A smart legal contract is a binding contract in which some or all the contractual terms are defined in and/or performed automatically by a computer program. It runs on a blockchain platform and carries the features of the blockchain of being automatically self-executed, and immutable, providing permanent records with real-time information, and reducing cumbersome documentation using high processing power. In major jurisdictions around the world, it is generally recognised that the smart legal contract is capable of having contractual force just like a traditional natural language contract. It has the potential to have entire complex commercial contracts written in and executed by computer codes. This chapter explains the concept and operation of the smart legal contract. Its advancement as an integral part of legal practices and a mainstream area of law is described in chronological order. The judgement of the first significant case relating to the use of smart contracts is unpacked. Whilst the acceptance of smart contracts by legal practices has gained pace, novel legal issues have been emerging in this area of law. This chapter identifies and proposes solutions to key legal issues arising from the operation of computer code and the resolution of disputes of smart legal contracts.
This study delves into the integration of Decentralized Finance (DeFi) within metaverses, probing its implications and potential. It elucidates DeFi protocols and the intricacies of metaverses before inspecting their intersection and the resulting economic prospects. The analysis further appraises inherent risks such as financial volatility, security, and regulatory issues. Case studies provide tangible insights into DeFi applications in metaverses. Future trajectories of DeFi in metaverses are projected, underlining the possible impact on the broader financial sector. This paper contributes to burgeoning research at the nexus of blockchain technology, finance, and virtual reality.
Muhammad Imran Sarwar, Kashif Nisar, Imran Khan, Danish Shehzad
A blockchain is a distributed ledger (DL) that records and tracks of transactions on a P2P network. It was originally designed for cryptocurrencies, but it is now used in healthcare, supply chain management, finance, and many more fields due to its security and trustworthiness. Trust and security are critical factors in any business, and the B2B model is no exception. In businesses, trust becomes more critical when the stakes are higher and the relationships are more complex. Centuries-old Double-Entry Accounting (DEA) is still used as an underlying accounting practice, and its reliability and efficiency are beyond question. But a critical review of DEA reveals that it lacks support for B2B transactions, as the two parties maintain their accounting books without cross-checks and verifications that may lead to an implausible situation. Triple-Entry Accounting (TEA) is an emerging accounting practice introduced in the recent past to overcome the limitations of DEA. It only applies if an outside person or business is involved in a transaction and is not meant to record any internal business transactions. Recording transactions on a blockchain and entering the third transaction via TEA are conceptually the same. The potential of blockchain-based TEA can address the challenges of the B2B business model and overcome some specific limitations of DEA. This study aims to survey the current state of the adaptation of blockchains and TEA in B2B transactions. The methodology used in this study can be classified as exploratory qualitative research and is based on the latest literature on the topics. The findings of this study would deepen our understanding of blockchains and TEA for B2B transactions as they highlight new opportunities and challenges.
In the field of smart communities, significant progress has been made in recent years. The objective of constructing smart communities is to improve the quality of life of their inhabitants. To accomplish this objective, technologies such as Internet of Things (IoT) and Artificial Intelligence (AI) were deployed. The data gathered and processed by IoT devices , particularly those with centralized control, are however susceptible to availability, integrity, and privacy risks. Due to its inherent properties of transparency, immutability, and underlying secure-by-design architecture, Distributed Ledger Technology (DLT) and Smart Contracts enable distributed, decentralized, automated workflows that can be incorporated to automate the management of the next generation of IoT networks. Using a potential use case, a conceptual architecture for securing smart communities with DLT is developed and explained. In this paper, a framework for IoT eco-systems is proposed that provides seamless integration between IoT and DLT to create a decentralized trusted architecture that ensures the trustworthiness of IoT eco-systems at design time and a trust reputation model based on the architecture to protect it at run-time. In addition, the initial implementation steps are described for this framework.
Since its first appearance as the infrastructure supporting Bitcoin, blockchain has received different waves of attention from practitioners and academics. Besides the degree of interest, the attention to blockchain has often focused not merely on its own potential and characteristics but on its applications field. However, looking at its application and deployment in domains other than cryptocurrency or the nascent non-fungible tokens (NFTs), blockchain technology does not seem to be widely adopted or is still in its early stages. Given this, we are interested in how managers and the general public are informed about new technology other than through academic papers or the specialized press. In this paper, we analyze how blockchain has been presented by speakers invited to give TED and TEDx Talks to identify the most common terms used to present blockchain in these talks using a multi-methods approach (qualitative analysis and big data analysis) and see if the discourse surrounding blockchain has shifted over time. The results of this study show how the different perspectives brought by broadcasters like TED often overshadow a technological innovation like the blockchain in its evolution and application by the fact that the focus is instead shifted to products and services built on it. Also, this study shows how different degrees of attention and expertise are associated with each fashion wave of new or emergent technology innovations.
With the advent of decentralised digital currencies powered by blockchain technology, a new era of peer-to-peer transactions has commenced. The rapid growth of the cryptocurrency economy has led to increased use of transaction-enabling wallets, making them a focal point for security risks. As the frequency of wallet-related incidents rises, there is a critical need for a systematic approach to measure and evaluate these attacks, drawing lessons from past incidents to enhance wallet security. In response, we introduce a multi-dimensional design taxonomy for existing and novel wallets with various design decisions. We classify existing industry wallets based on this taxonomy, identify previously occurring vulnerabilities and discuss the security implications of design decisions. We also systematise threats to the wallet mechanism and analyse the adversary's goals, capabilities and required knowledge. We present a multi-layered attack framework and investigate 84 incidents between 2012 and 2024, accounting for $5.4B. Following this, we classify defence implementations for these attacks on the precautionary and remedial axes. We map the mechanism and design decisions to vulnerabilities, attacks, and possible defence methods to discuss various insights.
Open access
5 source records
Blockchain Technology Applications and Security
FinTech, Crowdfunding, Digital Finance
Advanced Steganography and Watermarking Techniques
Non-fungible tokens(NFTs) are on the rise. They can represent artworks exhibited for marketing purposes on webpages of companies or online stores -- analogously to physical artworks. Lending of NFTs is an attractive form of passive income for owners but comes with risks (e.g., items are not returned) and costs for escrow agents. Similarly, renters have difficulties in anticipating the impact of artworks, e.g., how spectators of NFTs perceive them. To address these challenges, we introduce an NFT rental solution based on a pay-per-like pricing model using blockchain technology, i.e., smart contracts based on the Ethereum chain. We find that blockchain solutions enjoy many advantages also reported for other applications, but interestingly, we also observe dark sides of (large) blockchain fees. Blockchain solutions appear unfair to niche artists and potentially hamper cultural diversity. Furthermore, a trust-cost tradeoff arises to handle fraud caused by manipulation from parties outside the blockchain. All code for the solution is publicly available at: https://github.com/asopi/rental-project
Raphael Excelsio Fredrich Paat, Paulus Kindangen, Lawren J. Rumokoy
Over the past few years, especially during the Covid-19 pandemic where many industries have turned to market digitization, transaction activities in crypto investment have increased quite significantly. The purpose of this research is to investigate how Investment Knowledge and Fear of Missing Out influence young adult's Investment Intention in cryptocurrency assets. This research was conducted with a quantitative approach by analyzing the Linear Regression equation using the Ordinary Least Squares (OLS) technique to get the most relevant results. The data source used is primary, where data is collected through a questionnaire with a total of 125 respondents among young adults in the city of Manado. Data processing uses several software, such as Stata 16/MP and Microsoft Excel 2013.The results of this study indicate that there is a positive influence related to Investment Knowledge and Fear of Missing Out on Investment Intention. Knowledge of investment can increase the intention of young adults to invest in cryptocurrency assets. Meanwhile, fear of missing out also has the ability to trigger investment intention among young adults in cryptocurrency assets. This study recommend that the developers should be able to provide in-depth information related to crypto, also information about systematics and instruments in order to attract more investors and strengthen the market of digital investment. Keywords: Cryptocurrency, investment behavior, FOMO, digital investment, fintech
Abstract: Know your client or simply KYC, is a process utilized by businesses and financial institutions to identify their clients and evaluate any potential risks associated with illegal intentions and unethical behavior. The term KYC often refers to bank regulations and anti-money laundering regulations aimed at governing these activities. Due to concerns over bribery and unethical behavior, companies of all sizes are required to implement KYC to ensure their agents, consultants, and distributors comply with anti-bribery regulations. Despite the use of traditional KYC systems, there are limitations to their effectiveness. To address these limitations, a proposed system has been developed that uses the immutable nature of Distributed Ledger Technology (DLT) to create a tamper-proof system. This system enables customers and financial institutions to verify and record KYC documents on the DLT, providing greater efficiency, cost reduction, improved customer experience, and end-to-end transparency in integrating customer documents into the bank's database. Additionally, this system eliminates the need for repeated KYC checks performed by banks through the creation of a secure and common blockchain database. The blockchain's secure nature ensures that unauthorized changes to the data are immediately invalidated and the use of a proof-of-reputation concept makes the verification process more robust.
<ns3:p> <ns3:bold>Background:</ns3:bold> Traditional publishing models, open access and major publishers, cannot adequately address the key challenges of academic publishing today: Speed of peer review, recognition of work and incentive mechanisms, transparency and thrust of the system. </ns3:p> <ns3:p> <ns3:bold>Methods:</ns3:bold> To address these challenges, the authors propose Decentralised Academic Publishing (DAP), which is based on the novel HashNET DLT platform. The DAP introduces several innovative components: tracking the activities of all participants in the peer review process using blockchain and smart contracts, the introduction of the Scholarly Wallet for holding reputation (non-fungible) and reward (fungible) tokens, the use of the Scholarly Wallet as the main interface to the DAP platform, the Virtual Editor that enables automatic discovery of the research area and invitation of reviewers, and finally the global database of evaluated reviewers, ranked by the quality of their previous work. </ns3:p> <ns3:p> <ns3:bold>Results:</ns3:bold> The DAP platform is in the development phase, with the design and functionalities of all modules defined. An exception is the central component of DAP, the Scholarly Wallet module, whose first prototype has already been created, tested and published. The implementation of DAP is planned for the next phase of the HorizonEurope TruBlo project and other research initiatives. The DAP platform will be connected to the publishing ecosystem: 1) as a backend system (distributed blockchain database) for existing publishing platforms and 2) as a standalone publishing platform with its own API interface. </ns3:p> <ns3:p> <ns3:bold>Conclusions:</ns3:bold> The authors believe that DAP has the potential to significantly improve academic peer review and knowledge dissemination. It is expected that the use of blockchain technology, the fast HashNET consensus platform and tokens for reward (fungible) and reputation/ranking (non-fungible) will lead to a more efficient and transparent way of rewarding all participants in the peer review process and ultimately advance scientific research. </ns3:p>
The development of smart contracts in the Ethereum Virtual Machine (EVM) can be a complex task, both for experienced and beginner developers. Understanding these contracts can be challenging for both technical and non-technical users, due to the difficulty in comprehending the connection between the elements and resources available, as there is no clear way to visually present the functionalities of a contract and its relationships. In this paper, we introduce the Smart Contract Modeling Tool (SCMTool), a graphical tool based on the Model-Driven Engineering approach, that allows users to specify models that represent the structure of a smart contract in a simpler and more intuitive way. The tool was validated using a use case from the NFT industry.
The article states that decentralization is one of the trends in the modern global finance market. The growth and active development of the Islamic finance and banking industry, the growth in the number of Muslims in the world and other factors determine the interest of researchers in digitalization issues. This paper is devoted to the study of the possibilities, approaches and views on the use of digital currencies from the point of view of Islamic finance. Methods of analysis and synthesis, comparative analysis is used. The approaches of various countries of the Muslim world to the introduction of digital currencies are analyzed, ongoing projects are considered. In the Islamic world, there has not yet been a consensus on the permissibility and scope of the possible use of digital currencies. The authors conclude that, in general, digital currencies can be harmoniously used within the concept of Islamic finance. This is facilitated by such factors as the transparency of decentralized finance and digital currencies, the contribution to the protection of the wealth of society, the focus on social benefits, which is in line with the good goals of Islamic finance and its social value.
Kyungchan Ko, Taeyeol Jeong, Jong-Soo Woo, James Won‐Ki Hong
Abstract This paper presents a survey of non‐fungible tokens (NFTs), including its history, technologies, standards, and challenges in their development. An NFT is a unique digital entity that is created and maintained using blockchain technology. Each NFT is identified using a unique smart contract and a token ID, so the whole history of the NFT can be globally identified by its address and token ID. The blockchain information indelibly identifies the current owner of any asset, previous owners, and original creator. NFTs are used to manage ownership of digital and physical assets and cryptocurrencies. The prices of popular NFTs have become very high, and the market for them has overheated in recent years. NFT technology and its ecosystem have evolved since Quantum, the first NFT, was stored in the Namecoin blockchain. Ethereum has become the main platform for NFT projects because it provides support for smart contracts. Currently, almost all NFT projects are launched on the Ethereum blockchain. NFT has two major standards called ERC‐721 and ERC‐1155, which have had important functions in the development of NFT. Starting with these two standards, other standards for NFT continue to emerge; they expand the functionality of NFT such as by adding utility. However, NFT is a very early technology, and it has not been long after the NFT concept was created and used. So there are several challenges for further improving NFT technology, in terms of usability, interoperability, and evolution. This paper presents a survey of NFT, including its history, technologies, standards, and challenges of NFT.
A well-known use of the blockchain technology is Decentralized Finance (DeFi). DeFi makes financial information accessible to the public but raises potential privacy and security issues. In this study, we implemented a DeFi protocol that protects privacy, which is based on the Mystiko.Network protocol. As a proxy between the user and DeFi platforms, the Mystiko.Network protocol offers an auditable confidentiality mechanism for blockchain transactions. Via the new system, users may submit anonymous DeFi transactions and get income back into a shielded tokens pool. Moreover, we implemented a rollup approach to handle anonymous DeFi transactions in groups. The evaluation results suggest that the protocol is both practical and affordable, in fact it is able to save around 90% of the cost for DeFi transactions.
Abstract. Cryptocurrenciesis one of the digital currencies of innovation in the development of digital financial system infrastructure in the modern era. There are views aboutcryptocurrencies, there is a profitable opportunity by involving cryptocurrenciesinto the economy and monetary system. This study aims to examine the impact that can be caused by cryptocurrencies. This study uses a qualitative method with systematic literature review (SLRs). Based on the findings and results of the study it can be concluded that there is a positive impact cryptocurrencies regarding the function of the monetary system, namely ease of access, security and stability of the financial system which can influence economic growth, the central authority needs to make strict regulations involving innovation infrastructure cryptocurrenciesand building system infrastructurevirtual currencywith rules that focus on building infrastructure on stablecoinsto be involvedcryptocurrenciesinto systems and policies to strengthen the financial ecosystem.
 Abstrak. Cryptocurrency merupakan salah satu mata uang digital dari inovasi pengembangan infrastruktur sistem keuangan digital di era modern. Terdapat pandangan mengenai cryptocurrency, ada kesempatan menguntungkan dengan melibatkan cryptocurrency kedalam ekonomi dan sistem moneter. Penelitian ini bertujuan untuk mengkaji dampak yang dapat ditimbulkan oleh cryptocurrency. Penelitian ini menggunakan metode kualitatif dengan systematic literature review (SLR). Berdasarkan temuan dan hasil penelitian dapat disimpulkan bahwa terdapat dampak positif cryptocurrency terhadap fungsi sistem moneter yaitu kemudahan akses, keamanan dan stabilitas sistem keuangan yang dapat berpengaruh mendorong pertumbuhan ekonomi, Otoritas pusat perlu membuat regulasi dengan ketat yang melibatkan infrastruktur inovasi cryptocurrency dan membangun infrastruktur sistem virtual currency dengan aturan yang berfokus membangunan infrastruktur pada stablecoin untuk dapat melibatkan cryptocurrency ke dalam sistem dan kebijakan untuk memperkuat ekosistem keuangan.
Purpose: This study aims to examine the impact of behavioral finance factors on the investment decisions of Gulf investors in the cryptocurrency market. Theoretical Framework: The study is based on the behavioral finance theory, which highlights the role of emotions and cognitive biases in shaping investment decisions. It examines the investment behavior and decision-making of Gulf investors in the cryptocurrency market using a comprehensive set of factors, including herding, heuristics, prospect, market, familiarity bias, and self-attribution bias. Design/Methodology/Approach: Primary data is collected through a survey-based approach using a 23-question distributed at the country level covering the United Arab Emirates, Kuwait, Qatar, and Saudi Arabia. The study analyzes the data collected using statistical methods to study the impact of behavioral finance factors on the investment decisions. Findings: The results show that herding and heuristics strongly influence investment decisions in the cryptocurrency market among Gulf investors. The prospect factor positively affects investment decision-making in KSA and Qatar but not in UAE and Kuwait. The market factor is a significant determinant of investment behavior, and investors in UAE and Qatar are more cautious and risk-averse compared to KSA and Kuwait. The familiarity bias factor has different effects on investment decision making in KSA and UAE. Research, Practical & Social Implications: This study offers valuable insights into how behavioral finance factors impact investment decisions in the cryptocurrency market. These findings can be useful to investors and financial institutions in developing investment strategies that take into account the cognitive and emotional biases of investors. Originality/Value: The study uses a comprehensive set of behavioral finance factors and includes respondents from four Gulf countries. Therefore, the study contributes to the existing literature by providing unique insights into the investment behavior and decision-making of Gulf investors in the cryptocurrency market.
Auwal Adam Sa’ad, Raja Rehan, Abubakar Abukakar Usman, Adnan Opeyemi Salaudeen
<ns4:p>The metaverse is a virtual world that exists alongside the actual world. While the actual world refers to the real, physical world, the metaverse is a digital world that is accessed through technology. Evidently, several international brands have integrated their businesses with the virtual metaverse providing business opportunities. However, there are currently several gaps in the sector of Shariah finance that need to be addressed in order to take full advantage of the potential of the metaverse. For instance, rare studies enlighten the concept of Ijarah, a substitute for conventional leasing in the metaverse virtual world. Undoubtedly, the metaverse has the potential to revolutionize the Shariah finance industry by providing new opportunities for financial inclusion and innovation. Therefore, for the readiness of Islamic finance institutions, this study is an attempt to explore the possibility of executing Shariah principles that could be utilized in the metaverse. More specifically, this study is an endeavor to explore and discuss how Shariah-based leasing i.e., Ijarah integrates with the recent metaverse technologies. Additionally, this study also discusses the metaverse evolution and its integration into international business brands, the metaverse virtual assets ownership, the metaverse virtual leasing, non-fungible tokens (NFTs), and virtual real estate in the metaverse. Indeed, this study is a novel addition to the Shariah finance literature, which helps policymakers to generate new strategies that guide the execution of Ijarah contracts in the virtual universe of the metaverse.</ns4:p>
Abstract In July 2020, the Chinese government warned that the Plus Token was a Ponzi scheme based on blockchain. More than 200 million investors were involved in this scam. We investigate how investors' search behaviour is associated with their decision making. We find that the bitcoin bag of words Baidu index is positively and significantly related to bitcoins transferred to Plus Token addresses, suggesting that public prominence of searches about bitcoin and blockchain tends to be related to investor decisions regarding the Plus Token project.
Mohammed Abdulrahman Shafei Abdulrahman Alkamali, Arieff Salleh bin Rosman
This research deals with the topic of the risks of virtual currencies and the possibility of investing in them, as it is one of the most important outputs of technological development in the last decade with a unique specification that some will accept as a method of payment. The research problem lies in the fact that virtual currencies are the subject of great controversy and disagreement in which there are many suspicions as it is fake and has no physical existence, from one hand, and in which you see the salvation from the control of the US dollar over the world, from the other hand. This is qualitative research the researcher relied on the descriptive, historical, and inductive approaches to answer the questions of this research and achieve its objectives. These approaches are characterized by flexibility in research and selection of appropriate tools in understanding, interpretation, and interpretation. This study reached several results, the most important of which is that there is no single legal framework within which Bitcoin and other cryptocurrencies are placed. The issue of their legality is still controversial among countries in the world, but their concept and mechanism of creation, work and exchange have become evident to everyone. The study reached several recommendations, the most important of which is that Digital currencies are growing day by day, and dealing with them may become a necessity. Therefore, jurists shall set rules that allow dealing with them after adhering to these rules. It also recommended developing a culture in society to raise awareness of the use of cryptocurrencies so that they are not exposed to any risks.
At present, the application of blockchain is still at the level of private chain, lacking of systematicness and comprehensiveness, neglecting the participation process of multi-agent stakeholders, and the overall application system is not clear. This paper aims at applying the blockchain technology to the field of e-agriculture, building the hierarchical theoretical framework of e-agriculture, and revealing the impact of blockchain on e-agriculture. Through dividing the hierarchy, this paper finally structures an innovative service UIS application system for e-agriculture using blockchain technology. The main conclusions are as follows: (1) the first step is to solve social problems; (2) economic tasks are influenced by social problems and focus on smart contracts; (3) sustainable improvement of environmental problems requires a balance between economic and social dimensions; (4) application system is constructed at the three levels of unity, information, and supply chain.
This research was conducted with the aim of knowing whether there is an effect of risk tolerance on cryptocurrency investment decisions. In this study, data analysis used a simple regression analysis method using the SPSS Statistics 25 application. Data sources used primary and secondary data while data types used quantitative data with an associative approach. The research population that was conducted by the researchers were active and inactive investors in cryptocurrency investing with a sample of 96 people from a small number of sub-districts across Indonesia. With data collection techniques through a questionnaire using a Likert scale. Based on the results of the t test, there is a significant influence of the Risk Tolerance variable on Cryptocurrency Investment Decisions
Proponents and developers of Web3 and blockchain argue that these technologies can revolutionize how people live and work by empowering individuals and distributing decision-making power. While technologists often have expansive hopes for what their technologies will accomplish over the long term, the practical challenges of developing, scaling, and maintaining systems amidst present-day constraints can compromise progress toward this vision. How technologists think about the technological future they hope to enable and how they navigate day-to-day issues impacts the form technologies take, their potential benefits, and their potential harms. In our current work, we aimed to explore the visions of Web3 and blockchain technologists and identify the immediate challenges that could threaten their visions. We conducted semi-structured interviews with 29 operators and professional investors in the Web3 and blockchain field. Our findings revealed that participants supported several ideological goals for their projects, with decentralization being a pivotal mechanism to enable user autonomy, distribute governance power, and promote financial inclusion. However, participants acknowledged the practical difficulties in fulfilling these promises, including the need for rapid technology development, conflicts of interest among stakeholders due to platform financing dynamics, and the challenge of expanding to mainstream users who may not share the "Web3 ethos." If negotiated ineffectively, these challenges could lead to negative outcomes, such as corrupt governance, increased inequality, and increased prevalence of scams and dubious investment schemes. While participants thought education, regulation, and a renewed commitment to the original blockchain ideals could alleviate some problems, they expressed skepticism about the potential of these solutions.
Many goods require certain conditions for their storage, such as temperature, humidity and arrangement, which are strictly specific. These include dangerous goods, medicines and goods with a limited shelf life. Servicing them in warehouses is an important task in order to be able to establish and monitor the flow of their transportation from the manufacturer’s warehouse to the end user. In this context, the use of modern technologies, such as IoT, makes it possible to facilitate the activity of logistics centers on the storage, receipt and loading of goods, tracking their location and condition, as well as the inventory of their availability. This paper proposes an integration model of blockchain technology and IoT for logistics business. This model uses smart contracts on the blockchain, and it is suitable for managing cross-docking warehouses and transportation.