The purpose of this paper is to provide a brief explanation regarding the authorsâ current research in the field of the possible uses of smart contracts in cybercrime, focusing in particular on how the technology could provide a substitute for trust both in client-criminal transactions and in transactions taking place within criminal organizations. The authors share the conviction put forward by Alharby and Moorsel [1] in their 2017 analysis of blockchainbased smart contracts that there is a âlack of studies on criminal activities in smart contractsâ: while quality research does exist, including a paper by Juels et al. [2] detailing three types of such activities that can be facilitated by the technology, it is evident that the subject deserves a more widespread attention. Quality research, in fact, could play an important role in aiding authorities and regulators to understand the issue and react accordingly.
Consensus, or state machine replication is a foundational building block of distributed systems and modern cryptography. Consensus in the classical, "permissioned" setting has been extensively studied in the 30 years of distributed systems literature. Recent developments in Bitcoin and other decentralized cryptocurrencies popularized a new form of consensus in a "permissionless" setting, where anyone can join and leave dynamically, and there is no a-priori knowledge of the number of consensus nodes. So far, however, all known permissionless consensus protocols assume network synchrony, i.e., the protocol must know an upper bound of the network's delay, and transactions confirm slower than this a-priori upper bound. We initiate the study of the feasibilities and infeasibilities of achieving responsiveness in permissionless consensus. In a responsive protocol, the transaction confirmation time depends only on the actual network delay, but not on any a-priori known upper bound such as a synchronous round. Classical protocols in the partial synchronous and asynchronous models naturally achieve responsiveness, since the protocol does not even know any delay upper bound. Unfortunately, we show that in the permissionless setting, consensus is impossible in the asynchronous or partially synchronous models. On the positive side, we construct a protocol called Hybrid Consensus by combining classical-style and blockchain-style consensus. Hybrid Consensus shows that responsiveness is nonetheless possible to achieve in permissionless consensus (assuming proof-of-work) when 1) the protocol knows an upper bound on the network delay; 2) we allow a non-responsive warmup period after which transaction confirmation can become responsive; 3) honesty has some stickiness, i.e., it takes a short while for an adversary to corrupt a node or put it to sleep; and 4) less than 1/3 of the nodes are corrupt. We show that all these conditions are in fact necessary - if only one of them is violated, responsiveness would have been impossible. Our work makes a step forward in our understanding of the permissionless model and its differences and relations to classical consensus.
This report zooms in on the potential of blockchain to transform scholarly communication and research in general.<br><br>By describing important initiatives in this field, it highlights how blockchain can touch many critical aspects of scholarly communication, including transparency, trust, reproducibility and credit. Moreover, blockchain could change the role of publishers in the future, and it could have an important role in research beyond scholarly communication. <br>The report shows that blockchain technology has the potential to solve some of the most prominent issues currently facing scholarly communication, such as those around costs, openness, and universal accessibility to scientific information. <br>
A Company's Brand image is an intangible asset. Though Initial Public Offerings (IPOs) try to capture Brand Value, a company's share value is a result of several factors like performance, initial capital, investor identity etc. Moreover, time needed for a company to be listed runs into several months. Therefore, immediate capitalization of Brand Value is not possible. Initial Coin Offerings on the other hand deliver a wide range of possibilities not provided by IPOs. Most important among them is Brand Tokenization and Monetization. This paper explores Brand Tokenization and Monetization through ICOs (Initial Coin Offerings). Firstly, the concept of Brands and cryptocurrencies are explained. Then the concept of ICOs is discussed. I envisage a scenario where a company tokenizes its Brand and attempts to monetize it. We then evaluate the advantages that can accrue from such a venture. The paper concludes as to how Brand Tokenization and monetization can be realized through cryptocurrencies and its impact on future businesses.
Roman Beck, Christian Becker, Juho Lindman, Matti Rossi
This report documents the program and the outcomes of Dagstuhl Seminar 17132 "Opportunities and Risks of Blockchain Technologies". Blockchain-based applications such as Bitcoin or Ethereum are emerging technologies, but a dramatic increase in industrial and academic interest in the technology is evident. Start-Âups and large financial players are working intensely on blockchain-based applications, making this one of the most promising drivers of financial innovation. However, the design and implementation of blockchain-based systems requires deep technical know-how in various areas, as well as consideration of economic and societal issues. These opportunities and challenges provided the starting point for the Dagstuhl Seminar where we analyzed and synthesized the current body of knowledge on the emerging landscape of blockchain technologies. We linked cryptographic economic systems to already established research streams around trust-related issues in payment systems and digital currencies, and digital asset management.
Blockchain technology and its numerous applications have become a major catalyst of new ideas and solutions for the financial sector. A headline containing the word âblockchainâ attracts tons of attention from the media and new start-ups developing something in blockchain receive huge investments. But the theoretical framework for blockchain even for financial industry remains raw and empirical evidence is insufficient. In this study, we explore the theoretical framework for blockchain applications in accounting, identify the core benefits and downside, and discuss its implications for auditing and accounting in general and for credit risk management in particular. The research methodology of this study is designed to satisfy objectivist ontological position and positivist epistemological stance as the notion researched is considered to be primarily external to affected social actors, consequently the quantitative methods are used to establish the relationships between the variables, in turn the variables are produced by a deductive approach from general theories and ideas which exist in abundance in the area but lack empirical observations. A case study was consequently chosen as a research strategy to add a real-life touch to our statistical modelling. In the case study where we use financial data of Ericsson corporation to model theoretical effects of blockchain accounting on credit scores measures we add an empirical dimension to the research in a real-life context. Then we discuss the findings and try to draw general conclusions and identify consequences of the results for different affected parties. As it is always important to do when dealing with new technologies we discuss potential ethical advantages and issues resulting from the technologyâs implementation. The study aims to review the current theoretical framework for blockchain accounting in a coherent way as the current literature seems to be disjointed and multiple sources doesnât focus solely on accounting applications. The empirical study aims to identify a measurable material effect on a very specific problem of credit risk modelling under a broader blockchain accounting paradigm. There are two primarily findings of the research. Fist is the fact that the potential material effect of blockchain accounting on credit scores measures is confined within boundaries of actual volatility of quarterly credit scores and thus the technology will have larger implications for companies with high volatility of credit measures. The second finding is that the implications will be not solely positive in the form earlier identification of financial distress and quicker reaction to resolve the troubles but also may affect the company negatively by exacerbating the economic short-termism problem, the problem that hasnât been discussed in connection with blockchain accounting before.
This paper is exploring the possibilities to use the blockchain technology in agribusiness. Nowadays, the digital transition has resolutely conquered agriculture. Blockchain technology continues to show that it can turn many markets and economies, and agriculture could be one of them. The production growth to meet the demand, lead us to a radical change in agribusiness. Technology can be an important pillar for this transformation. Blockchain management is based on transparency, security and authenticity, could we apply those principles to the new agricultural industry? This study shows that Agricultural sector has a great need for information that support traceability. Each one of the actors concerned must turn to the other part of the value chain to better understand possible external factors and disruptive emerging technologies.
Two parties sign a contract but before they fully perform they modify the contract.Should courts enforce the modified agreement?The modification may enable efficient trade in response to changed circumstances, or one party may have made an efficient relationship-specific investment and then been held-up by the other.Courts have had difficulty tackling this problem because the facts required to discriminate between the two situations are non-verifiable.A private remedy is for the parties to write a contract that is robust to hold-up or that makes the facts relevant to modification verifiable.But implementing such remedies requires commitment to the provisions, i.e., they themselves are subject to non-compliance.Conventional contract technology, e.g., the use of liquidated damages, to ensure commitment are disfavored by courts and subject to renegotiation.Smart contracts written on blockchain ledgers may offer a solution.We explain the basic economics of these technologies.We argue that they can used to implement liquidated damages without court involvement and thereby obtain commitment to renegotiation design and revelation mechanisms.We address the hurdles courts may impose to use of smart contracts and argue that sophisticated parties' ex ante commitment to them may lead courts to allow their use as pre-commitment devices.
Blockchain technology emerged in 2009 together with the introduction of Bitcoin, the first virtual currency which enabled nodes in a network, that do not necessarily trust each other, to exchange digital value without the use of trusted intermediaries. Since then, the idea of disintermediation and decentralization has gained traction in a large number of applications outside the world of finance and virtual currencies. This thesis is written in collaboration with Scania, an automotive industry manufacturer, with the purpose of gaining a better understanding of blockchain technology and how it can be used in the transportation industry. This thesis proposes five potential blockchain use cases that aim to either enhance Scaniaâs existing services or to create new services. Out of these five use cases, one is deemed inappropriate in regards to the use of blockchain technology while the other four have potentials benefits. The common denominator among these use cases is that they are decentralized in nature meaning that the use of intermediaries is mitigated. It is recognized that all use cases could be implemented using traditional, centralized databases and that the use of blockchain boils down to a technology choice with its own trade-offs relative to other potential choices. This thesis concludes that blockchain technology offers a new kind of database architecture, the main benefit of which is that it lets several non-trusting entities agree on a common set of facts, without having a trusted intermediary establishing these facts.
Crptocurrency is a digital or virtual currency that uses cryptography for security, transfer process and storage in ledger.This paper is to validate the correlation between exchange rate changes and trading volume changes.Data selected for this study is hourly data starting from 4 November 2017 until 7 November 2017.Methodology implemented in this study started with normality diagnostics and followed by correlation diagnostic.In this study, Pearson correlation calculation is implemented to evaluate the association between two variables namely exchange rate and trading volume.Pearson's correlation coefficient (r) is a measure of the strength of the association between the two variables.Result shows the coefficient of association is 0.123.Therefore, this study proved that the association between exchange rate changes and trading volume changes is very weak association.This value occurred because there is high volatility in hourly data and existence of outliers.The significant of this finding will help investors to recognize the relationship between trading volume and exchange rate.Therefore, it will help investors to make better decision in developing investment portfolio.
A recent Eleventh Judicial Circuit Court of Florida decision has raised concerns over how both federal and state courts consider the unregulated cryptocurrency, Bitcoin. In State of Florida v. Michell Abner Espinoza, Judge Teresa Pooler held that Bitcoin did not fall under the statutory definitions of âpayment instrumentâ or âmonetary instrumentâ because virtual currency is not directly specified nor could it be included within one of the defined categories listed in Fla. Stat. § 560.103(29) or 896.101(2). Furthermore, Judge Pooler, alluding to the doctrine of lenity, refused to hold Espinoza responsible under a statute that is âso vaguely written that even legal professionals have difficulty finding a singular meaning.â Judge Pooler thus disagreed with earlier decisions by several federal judges. The federal courts have uniformly held that Bitcoin is âmoneyâ or âfundsâ for the purpose of money laundering. Additionally, the federal courts, analyzing the applicable federal money laundering statutes, have refused to apply the doctrine of lenity because there were no ambiguities such that âan ordinary person would [not] know that engaging in the challenged conduct could give rise to the type of criminal liability charged.â State and federal courts can interpret similar state and federal statutes in differing ways based on each statuteâs respective canon of construction and legislative intent. However, because the Florida Money Laundering Act (Fla. Stat. § 896.101) is modeled on the federal Money Laundering Control Act (18 U.S.C. § 1956), it is reasonable to assume that the courts would reach the same conclusion. Part I of this comment describes Bitcoin, discussing the cryptocurrencyâs origins as well as how it works. Part II analyzes both the state and federal antiâmoney laundering statutes in light of Florida v. Espinoza and the opinions of the federal courts. Part III discusses the state and federal business services statutes in light of Florida v. Espinoza and federal court decisions, including U.S. v. Ulbricht, which held Bitcoin to be within the plain meaning of âmoneyâ and âfundsâ under the applicable federal money laundering statute. Finally, Part IV of this paper addresses the public policy implications of how Bitcoin is interpreted under criminal statutes pertaining to money laundering. A brief synopsis will provide information on how other countries and states have considered Bitcoin and the steps that the U.S. Congress has begun to take to address Bitcoin in criminal prosecutions.
Blockchain technology has been raising enthusiasm over a variety of disciplines, from information technology and finance, to law and economics. Blockchain is a decentralized ledger, which facilitates trust and makes peer-to-peer transactions possible without a central third-party authority. Since 2008, cryptocurrency bitcoin has provided an example of how to implement a marketplace without a central authority by using blockchain technology . The fact that a broad range of economic and government activities rely on a centralized recording of the basic data of the economy makes this technology potentially significant. The utopian views of blockchain have argued that it will disrupt a wide range of markets by eliminating the need for intermediation. The objective of this thesis is to review the relevant literature related to the topic and provide a guide to what blockchain means in the field of economics. The published research is mapped through a three stage literature review, and based on this, it is organized in three main categories: monetary-, innovation- and governance-centred research. Even though the literature surrounding the topic is still in its infancy, the potential of blockchain technologies is recognized by the literature. From the monetary viewpoint blockchain gives unprecedented flexibility in designing the attributes of currencies in terms of supply, value and exchange. From the innovation viewpoint, blockchain can create both increased efficiency of existing markets but also profits through entirely new markets. From the governance viewpoint blockchain facilitates trust and can be instrumental in democratizing economy more towards peer-to-peer production and consumption. Rather than a single technology, blockchain should be understood as a part of a greater digital transformation. In this case, blockchain can play a role in unlocking the potential of digital commons as well as the sharing and platform economy through a decentralized, universal record-keeping system.
As a new Internet technology, Block chain is highly concerned because of its unique advantages in distributed ledger. Based on the theory of event approach accounting, this paper subdivides the accounting recognition into two processes, and explores the application of the Block chain in the processes. With the application of Block chain, it is possible to make accounting recognition multidimensional and achieve the fundamental recognition criteria.
In this article, we analyze the winds of change currently blowing on the booming multi-billion dollar global consumer electronics industry. The revolutionary impact of blockchain technology on supply chain management is discussed as well as potential use cases for the consumer electronics industry. The pivotal role played by the IoT (Internet of Things) industry segment is highlighted. Finally, we conclude by stating that blockchain technology has the power to make the world a more transparent, safer and honest place.