A new approach to implementing state target programs based on blockchain and artificial intelligence technologies: from centralized will to distributed logic

Keywords: distributed ledger technology, public finance, decentralized autonomous organization (DAO), public administration, smart contracts, blockchain, state target programs, digital technologies, artificial intelligence, program-target method, digital governance, state programs.

Abstract

This article substantiates a new paradigm for managing state target programs based on distributed logic implemented through blockchain technologies and artificial intelligence (AI). The theoretical section analyzes the limitations of the centralized model for implementing state target programs, particularly high transaction costs, corruption risks, and management inefficiencies inherent in hierarchical systems. The research demonstrates that a distributed approach based on blockchain ensures data immutability and implementation transparency (through smart contracts and decentralized autonomous organizations), while AI application enables predictive analytics and dynamic resource planning, enhancing program adaptability. The authors propose a conceptual model of a «Distributed Target-Program» (DTP), which combines decentralized autonomous organizations (DAOs) for program management, smart contracts with KPIs for automatic performance control, a network of AI agents for monitoring and forecasting, and funding mechanisms through digital funds

The methodological section provides a systematic analysis of experiences implementing distributed logic elements in Ukraine and worldwide. Examples examined include Estonia’s blockchain-based integrity of state registries, UN/World Food Programme (WFP) projects using blockchain for humanitarian assistance, digitalization of public services in Ukraine (the «Diia» mobile application), and blockchain solution experiments in the public sector. The research includes comparative case analyses of Ukrainian examples, such as blockchain implementation in social assistance provision (WFP Building Blocks project in Ukraine), the scale of digital aid payments through «Diia» (eSupport program), and DAO technology application in public administration.

Special attention is given to assessing the regulatory compliance of the proposed solutions. The analysis covers current Ukrainian legislation in digital governance and public finance, as well as AI regulatory requirements according to the EU AI Act 2024/1689. The research demonstrates that implementing the DTP model requires legal framework adaptation (particularly defining DAO status and ensuring transparency and oversight of AI algorithms).

This work is valuable for researchers and practitioners in public administration as it combines an interdisciplinary approach (public administration, information technology, legal aspects) and offers an innovative vision for the digital transformation of state programs.

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Author Biographies

Alexander Kud , Simcord LLC , 18-A, Otakar Yarosh Street, Kharkiv, 61166, Ukraine

PhD in Public Administration and Management, CEO of Simcord LLC ,
18-A, Otakar Yarosh Street, Kharkiv, 61166, Ukraine

Oleksandr Basiuk , V. N. Karazin Kharkiv National University, 4, Svobody Sq., Kharkiv, 61022, Ukraine

Vice-director of the Simcord LLC (Kharkiv),
PhD-student
Education and Research Institute of Public Administration, V. N. Karazin Kharkiv National University,
4, Svobody Sq., Kharkiv, 61022, Ukraine

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Published
2025-06-04
How to Cite
Kud , A., & Basiuk , O. (2025). A new approach to implementing state target programs based on blockchain and artificial intelligence technologies: from centralized will to distributed logic. Pressing Problems of Public Administration, 1(66), 297-326. https://doi.org/10.26565/1684-8489-2025-1-14
Section
Public Service: Aspects and Practices