PREDICTIVE ANALYTICS FOR DECISION-MAKING IN DECENTRALIZED SYSTEMS

  • N.Y. Sergeev Southern Federal University
  • D.G. Veselova Southern Federal University
Keywords: Decentralization, dynamic systems, cryptocurrency, algorithmic trading, predictive analytics, blockchain

Abstract

Currently, the relevance of using crypto assets is growing rapidly. In recent years, cryptocurrency
trading has become one of the most discussed topics in the world of finance and investment.
Cryptocurrencies such as Bitcoin, Ethereum, attract the attention of millions of people due to their innovativeness,
high profit potential, and decentralization possibilities. The blockchain technology, on which
cryptocurrencies are based, is one of the most innovative and promising technologies in the market. Studying
cryptocurrency trading helps understand how private investors and companies can use blockchain
technologies for investment and business development. One of the main reasons for the popularity of
cryptocurrency trading is its high level of volatility. The cryptocurrency exchange rate can change quickly,
providing opportunities for profit. This article focuses on exploring the use of predictive analytics for
decision-making in decentralized systems using cryptocurrency trading on centralized and decentralized
exchanges as an example. The research conducted in this work aims to investigate decentralized and centralized
systems to further develop decision support systems. A general description and operation schemes
of decentralized and centralized dynamic systems are provided using cryptocurrency exchanges as a research
example. This scientific article examines the typical structure of centralized and decentralized
cryptocurrency exchanges, analyzing the fundamental components and principles of their functioning.
The article discusses the internal organization of the exchange, including the system for storing digital assets, transaction execution mechanisms, security provisions, and risk management. It also examines the
interaction between the exchange and market participants, as well as regulatory bodies. Furthermore, this
scientific article explores the rules and principles of operation for traders and market makers on centralized
and decentralized cryptocurrency exchanges. It covers the main strategies and tactics used by market
participants to ensure liquidity and optimize trading operations. The article compares the trading approaches
on different types of cryptocurrency exchanges considering their specific features and impact on
cryptocurrency price dynamics. The presented results can contribute to a deeper understanding of
cryptocurrency trading processes and optimize decision-making strategies for investors and traders in the
crypto asset market.

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Published
2024-05-28
Section
SECTION I. CONTROL SYSTEMS AND MODELING