Abstract Bitcoin provides its users with transaction-processing services which are similar to those of traditional payment systems. This article models the novel economic structure implied by Bitcoin’s innovative decentralized design, which allows the payment system to be reliably operated by unrelated parties called miners. We find that this decentralized design protects users from monopoly pricing. Competition among service providers within the platform and free entry imply no entity can profitably affect the level of fees paid by users. Instead, a market for transaction-processing determines the fees users pay to gain priority and avoid transaction-processing delays. The article (i) derives closed-form formulas of the fees and waiting times and studies their properties, (ii) compares pricing under the Bitcoin Payment System to that under a traditional payment system operated by a profit-maximizing firm, and (iii) suggests protocol design modifications to enhance the platform’s efficiency. The Appendix describes and explains the main attributes of Bitcoin and the underlying blockchain technology.
Investor and media attention in Bitcoin has increased substantially in recently years, reflected by the incredible surge in news articles and considerable rise in the price of Bitcoin. Given the increased attention, there little is known about the behaviour of Bitcoin prices and therefore we add to the literature by studying price clustering. We find significant evidence of clustering at round numbers, with over 10% of prices ending with 00 decimals compared to other variations but there is no significant pattern of returns after the round number. We also support the negotiation hypothesis of Harris (1991) by showing that price and volume have a significant positive relationship with price clustering at whole numbers.
The internet of things (IoT) enabled a common operating picture (COP) across the various applications of modern day living. The COP is achieved through the advancements seen in wireless sensor network devices that were able to communicate through the network thereby exchanging information and performing various analysis. In IoT, the exchange of information and data authentication is only done through the central server there by leading to the security and privacy concerns. Chances of device spoofing, false authentication, less reliability in data sharing could happen. To address such security and privacy concerns, a central server concept is eliminated and blockchain (BC) technology is introduced as a part of IoT. This paper elaborates the possible security and privacy issues considering the component interaction in IoT and studies how the distributed ledger based blockchain (DLBC) technology contribute to it. Applications of BC with respect to focused sectors and category were clearly studied here. Various challenges specific to IoT and IoT with BC were also discussed to understand blockchain technology contribution.
The Internet of Things has a number of well-publicised security flaws, resulting in numerous recent attacks.In this paper we lay out a framework for looking at how distributed ledgers and Blockchain technology can be used to enhance the security, privacy and manageability of IoT devices and networks.A significant concern is the inability to process blockchains on small devices.We propose an architecture for IoT security and privacy based on blockchains that addresses this and other issues.We look at related work and propose areas of further research.
The Blockchain technology will soon be ten years of age. What does not sound a lot in absolute terms is a substantial age in a fast-paced and ever changing technological environment. Large unnoticed by the majority of authors on distributed ledger technologies two alternative technologies have recently emerged: Tangle, and Hashgraph. This article provides an introduction to the three main alternative distributed ledger technologies, Blockchain, Tangle and Hashgraph and yields a high-level comparison.
Distributed cryptographic ledgers, such as the blockchain, are now being used in recordkeeping. However, they lack a key feature of more traditional recordkeeping systems needed to establish the authenticity of records and enable reliance on them for trustworthy recordkeeping. The missing feature is known in archival science as the archival bond -- the mutual relationship that exists among documents by virtue of the actions in which they participate. In this paper, we propose a novel data model and syntax using core web principles that can be used to address this shortcoming in distributed ledgers as recordkeeping systems.
Distributed ledger technology (DLT) is a database architecture which enables the keeping and sharing of records in a distributed and decentralized way, while ensuring its integrity through the use of consensus-based validation protocols and cryptographic signatures. In principle, DLT has the potential to reduce costs and increase the efficiency of securities settlement, the ultimate step of every security transaction. In this paper, we first examine to what extent DLT could add value and change securities settlement. We then characterize the innovation process in the post-trade industry and finally, we describe the economics of a hypothetical DLT-based security settlement industry. Our main conclusions are that: i) DLT has the potential to improve efficiency and reduce costs in securities settlement, but the technology is still evolving and it is uncertain at this point what form, if any, a DLT-based solution for securities settlement will ultimately take, ii) technological innovation in the post-trade industry is more likely to achieve its potential with some degree of co-ordination which could be facilitated by the relevant authorities, and iii) if DLT-based securities settlement becomes a reality, then it is likely to be concentrated among few providers which, in the absence of regulation, could result in inefficient monopoly pricing or efficient price discrimination with service providers capturing much of the market surplus.
Jan 1, 2017·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Blockchain is an emerging technology that is perceived as groundbreaking. However, blockchain presents incumbent organizations with significant challenges. How should they respond to the advent of this innovative technology, and how can they build the capabilities that are necessary to successfully engage with blockchain? In this case study, we analyze how an incumbent bank deals with the radical innovation of blockchain. We find that blockchain as an innovation is unique, because its transaction cost-lowering nature requires cooperation not only on an intra-organizational, but also on an inter-organizational level to fully leverage the technology. We develop a framework illustrating how the process of discovering, incubating, and accelerating with blockchain can look like. Our research is one of the first case studies in the area; shedding light on the organizational challenges of incumbents as they engage with blockchain. The paper provides a blueprint for business executives in their endeavor of embracing blockchain technology.
The know-your-customer (KYC) due diligence process is outdated and generates costs of up to USD 500 million per year per bank. We propose a new system, based on distributed ledger technology (DLT) that reduces the costs of the core KYC verification process for financial institutions and improves the customer experience. In the proposed system, the core KYC verification process is only conducted once for each customer, regardless of the number of financial institutions with which the customer intends to work. Thanks to DLT, the result of the core KYC verification can be securely shared by customers with all the financial institutions that they intend to work with. This system allows for efficiency gains, cost reduction, improved customer experience, and increased transparency throughout the process of onboarding a customer.
Jan 1, 2017·AJIS. Australasian journal of information systems/AJIS. Australian journal of information systems/Australian journal of information systems
The fourth industrial revolution, which will alter the globe, is commonly referred to as Blockchain technology. Blockchain technology provides a decentralized, distributed, and central authority-free environment. Since Bitcoin launched Blockchain, research has been continuing on non-financial use cases to extend their applicability. Healthcare is an industry with a significant influence on the Blockchain. Healthcare has penetrated the enthusiasm for the changing nature of Blockchain technology. Blockchain is frequently viewed as the most necessary and optimal healthcare technology to handle sophisticated and complex security and interoperability concerns. More significantly, the “value” and trust-based system’s smart contract mechanism can offer automatic action and reaction. Healthcare, on the other hand, is a complex system. In this paper, we introduce the blockchain and its properties, as well as the significance of the blockchain in healthcare. It also provides blockchain administration, adjudication of claims, interoperability, and application. While in several situations, we observed blockchain technology, the use of blockchain in health care was highly addressed in this paper and the reason why blockchain should be utilized. We introduce the advantages of blockchain as well. Furthermore, we examined the difficulties and prospects for the future and how they may be implemented in more healthcare industries. The paper also discusses the current level of Blockchain application development for healthcare and its limits and topics for further research. This paper aims to demonstrate how Blockchain technologies may be utilized in healthcare and what problems this technology may face in the future and what the Blockchain’s prospects are.
Open access
13 source records
Blockchain Technology Applications and Security
IoT and Edge/Fog Computing
Artificial Intelligence in Healthcare and Education
This article examines data protection on blockchains and other forms of distributed ledger technology. Whereas the General Data Protection Regulation was fashioned for centralised methods of data collection, storage and processing, blockchains decentralise each of these processes. We engage with the resulting tensions in the below analysis.
Jan 1, 2017·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Juho Lindman, Virpi Kristiina Tuunainen, Matti Rossi
Blockchain technologies offer new open source-based opportunities for developing new types of digital platforms and services. While research on the topic is emerging, it has this far been predominantly focused to technical and legal issues. To broaden our understanding of blockchain technology based services and platforms, we build on earlier literature on payments and payment platforms and propose a research agenda divided into three focal areas of 1) organizational issues; 2) issues related to the competitive environment; and 3) technology design issues. We discuss several salient themes within each of these areas, and derive a set of research question for each theme, highlighting the need to address both risks and opportunities for users, as well as different types of stakeholder organizations. With this research agenda, we contribute to the discussion on future avenues for Information Systems research on blockchain technology based platforms and services.
In recent decades, the ad hoc network for vehicles has been a core network technology to provide comfort and security to drivers in vehicle environments. However, emerging applications and services require major changes in underlying network models and computing that require new road network planning. Meanwhile, blockchain widely known as one of the disruptive technologies has emerged in recent years, is experiencing rapid development and has the potential to revolutionize intelligent transport systems. Blockchain can be used to build an intelligent, secure, distributed and autonomous transport system. It allows better utilization of the infrastructure and resources of intelligent transport systems, particularly effective for crowdsourcing technology. In this paper, we proposes a vehicle network architecture based on blockchain in the smart city (Block-VN). Block-VN is a reliable and secure architecture that operates in a distributed way to build the new distributed transport management system. We are considering a new network system of vehicles, Block-VN, above them. In addition, we examine how the network of vehicles evolves with paradigms focused on networking and vehicular information. Finally, we discuss service scenarios and design principles for Block-VN.
Objective: The main purpose of the paper is to show that blockchain technology may disrupt the existing business models and to explore how this may occur. Research Design & Methods: This is a theory development paper which relies on a literature review and desk re-search. The discussion of the reviewed sources leads to the formulation of three re-search propositions. Findings: The paper provides a short overview of key literature on business models and business model innovation, indicating, among others, that new technologies may be one of the drivers of business model innovation. This study also provides an overview of blockchain technology and a range of its business applications showing how it can disrupt business models. It is shown that blockchain technology may affect many dimensions of business models. We propose that there are three crucial ways in which blockchain technology can affect and disrupt business models: by authenticating traded goods, via disintermediation and via lowering transaction costs. Implications & Recommendations: This study shows that blockchain technology may affect diverse dimensions of business models in diverse industries. It is recommended that mangers should follow developments in this field in order to prepare for possible disruptions in their industries. Contribution & Value Added: This study provides an analysis of the possible impact of blockchain technology on business model innovation. Blockchain technology is gaining momentum with more and more diverse applications, as well as increasing numbers of actors involved in its applications. This paper contributes to our understanding of the possible applications of blockchain technology to businesses, and in particular to its impact on business models.
Jan 1, 2017·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Technological innovation and consequential decentralisation are driving forces in the ongoing evolution and increasing openness of digital infrastructures and services. One of the most discussed and allegedly disruptive innovations is the distributed database technology referred to as blockchain. Although it is still in its technological infancy, experimental adoption and customization seem to be in full progress in various potential fields of application ranging from decentralized grids for computation and storage to global financial services. However, the technology and its path of development still entail a lot of common unknowns for practitioners and researchers alike. Especially regarding the question how the technology could amend or be incorporated into the existing landscape of digital services, processes and infrastructures. Hence, in this article we develop an ontology that (1) clearly delineates common terminology, core concepts and components, their relationships as well as innovative features of blockchain technology. It further (2) connects these insights with implications for relevant types of digital market models. Our framework is of high theoretical and practical value as it provides researchers and practitioners a common basis for communication and means for guided analysis of blockchain applicability.
Kentaroh Toyoda, P. Takis Mathiopoulos, Iwao Sasase, Tomoaki Ohtsuki
For more than a decade now, radio frequency identification (RFID) technology has been quite effective in providing anti-counterfeits measures in the supply chain. However, the genuineness of RFID tags cannot be guaranteed in the post supply chain, since these tags can be rather easily cloned in the public space. In this paper, we propose a novel product ownership management system (POMS) of RFID-attached products for anti-counterfeits that can be used in the post supply chain. For this purpose, we leverage the idea of Bitcoin's blockchain that anyone can check the proof of possession of balance. With the proposed POMS, a customer can reject the purchase of counterfeits even with genuine RFID tag information, if the seller does not possess their ownership. We have implemented a proof-of-concept experimental system employing a blockchain-based decentralized application platform, Ethereum, and evaluated its cost performance. Results have shown that, typically, the cost of managing the ownership of a product with up to six transfers is less than U.S. $1.