Digital Transformation of Jurisdictions: A Challenge to Traditional Public Administration or Natural Evolution?

Abstract

This article examines the transformation of traditional public administration models under the influence of digital jurisdiction transformation, which creates new challenges for sovereignty and control mechanisms. The main idea of the article is that effective digital transformation of jurisdictions requires the creation of new management models that integrate technological innovations with adaptive mechanisms of state control. The research is based on an institutional approach combined with neo-institutional theory and the concept of network governance, utilizing comparative analysis of the experience of the USA, EU, Japan, Switzerland, and other countries in the field of adaptive regulation of digital technologies. The authors identified three key foundations of transformation: changing the nature of information as a power resource, deterritorialization of power through the creation of transnational digital spaces, and the emergence of alternative sources of legitimacy. Platformization of social relations, algorithmization of decision-making processes, and blockchain technologies have created parallel governance systems that function outside traditional state hierarchy. The study systematizes global experience in creating adaptive mechanisms of state control through four groups of instruments: experimental regulatory regimes (fintech sandboxes), risk-based framework acts, algorithmic assessment procedures, and continuous regulatory monitoring. Three main models of adaptive regulation were identified: American decentralized, European centralized, and Japanese cooperative. Five directions for forming new management models are proposed: hybrid institutional structures, network forms of coordination, adaptive regulatory mechanisms, digital democracy, and international coordination. A practical example of integrating technological innovations with adaptive mechanisms of state control is the experience of the Ukrainian Bitbon System, which demonstrates the possibilities of tokenization, meta-contracts, and decentralized coordination for overcoming jurisdictional blurring problems. The main conclusions emphasize the need to transition from a monocentric to a polycentric governance system with multiple actors and sources of power. For the Ukrainian context, the implementation of a modular, risk-oriented control system with a cyclical "detection–experiment–assessment–correction" approach and the creation of "umbrella sandboxes" for coordination between regulators is recommended.