Blockchain Papers

Kathy Nicolaou-Manias, Yuchen Wu

No abstract is available for this record.

Benedikt C. Eikmanns, Pascal Mehrwald, Isabell M. Welpe, Philipp Sandner

Similar to mobile operating systems, public blockchain infrastructures, such as Ethereum, represent a platform for the development of software applications. Since 2020, we observe the emergence of a rapidly evolving ecosystem of blockchain-based applications called Decentralized Finance (DeFi), which aspires to challenge traditional finance and associated business models. To explore the economic structures that constitute DeFi, we follow an interdisciplinary approach, supplementing information systems (IS) research with strategic management literature. We apply the theoretical lens of strategic groups to identify platform-specific dimensions and conceptualize DeFi as a hierarchical structured platform economy consisting of four strategic groups, namely 1) Token Management Applications, 2) Protocol Platforms, 3) Aggregation Platforms, and 4) Decentralized Financial Services Solutions. Further, we give a market overview of DeFi applications and discover archetypal attributes of the respective groups. Lastly, we present an integrated framework for the analysis of software-based platform ecosystems and derive areas for future research.

Tamás János Katona

With the adoption of blockchain technology, initiatives to provide financial, investment and insurance services to a wide range of users in a decentralized manner have emerged. But can decentralized finance be the alternative to the traditional financial system, or has it only created another "technology playground" for users who are biasedly enthusiastic about crypto-assets? The study examines the key definitions of decentralized finance and then synthesizes them to formulate a new, more complete definition. This is followed by a presentation of the different layers of decentralized finance and their prevalence, as well as an analysis of its benefits and risks. In the conclusions, the author finds that decentralized finance has the potential to provide financial services with an open, transparent and robust infrastructure, and has the possibility of reaching a broad range of users with its basic financial services. However, this requires further development of the sector and effective management of emerging risks.

Iwa Salami

Decentralized finance (DeFi) is an ecosystem of financial applications that are built on top of blockchain networks. DeFi aims to create an open-source, permissionless, and transparent financial system that operates without any central authority. Instead, a smart contract—which is a self-executing contract with the terms of the agreement between transacting parties written into lines of code—replaces financial institutions in the transaction. As a result, DeFi is available to everyone with reliable access to electricity and Internet connectivity. It also serves as a form of non-custodial finance since users maintain full control of their assets and transact through smart contract programs that facilitate peer-to-peer interactions. While DeFi presents huge opportunities, it also poses significant risks to traditional finance ecosystems, including the use of stablecoins and the absence of a know-your-customer framework. This essay argues that for DeFi to secure credibility, it needs to be adequately regulated in a way that aligns with how the technology works.

Eva Meyer, Isabell M. Welpe, Philipp Sandner

No abstract is available for this record.

Radostina Dimova

A way to enable full decentralisation in our P2P- oriented economy are ‘Smart Contracts’,a term coined by Nick Szabo.<br> These smart contracts enforce a set ofpredefined rules which are coded as logic to orchestrate agreement between different entities. .The current implementation makes the use of smart contracts deployed on the Ethereum blockchain that provides full-fledged car sharing functionalities along with various countermeasures to tackle malicious behaviour.

Inte Gloerich, Martijn de Waal, Gabriele Ferri, Nazlı Cila · 5 authors

Distributed ledger technologies (DLTs) such as blockchain have in recent years been presented as a new general-purpose technology that could underlie many aspects of social and economic life, including civics and urban governance. In an urban context, over the past few years, a number of actors have started to explore the application of distributed ledgers in amongst others smart city services as well as in blockchain for good and urban commons-projects. DLTs could become the administrative backbones of such projects, as the technology can be set-up as an administration, management and allocation tool for urban resources. With the addition of smart contracts, DLTs can further automate the processing of data and execution of decisions in urban resource management through algorithmic governance. This means that the technological set-up and design of such DLT based systems could have large implications for the ways urban resources are governed. Positive contributions are expected to be made toward (local) democracy, transparent governance, decentralization, and citizen empowerment. We argue that to fully scrutinize the implications for urban governance, a critical analysis of distributed ledger technologies is necessary. In this contribution, we explore the lens of “the city as a license” for such a critical analysis. Through this lens, the city is framed as a “rights-management-system,” operated through DLT technology. Building upon Lefebvrian a right to the city-discourses, such an approach allows to ask important questions about the implications of DLTs for the democratic governance of cities in an open, inclusive urban culture. Through a technological exploration combined with a speculative approach, and guided by our interest in the rights management and agency that blockchains have been claimed to provide to their users, we trace six important issues: quantification; blockchain as a normative apparatus; the complicated relationship between transparency and accountability; the centralizing forces that act on blockchains; the degrees to which algorithmic rules can embed democratic law-making and enforcing; and finally, the limits of blockchain's trustlessness.

Iftikhar Ahmad, Mohammed A. Alqarni, Abdulwahab Ali Almazroi, Laiba Alam

Blockchain technology is one of the key technological breakthroughs of the last decade. It has the ability to revolutionize numerous aspects of society, including financial systems, healthcare, e-government and many others. One such area that is able to reap the benefits of blockchain technology is the real estate industry. Like many other industries, real estate faces major administrative problems such as high transaction fees, a lack of transparency, fraud and the effects of a middleman including undue influence and commissions. Blockchain enables supporting technologies to overcome the obstacles inherent within the real estate investment market. These technologies include smart contracts, immutable record management and time-stamped storage. We utilize these key properties of blockchain technology in our work by proposing a system that has the ability to record real estate transactions in a private blockchain, using smart contracts. The immutability of the blockchain ledger and transactions can provide a safe space for the real estate business. Blockchain technology can also assist the authentication process by hastening background checks. Personal digital keys are provided to parties that are involved in a contract, thus minimizing the risk of fraud. We also discuss the rationale behind the advantages of using a blockchain in this manner, and how we selected the consensus mechanism for our proposed system.

Prince Donkor Ameyaw, Walter Timo de Vries

Existing studies on blockchain within land administration have focused mainly on replacing or complementing the technology for land registration and titling. This study explores the potential of using blockchain technology to enhance the transparency of all land administration processes using an integrative review methodology coupled with a framework analysis. This study draws on the Ghanaian land administration perspective to make this insightful. It appears possible to apply a permissionless public blockchain across all land administration processes. This integrates all departments, processes, and stakeholders of land administration to enhance openness, improve availability and accessibility to information, and foster participation for transparency simultaneously. This can change the transparency variation in land administration to be more equal and homogenous regardless of land type. This, however, depends on the standardization of processes across the divisions, as well as negotiation and consensus amongst all stakeholders, especially with chiefs. Limitations include: limited storage and scalability, as well as huge electricity consumption for operation. This study’s policy implications are a review of all paper-based land transactions, a comprehensive digitization of land administration processes, public–private partnership on blockchain-based land administration, and professionals and stakeholder education on the technology.

Ludwig Trotter, Mike Harding, Peter Shaw, Nigel Davies · 9 authors

Recent work has questioned the largely unconditional nature of charitable donations and explored the value of conditional giving with contemporary donors. In this paper, we extend this work by exploring how to operationalise features of conditionality in charitable giving, situated in the context of large international non-governmental organisations (NGOs). Building on prior engagements with international aid organisations, we present design considerations and a conceptual architecture supporting real-time, conditional giving for individual and institutional donations. Our architecture leverages properties of distributed-ledger technologies (DLT) to empower donors to (i) attach conditions to their donation, (ii) store funds in a secure, decentralised escrow and (iii) automatically release funds once conditions are met. Unlike prior work that envisions radical disintermediation and the removal of intermediate NGOs using DLT, our work recognises the expertise of NGOs in tackling complex global problems and instead investigates compelling new way for charities to increase transparency and accountability by introducing dynamic pledge controls.

Inessa Tyan, Mariemma I. Yagüe, Antonio Jesús Guevara Plaza

This conceptual paper discusses the potential of blockchain technology for Smart Tourism Destinations. The main focus is placed on Smart Tourism Destinations’ four major goals that can be achieved by using blockchain technology, namely: enhancing tourism experience, rewarding sustainable behaviour, ensuring benefits for local communities, and reducing privacy concerns. The paper also outlines the major challenges that need to be overcome to successfully implement this innovative technology. This paper attempts to further advance the current knowledge about the possible implications of blockchain technology within the smart tourism domain, and especially Smart Tourism Destinations.

Daniel Trabucchi, Antonella Moretto, Tommaso Buganza, Alan MacCormack

The importance of platform‐based businesses in the modern economy is growing continuously and becoming increasingly relevant. Specifically, the deployment of digital technologies has enhanced the applicability of two‐sided business models, enabling companies to act not just as builders and owners of assets, but also as orchestrators of external resources. Management research has, therefore, focused increasingly on the unique aspects of this model. At the center of a two‐sided platform there is a platform provider that enables a transaction between the sides, reducing the relative transaction costs. However, in recent years, a new technology emerged that challenges some of the underlying assumptions of this model: the blockchain. Blockchain enables the creation of a peer‐to‐peer network that is able to authenticate transactions, upon which applications and services may be built. It allows users to conduct transactions without the need for a central platform. We explore how blockchain technology reshapes two‐sided platforms, focusing in particular on the role of the platform provider. The research is based upon multiple case studies, using an inductive approach to explore this emerging phenomenon. Our findings show there is a significant shift in the role of the central player that links the two sides of a transaction using blockchain. We frame this as a shift from a “platform provider” to a “service provider,” leveraging the blockchain as a Platform‐as‐a‐Service. Our work examines the peculiarities of this model, unveiling new dynamics in these businesses. Specifically, we show that different variables must be considered to classify two‐sided platforms using blockchain. Furthermore, the essential characteristics of two‐sided platforms must also be enlarged. For example, traditional platform theories emphasize the importance of cross‐side network externalities in creating value. In blockchain‐enabled platforms however, we show the use of “tokens” play a key role in creating different types of externalities between the two sides.

Marko Hribernik, Kathrin Zero, Sebastian Kummer, David M. Herold

The growth in e-commerce has led to increased pressure within the courier, express and parcel (CEP) sector to tackle the ‘last-mile’ issue and come up with solutions that not only satisfy the customers, but also other stakeholders such as city councils and other regulatory bodies. Scholars have highlighted micro-hubs and the associated horizontal collaboration as a possible solution, which might help alleviate problems associated with last-mile logistics in inner-city centers. However, trust and data exchange issues are considerable barriers to the introduction of horizontal collaboration, in particular between CEP carriers. To address the lack of trust and the issue of data exchange between carriers, the use of blockchain technology may present a solution, but existing research so far is limited concerning frameworks that specifically discuss blockchain technology in the context of micro-hubs and last-mile deliveries. In response, this paper presents a blockchain decision framework for a horizontal collaboration between CEP carriers based on key characteristics of existing blockchain decision models and relevant related research in the area of logistics and last-mile distribution. This is the first study that specifically addresses the use of blockchain technology for horizontal collaboration in the context of micro-hubs and last-mile deliveries.

Ajay Kumar Shrestha, Julita Vassileva, Ralph Deters

We propose a new platform for user modelling with blockchains that allows users to share data without losing control and ownership of it and applied it to the domain of travel booking. Our platform provides solution to three important problems: ensuring privacy and user control, and incentives for sharing. It tracks who shared what, with whom, when, by what means and for what purposes in a verifiable fashion. The paper presents a case study of applying the framework for a hotel reservation system as one of the enterprise nodes of Multichain which collects users’ profile data and allows users to receive rewards while sharing their data with other travel service providers according to their privacy preferences expressed in smart contracts. The user data from the repository is converted into an open data format and shared via stream in the blockchain so that other nodes can efficiently process and use the data. The smart contract verifies and executes the agreed terms of use of the data and transfers digital tokens as a reward to the user. The smart contract imposes double deposit collateral to ensure that all participants act honestly. The paper also presents a performance evaluation of the platform by analyzing latency and memory consumption with selected three test-scenarios and measuring the transaction cost for smart contracts deployment. The results show that the node responded quickly in all our cases with a befitting transaction cost.

Bill Tomlinson, Jens Boberg, Jocelyn Cranefield, David Johnstone · 7 authors

Proponents of ‘Blockchain for Good’ – blockchain efforts seeking to enable benefits to humans and the environment – have suggested that the technology can support sustainability. However, while previous research has addressed aspects of the sustainability affordances of Blockchain for Good projects, the constraints that these projects impose have not faced equal consideration. Furthermore, the theoretical concepts of sustainability ‘problems’ and ‘solutions’ implicit in these projects have not been made clear. In this exploratory study, we evaluate the sustainability of 28 Blockchain for Good projects that use cryptocurrencies or tradable tokens with regard to the UN sustainability goals. These projects span a range of goals, such as supply chain tracking, transparent charity, and fairer voting. Despite their admirable goals, we find that current Blockchain for Good projects are unlikely to contribute to a sustainable future due to technical limitations and a conceptual framing that favors the status quo rather than transformative change.

Matheus Cunha Reis, Ivan da Silva Sendin

Smart Contracts bring a new set of possibilities in the secure protocol development: participants gain guarantees of the correct execution of the protocol steps. In contrast, current Smart Contract solutions do not provide data privacy, this scenario is particularly bad in the commerce of e-goods. In this work, we present a fair trade protocol based Smart Contract and Bloom Filter for the problem of e-goods trading where the involved parts do not trust each other.

Robert M. Townsend

An economic analysis of what distributed ledgers can do, examining key components and discussing applications in both developed and emerging market economies. Distributed ledger technology (DLT) has the potential to transform economic organization and financial structures. In this book, Robert Townsend steps back from the hype and controversy surrounding DLT (and the related, but not synonymous, innovations of blockchain and Bitcoin) to offer an economic analysis of what distributed ledgers can do and a blueprint for the optimal design and regulation of financial systems. Townsend examines the key components of distributed ledgers, discussing, evaluating, and illustrating each in the context of historical and contemporary economies, reviewing featured applications in both developed economies and emerging-market countries, and indicating where future innovations can have large impact. Throughout, Townsend emphasizes the general equilibrium impact of DLT innovations, the welfare gains from these innovations, and related regulatory innovations. He analyzes four crucial components of distributed ledgers—ledgers as accounts, e-messages and e-value transfers, cryptography, and contracts—assessing each in terms of both economics and computer science, and forges some middle ground. Relatedly, Townsend highlights hybrid systems in which some of these components allow useful innovation while legacy or alternative pieces deal with the problem of scale. The specific applications he analyzes include an intelligent financial automated system that provides financial services to unbanked and under-banked populations, and cross-border payments systems, including financial systems that can integrate credit and insurance with clearing and settlement. Finally, Townsend considers cryptocurrencies, discussing the role and value of tokens in economies with distributed ledger systems. The open access edition of this book was made possible by generous funding from Arcadia – a charitable fund of Lisbet Rausing and Peter Baldwin.

Selçuk Topal

This paper is the first part of the Proof of Meet (PoM) work. This part focuses on the need for the model and its system (roughly) rather than giving technical details. In the second part, full technical details and architecture of the model will be discussed. The model focuses on consensus-based sharing (meeting) economy model. The sharing (meeting) describes the relationship between what is already somewhere and what goes there. The consensus is built on active clients (where the client can be anything capable of a change of location) on a social activity (location and action). There are two parts of clients; the first who/which go somewhere for a purpose (C_1) and the second who/which are regularly somewhere for a purpose (C_2). C_1 is in the domain of at least two clients and C_2 is in at least one. To build a decentralised blockchain with no energy-consuming, the paper proposes a consensus system, PoM, on the top of Proof of Stake (PoS) and Blockchain-Based Proof of Location (BBPL). The sharing economy model is one of the applications of the proposed blockchain model. The blockchain system called HOX is available to use very large area distributed ledger systems from a dynamic transportation system to dynamic big data. HOX is an instance of PoM application. Consequently, the proposed model provides the opportunity to record taxes, earn a fair share of labour and use blockchain actively in daily life within the legal framework.

Daozhi Zhao, Di Wang, Baosen Wang

As a green travel mode, bike sharing is developing rapidly across China. At present, charging deposits from users is the common operation mode adopted by shared bicycle enterprises. The large number of shared bicycle enterprises generates fierce market competition, and the eliminated enterprises always refuse to return user deposits. Even regular running enterprises still have trouble with the immediate return of deposits. This situation severely affects the reputation of shared bicycle enterprises, and concerns have been shared widely across the society. Meanwhile, there is a general expectation among users that their deposits could be refunded timely and a broad appeal for technical management to resolve this problem. This article uses blockchain technology to reform the current management mode for shared bicycle deposits and constructs a decentralized, user information and deposit visualized, and multidimensional supervised management system. The proposed management system makes the real-time flow direction supervision of user deposits to be realized. Furthermore, a smart contract of shared bicycle deposits with punishment mechanism is also designed. Finally, the differences between the proposed deposit management mode and the current deposit management mode are analyzed, and a simulation experiment is conducted. In the simulation experiment, the deposit theft rate of our deposit management system is 0%, which is far better than the two existing bike deposit management systems. The results show that the outstanding advantages of the proposed deposit management mode, which include improving deposit supervision and guaranteeing user deposit security, are also conducted. This article has made effective technical management exploration to reduce deposit management risks and improve deposit management institutions for shared bicycles. It has important practical reference value for accelerating the sustainable development of shared bicycle enterprises.

Néstor García-Moreno, Pino Caballero‐Gil, Cándido Caballero‐Gil, Jezabel Molina‐Gil

Blockchain technology, beyond cryptocurrencies, is called to be the new information exchange ecosystem due to its unique properties, such as immutability and transparency. The main objective of this work is to introduce the design of a decentralized rental system, which leverages smart contracts and the Ethereum public blockchain. The work started from an exhaustive investigation on the Ethereum platform, emphasizing the aspect of cryptography and all the technology behind this platform. In order to test the proposed scheme in a realistic use, the implementation of a web application for the rental of vehicles has been carried out. The application covers the entire vehicle rental process offered in traditional web applications, adding more autonomy and ease of use to users. Following Ethereum application development guidelines, all business logic is located in the smart contracts implemented in the Ethereum network, where these contracts control the entire vehicle rental system of customers. While this is a work in progress, the results obtained in the first proof of concept have been very promising.

Zhaohua Chen, Guang Yang

Asset custody is a core financial service in which the custodian holds\nin-safekeeping assets on behalf of the client. Although traditional custody\nservice is typically endorsed by centralized authorities, decentralized custody\nscheme has become technically feasible since the emergence of digital assets,\nand furthermore, it is greatly needed by new applications such as blockchain\nand DeFi (Decentralized Finance).\n In this work, we propose a framework of decentralized asset custody scheme\nthat is able to support a large number of custodians and safely hold customer\nassets of multiple times the value of the total security deposit. The proposed\ncustody scheme distributes custodians and assets into many custodian groups via\ncombinatorial designs, where each group fully controls the assigned assets.\nSince every custodian group is small, the overhead cost is significantly\nreduced. The liveness is also improved because even a single alive group would\nbe able to process transactions.\n The security of this custody scheme is guaranteed under the rational\nadversary model, such that any adversary corrupting a bounded fraction of\ncustodians cannot move assets more than the security deposit paid. We further\nanalyze the security and performance of our constructions from both theoretical\nand experimental sides and give explicit examples with concrete numbers and\nfigures for a better understanding of our results.\n

Mohammed Shuaib, Salwani Mohd Daud, Shadab Alam, Wazir Zada Khan

The land registry system is one of the very important department in any governance system that stores the records of land ownership. There are various issues and loopholes in the existing system that give rise to corruption and disputes. This requires a significant chunk of valuable government resources from judiciary and law enforcement agencies in settling these issues. Blockchain technology has the potential to counter these loopholes and sort out the issues related with land registry system like tempering of records, trading of the same piece of land to more than one buyer. In this paper, a secure and reliable framework for land registry system using Blockchain has been proposed. The proposed framework uses the concept of smart contract at various stages of the land registry and gives an algorithm for pre-agreement. First, we describe the conventional land registry system and reviews the issues in it. Then, we outline the potential benefits of employing Blockchain technology in the land registry system and presented a framework. Finally, a number of case studies are presented.

Christophe Samuel Hutchinson

Blockchain is a catch-all term for a combination of three technologies: distributed ledger, cryptology and network protocols. The first enables storing the same info in different places, the second allows secure transactions to be recorded and then encrypted on the distributed ledger. The third element governs the network and verifies transactions across the network automatically and independently. Considered by many as “the biggest technological innovation since the Internet”1, blockchain is a decentralized, more secure and transparent model for transactions that operates on an encrypted peer-to-peer basis. This model makes trust between parties superfluous by instead placing trust in the underlying technological platform. This would effectively remove the need for intermediaries whose business has been to make up for the lack of trust; these include banks, brokers, governments, internet platforms, law firms etc. While reducing the costs of contract enforcement and thus facilitating trade, blockchain technology may have significant implications for antitrust law. As decentralized organizations such as blockchain are not recognized as legal persons, this raises questionsabout whether anticompetitive practices and their perpetrators can be identified. For example, can a non-entity hold a dominant position? Can blockchain create a “monopoly without a monopolist”? Finally, if a blockchain is dominant, which users and/or entities hold that dominant position? This article intends to highlight the challenges that blockchain presents to the analyses of unilateral anticompetitive practices.

Zeynep Gürgüç, Robert Learney

The transparency and visibility engendered in Distributed Ledger Technology allows, for the first time, disparate stakeholders to agree on common resource existence, ownership, and rules of exchange, while keeping the coordination costs comparatively low with respect to earlier methods. This infrastructure can finally facilitate a self-organising market mechanism, where people can decide upon the market rules themselves and potentially self-select into any particular marketplace dependent upon their personal beliefs and preferences. Reinventing the apparatus of the economy upon shared distributed infrastructure may finally allow the emergence of actual shared ownership, unlike the existing systems where short-term rentals or access-based consumption are often confused with sharing and social exchange.