryptocurrency business model blockchain logic algorithm consensus |
| url | https://financetp.fa.ru/jour/article/view/1067 |
| work_keys_str_mv | AT vpbauer institutionalfeaturesofthedevelopmentofcompetitivecryptocurrency AT vvsmirnov institutionalfeaturesofthedevelopmentofcompetitivecryptocurrency |