Notwithstanding the apparent lack of success of international emission trading under the Kyoto Protocol, numerous jurisdictions are implementing mitigation mechanisms that put a price on carbon, whether by taxing activities that cause release of carbon to the atmosphere, or by creating markets through which the cost of atmospheric release of carbon is internalised to the relevant activities by way of emission trading schemes. Carbon pricing is integral as a tool of global climate policy for achieving greenhouse gas emission mitigation. The Paris Agreement and related decisions recognise and embrace the diversity of approaches taken by jurisdictions, moving away from the previous approach under the Kyoto Protocol. All the same, these diverse and heterogeneous mechanisms – in particular emission trading schemes – might achieve greater efficiency, larger scale and stimulate essential private sector engagement and other benefits, were they to be connected. There is a body of academic literature on the subject of linking emissions trading schemes, but surprisingly few examples. Linking entails jurisdictions achieving a certain level of convergence and homogeneity, which means parties negotiating out their differences. An alternative model is networking of emission trading schemes, which recognises and places a value on those differences, while maintaining the autonomy of the individual schemes. This thesis proposes a conceptual model of networking built on a distributed ledger technology (DLT) platform. DLT is one of a suite of new, so-called disruptive technologies impacting how services, especially financial services, will be provided into the future. As the carbon market network model is essentially a supra-jurisdictional financial market, the impact of these disruptive technologies must be taken into account. Even more so, DLT introduces features potentially making networking more feasible and effective within the policy framework of the Paris Agreement. New technologies come with their own issues, not least the fact that existing regulatory regimes may not be able to account for the changes they bring. Implementation of applications should be managed so that, on the one hand, they do not simply become means for circumventing current laws, but on the other, are not regulated in such a manner as to stifle innovation. In proposing an institutional and regulatory framework to enable the operation of the conceptual model proposed, this thesis analyses the literature and existing regulation of DLT applications in the financial markets. In so doing, the analysis draws together the applicable elements of climate change law, financial regulation and developing regulation of the technology. It aims to arrive at a position on the extent to which the proposal can overcome delays, inefficiencies and other problems that currently beset the carbon market, so as to maximise the opportunities for emissions trading to make a difference in achieving the objectives of climate policy. The thesis contributes to the extant academic literature in a number of respects, for instance, arguing that it is applications of new distributed ledger technology that should be the focus of regulation, not the technology itself; and by a novel application of theory concerning fragmentation of international environmental law and climate law to illustrate why it is postulated international emissions trading under the Kyoto Protocol was less effective than hoped. Equally importantly, the thesis contributes by examining networking as a means for connecting carbon markets, in contrast to the current linking approach; and by proposing a model for such networking, then analysing a governance structure for such connected markets, both areas that have received little previous academic attention. Key implications for policymakers arising from the thesis include issues such as the need for an assessment methodology to value diverse mitigation outcomes; and how to connect heterogeneous carbon pricing mechanisms to enhance mitigation policy.
Decentralized applications development on the Ethereum platform is becoming very popular in last few years. However, it requires developer to have knowledge and skills to integrate large number of components, such as smart contracts programming, IPFS decentralized storage, RPC calls or True for smart contracts management and various JavaScript libraries (e.g. Web3.js, TrueContract, JS-IPFS). This makes the development process very complex and dicult. At the same time, the developer has multiple front-end frameworks available, which however lack the ability to easily integrate the majority of previously mentioned components. To solve this problem, there are integration tools which address above issues and are intended to support a comprehensive development of decentralized applications (e.g. Drizzle, Vortex, Web3-React). The paper focuses on these integration tools and analyses the code complexity of decentralized application development using such tools. The analysis of code complexity was performed using multiple code complexity metric assessment methods.
Abderahman Rejeb, John G. Keogh, Horst Treiblmaier
The proliferation of sophisticated e-commerce platforms coupled with mobile applications has ignited growth in business-to-consumer (B2C) commerce, reshaped organizational structures and revamped value creation processes. Simultaneously‚ new technologies have altered the dynamics of brand marketing‚ enabling a broader reach and more personalized targeting aimed at increasing brand trust and enhancing customer loyalty. Today‚ the Internet allows marketers to penetrate existing markets, create new online marketplaces and to generate new demand. This dynamic market engagement uses new technologies to target consumers more effectively. In this conceptual paper, we discuss how blockchain technology can potentially impact a firm’s marketing activities. More specifically, we illustrate how blockchain technology can empower the consumer-centric paradigm and foster disintermediation‚ combat click fraud, reinforce trust and transparency, enable privacy protection, empower security and enable creative loyalty programs. We present six propositions that will guide future blockchain-related research in the area of marketing.
Sebastian Henningsen, Martin Florian, Sebastian Rust, Björn Scheuermann
The Interplanetary Filesystem (IPFS) is a distributed data storage service frequently used by blockchain applications and for sharing content in a censorship-resistant manner. Data is distributed within an open set of peers using a Kademlia-based distributed hash table (DHT). In this paper, we study the structure of the resulting overlay network, as it significantly influences the robustness and performance of IPFS. We monitor and systematically crawl IPFS' DHT towards mapping the IPFS overlay network. Our measurements found an average of 44474 nodes at every given time. At least 52.19% of these reside behind a NAT and are not reachable from the outside, suggesting that a large share of the network is operated by private individuals on an as-needed basis. Based on our measurements and our analysis of the IPFS code, we conclude that the topology of the IPFS network is, in its current state, closer to an unstructured overlay network than it is to a classical DHT. While such a structure has benefits for robustness and the resistance against Sybil attacks, it leaves room for improvement in terms of performance and query privacy.
SURFACE, standing for Secure, Use-case adaptive, and Relatively Fork-free Approach of Chain Extension, is a consensus algorithm that is designed for real-world networks and enjoys the benefits from both the Nakamoto consensus and Byzantine Fault Tolerance (BFT) consensus. In SURFACE, a committee is randomly selected every round to validate and endorse the proposed new block. The size of the committee can be adjusted according to the underlying network to make the blockchain mostly fork-free with a reasonable overhead in communication. Consequently, the blockchain can normally achieve fast probabilistic confirmation with high throughput and low latency. SURFACE also provides a BFT mechanism to guarantee ledger consistency in case of an extreme network situation such as large network partition or being under massive DDoS attacks.
Guntur Dharma Putra, Volkan Dedeoglu, Salil S Kanhere, Raja Jurdak
An Intrusion Detection System (IDS) aims to alert users of incoming attacks by deploying a detector that monitors network traffic continuously. As an effort to increase detection capabilities, a set of independent IDS detectors typically work collaboratively to build intelligence of holistic network representation, which is referred to as Collaborative Intrusion Detection System (CIDS). However, developing an effective CIDS, particularly for the IoT ecosystem raises several challenges. Recent trends and advances in blockchain technology, which provides assurance in distributed trust and secure immutable storage, may contribute towards the design of effective CIDS. In this poster abstract, we present our ongoing work on a decentralized CIDS for IoT, which is based on blockchain technology. We propose an architecture that provides accountable trust establishment, which promotes incentives and penalties, and scalable intrusion information storage by exchanging bloom filters. We are currently implementing a proof-of-concept of our modular architecture in a local test-bed and evaluate its effectiveness in detecting common attacks in IoT networks and the associated overhead.
Most current blockchains require all full nodes to execute all tasks limits the throughput of existing blockchains, which are well documented and among the most significant hurdles for the widespread adoption of decentralized technology. This paper extends out presentation of Flow, a pipelined blockchain architecture, which separates the process of consensus on the transaction order from transaction computation. As we experimentally showed in our previous white paper, our architecture provides a significant throughput improvement while preserving the security of the system. Flow exploits the heterogeneity offered by the nodes, in terms of bandwidth, storage, and computational capacity, and defines the roles for the nodes based on their tasks in the pipeline, i.e., Collector, Consensus, Execution, and Verification. While transaction collection from the user agents is completed through the bandwidth-optimized Collector Nodes, the execution of them is done by the compute-optimized Execution Nodes. Checking the execution result is then distributed among a more extensive set of Verification Nodes, which confirm the result is correct in a distributed and parallel manner. In contrast to more traditional blockchain architectures, Flow's Consensus Nodes do not execute the transaction. Instead, Verification Nodes report observed faulty executions to the Consensus Nodes, which adjudicate the received challenges and slash malicious actors. In this paper, we detail the lifecycle of the transactions from the submission to the system until they are getting executed. The paper covers the Collector, Consensus, and Execution role. We provide a protocol specification of collecting the transactions, forming a block, and executing the resulting block. Moreover, we elaborate on the safety and liveness of the system concerning these processes.
The Chinese developmental model has seven distinctive characteristics: First is an essentially capitalist development under decisive authoritarian leadership and purposive governance. Second is a vertical production structure where basic capital goods are produced in monopoly state-owned enterprises and the much-larger rest of the economy is under private ownership often connected with local party officials dispensing local monopoly rights. Third, at least in the post-Mao decades China is politically stable in relative terms. Fourth, the model is characterized by state-guided nationalist industrial policy and finance, subsidized access to land and credit for business, repression of labor rights and of yield on household financial savings. Fifth, there are massive investments in infrastructure funded by a very high national savings rate (particularly because of large undistributed profits of companies). Notably, per capita stock of government investment in fixed assets in 2017 was larger than that in Germany or UK, and five times that in India. Sixth, one notes rural industrialization in a decentralized framework with acute competition over jurisdiction, particularly in the early decades after reform. Seventh, there is openness to foreign trade and acquisitions and learning from foreign technology.
Florentina Magda Enescu, Nicu Bizon, Adrian Onu, Maria Simona Raboacă · 7 authors
Traditionally, the energy industry has been slow in adopting new disruptive technologies and the transition to a new energy market will require a new digital transformation plan, involving all parties from the energy market. Although it now seems to be an impossible and hard-to-accept scenario, especially by the big players in the industry, the pilot projects so far demonstrate that blockchain can play a major role in the future energy market, even if the technology is still in the first stages of the adoption life cycle. This article attempts to describe a solution to provide alternative irrigation systems for small farmers. The solution involves creating associations of small farmers that will use green energy from photovoltaic panels for the irrigation of agricultural lands. The efficiency of the proposed system can be monitored not only through digital hardware connected to photovoltaic panels and water pumps, but also by using the new blockchain technology that stimulates innovation and growth in the energy and a high level of automation though smart contracts. To accelerate the transition to the green energy economy, a SolarCoin version similar to the Bitcoin cryptocurrency has also been proposed, which is a utility token that creates new possibilities for energy and water trading.
Cryptocurrencies that are based on Proof-of-Work (PoW) often rely on special purpose hardware to perform so-called mining operations that secure the system, with miners receiving freshly minted tokens as a reward for their work. A notable example of such a cryptocurrency is Bitcoin, which is primarily mined using application specific integrated circuit (ASIC) based machines. Due to the supposed profitability of cryptocurrency mining, such hardware has been in great demand in recent years, in-spite of high associated costs like electricity. In this work, we show that because mining rewards are given in the mined cryptocurrency, while expenses are usually paid in some fiat currency such as the United States Dollar (USD), cryptocurrency mining is in fact a bundle of financial options. When exercised, each option converts electricity to tokens. We provide a method of pricing mining hardware based on this insight, and prove that any other price creates arbitrage. Our method shows that contrary to the popular belief that mining hardware is worth less if the cryptocurrency is highly volatile, the opposite effect is true: volatility increases value. Thus, if a coin's volatility decreases, some miners may leave, affecting security. We compare the prices produced by our method to prices obtained from popular tools currently used by miners and show that the latter only consider the expected returns from mining, while neglecting to account for the inherent risk in mining, which is due to the high exchange-rate volatility of cryptocurrencies. Finally, we show that the returns made from mining can be imitated by trading in bonds and coins, and create such imitating investment portfolios. Historically, realized revenues of these portfolios have outperformed mining, showing that indeed hardware is mispriced.
The Internet of Things (IoT) suffers from various security vulnerabilities. The use of blockchain technology can help resolve these vulnerabilities, but some practical problems in terms of scalability continue to hinder the adaption of blockchain for application in the IoT. The directed acyclic graph (DAG)-based Tangle model proposed by the IOTA Foundation aims to avoid transaction fees by employing a different protocol from that used in the blockchain. This model uses the Markov chain Monte Carlo (MCMC) algorithm to update a distributed ledger. However, concerns about centralization by the coordinator nodes remain. Additionally, the economic incentive to choose the algorithm is insufficient. The present study proposes a light and efficient distributed ledger update algorithm that regards only the subtangle of each step by considering the Bayesian inference. Experimental results have confirmed that the performance of the proposed methodology is similar to that of the existing methodology, and the proposed methodology enables a faster computation time. It also provides the same resistance to possible attacks, and for the same reasons, as does the MCMC algorithm.
Stock price prediction has been an important research theme both academically and practically. Various methods to predict stock prices have been studied until now. The feature that explains the stock price by a cross-section analysis is called a "factor" in the field of finance. Many empirical studies in finance have identified which stocks having features in the cross-section relatively increase and which decrease in terms of price. Recently, stock price prediction methods using machine learning, especially deep learning, have been proposed since the relationship between these factors and stock prices is complex and non-linear. However, there are no practical examples for actual investment management. In this paper, therefore, we present a cross-sectional daily stock price prediction framework using deep learning for actual investment management. For example, we build a portfolio with information available at the time of market closing and invest at the time of market opening the next day. We perform empirical analysis in the Japanese stock market and confirm the profitability of our framework.
The design of permissioned blockchains places an access control requirement for members to read, access, and write information over the blockchains. In this paper, we study a hierarchical scenario to include three types of participants: providers, collectors, and governors. To be specific, providers forward transactions, collected from terminals, to collectors; collectors upload received transactions to governors after verifying and labeling them; and governors validate a part of received labeled transactions, pack valid ones into a block, and append a new block on the ledger. Collectors in the hierarchical model play a crucial role in the design: they have connections with both providers and governors, and are responsible for collecting, verifying, and uploading transactions. However, collectors are rational and some of them may behave maliciously (not necessarily for their own benefits). In this paper, we introduce a reputation protocol as a measure of the reliability of collectors in the permissioned blockchain environment. Its objective is to encourage collectors to behave truthfully and, in addition, to reduce the verification cost. The verification cost on provider $p$ is defined as the total number of invalid transactions provided by $p$ and checked by governors. Through theoretical analysis, our protocol with the reputation mechanism has a significant improvement in efficiency. Specifically, the verification loss that governors suffer is proved to be asymptotically $O(\sqrt{T_{total}})$ ($T_{total}$, representing the number of transactions verified by governors and provided by $p$), as long as there exists at least one collector who behaves well. At last, two typical cases where our model can be well applied are also demonstrated.
The paper analyzes global publications in blockchain research on a series of quantitative and qualitative indicators, using Scopus database. Blockchain research published a total of 4629 research publications in 9-year period during 2010-18. The publications registered a fast growth of 150.24 per cent and registered average citation impact per paper of 5.04. The paper profiles most productive countries, organisation, authors and journals on select bibliometric indicators. The top 29 highly-cited papers in this area are also analysed.
The International Energy Agency has projected that the total energy demand for electricity in sub-Saharan Africa (SSA) is expected to rise by an average of 4% per year up to 2040. It implies that ~620 million people are living without electricity in SSA. Going with the 2030 vision of the United Nations that electricity should be accessible to all, it is important that new technology and methods are provided. In comparison to other nations worldwide, smart grid (SG) is an emerging technology in SSA. SG is an information technology-enhanced power grid, which provides a two-way communication network between energy producers and customers. Also, it includes renewable energy, smart meters, and smart devices that help to manage energy demands and reduce energy generation costs. However, SG is facing inherent difficulties, such as energy theft, lack of trust, security, and privacy issues. Therefore, this paper proposes a blockchain-based decentralized energy system (BDES) to accelerate rural and urban electrification by improving service delivery while minimizing the cost of generation and addressing historical antipathy and cybersecurity risk within SSA. Additionally, energy insufficiency and fixed pricing schemes may raise concerns in SG, such as the imbalance of order. The paper also introduces a blockchain-based energy trading system, which includes price negotiation and incentive mechanisms to address the imbalance of order. Moreover, existing models for energy planning do not consider the effect of fill rate (FR) and service level (SL). A blockchain levelized cost of energy (BLCOE) is proposed as the least-cost solution that measures the impact of energy reliability on generation cost using FR and SL. Simulation results are presented to show the performance of the proposed model and the least-cost option varies with relative energy generation cost of centralized, decentralized and BDES infrastructure. Case studies of Burkina Faso, Cote d'Ivoire, Gambia, Liberia, Mali, and Senegal illustrate situations that are more suitable for BDES. For other SSA countries, BDES can cost-effectively service a large population and regions. Additionally, BLCOE reduces energy costs by approximately 95% for battery and 75% for the solar modules. The future BLCOE varies across SSA on an average of about 0.049 $/kWh as compared to 0.15 $/kWh of an existing system in the literature.
In next-generation computing, the role of cloud, internet and smart devices will be capacious. Nowadays we all are familiar with the word smart. This word is used a number of times in our daily life. The Internet of Things (IoT) will produce remarkable different kinds of information from different resources. It can store big data in the cloud. The fog computing acts as an interface between cloud and IoT. The extension of fog in this framework works on physical things under IoT. The IoT devices are called fog nodes, they can have accessed anywhere within the range of the network. The blockchain is a novel approach to record the transactions in a sequence securely. Developing a new blockchains based middleware framework in the architecture of the Internet of Things is one of the critical issues of wireless networking where resolving such an issue would result in constant growth in the use and popularity of IoT. The proposed research creates a framework for providing the middleware framework in the internet of smart devices network for the internet of things using blockchains technology. Our main contribution links a new study that integrates blockchains to the Internet of things and provides communication security to the internet of smart devices.
Access control has become problematic in several organizations because of the difficulty in establishing security and preventing malicious users from mimicking roles. Moreover, there is no flexibility among users in the participation in their roles, and even controlling them. Several role-based access control (RBAC) mechanisms have been proposed to alleviate these problems, but the security has not been fully realized. In this work, however, we present an RBAC model based on blockchain technology to enhance user authentication before knowledge is accessed and utilized in a knowledge management system (KMS). Our blockchain-based system model and the smart contract ensure that transparency and knowledge resource immutability are achieved. We also present smart contract algorithms and discussions about the model. As an essential part of RBAC model applied to KMS environment, trust is ensured in the network. Evaluation results show that our system is efficient.
In order to ensure the information security, most of the important information including the data of advanced metering infrastructure (AMI) in the energy internet is currently transmitted and exchanged through the intranet or the carrier communication. The former increases the cost of network construction, and the latter is susceptible to interference and attacks in the process of information dissemination. The blockchain is an emerging decentralized architecture and distributed computing paradigm. Under the premise that these nodes do not need mutual trust, the blockchain can implement trusted peer-to-peer communication for protecting the important information by adopting distributed consensus mechanisms, encryption algorithms, point-to-point transmission and smart contracts. In response to the above issues, this paper firstly analyzes the information security problems existing in the energy internet from the four perspectives of system control layer, device access, market transaction and user privacy. Then blockchain technology is introduced, and its working principles and technical characteristics are analyzed. Based on the technical characteristics, we propose the multilevel and multichain information transmission model for the weak centralization of scheduling and the decentralization of transaction. Furthermore, we discuss that the information transmission model helps solve some of the information security issues from the four perspectives of system control, device access, market transaction and user privacy. Application examples are used to illustrate the technical features that benefited from the blockchain for the information security of the energy internet.
Jørgen Svennevik Notland, Jakob Svennevik Notland, Donn Morrison
Corruption is a major global financial problem with billions of dollars rendered lost or unaccountable annually. Corruption through contract fraud is often conducted by withholding and/or altering financial information. When such scandals are investigated by authorities, financial and legal documents are usually altered to conceal the paper trail. Smart contracts have emerged in recent years and appear promising for applications such as legal contracts where transparency is critical and of public interest. Transparency and auditability are inherent because smart contracts execute operations on the blockchain, a distributed public ledger. In this paper, we propose the Minimum Hybrid Contract (MHC), with the aim of introducing 1) auditability, 2) transparency, and 3) immutability to the contract's financial transactions. The MHC comprises an online smart contract and an offline traditional legal contract. where the two are immutably linked. Secure peer-to-peer financial transactions, transparency, and cost accounting are automated by the smart contract, and legal issues or disputes are carried out by civil courts. The reliance on established legal processes facilitates an appropriate adoption of smart contracts in traditional contracts.
In recent years cryptocurrency trading has captured the attention of practitioners and academics. The volume of the exchange with standard currencies has known a dramatic increasing of late. This paper addresses to the need of models describing a bitcoin-US dollar exchange dynamic and their use to evaluate European option having bitcoin as underlying asset.
Our current banking system is based on a central server where every branch is connected to each other. If the server made any changes to the data of a branch then other branches get affected. In this system, Corruption can be easily occurred because of unauthorized access which is totally insecure in transaction systems. But, Blockchain is a secure system where the transactional history regarding crypto-currency cannot be modified or destructed. Since 2008, Blockchain has gained immense interest due to exclusion of third-party organization participation in monitoring of the transactions. Ethereum is a protocol which is based on Blockchain technology and has several benefits over other crypto-currency based system and is best suited for creating a secure lending system. Every Ethereum based system runs on 'Smart-Contracts' which are lines of code and makes the system automated. As the system gets automated, proper algorithms can make the system reliable and secure as each and every step of the system is maintained and executed by the algorithm inside the Smart-Contracts. Blockchain systems work with peer-to-peer networks and also uses a consensus algorithm that's why there is no possibility of data modification.