SMART-Contracts via Blockchain as the Innovation Tool for SMEs Development
SMART-Contracts via Blockchain as the Innovation Tool for SMEs Development

Summary/Abstract: The main aim of the research is to develop recommendations for Cooperative model implementation in order to improve SMEs` performance by cost reduction through automating manual processes and attenuating legal risks regarding code-based SMART-contracts implementation via decentralized blockchain technology. The authors explored the main benefits for business entities of using SMART contracts as a digital tool for automating a large number of business processes in the DLT-system. Among with this, the potential risks for conducting the business activity of SMEs were considered, which could be exemplified as lack of legislation, high volatility of cryptocurrency, attenuation of monitoring level, etc. The usage of blockchain Smart contracts as the part of machine learning could lead to become SME Smarter, more dynamic, more flexible and more integrated with big data, which presupposes innovative component of business development. In the context of Smart specialization implementation in developing countries in EU, the Cooperative Model between different stakeholders based on SMART contracts in the frame of Smart specialization was designed and proposed by the authors. This Model allows to involve non-top developed regions into the innovative process. Besides SMEs' participation, the Model provides cooperation between other participants: research and innovative centers, universities, government structures, non-government organization, big corporations. It was studied how SMART contracts make review the business process and revolutionize it, improving difficult collaborations between business and science organizations. The fragment of possible Smart contract program code was regarded as an example.JEL: G12; G15; G24; G32

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