Decentralized Autonomous Organization (DAO) is very popular in Decentralized Finance (DeFi) applications as it provides a decentralized governance solution through blockchain. We analyze the governance characteristics in the Maker protocol, its stablecoin DAI and governance token Maker (MKR). To achieve that, we establish several measurements of centralized governance. Our empirical analysis investigates the effect of centralized governance over a series of factors related to MKR and DAI, such as financial, transaction, network and twitter sentiment indicators. Our results show that governance centralization influences both the Maker protocol, and the distribution of voting power matters. The main implication of this study is that centralized governance in MakerDAO very much exists, while DeFi investors face a trade-off between decentralization and performance of a DeFi protocol. This further contributes to the contemporary debate on whether DeFi can be truly decentralized. centralized governance in MakerDAO very much exists, while DeFi investors face a trade-off between efficiency and decentralization. This further contributes to the contemporary debate on whether DeFi can be truly decentralized.
Diego Pennino, Maurizio Pizzonia, Andrea Vitaletti, Marco Zecchini
In the IoT-based economy, a large number of subjects (companies, public bodies, or private citizens) are willing to buy data or services offered by subjects that provide, operate, or host IoT devices. To support economic transactions in this setting, and to pave the way for the implementation of decentralized algorithmic governance powered by smart contracts, the adoption of the blockchain has been proposed both in scientific literature and in actual projects. The blockchain technology promises a decentralized payment system independent of (and possibly cheaper than) conventional electronic payment systems. However, there are a number of aspects that need to be considered for an effective IoT–blockchain integration. In this review paper, we start from a number of real IoT projects and applications that (may) take advantage of blockchain technology to support economic transactions. We provide a reasoned review of several architectural choices in light of typical requirements of those applications and discuss their impact on transaction throughput, latency, costs, limits on ecosystem growth, and so on. We also provide a survey of additional financial tools that a blockchain can potentially bring to an IoT ecosystem, with their architectural impact. In the end, we observe that there are very few examples of IoT projects that fully exploit the potential of the blockchain. We conclude with a discussion of open problems and future research directions to make blockchain adoption easier and more effective for supporting an IoT economy.
Today, one of the most important reasons for the pervasiveness of digital currencies is the unique benefits it provides to users, which can be attributed to the speed and efficiency of payments, especially overseas payments. This study aimed to provide a multiple infrastructure model for bitcoin use. This research has been done qualitatively using interview tools. The survey community consists of academic experts including Profesor universitarios specializingin the fields of digital currencies, e-commerce, international finance and finance, and empirical experts consisting of managers and experts of monetaryand financial organizations (banks, stock exchanges). The selection of samples is saturated and purposeful. Finally, 18 people were selected to answerthe interview questions. Data analysis was performed with the context theory (GT) approach. Based on the obtained results, 6 main networks, 14 maincomponents and 77 sub-components were obtained as multiple infrastructures for bitcoin use. The results also showed that economic and social infrastructure can affect the use of bitcoin. If there is funding to buy the necessary devices and welcome bitcoin in the community, bitcoin will be more usable as a digital and acceptable currency.
In blockchain, bribery is an inevitable problem since users with various goals can bribe miners by transferring cryptoassets. To alleviate the negative effects of such collusion, Ethereum blockchain implemented new transaction fee mechanism in the London Fork, which was deployed on August 5th, 2021. In this paper, we first filter potential bribery by scanning Ethereum transactions, and the potential bribers and bribees are centralized in a small group. Then we construct bribing proxies to measure the active level of bribery and then investigate the effects of bribery. Consequently, bribery can influence both Ethereum and other mainstream blockchains, in aspects of underlying cryptocurrency, transaction statistics, and network adoption. Moreover, the London Fork shows complicated effects on relationship between bribery and blockchain factors. Besides, bribery in Ethereum relates to stock markets, e.g., S&P 500 and Nasdaq, implying implicit interlinks between blockchain and traditional finance.
Marco Bellucci, Damiano Cesa Bianchi, Giacomo Manetti
Purpose This study aims to review the academic literature on the utilization of blockchain in accounting practice and research to identify potential opportunities for further scientific investigation and to provide a framework for how accounting practices are impacted by blockchain. Design/methodology/approach This study is based on a systematic literature review (SLR) of 346 research products available on Scopus, which were mapped with bibliometric analyses and critically discussed in relation to three main topics: the impact of blockchain on accounting and auditing, cryptoassets and finance, business models and supply chain management. Findings Blockchain has many potential implications for accounting practice and research. In addition to providing the state-of-the-art of accounting research on blockchain and additional avenues for further studies, this study discusses why practitioners are interested in this technology: triple-entry bookkeeping, the inalterability of transactions, the automation of repetitive tasks that do not require discretionary choices, the representation of cryptocurrencies in financial statements, value-chain management, social and environmental auditing and reporting and business model innovation. Originality/value The novel contribution of this study is integrated and threefold. First, this SLR provides a clear picture of the state of the accounting research on blockchain using bibliographic and narrative analyses. Second, it investigates how accounting and auditing practices are impacted by blockchain. Third, it contributes to the accounting literature with its discussion of the potential future research trends related to blockchain for accounting.
Non-fungible tokens (NFTs) exist today as a component of a broader, ever-evolving financial environment in which questions of value, ownership, and intention are characterized by their ambiguity. This article considers Dapper Labs “NBA Top Shot,” a blockchain-backed website inviting NBA fans to join in “a new era in fandom” wherein they may acquire NFTs of NBA highlights by opening “packs,” which are functionally similar to trading cards. NFTs reflect the pressures of market forces, as well as increased cultural and economic emphasis on marketization, financialization, commodification, and the ubiquity of gambling-like designs and interactions. Furthermore, this study explores tensions present in differing intentions for the NBA Top Shot platform and Discord server, the diffuse nature of user conversations (a nature that disregards topical boundaries), and audience attention toward marketization and investment interests. The commodification of the NBA fan experience illustrates a shared social pressure to more readily think of one’s life, interactions, and consumptive behaviors through the lens of the investor, fostering financial attitudes that normalize instability and encourage risk-taking beyond the scope of a platform where purchase-dependent interactions serve as a source of joy and social experience in a venue representing a perceived electronic gold rush.
Amaç –Bu çalışmanın amacı; kripto para seçimine etki eden faktörlerin ortaya çıkartılması hususunda subjektif değerlendirmelerin objektif ağırlıklandırmalar yoluyla tespit edilmesidir.Yöntem -Çalışmada, Analitik Hiyerarşi Prosesi (AHP) çok ölçütlü karar vermetekniği kullanılmıştır. Kriptoloji ve kripto para alanında uzman ekipten oluşan yedi kişilik bir değerlendirme ekibi kriter ve alt kriterleri, ikili karşılaştırmalar yoluyla değerlendirmiştir. Buradan yola çıkarak, bu değerlendirmeler, Analitik Hiyerarşi Prosesi ile global ağırlık vektörlerine dönüştürülmüştür.Bulgular -Analiz sonuçlarına göre, işletmelerin kripto para yatırımı yapan bireysel portföy yöneticilerinin kripto para seçimini etkileyen kriterlerde en yüksek skora sahip olanlar “Teknolojik Merak”, “Kişinin Parası Üzerindeki Kontrol Gücü” ve “Veri ve İşlem Gizliliği” olarak belirlenmiştir. Bunun yanında, en düşük skora sahip kriterler ise “Sistem Üzerinde Kontrol Gücü”, “Coin Üreticisi” ve “Kimlik Bilgisi Gizliliği”, olarak tespit edilmiştir.Tartışma: Bu çalışmada, kripto para yatırımı yapan bireysel portföy yöneticilerinin kripto para seçimini etkileyen kriterlerin ağırlıklandırılması ve en önemli kriterin belirlenmesi amacıyla çok kriterli karar verme yöntemlerinden biri olan Analitik HiyerarşiProsesi (AHP) yöntemi ile analizler gerçekleştirilmiştir. AHP ile gerçekleştirilen analizde kripto para yatırımı yapan bireysel portföy yöneticilerinin kripto para seçimini etkileyen kriterler tespit edilmiş olup bu kriterlerin önem sıralaması yapılarak elde edilen sonuçlar tartışılmıştır.
Abstract: Non-Fungible Tokens (NFTs) have recently attracted a lot of investor interest, with some NFTs achieving selling prices that were previously unthinkable for a non-fungible virtual asset. As with any new and untested investment space, investing in NFTs comes with a number of risks and associated challenges. This paper shows insights on what are NFTs, how do NFTs work and about the sustainability of NFTs. The conclusion of this paper discusses if one should invest in NFTs or not, in addition to its sustainability with respect to environment. Keywords: Non-fungible token (NFT), Blockchain, Scarcity, Marketing, AIDA, Beeple, bitcoin, blockchain, Christie’s, collectibles, copyright, crypto asset, cryptocurrencies, digital art, Ethereum, music business and publishing, online payment systems, property, Second Life, Sotheby’s, synthetic worlds, virtual property, virtual real estate.
Advancements in cryptography and computer science have given birth to blockchain technology. One of the most exciting evolutions of blockchain is the advancements in smart contract technology. Smart contracts can be used for a broad range of use cases, not just financial transactions. Smart contract technology on the public blockchain, represented by Ethereum, due to its public and opaque nature, is not a good choice for many scenarios that do not require full disclosure, such as many IoT applications. On the other hand, the existing blockchain smart contract system still has a strong connection with virtual currency, which also limits its application in non-financial scenarios. In order to solve the above problems and explore more of the potential of smart contracts for the IoT application domain, this paper mainly explores the construction of a smart contract system based on consortium blockchains associated with no virtual currency. Based on the smart contract system designed in this project, blockchain can be more easily applied in payment, product traceability, authority authentication, and other fields. Through a certain centralized way, the system is easier to manage, can reduce the management expenditure, and the power and other resource consumption is less, which is conducive to environmental protection. Results show that our smart contract system has the potential for IoT usage in the future.
Supply Chain Finance (SCF) refers to the financial service in which banks rely on core enterprises to manage the capital flow and logistics of upstream and downstream enterprises. SCF adopts a self-testing and closed-loop credit model to control funds and risks. The key factor in a successful SCF service is the deployment of SCF business-oriented information systems that allow businesses to form partnerships efficiently and expedite cash flows throughout the supply chain. Blockchain Technology (BCT), featuring decentralization, tamper-proofing, traceability, which is usually paired with the Internet of Things (IoT) in real-world contexts, has been widely adopted in the field of finance and is perfectly positioned to facilitate innovative collaborations among participants in supply chain networks. In this paper, we propose a BCT and IoT-based information management framework (named BC4Regu), which works as the regulatory to improve the information transparency in the business process of SCF. With BC4Regu, the operation cost of the whole supply chain can be significantly reduced through the coordination and integration of capital flow, information flow, logistics and trade flow in the supply chain. The contributions in this paper include: (1) proposing a novel information management framework which leverages Blockchain and IoT to solve the problem of information asymmetry in the trade of SCF; (2) proposing the technical design of BC4Regu, including the Blockchain infrastructure, distributed ledger-based integrated data flow service, and reshaped SCF process; and (3) applying BC4Regu to a group of scenarios and conducting theoretical analysis by introducing the principal-agent model to validate the BC4Regu.
In the modern financial system, the ability to create money is in the hands of a few central institutions. Blockchain networks, and by extension cryptocurrencies, were created with the promise of giving that power to users. The most well-known example of a blockchain technology achieving such decentralization is Bitcoin, but its popularity has arguably been matched by an alternative-currency named Dogecoin. Unlike other cryptocurrencies, which have marketed themselves on differentiating technical features, Dogecoin’s allure likely stems from its cultural roots as a meme. Where cryptocurrency is typically regarded as a difficult topic to grasp, the introduction of Doge’s (2013) most popular meme, into the crypto-space increased crypto’s accessibility to new participants. Consequently, Dogecoin exists in two economies: the financial economy and the cultural meme economy, with the latter having unprecedented tangible impacts on the former. Dogecoin’s unique cultural significance provides an example of how blockchain can succeed in promoting alternative money systems. At its peak in 2021, Dogecoin achieved a market capitalization of $88 billion. Where analysis of the Dogecoin phenomenon is lacking in the current literature, we will fill that gap with a case study of Dogecoin. By studying Dogecoin as a combination of money and meme, we can further our understanding of how to better promote social finance initiatives through the virality of memes.
Damián Emilio Gibaja Romero, Rosa María Cantón Croda
The execution of smart contracts (SCs) relies on consensus algorithms that validate the miner who executes the contract and gets a fee to cover her expenditure. In this sense, miners are strategic agents who may focus on executing those contracts with the largest fee, to the detriment of other SCs’ execution times, which also harms the blockchain’s reputation. This paper analyzes the impact of miners’ competition on SCs’ execution times in a public blockchain. First, we explain that the Proof-of-Work mechanism casts similarities with a time auction, where the one who first adds blocks is the one who executes the contract and gets the fee. At equilibrium, costs negatively affect execution times, while the opposite holds concerning fees. However, this result does not capture the competition for other contracts; hence, we apply the Naïve Bayes method to classify SCs by considering a simulated database that comprises miners’ competition for several contracts. We observe that simultaneous competition generates patterns that differ from the ones expected by the auction solution. For example, miners’ valuation does not accelerate contracts’ execution, and high-cost smart contracts do not necessarily execute at last places.
Abstract Distributed ledger technology (DLT) is one of the emerging technologies adopted in organizations. Unlike traditional databases, the integrity of the DLT is maintained automatically by an algorithmic consensus mechanism and not by any dominant authority. Thus, the consensus mechanism controls the decision-making and governance process. But the adoption of DLT is faced with issues regarding how to ensure that governance decisions in distributed ledger systems in the interest of all actors and stakeholders involved in the operations of organizational operations. Therefore, it is imperative to provides a better understanding of the governance of DLT adoption in organizations. Accordingly, this study conducts an extensive literature review to investigate the governance issues and control of DLT adoption in intra-organizational domain. Findings from this study presents state-of-the-art governance practices to offer a comprehensive understanding on key governance issues in organizations. Additionally, the findings present factors associated with governance of DLT adoption solutions. More importantly, a governance model is developed to enhance the adoption of DLT adoption to accelerate the digitalization of organizational operations.
The purpose of this research was to explore specific ways in which blockchain can be used in the world of finance and business. Blockchain can be used for global inclusion in the domain of finance. It can be used to remove multiple intermediaries in businesses and also make transactions much more secure and trustworthy. Distributed ledger technology can be used in negotiating value, insurance, reducing transaction costs, contracting for future trading, and setting up new business models. The following establishes the application of blockchain in these fields to improve its existing state. Blockchain can also make central banks reconsider their system. Using smart contracts and autonomous agents transactions can be made smooth and secure for all parties involved. Keywords: Blockchain, Cryptoasset, Smart Contracts, Finance, Business, Distributed Ledger, Autonomous Agents
Identity (ID) management systems have evolved based on traditional data modelling and authentication protocols that are facing security, privacy, and trust challenges with the growth of Internet of Things (IoT). Research surveys reveal that blockchain technology offers special features of self-sovereign identity and cryptography that can be leveraged to address the issues of security breach and privacy leaks prevalent in existing ID management systems. Although research studies are recently exploring the suitability of blockchain based support to existing infrastructure, there is a lack of focus on IoT ecosystem in the secured ID management with data provenance of digital assets in businesses. In this paper, we propose a blockchain based ID management system for computing assets in an IoT ecosystem comprising of devices, software, users, and data operations. We design and develop a proof-of-concept prototype using a federated and distributed blockchain platform with smart contracts to support highly trusted data storage and secure authentication of IoT resources and operations within a business case scenario.
Günümüzde dijital tabanlı teknolojilerin küresel boyutta yaygınlaşması, tedarik zinciri içinde finans ağırlıklı karşılaşılan bazı zorluklarla başa çıkmada etkili bir rol oynamaktadır. Nitekim, finansal piyasalarda kullanıma sunulan sanal para kavramı, ortaya çıktığı yıllardan itibaren çeşitli amaçlar çerçevesinde giderek artan ilgiye sahiptir. Ancak, literatürde sanal paralara ve özellikle de öncü bir kriptografik sanal para olarak kabul edilen Bitcoin’e yönelik bazı çalışmalar bulunsa da, Bitcoin’i rezerv para birimleriyle karşılaştırarak kullanıcı görüşleri doğrultusunda kullanım sebeplerini açıklayan kapsamlı bir çalışma bulunmamaktadır. Buradan hareketle, mevcut araştırma, kullanıcıların Bitcoin tercihine etki eden faktörleri nedenleri ve sonuçları ile açıklamayı ve Bitcoin’in değer değişimini rezerv para birimleriyle karşılaştırmayı amaçlamaktadır. Bu amaçla, literatür araştırmasından ve 20 Bitcoin kullanıcısına uygulanan mülakat yönteminden elde edilen bulgular neticesinde, Bitcoin’in rezerv paralar karşısındaki değer değişimlerinin temelinde bazı devlet politikalarının yattığı, kullanıcıların Bitcoin’i tercih etmelerindeki öne çıkan nedenin ise para aktarım işlemleri olduğu bilgisine ulaşılmıştır. Sonuç itibariyle, mevcut araştırma anlamlı düzeyde akademik katkılar barındırmakta ve yatırımcılar başta olmak üzere çeşitli paydaş grupları için de önemli pratik katkılar sunmaktadır.
Johannes Sedlmeir, Jonathan Lautenschlager, Gilbert Fridgen, Nils Urbach
Abstract This position paper discusses the challenges of blockchain applications in businesses and the public sector related to an excessive degree of transparency. We first point out the types of sensitive data involved in different patterns of blockchain use cases. We then argue that the implications of blockchains’ information exposure caused by replicated transaction storage and execution go well beyond the often-mentioned conflicts with the GDPR’s “right to be forgotten” and may be more problematic than anticipated. In particular, we illustrate the trade-off between protecting sensitive information and increasing process efficiency through smart contracts. We also explore to which extent permissioned blockchains and novel applications of cryptographic technologies such as self-sovereign identities and zero-knowledge proofs can help overcome the transparency challenge and thus act as catalysts for blockchain adoption and diffusion in organizations.
This study aims to develop a mobile time-banking system on blockchain (MTBB), which can track service transaction records for community elderly care via mutual service exchange. The MTBB was developed to enable organizations, either corporate-social-responsibility organizations or nonprofit organizations to issue proprietary time tokens to members who participate in the organizations' volunteer activities. Database applications with smartphone apps integrated with MultiChain blockchain technology were developed. Metadata with the service transaction information are stored in the MultiChain blocks so that the transaction records are immutable and can be analyzed in the future. Cahn's time-banking guidelines were applied in developing this MTBB with MultiChain blockchain technology integrated for tracking service transaction records. The study also combines one-to-one mutual service exchange with organizations which offer volunteer activities and issue proprietary time tokens. With the blockchain transaction tracking mechanism, all elderly care service records via or within organizations can be tracked and analyzed to show their alignment with some of the Sustainable Development Goals of the United Nations.
Promise I. Ebizie, Anayo D. Nkamnebe, Obinna C. Ojiaku
Electronic transactions in the financial sector have continued to surge unprecedentedly around the globe. Governments, politicians, and practitioners around the world have been paying close attention to cryptocurrencies in recent years. Cryptocurrencies, a cutting-edge method of exchanging value without the need for a physical medium, offer a number of potential advantages, including quick transactions, cross-border use, low transaction fees, transparency, high security, anonymity, and privacy. As a result, they are anticipated to bring about a significant revolution in the way money is exchanged in the future. In order to forecast adoption of cryptocurrency among Nigerian University FinTech Entrepreneurs, this study will use the Unified Theory of Acceptance and Use of Technology (UTAUT) paradigm. The population of study was drawn from three major universities in Anambra state. Sample sizes of 323 students were used, out of which 313 questionnaires were correctly filled and returned and were used for the analysis. The findings of the study shows that performance expectancy, effort expectancy and facilitating conditions have a positive relationship with cryptocurrency adoption while there was no relationship established with social influence. This study adds to the expanding body of literature on cryptocurrencies and provides beneficial knowledge to fund managers (investors), enterprises, and individual users (payees) (receiving cryptocurrency as a payment method).
Non-fungible tokens (NFTs) are a new sort of blockchain-based token that is unique and indivisible. They were first introduced in late 2017. While fungible tokens have opened up new use cases such as Initial Coin Offerings, the value of NFTs as a component is still unknown. This research fills in the theoretical and practical knowledge gaps by demonstrating the efficacy of NFTs in the event ticketing area. We design, create, and comprehensively evaluate a prototype of an event ticketing system based on NFTs using a rigorous design science research approach. As a result, we show how NFTs may be used to tokenize digital products, reduce fraud, and strengthen control over secondary market transactions. We also provide generalizable information of the benefits and challenges of NFTs, as well as consequences for both researchers and practitioners.
Decentralized Finance (DeFi) is an emerging and revolutionizing field with notable uncertainties of reliability to be used on a mass scale. On the other hand, Artificial Intelligence (AI) has proved to be a crucial helping tool in numerous domains. In this study, we present a systematic review of the utility of AI in DeFi in terms of impact, reliability, and security and conduct exhaustive analysis. The review was motivated by an in-depth investigation of recently published literature that prioritized AI and DeFi in their research. This research, like many prior studies, examined the articles in terms of impact, reliability, and security. In addition, a new relevance score is introduced to better comprehend the quality of the content. According to investigation, the combination of AI and DeFi is one of the trending research topics that lacks adequate interpretations of black-box methodologies. Furthermore, it was discovered that one of the primary issues in DeFi is security, and numerous technologies, including blockchain technology and machine learning approaches, have been used to minimize such challenges. We hope that the gap addressed throughout this review will give insights to future researchers and practitioners, ultimately leading to new research opportunities in AI to bridge the gap of trust between peers and make the integration of DeFi more agile in the near future.
The number of attacks and accidents leading to significant losses of crypto-assets is growing. According to Chainalysis, in 2021, approx. $14 billion has been lost due to various incidents, and this number is dominated by Decentralized Finance (DeFi) applications. In order to address these issues, one can use a collection of tools ranging from auditing to formal methods. We use formal verification and provide the first formalisation of a DeFi contract in a foundational proof assistant capturing contract interactions. We focus on Dexter2, a decentralized, non-custodial exchange for the Tezos network similar to Uniswap on Ethereum. The Dexter implementation consists of several smart contracts. This poses unique challenges for formalisation due to the complex contract interactions. Our formalisation includes proofs of functional correctness with respect to an informal specification for the contracts involved in Dexter's implementation. Moreover, our formalisation is the first to feature proofs of safety properties of the interacting smart contracts of a decentralized exchange. We have extracted our contract from Coq into CameLIGO code, so it can be deployed on the Tezos blockchain. Uniswap and Dexter are paradigmatic for a collection of similar contracts. Our methodology thus allows us to implement and verify DeFi applications featuring similar interaction patterns.
The global market capitalisation of bitcoin has exponentially increased in recent years and there are concerns that the current prices of bitcoin do not reflect the true and fair underlying value of this particular type of digital asset. Applying Cue utilisation theory and signalling theory, and using a panel data on bitcoin prices from Bloomberg between 1st November 2019 and 31st May 2021, we examine the association between celebrity and government endorsements and volatility in bitcoin prices. We find that positive celebrity tweets and positive government sentiments towards bitcoin are significantly positively associated with positive changes in its prices. Our findings imply that although celebrity endorsements may cause a temporary ‘exponential rise’ in bitcoin prices, investors need to carefully diversify their portfolio to maximise their risk–return relationship.