At its core the quality of being fungible is the quality of being interchangeable, more specifically interchangeable with its likeness. Our currencies, ergo our financial systems, ergo our ways of life have been underpinned by the stability that a $5 note is worth the same as every other $5 note. This is perhaps why the word fungible has never really spilled over into everyday usage: it has traditionally been a word for legal documents and economics texts. However, in the last couple of years the word fungible has made its way out of the lecture theatres of law classes and into the headlines of mainstream news services. On the back of a crypto currency boom it seemed only logical that markets that utilised this new form of wealth would emerge, the most prominent of these being the, at times lucrative, NFT (non-fungible token) market. Defining an NFT is problematic, because it is more about what it isn’t than what it is. People who have searched online looking for a definition will probably find an article or video that starts off with a semantic definition, e.g. it is a digital token with a unique signature making it unlike other tokens that are similar, which is then followed up by a spuriously comprehensible but ultimately ephemeral analogy. These definitions perhaps suffer by their ulterior motive of making NFTs sound more ground-breaking and more revolutionary than they are. If you were to say NFTs are like digital snowflakes, in that no two are the same, that might help, but it doesn’t add anything to their significance because whilst we may notionally find the idea interesting that no two snowflakes are the same, we ultimately don’t really care, and this doesn’t make any snowflake more important or valuable than any other. However, imagine a scenario in late capitalism where a certain configuration of snowflake has an exchange value greater than other configurations, or a scenario where a snowflake is worth more because Elon Musk once owned it. In practice, NFTs are comparable to digital receipts that give the owner exclusive access to a piece of data. This data maybe a small digital image, it might be a gif, it might be a high resolution digital artwork, it might be anything that can be stored digitally. The allure or uniqueness of these pieces of data lies in their non-fungibility. They are acquired through a crypto currency exchange (more often than not Ethereum, but not necessarily so) and as such are verified and secure, though it is worth noting that in 2021 crypto currency theft totalled A$4.5b and money lost to crypto scams totalled A$11b (Lane). There is an irony that emerges here in that the digital culture that has allowed the proliferation of fungible content has given rise to its own non-fungible counter-culture. It is as if the digital annihilation of Benjamin’s aura has been replaced by an 8-bit digital aura. Every $5 note may still have exactly the same value as another $5 note, and the actual Mona Lisa may be less beguiling now you can own it on a tote bag, but not every Bored Ape (an avatar comprised of a cartoon ape, generated by an algorithm) has the same value as another Bored Ape (see Bored Ape Yacht Club statistics). For example, less than 0.5% of generated Bored Apes have gold fur, making them more desirable, and all of a sudden it begins to feel like a familiar market with familiar characteristics of supply and demand. 2020 was a turbulent year, so it’s understandable that the seeds of some culturally significant trends were overlooked. Amongst these was the boom in the trading card market. This saw trading cards – those things kids buy in packs with their pocket money – become an investor industry. Sale prices skyrocketed during global pandemic lockdowns: for example, a LeBron James 2003-4 Upper Deck Exquisite Rookie Patch Autograph card (numbered 14/23) sold at Golden Auctions for US$1.84m; another version of the same card sold in April of 2021 for US$5.2m. This boom in the trading card market rolled over into the early adoption of NFT technology within the sports trading card market, a development that has been generally glossed over. Well before Beeple’s sale of Everydays: The First 5,000 Days (a collage of 5,000 digital artworks sold as an NFT) at Christie’s for slightly under US$70m (see Guardian), NFTs were breaking new ground in the sports card market in the form of NBA Top Shots (an official NBA product produced by Dapper Labs). When a person opens a digital pack of Top Shots they reveal “moments”, uniquely serial numbered highlight videos lasting a few seconds. Sales of NBA Top Shots totalled US$230m in 2020 (Young). There is perhaps little surprise in this early adoption of the investor/trading aspects of NFTs, given the crossover between pandemic-era sports card collectors and crypto currency speculators (Yahoo! Finance). Beyond these developments in NFT hobby collectibles, there has also been the development and gamification of NFT gambling in the form of horse-racing platforms like Zed Run. Zed Run allows users to race NFT horses in their virtual stable at the cost of a fee (payable in crypto currency), which is ostensibly a wager. Users can breed NFT horses with other NFT horses to create new NFT horses with unique characteristics, and then race them against other horses with comparable attributes. This platform, and ones like it, are playing a role in creating an unregulated gambling platform that operates on a global scale, at a time where many states in the USA are only years into a relaxed sports betting environment (in 2018 a Supreme Court ruling opened the door for all states to legalise sports betting; until that point sports betting was only legal in 4 states). It remains to be seen if the continued gamification of gambling will entrench itself further through means such as Zed Run, or if the practice will remain niche without the existence of a widely populated metasphere. It is clear that we are currently in the midst of a wave, potentially a flood, of NFT content, and a majority of this content exists as a variation of the theme “how to make money through NFTs”. NFTs are currently considered more for their potential profitability rather than their utility. The residue of this is that non-fungible markets seem to be replicating the traditional markets that they are notionally trying to subvert, and the practical uses of NFTs, e.g. as a solution to issues of digital ownership, are being overlooked. Perhaps this is the new manifestation of the neoliberal ideology, or perhaps it is the case in point that future generations will look back upon. Of course, there is an as yet generally unstated and significant point here, that what is being discussed is fungibility in terms of its non-ness. The mention of the term fungibility in a popular culture context immediately gives way to the consideration of the non-fungible, and the non-fungible is seemingly resolving itself, or at least can be understood, in the context of traditional wealth, with all of its fungible interchangeability. This issue of M/C Journal presents a range of insights and perspectives on this word that is increasingly flowing through discourses and practices. NFTs have a range of implications and a spectrum of potential uses depending on their context. But additionally, the usefulness of fungibility as a concept also comes into play here, as terminology traditionally shackled to other disciplines but increasingly pliable in the arts and humanities. This issue’s feature by Russell, “NFTs and Value”, meets some of the above issues head-on by immediately addressing the dichotomy of NFTs as the start of a new art format or NFTs as Western society’s most recent bubble market. Irrespective of these two positions there is an undeniable reality that these digital artefacts can potentially have real world wealth. Russell explores the potential underlying factors of this wealth and in turn what creates artistic wealth. Here a combination of factors such as the discourse around the work itself, or the place that work has in the context of Western art history are all considered as potential drivers of this new wave/bubble. Mason takes up the financial gains associated with some NFTs by examining the commodification of memes through the NFT format. In particular Mason considers the broader implications of this phenomenon outside of NFTs themselves by discussing the potential cultural and racial legacies at play. Mason’s work also notes the dominance of non-Black memes in the non-fungible market and the subsequent development of non-Black wealth that follows. Through this case study Mason touches upon an as of yet widely overlooked cultural implication of the non-fungible market, that of racial inequality and exploitation. In a different wing of the art world, Binns focusses on film, noting, after highlighting the significant ecological price and damage that comes with making transactions on prominent block chains, that the implications of NFTs on the film industry are still emerging. Despite the presence of some emerging marketplaces and vendors, the full utility of NFTs within the film industry remains untapped and unclear. Perhaps NFTs will supplement crowdfunding by offering exclusive memberships or perks (similar to the Bored Apes Yacht Club), or perhaps the fad will fade into the background without ever leaving an impression. In contrast, Robinson embraces the notion of fungibility as fungibility, stepping away from the contemporary discussion of “fungible” as being inherently “non-fungible” and looking at the interchangeability of identity and experience in online spaces. Through interviews Robinson considers how traditional notions of national and political identity are rendered fungible by digital spaces and how this aspect of fungibility manifests itself in invisibility, efficacy, and antagonism. This work is an important reminder of the suitability of fungible as a term in academic scholar
Introduction 2021 was the year that NFTs got big—not just in value but also in terms of the cultural consciousness. When digital artist Beeple sold the portfolio of his 5,000 daily images at Christie’s for US$69 million, the art world was left intrigued, confused, and outraged in equal measure. Depending on who you asked, non-fungible tokens (NFTs) seemed to be either a quick cash-grab or the future of the art market (Bowden and Jones; Smee). Following the Beeple sale, articles started to appear indicating that the film industry was abuzz for NFTs. Independent filmmaker Kevin Smith was quick to announce that he planned to release his horror film Killroy Was Here as an NFT (Alexander); in September 2021 the James Bond film No Time to Die also unveiled a series of collectibles to coincide with the film’s much-delayed theatrical release (Natalee); the distribution and collectible platforms Vuele, NFT Studios, and Mogul Productions all emerged, and the industry rumour mill suggests more start-ups are en route (CurrencyWorks; NFT Studios; NewsBTC). Blockchain disciples say that the technology will solve all the problems of the Internet (Tewari; Norton; European Business Review); critics say it will only perpetuate existing accessibility and equality issues (Davis and Flatow; Klein). Those more circumspect will doubtless sit back until the dust settles, waiting to see what parts of so-called web3 will be genuinely integrated into the architecture of the Internet. Pamela Hutchinson puts it neatly in terms of the arts sector: “the NFT may revolutionise the art market, film funding and distribution. Or it might be an ecological disaster and a financial bubble, in which few actual movies change hands, and fraudsters get rich from other people’s intellectual property” (Hutchinson). There is an uptick in the literature around NFTs and blockchain (see Quiniou; Gayvoronskaya & Meinel); however, the technology remains unregulated and unstandardised (Yeung 212-14; Dimitropoulos 112-13). Similarly, the sheer amount of funding being put into fundamental technical, data, and security-related issues speaks volumes to the nascency of the space (Ossinger; Livni; Gayvoronskaya & Meinel 52-6). Put very briefly, NFTs are part of a given blockchain system; think of them, like cryptocurrency coins, as “units of value” within that system (Roose). NFTs were initially rolled out on Ethereum, though several other blockchains have now implemented their own NFT frameworks. NFTs are usually not the artwork itself, but rather a unique, un-copyable (hence, non-fungible) piece of code that is attached, linked, or connected to another digital file, be that an image, video, text, or something else entirely. NFTs are often referred to as a digital artwork’s “certificate of authenticity” (Roose). At the time of writing, it remains to be seen how widely blockchain and NFT technology will be implemented across the entertainment industries. However, this article aims to outline the current state of implementation in the film trade specifically, and to attempt to sort true potential from the hype. Beginning with an overview of the core issues around blockchain and NFTs as they apply to film properties and adjacent products, current implementations of the technology are outlined, before finishing with a hesitant glimpse into the potential future applications. The Issues and Conversation At the core of current conversations around blockchain are three topics: intellectual property and ownership, concentrations of power and control, and environmental impact. To this I would like to add a consideration of social capital, which I begin with briefly here. Both the film industry and “crypto” — if we take the latter to encompass the various facets of so-called ‘web3’ — are engines of social capital. In the case of cinema, its products are commodified and passed through a model that begins with exclusivity (theatrical release) before progressing to mass availability (home media, streaming). The cinematic object, i.e., an individual copy of a film, is, by virtue of its origins as a mass product of the twentieth century, fungible. The film is captured, copied, stored, distributed, and shared. The film-industrial model has always relied on social phenomena, word of mouth, critical discourse, and latterly on buzz across digital social media platforms. This is perhaps as distinct from fine art, where — at least for dealers — the content of the piece does not necessarily matter so much as verification of ownership and provenance. Similarly, web3, with its decentralised and often-anonymised processes, relies on a kind of social activity, or at least a recorded interaction wherein the chain is stamped and each iteration is updated across the system. Even without the current hype, web3 still relies a great deal on discourse, sharing, and community, particularly as it flattens the existing hierarchies of the Internet that linger from Web 2.0. In terms of NFTs, blockchain systems attach scarcity and uniqueness to digital objects. For now, that scarcity and uniqueness is resulting in financial value, though as Jonathan Beller argues the notion of value could — or perhaps should — be reconsidered as blockchain technology, and especially cryptocurrencies, evolve (Beller 217). Regardless, NFT advocates maintain that this is the future of all online activity. To questions of copyright, the structures of blockchain do permit some level of certainty around where a given piece of intellectual property emerged. This is particularly useful where there are transnational differences in recognition of copyright law, such as in France, for instance (Quiniou 112-13). The Berne Convention stipulates that “the subsistence of copyright does not rest on the compliance with formal requirements: rights will exist if the work meets the requirements for protection set out by national law and treaties” (Guadamuz 1373). However, there are still no legal structures underpinning even the most transparent of transactions, when an originator goes out of their way to transfer rights to the buyer of the accompanying NFT. The minimum requirement — even courtesy — for the assignment of rights is the identification of the work itself; as Guadamuz notes, this is tricky for NFTs as they are written in code (1374). The blockchain’s openness and transparency are its key benefits, but until the code can explicitly include (or concretely and permanently reference) the ‘content’ of an NFT, its utility as a system of ownership is questionable. Decentralisation, too, is raised consistently as a key positive characteristic of blockchain technology. Despite the energy required for this decentralisation (addressed shortly), it is true that, at least in its base code, blockchain is a technology with no centralised source of truth or verification. Instead, such verification is performed by every node on the chain. On the surface, for the film industry, this might mean modes of financing, rights management, and distribution chains that are not beholden to multinational media conglomerates, streamers like Netflix, niche intermediaries, or legacy studios. The result here would be a flattening of the terrain: breaking down studio and corporate gatekeeping in favour of a more democratised creative landscape. Creators and creative teams would work peer-to-peer, paying, contracting, servicing, and distribution via the blockchain, with iron-clad, publicly accessible tracking of transactions and ownership. The alternative, though, is that the same imbalances persist, just in a different form: this is outlined in the next section. As Hunter Vaughan writes, the film industry’s environmental impact has long been under-examined. Its practices are diverse, distributed, and hard to quantify. Cinematic images, Vaughan writes, “do not come from nothing, and they do not vanish into the air: they have always been generated by the earth and sun, by fossil fuels and chemical reactions, and our enjoyment of them has material consequences” (3). We believe that by watching a “green” film like Avatar we are doing good, but it implicates us in the dirty secret, an issue of “ignorance and of voluntary psychosis” where “we do not see who we are harming or how these practices are affecting the environment, and we routinely agree to accept the virtual as real” (5). Beyond questions of implication and eco-material conceptualisation, however, there are stark facts. In the 1920s, the Kodak Park Plant in New York drew 12 million gallons of water from Lake Ontario each day to produce film stock. As the twentieth century came to a close, this amount — for a single film plant — had grown to 35-53 million gallons per day. The waste water was perfunctorily “cleaned” and then dumped into surrounding rivers (72-3). This was just one plant, and one part of the filmmaking process. With the shift to digital, this cost might now be calculated in the extraction of precious metals used to make contemporary cameras, computers, or storage devices. Regardless, extrapolate outwards to a global film industry and one quickly realises the impact is almost beyond comprehension. Considering — let alone calculating — the carbon footprint of blockchain requires outlining some fundamentals of the technology. The two primary architectures of blockchain are Proof of Work (PoW) and Proof of Stake (PoS), both of which denote methods of adding and verifying new blocks to a chain. PoW was the first model, employed by Bitcoin and the first iteration of Ethereum. In a PoW model, each new block has a specific cryptographic hash. To confirm the new block, crypto miners use their systems to generate a target hash that is less than or equal to that of the block. The systems process these calculations quickly, as the goal is to be “the first miner with the target hash because that miner is the one who can update the blockchain and receive crypto rewards” (Daly). The race for
Michael Darlin, Georgios Palaiokrassas, Leandros Tassiulas
The rise of Decentralized Finance (“DeFi”) on the Ethereum blockchain has enabled the creation of lending platforms, which serve as marketplaces to lend and borrow digital currencies. Initially, we categorize the activity of lending platforms within a standard regulatory framework. We then propose an Ethereum address grouping algorithm using activity over DeFi protocols and employ a novel classification algorithm to calculate the percentage of fund flows into DeFi lending platforms that can be attributed to debt created elsewhere in the system (“debt-financed collateral”). Based on our results, we conclude that the wide-spread use of stablecoins as debt-financed collateral increases financial stability risks in the DeFi ecosystem.
Penggunaan internet yang semakin masif kini mempengaruhi dunia perekonomian yang ditandai dengan lahirnya E-Commerce. Mekanisme E-Commerce yang tidak mempertemukan penjual dan pembeli secara langsung ini memunculkan berbagai permasalahan atas syarat subjektif dan objektif perjanjian jual beli. Oleh karena itu, artikel bertujuan untuk menganalisis urgensi penggunaan konsep perjanjian berbasis teknologi Smart Contract dalam transaksi jual beli di E-Commerce. Hasil yang diperoleh adalah penggunaan Smart Contract dalam transaksi jual beli di E-Commerce dinilai sangat penting melihat keunggulan dari segi keamanan, verifikasi, perubahan isi perjanjian, dan kekuatan pembuktian.
As an emerging distributed technology, blockchain has begun to penetrate into many fields such as finance, healthcare, supply chain, intelligent transportation. However, the interoperability and value exchange between different independent blockchain systems is restricting the expansion of blockchain. In this paper, a notary group-based cross-chain interaction model is proposed to achieve the interoperability between different blockchains. Firstly, a notary election mechanism is proposed to choose one notary from the notary group to act as a bridge for cross-chain transactions. Secondly, a margin pool is introduced to limit the misconduct of the elected notary and ensure the value transfer between the involved blockchains. Moreover, a reputation based incentive mechanism is used to encourage members of the notary group to participate in cross-chain transactions. Ethereum-based experiments demonstrate that the proposed mechanism can provide an acceptable performance for cross-chain transactions and provide a higher security level than ordinary cross-chain mechanisms.
The primary purpose of this paper is to bridge the technology gap between Blockchain and Fintech applications. Blockchain technology is already being explored in a wide number of Fintech sectors. After creating a unique taxonomy for Fintech ecosystems, this paper outlines a number of implementation scenarios. For each of the industries in which blockchain is already in use and has established itself as a complementary technology to traditional systems, we give a taxonomy of use cases. In this procedure, we cover both public and private blockchains. Because it is still believed to be in its infancy, especially when it comes to financial use cases, blockchain has both positive and negative aspects. As a result, it is critical to be aware of all of the open research issues in this field. Our goal is to compile a list of open research challenges related to various aspects of the blockchain’s protocol and application layers. Finally, we will provide a clear understanding of the applications for which blockchain can be valuable, as well as the risks associated with its use in parallel.
Blockchain has been one of the leading technology breakthroughs in recent years. It has enabled the creation of multiple cryptocurrencies and tokens which, amongst others, financed the activities of various startup projects. The last few years have seen the emergence of another blockchain-enabled product – Non Fungible Tokens (NFT) which are a digital certificate of ownership. Both NFTs and tokens are wider part of the creation of a metaverse – a new digital, online environment. This article analyses theoretical aspects of cryptocurrencies, tokens, NFTs and metaverse. The fundraising and token issuance aspects are analysed here based on examples of startups Metahero, Ultiarena and Bloktopia.
Distributed Ledger Technology (DLT) is transforming the financial industry and leading to a rise in the modern banking system. Like in developed nations, disruptive technology is necessary to advance the traditional banking system in emerging economies. The present study aims to investigate the critical factors that influence a user's intention to accept blockchain technology for financial institutions. The proposed model is based on Technology Acceptance Model (TAM) constructs with trust and cost-saving, tested using structural equation modelling. Findings from an online survey of 188 practitioners working in Malaysia's financial sector confirm that all constructs except trust on perceived usefulness were found to have a significant impact during the blockchain implementation. Moreover, cost-saving matters most during the disruptive technology adoption for financial institutions. Based on the findings, the subsequent theoretical and practical implications are assessed, albeit with notable limitations.
Abstract: The paper looks at the chances of using blockchain technology for charitable purposes. To ensure data protection, fund integrity, and donation control, problems in this field necessitate the introduction of the latest storage tools and thus the transfer of knowledge between donors, foundations, donation recipients, and other charitable actors. Donors have doubts about how donated money is spent. Currently, blockchain technology is being implemented in several sectors. Blockchain technology allows you to make the method of donations and transactions of funds transparent. A single platform for tracking donations which will track all information about donations, transactions and donors has to be developed. This paper proposed a charity system supporting blockchain technology and expounds the planning pattern, architecture and operational process of the platform. Some core functions of the charity platform are realized and verified on Ethereum during this article. This blockchain system offers transparent accounts of operations donors, charitable foundations and donors supported blockchain technology, charitable platform should give transparent donation route, modify public user and donors to trace and cover where, when and to whom went resources of charity finances. Keywords: Donation System, Digital Charity, Tracking Donation, Charitable Foundations, Translucency
Cryptocurrency is gaining popularity worldwide, with some countries already starting to regulate and accept cryptocurrency in their financial services. Malaysia’s Securities Commission (SC) announced in October 2021 that over MYR 16 billion (USD 3.85 billion) involving digital assets and cryptocurrencies were traded between August 2020 and September 2021. Since cryptocurrencies are issued by private corporations and are technically beyond the federal government’s control, criminals may use them for illegal reasons such as money laundering and terrorist funding. Consequently, it is vital to examine why investors are engaged in cryptocurrency in the first place. This study aims to provide insight into Malaysian investors’ perceptions by evaluating the influence of perceived risk and perceived value on their cryptocurrency adoption decision. The retail investors’ demographic characteristics (gender, age, education, income, and investment experience) were analyzed as control variables. Data were gathered using purposive sampling, and responses from 211 respondents from various cities in Malaysia were used in the final analysis. Data were examined using Smart PLS Structural Equation Modelling (PLS-SEM). Based on the finding’s, perceived value was found to have a significant influence on cryptocurrency adoption. Meanwhile, perceived risk had no significant influence on the adoption of cryptocurrency among the Malaysian investors.
The main contribution of this work is: Discuss the challenges and opportunities in the emergence of Decentralized Finance. This work provides a comprehensive overview of the fundamental principles that underpin Blockchain technologies, such as system architectures and distributed consensus algorithms. Next, we focus on possible Blockchain solutions for the financial sector by discussing their challenges and opportunities.
This is the first survey conducted in China on the holding of cryptocurrencies. Although cryptocurrencies have existed in the world for more than a decade, because the exchange of cryptocurrencies is banned in China, there is no guidance on the holding of cryptocurrencies in China’s accounting standards. Moreover, although the exchange of cryptocurrencies is prohibited by the Chinese government, holdings of cryptocurrencies by Chinese entities and individuals cannot be prevented. Thus, we conducted a survey in investors’ attitudes towards cryptocurrencies in Xiamen City, a special economic zone (SEZ) and a pilot free trade zone (FTZ) in China. The survey respondents commonly defined cryptocurrencies as investments (45%), inventories (19%), and intangible assets (36%). A total of 84% of respondents stated that the value of a cryptocurrency should be represented by a fair value. These results are similar to those obtained in a survey by The Digital Assets Accounting Consortium (DAAC), but different to the tentative agenda decision of the International Financial Reporting Standards Interpretations Committee (IFRSIC). Additionally, 65% of respondents stated that they prefer to accept cryptocurrencies as cash equivalent currencies, and these cash equivalent currencies were considered to have two main functions: a medium of exchange (56%) and a monetary unit for pricing goods and services (52%).
With the rapid development of China's economy in recent decades, and the decentralization of the country's economic regulation and legal support, private financing has developed rapidly due to its simple, flexible and unique advantages. Some SMEs can solve it to some extent through private financing. The company's own financing issues have also helped the local financial market's effectiveness. Based on the "Yantai Private Financing Interest Rate Index," this paper constructs a private financial risk index model from three perspectives of interest rate risk, scale risk and credit risk, and conducts a case simulation analysis of the private financing risk index. The characteristic indicators of the early warning system are screened from the macro, micro and stability dimensions, and subjective and objective adjustment coefficients are set for each indicator from both subjective and objective perspectives. This article takes the Yantai Index as the representative of China's private financing interest rate index. Based on the term structure of Yantai's private lending rate, this paper studies its response to macroeconomic shocks and analyzes the information value it contains. And use the private financing interest rate index to build a financial risk monitoring model. Through the system transformation model, the article finds that there is a significant asymmetry in the response of private lending to macroeconomic shocks. When private lending rates are higher, inflation has a greater effect on interest rates; when private lending rates are lower, monetary policy has a stronger regulatory effect on private lending rates. In the data processing, the principal component analysis method and the Bayesian vector autoregressive model were established. Through the study of this article, it is concluded that the interest rate decreases with the increase of the term, and the risk comparison is performed for the 1-month period, 3-month period, June period, 1-year period, and more than 1-year. The risks in the previous period are greater, and the risks in the March and June periods are relatively small. This model can be used to calculate the comprehensive evaluation value and its fluctuation in the historical risk market and historical equilibrium market, so as to determine the risk range of the comprehensive evaluation value. Thus, the early warning system is verified to be feasible.
Benjamin Kommey, Eric Tutu Tchao, Emmanuel Osae-Addo, Asiedu Biney Kofi Yeboah · 5 authors
Trading in the crypto-currency market has seen rapid growth and adoption, as well as the interest in crypto related technologies like blockchain and smart contracts. Smart contracts have gained popularity in building so called Decentralized Applications (dApps) and Decentralized Finance (DeFi) apps, mainly because they are more secure, trustworthy, and largely distributed (removes centralized control). DeFi applications run on the blockchain technology and are secured by blocks (nodes) connected by cryptographical hash links. DeFi applications have a great potential in the crypto-currency trading domain, providing more secure and reliable means of trading, and performing transactions with crypto-currencies. Only verified transactions are added to the blockchain after being approved by miners through a consensus mechanism and then it is replicated (distributed) among the nodes on the blockchain network. This research paper proposes a DeFi Crypto Exchange by integrating a numerous-signature stamp with a crypto API. A numerous-signature stamp solves the issue of transaction verifiability and authenticity. A crypto API provides the data about each crypto currency with which trades and transactions will be performed. This paper also discusses the technical background of the technology and a few related works. Decentralization of transactions through smart contracts on the blockchain will improve trust, security and reliability of transactions and trades.
Muhammad Rizqon Baihaiqi, Siti Ummu Adillah, Dahniarti Hasana
Apart from the problems in terms of data security in the midst of blockchain-based business development in Indonesia, it turns out that another problem in smart contracts is that the use of Smart Contracts in Indonesia is actually still a discourse among legal experts regarding the validity of smart contracts. The aims of this research are: a) To find out and analyzeimplementation of the use of smart contracts in Indonesia; b) To know and analyzeobstacles in implementing smart contracts in Indonesia and their solutions; c) To know and analyzelegal remedies that can be taken in the event of a dispute between the parties in the smart contract; d) To find out examples of deeds inthe use of smart contracts in Indonesia as a form of artificial intelligence development." Researchers used normative research specifications with secondary data sources. Stages to find the target, then used the approach through legislation (statute approach). The results were juridical review of the use of smart contracts in Indonesia based on Article 1320 of the Civil Code.Article 1338 of the Civil Code explains that “all agreements made legally valid as law for those who make them”. One of the uses of smart contracts on Ethereum. Thereuem's smart contract has the name ERC20.Article 3 Regulation of the Commodity Futures Trading Supervisory Agency Number 5 of 2019 concerning Technical Provisions for the Implementation of the Physical Market of Crypto Assets on the Futures Exchange, Bitcoin which can be traded on the Futures Exchange.Barriers to implementing Smart Contracts in Indonesia and their solutionsimplementing ISO-based Information Security Management or the simplest following the National Institute of Standards and Technology (NIST) framework. ISO 27001:2013 is the latest ISO 27000 series released in 2013. ISO 27001:2013.Article 30 Paragraph (3) in conjunction with Article 40 Paragraph (3) of Act No. 1 of 2008 concerning Information and Electronic Transactions.
2008 yılında Bitcoin icat edilmiş ve kısa zaman içinde çok sayıda yatırımcının ilgisini çekmeyi başarmıştır. Zaman ilerledikçe Bitcoin dışında başka kripto paralar işlem görmeye başlamışlardır. 2012 yılından günümüze kadar kripto paralarla gerçekleşen işlem hacimleri önemli boyutlara gelmiş durumdadır. Tüm dünyada olduğu gibi ülkemizde de kripto paralar yatırımcıların ilgisini çeken varlıklar olarak görülmektedir. Bu çalışmada Bitcoin İşlem hacimleri ile Türk bankacılık sektöründeki mevduatlar arasında uzun dönemli bir ilişkinin olup olmadığı Engle-Granger eşbütünleşme testi kullanılarak analiz edilmiştir. Yapılan analiz sonucunda, Bitcoin işlem hacimleri ile Türk bankacılık sektöründeki mevduat hacimleri arasında uzun dönemli bir ilişkinin olduğu tespit edilmiştir.
The fast-growing, market-driven demand for cryptocurrencies worries central banks, as their monetary policy could be completely undermined. Central bank digital currencies (CBDCs) could offer a solution, yet our understanding of their design and consequences is in its infancy. This non-technical paper examines how The Bahamas has designed the Sand Dollar, the first real-world instance of a retail CBDC. It contrasts the Sand Dollar with definition-based specifications. The author then develops a scenario analysis to illustrate commercial bank risks. In this process, the central bank becomes a deposit monopolist, leading to high funding risks, disintermediation risks, and solvency risks for the commercial banking sector. This paper argues that restrictions and caps will be the new specifications of a regulatory framework for CBDCs if disintermediation in the banking sector is to be prevented. The anonymity of CBDCs is identified as a comparative disadvantage that will affect their adoption. These findings provide insight into governance problems facing central banks and coherently lead to the design of the Sand Dollar. This paper concludes by suggesting that combating cryptocurrencies is a task that cannot be solved by a CBDC.
We empirically study the state of three prominent DAO governance systems on the Ethereum blockchain: Compound, Uniswap and ENS. In particular, we examine how the voting power is distributed in these systems. Using a comprehensive dataset of all governance token holders, delegates, proposals and votes, we analyze who holds the voting power and how this power is being used to influence governance decisions. While we reveal that the majority of voting power is concentrated in the hands of a small number of addresses, we rarely observe these powerful entities overturning a vote by choosing a different outcome than that of the overall community and less influential voters.
Against the backdrop of the development of the cryptocurrency market, the popularity of blockchain technology has also grown. However, the unique structure of the technology, characterized by its transparency, immutability and, in most cases, decentralization, allows it to be widely used in various areas of life. The article explores the essence of blockchain technology, as well as the degree of technology integration into the financial sector of the economy. The subject of the research is blockchain technology. The object of research is international finance. The author in the article emphasizes the nature of blockchain technology, and also studies the current situation in the blockchain industry, its implementation in the financial sector of the economy, in particular the activities of commercial banks. The blockchain industry is expanding and improving at a steady pace, finding its constant use in both public and private finance. In this direction, active work is also being carried out in Russia. However, due to a number of key limiting factors, to date, blockchain technology has not been integrated in practice to the extent that it could allow it to change the structures of international or individual national finance. Contrary to expectations, the speed of blockchain implementation is slower than that of the Internet technology, which is often compared to the development of blockchain technology. However, despite this fact, the blockchain has gained a foothold in various aspects of international finance and plays one of the key roles in accelerating the process of digitalization of this sector of the economy.
Anokye Acheampong Amponsah, Adebayo Felix Adekoya, Benjamin Asubam Weyori
Since Bitcoin's success, there has been a greater emphasis on researching the use of blockchain in a wide range of applications, such as agriculture, education, government, voting systems, etc. This generation of Blockchain applications is termed blockchain 3.0. Blockchain technology provides enhanced security, auditability, privacy, accountability, and many more features over a centralized system. Fraud in insurance is an international problem affecting all insurance subdomains in both developed and developing countries. Fraud, corruption, and many other data-related problems are threatening the financial security of the National Health Insurance Scheme (NHIS) in Ghana and if not attended to, the core aims of the scheme to provide universal healthcare services will not be realized. Consequently, the objective of this work is to design and implement a blockchain-based solution to protect the NHIS from plummeting financially. This paper presents the conceptual view of the proposed system, sequence and use case diagrams, data management framework, smart notification system, and smart claim processing system. The system was evaluated using the DeLone & McLean Information Systems Success Model. It was used to validate the behavioural aspect of the system. The study discovered a significant influence of information quality and user satisfaction. On the contrary, system quality seems to have an almost significant influence on the use and user satisfaction of the proposed system.
Decentralized Finance (DeFi) is a nascent set of financial services, using tokens, smart contracts, and blockchain technology as financial instruments. We investigate four possible drivers of DeFi returns: exposure to cryptocurrency market, the network effect, the investor's attention, and the valuation ratio. As DeFi tokens are distinct from classical cryptocurrencies, we design a new dedicated market index, denoted DeFiX. First, we show that DeFi tokens returns are driven by the investor's attention on technical terms such as "decentralized finance" or "DeFi", and are exposed to their own network variables and cryptocurrency market. We construct a valuation ratio for the DeFi market by dividing the Total Value Locked (TVL) by the Market Capitalization (MC). Our findings do not support the TVL/MC predictive power assumption. Overall, our empirical study shows that the impact of the cryptocurrency market on DeFi returns is stronger than any other considered driver and provides superior explanatory power.
Cryptoassets such as Bitcoin and Ethereum are widely traded around the world. Cryptocurrencies are also transferred between investors. Cryptocurrency has become a new and attractive means of remittance. Thus, blockchain-based smart contracts also attract attention when central banks design digital currencies. However, it has been discovered that a significant amount of cryptoassets on blockchain are lost or stranded for a variety of reasons, including the loss of the private key or the owner's death. To address this issue, we propose a method for recoverable transactions that would replace the traditional transaction by allowing cryptoassets to be sent to a backup account address after a deadline has passed. We provide the computational workload required for our method by analyzing the prototype. The method proposed in this paper can be considered as a good model for digital currency design, including central bank digital currency (CBDC).
IOTA is a new cryptocurrency system designed for the Internet of Things based on directed an acyclic graph structure. It has the advantages of supporting high concurrency, scalability, and zero transaction fees; however, due to the particularity of the directed acyclic graph structure, IOTA faces more complex security threats than the sequence blockchain, in which a parasite chain attack is a common double-spending attack. In this work, we propose a scheme that can effectively prevent parasite chain attacks to improve the security of the IOTA ledger. Our main idea is to analyze the behavior strategies of IOTA nodes based on evolutionary game theory and determine the key factors affecting the parasite chain attack and the restrictive relationship between them. Based on the above research, we provide a solution to resist the parasite chain attack and further prove the effectiveness of the scheme by numerical simulation. Finally, we propose the parasite chain attack prevention algorithms based on price splitting to effectively prevent the formation of the parasite chain.
الملخص ً حدثت الثورة في القوانين، فظهرت الحاجة إلى القوانين ًة كبيرة المعلوماتية مطلع تسعينيات القرن الماضي وأحدثت نقل ،ً وأدى ذلك إلى الجديدة التي تواكب نوع المعامالت التي تحدث في الفضاء المعلوماتي أو السب ارني كما يسمى أحيانا ظهور قوانين الجرائم المعلوماتية بعد أن أفرزت هذه التقنية المسرح اإللكتروني للجرائم إال أن اآلنسان ظل هو الالعب الرئيسي وظلت الدولة محتفظة بسيطرتها على العملة طريقة تداولها، ولم تطل التقنية المعلوماتية غير طريقة حمل العملة وتداولها بعد أن ظهرت بطاقات الدفع واالئتمان، لكننا نشهد اليوم تقنية سلسلة الكتل المو زعة أو البلوكتشين Blockchain وهي قاعدة الكتل الموزعة التي تعد حجر األساس في العملة الرقمية المشفرة currency Crypto ألن شبكة البلوكتشين هي بمنزلة دفتر أستاذ عالمي موزع على جميع المستخدمين تسجل فيه كل العمليات والتصرفات والتحويالت مما يغنيهم عن تدخل أي طرف ثالث، ألن هذه الشبكة ستكون هي الضامن ووسيلة اإلثبات للتصرف وهو ما جعل المجتمع الدولي يقف موقف حائرا، انعكس على تباين موقف الدول المختلفة من المسألة، خاصة عندما أراد أن ينظم مكافحة الجرائم الناتجة عن استخدام تقنية البلوكتشين، فهذه التقنية تتميز بالقدرة العالية على اإلثبات والتوثيق، ولكن في الوقت ذاته تتميز بالقدرة العالية على الحفاظ على سرية المعامالت، وتحقيق السرية التامة للمعامالت. الكلمات الدالة: شبكة الكتل الموزعة Blockchain، المنصة، دفتر األستاذ العالمي الموزع، الخوارزميات، العملة المشفرة. Abstract Information technology developed the “Block chain”: a computerized storage system distributed in a dis-centralized way to register facts, transactions and addresses. Each transaction is sent to a user. This system allowed the appearance of a “crypto currency”, an electronic currency far from the official monetary institutions ‘control. The spread and circulation of this currency between individuals through the network far from any governmental control services presented a real challenge to the monetary law systems and to the criminal protection of the public funds. Here we will face a big challenge when trying to regulate all crimes resulting from the use of Blockchain technology, this technology has a high ability to prove and authenticate, but at the same time, it has a high ability to maintain privacy, and achieve complete confidentiality of transactions. Keywords: Blockchain, Platform, Decentralized Global Ledger Chart, Algorithms, Crypto Currency