Blockchain Papers

M. V. Grenaderova, А. Е. Соловьева

No abstract is available for this record.

Johan Kirsten

No abstract is available for this record.

Mikael Nagy

The almost meteoric rise of Bitcoin has brought with it an investment boom in cryptocurrencies. The cryptocurrency markets however, are not functioning entirely as one would expect. Markets seem to have mispriced assets on a scale that would not happen in the stock market. Perhaps the most notable of these phenomena is the KimChi Premium or the relative overvaluing of bitcoins in Korea when compared to international markets \n \nThe aim of the study will be to establish whether or not the KimChi premium exists, what is the scale of the premium and give some clues to why the premium has come about. \n \nThe first chapter is an introduction to the subject, where the subject is outlined. \n \nThen chapters 2-4 will explain the key ideas and concepts to understand the phenomena being examined as well as giving a backdrop against which the KimChi premium can be assessed. The chapters 2,3 and 4 seek to explain the price setting mechanisms, foreign exchange policy and Bitcoin as a larger phenomenon respectively. \n \nChapters 5-6 are the research and conclusion chapters where the data collected is assessed and analyzed and conclusions are drawn.

И.Д. Котилевец, I. A. Ivanova, Ilya Romanov, Shamil Magomedov · 6 authors

The article describes the advantages provided by the implementation of a directed acyclic graph in the blockchain network. The advantages and known limitations of common blockchain networks are described. It is shown how directed acyclic graph allows increasing the speed of transactions between the network nodes and scaling the channel width due to the formation of parallel chains instead of the single true chain in common blockchain networks. Consequently, it is shown how blockchain network with directed acyclic graph also eliminates the concept of mining, allowing for transactions without the corresponding fees.

Nicolas Werle, Liina Lehtonen

Since its initial inception, cryptocurrency has hit the world with both intrigue and skepticism. It was acting as an alternative form of currency that people could use that required no regulative authority to back it. As such, people had the option to make purchases in anonymous manners, leading to what most would consider unethical behaviours, and ultimately resulted in cryptocurrency gaining a poor reputation. However, specific trends in society have helped cryptocurrency growth to continue. A societal loss of trust in the traditional banking system and the positive perception towards the blockchain technology, which is a peer-to-peer system that cryptocurrencies, such as Bitcoin, operate on are two such trends. Furthermore, recent years have witnessed exponential increases in the prices of cryptocurrencies, such as Bitcoin. This has led to widespread stories of people getting rich through cryptocurrency ownership, having been “wise-enough” to buy in on the cryptocurrency trend early enough to reap in the rewards of such as decision. And as a result, leading to more people wanting to be the next big success story and buying in on the cryptocurrency trend. This growing trend has also gained the attention of several multi-national companies, such as Expedia, Subway and Microsoft, who have begun accepting cryptocurrency as a form of payment. Even though specific cases have seen this strategy implemented successfully, the volatility of cryptocurrency still poses a risk that has hindered the ability of cryptocurrency to become a widespread payment option. Given the current trend surrounding cryptocurrency, this thesis serves the purpose is to investigate another alternative option for cryptocurrency use. That option being the potential for cryptocurrency to be used as an alternative payment option in the online gambling industry. Where it has been used as a payment option in other areas, it would be interesting to identify whether there is potential for the cryptocurrency to be adopted and used in this particular industry as well. In order to investigate this phenomenon from both the consumer and industry point-of-views, this thesis used a mixed-methods study, which consisted of a qualitative study and quantitative study. Our qualitative study focused on the industry side of the phenomena. To carry it out, we conducted a series of semi-structured interviews with managers of a large online gambling company in order to gain deeper knowledge on their perspectives regarding their perceptions towards how cryptocurrency adoption would affect the online gambling industry. Based on the information gained from the interviews, specific themes were identified and further analyzed through a thematic analysis. Those themes included blockchain in online gambling, holding cryptocurrency, regulation and the reputation of cryptocurrency. Our results indicated that managers did not believe the industry was ready to adopt cryptocurrency due to specific regulatory factors, but that it had future potential, mainly regarding its association to blockchain. Our quantitative study focused on interpreting the perceptions of online gamblers regarding cryptocurrency use in online gambling. Specifically, identifying what would motivate them to use cryptocurrency in online gambling and if they were willing to accept it as a payment option. Based on the results obtained through a survey we distributed, we used linear regression to identify if online gamblers were willing to accept cryptocurrency. The resulting outcome was a moderate level of rejection towards cryptocurrency acceptance. The linear regression model also allowed us to interpret which predictor variables held the greatest level of importance towards predicting cryptocurrency acceptance. Those specific variables included cryptocurrency anonymity, usability, ownership, and belief in the future of cryptocurrency. When comparing the results from both studies through triangulation, we were able to conclude that both consumers and the industry were not ready to fully accept cryptocurrency usage in online gambling. However, both sides indicated positive outlooks towards its future potential as a payment method.

Edward Lehner, John R. Ziegler

This work conceptualizes a process for cryptocurrency to diversify traditional methods of higher education funding in the United States. Higher education funding has seemingly reached an impasse, and opinions remain divided over both which societal parties should bear the educational costs for the vast majority of Americans and how to remedy the student debt crisis. Cryptocurrency funding augments traditional revenue streams, and shifts the discussion of education costs from expenses to a more robust conversation about innovative avenues to wealth generation as a potential solution to fund the mission of American higher education. Historically, higher education has been rooted in scarcity frameworks and a type of zero-sum proposition for funding allocation, and this conceptual paper acknowledges the the central concerns of higher education funding and explores these arguments as legacy discourses rooted in career preparation, accessibility and affordability, and arguments about the need for a broad-based education versus more technical skills training. Further, an alternative model to current higher education funding models is presented to embrace technological, disruptive wealth generation based on cryptocurrency to deploy this asset class to serve education needs by funding research, students, and the academy through an illustrated conceptual framework for funding. implementation.

Steven F. Ziegler

The Department of Justice recently prosecuted a teenager from Manassas, Virginia, for attempting to provide material support to the Islamic State in Iraq and the Levant. The Department revealed that the teen had posted instructions on social media explaining how to use the cryptocurrency Bitcoin to support terrorist operations. United States law enforcement and intelligence organizations are increasingly concerned, and rightfully so, with how they are going to address the growing problems presented by terrorist and criminal use of cryptocurrency to launder money and otherwise support illicit operations. These organizations are specifically troubled by how difficult it is to monitor cryptocurrency systems, which largely stems from the fact that many cryptocurrencies are constructed on Block Chain technology. Block Chain technology, in the context of cryptocurrency, is a Distributed Ledger System that stores data in registers among many different computer systems using cryptography as a complimentary security protocol. The transfer of cryptocurrency using this decentralized system does not require an intermediary, such a bank or other financial institution, which increases its potential application for financing of illicit activities. These unique aspects of this game-changing technology make it very difficult for investigators to gather the information they need under the current law. Regulations and policy guidance built on the old authorities have left new companies fumbling through the dark, trying to abide by vague, strict, unfair, unforgiving, and expensive regulatory recordkeeping and reporting regimes. The outdated law that federal agencies depend upon for their authority not only ties their hands from coming up with new and innovative ways to address the obstacles posed by this new technology but also negatively affects the technology industry itself by stifling innovation. This paper asserts that new and inventive legislation, not just revised regulation, is required to address this crucial area of concern for national security while also balancing the importance of fostering and encouraging innovation in this groundbreaking technology. This paper recommends that Congress legislate now to create a collaborative environment where private entities are incentivized to voluntarily share information with federal agencies in order to address this growing concern. The legislation should solidify, in law, protections and immunities for the private entities that participate while also establishing a realistic but attractive incentive structure. This sort of legislation is not a wholly new concept, as Congress has successfully passed similar legislation in the past to create an information-sharing environment for the various cyber threats postured to damage the government and private industry equally. Ultimately, Congress should choose to reinvigorate the forward-thinking provisions found in the Cybersecurity Act of 2015 by particularizing its information-sharing scheme to cryptocurrency specific financial information and restructuring the Act’s immunity and incentives schemes. This will provide the industry with the flexibility it needs to grow and develop while providing law enforcement the information it requires to protect the security and the people of the United States.

John Maynard Smith

The old school -which consists largely of middle-aged and elderly men- tend to claim that bitcoin is a "bubble", and seize on every downturn in the price of bitcoin as evidence that the bubble has burst or is about to burst. The bubble only gets fatter, and all of the anti-crypto arguments -notably the argument that currencies need themselves to possess, or to be based on something with "intrinsic" value, and cryptocurrencies lack intrinsic value- are fallacious. Here we propose that there are deep mathematical reasons why the conservatives are mistaken, and why cryptocurrencies will increasingly replace their traditional counterparts.

George Allayannis, Aaron Fernstrom, Anastasiya Luzgina

No abstract is available for this record.

Erlend Solberg Thorsrud

The interest has grown around Bitcoin as a trustless and decentralized digital payment service. Along with the increase in users and transactions, Bitcoin suffers from challenges regarding scalability. Many solutions have been proposed over the years, but Bitcoin is still struggling with finding the solution that suits everyone. Lightning Network as one of the most promising solutions, will be in the scope of this thesis, along with why such a solution is needed.\n\nBy investigating Bitcoin, scalability challenges and proposed solutions, we evaluated Bitcoin s future. We explore challenges such as propagation time, block size and energy consumption. Increasing the block size, changing the consensus algorithm and off-chain payments are discussed. The Lightning Network as an off-chain solution is investigated further in-depth. Challenges and consequences of implementing the Lightning Network are discussed. Furthermore, this thesis discusses whether the Lightning Network is the solution Bitcoin needs or not.

Caitlin Lustig

In this thesis, I expand on the concept of algorithmic authority, a concept that I introduced in earlier work to understand the role of algorithms in daily life. Algorithmic authority is the legitimate power of algorithms to direct human action and to impact which information is considered true. In contrast to much other work on algorithms in sociotechnical systems, I argue for more precise use of the word “algorithm”, as well as for the importance of studying algorithmic systems that do consist of “black box algorithms”. Through a study of the users of the cryptocurrency Bitcoin, I explore what it means to trust in algorithmic authority in an open source, decentralized system and contrast it with the authority of centralized and corporate software. My study utilizes data from my survey, interviews, and observation of the broader Bitcoin community. I examine the tensions between members of the Bitcoin community who would prefer to integrate Bitcoin into institutions and those that saw it as a radical use of algorithmic authority. I describe how my participants preferred algorithmic authority to the authority of conventional institutions that they saw as untrustworthy. However, they acknowledged the need for mediating algorithmic authority with human judgment. I examine these tensions between how they would like Bitcoin to be used and how it is being used, and what those tensions can tell us about algorithmic authority. Lastly, I suggest future research directions for examining a wider range of algorithms and better understanding the Bitcoin community.

Joline Göttfert

Denna uppsats har två delsyften. Det första delsyftet är att ge en beskrivning av vad bitcoin är och hur tekniken bakom bitcoin fungerar. Det andra delsyftet är att redogöra för hur bitcoin ska värderas. Genom en selektiv litteraturöversikt med avseende på värderingsmodeller för bitcoin har det andra delsyftet besvarats. I litteraturen har tre olika ansatser till att värdera bitcoin återfunnits och denna uppsats presenterar respektive värderingsansats för bitcoin och de resultat som har framkommit av tidigare studiers empiriska test. I den första modellen har bitcoin klassificerats och värderats som ett betalningsmedel. Ansatsen för den andra modellen är att värdera bitcoin som en finansiell tillgång. Utgångspunkten för den tredje modellen är att bitcoin är ett nätverk och ska värderas utifrån den aspekten med hjälp av Metcalfe’s lag. Sammanfattningsvis kan alla tre modeller förklara bitcoins prisbildning till en viss del. Slutsatsen är att bitcoin i högre grad kan klassificeras och värderas som en finansiell tillgång, eller som ett nätverk, än som ett fungerande betalningsmedel.

G Raghunandan

Bitcoin is an arrangement expected to support the trading of noteworthy worth between parties. Bitcoins dislike traditional portion structures, which moves holds named in sovereign money related structures, Bitcoin has its own particular metric for an esteem called Bitcoin. Bitcoin is a complicated arrangement, and its utilization incorporates a mix of cryptography, circled figuring's, and inspiration driven lead. What's more, late enhancements prescribe that Bitcoin activities may incorporate dangers whose nature and degree are near nothing if by any methods, got on. In light of these considerations, the inspiration driving this paper is to give the basic establishment on the pricing aspects to appreciate crucial Bitcoin activities and chronicle a game plan of observational regularities related to Bitcoin utilize.

Rodion Horbunov

Bitcoin: Opportunities and Threats for UkraineThe information technology world is constantly evolving.And Bitcoin has become one of the greatest innovations in economic decentralization since the late 20th century.Bitcoin is the first decentralized digital currency, which can be used through the Internet.Every country should decide what Bitcoin means for them: possibility or threat.First of all, Bitcoin has significant advantages for investors, companies, employers and employees, they are: solution of the problem of assets centralized nature; bilateral dealing system; it is not affected by inflation; geographic independence for transactions; transparency of bitcoin processes; comparative safety of cryptocurrency wallets; transaction fees and time level in comparison to SWIFT or SEPA; solution of the"double spending problem" of electronic currencies.The possible advantage for the country in case of bitcoin legalization is new business activity and new tax registration.It is important to notice that cryptocurrencies were created to be uncontrolled by any financial institutions.So the superfluous interference of the government can have detrimental effect on the development of this type of currency as a way of effective payment and accumulation facility.However, Bitcoin has some disadvantages: lack of awareness and understanding for society; risk and volatility caused by limited amount of coins and high demand; complexity and cost of cryptocurrency mining.The main threats of bitcoin distribution in Ukraine are: reduction of the state control over currency transactions and decrease of the importance of the existing currency circulation system in settlements between counterparties for goods delivered and services performed.Bitcoin is the most popular cryptocurrency in the modern world, but, despite the achieved heights, it is in the phase of development and constant improvement.Considering the facts above, we can draw the following conclusion: the importance of bitcoin should not be underestimated for Ukraine with its developed shadow economy and instability in the east of the country.This can lead to the even greater share of shadow market and reduction of legalized transactions in the field of international payments.A careful study of the currency features and analysis of its advantages and disadvantages allow to conclude that it is impossible to effectively combat the expansion and development of the cryptocurrency in the world economy.Therefore, it is advisable to take it for granted and to take the process of its development under control by adopting appropriate legislative framework and establishing the main directions for its using in the national economy.

ChunKit Hung

No abstract is available for this record.

Sebastian El-Hage, Gustav Holst

Today there exist no standardized payment solution for performing micropayments between Internet of Things (IoT) devices. This study was conducted to examine whether Distributed Ledger Technology (DLT) could be suitable as a micropayment solution for IoT. Also, a more general demand for a scalable micropayment solution was examined, along with its potential. A qualitative study was performed by first conducting eight unstructured interviews regarding the subjects DLT and IoT, to be used as a complement to the literature research. Then, one unstructured and five semi-structured interviews were held to answer the research questions. The Bitcoin blockchain does not work as a micropayment solution, due to scalability issues. This study identified a positive outlook on the idea of Lightning Network, solving the scalability problems with off-chain transactions. However, since a fully functioning network is yet to be implemented, there exist uncertainties, for example regarding how decentralized it will really become. Also, issues considering the usage of DLT:s on small IoT devices arose, stemming from CPU and storage constraints. A demand of a sustainable micropayment solution was identified, possibly being a catalyst of the emergence of pay-per-use business models. Considering more powerful IoT devices, the Lightning Network could function as a micropayment solution. Such a technology is sought after, and its applicability will only increase as IoT devices evolve.

Sean Stein Smith

Perceived price volatility of cryptocurrencies may distract practitioners from further developments in the blockchain space that may generate audit and other implications. As next step applications and developments are built on top of existing blockchain programming, the potential implications for both accounting and legal practitioners may be substantive. Especially as different blockchain tools and platforms become more robust and conducive for business and transactional use, the importance of being able to attest and report on this information will move closer toward the mainstream. This article discusses the rise of blockchain applications in a manner applicable for both practitioners and academics, as well as the implications these applications will have on attestation and compliance reporting.

Suni Ajay Kumar

The aim of the paper is to fit a regression model which can be used commonly for the four important crypto currencies: Bitcoin, Litecoin, Ethereum and Ripple to predict the prices. The data has information over the past six years regarding price, transaction volume, transaction count, exchange volume, generated coins etc of these currencies. Understanding the dynamics of crypto currency market can help to a certain extent to take wise investment decisions. Among the variables under consideration the study revealed that transaction volume can be used as an influencing variable to fit a quadratic regression model and predict the prices of the crypto currencies.

Ameen Talib

This paper provides an overview on the viability and performance of bitcoins as a payment alternative. The history of the Crypto-currency is briefly covered followed by the operation and potential technology failure. The paper then discusses consumer acceptance of bitcoins by analyzing a survey conducted by and the positive and negative observation of the results will be discussed. Fiat Currencies, Traditional E-commerce and Alt-Coin are identified as bitcoins direct competitors and a comparison done on bitcoins against its competitors. The regulatory issues and the legality of bitcoin are also discussed

Shubham Raymajhi, M. Manjusree

Block Chain is the emerging technology in today’s world. Its main implementation is in digital currency now days but it can in applicable in every field. Main motive of Block Chain is to improve distributed database. It allows to make any kind of transaction from one node to another without using any third party and bitcoin is the implementation of the blockchain

Т. И. Казанцева

The work is devoted to the analysis of Bitcoin protection on mathematical bases, in particular, elliptic curves and finite fields.

Marielle Fiedler, Cecilia Uney

The digital currency Bitcoin has attracted a lot of attention lately, partly because of its high volatility and rising popularity. The purpose of this study was to find out why companies have chosen to implement and accept Bitcoin as a payment method. Furthermore, investigate what costs and benefits companies experience from accepting Bitcoin as a means of payment, as well security concerns and risks related to Bitcoin. The scientific method of observation used to gather information was through qualitative research where interviews were conducted with six different companies that accepts Bitcoin as a means of payment. The study's results indicate that there are several factors that lead to companies choosing to implement Bitcoin as a payment method. It is perceived to be of high level of security as well the risks associated with Bitcoin are not perceived to be major among the respondents. The result showed that the costs of accepting Bitcoin as a means of payment are low for companies but unlike previous studies, it showed very high transaction fees for consumers.

Edmund Schuster

No abstract is available for this record.

Abelardo Arredondo

The true innovation behind the Bitcoin protocol is blockchain technology. Blockchain is the underlying distributed database and encryption technology that enables trustless transactions that can be verified, monitored, and enforced without a central institution. This master’s report presents the core concepts behind blockchain that are concerned with carrying instructions for storage, sharing of non-financial data, including an examination of the byzantine fault tolerant cryptography model.\nA literature review describes the types of blockchains, nodes, proof of work, disadvantages, and risks and provides a survey of future applications related to state government records, such as birth certificates, automobile registrations, land deeds, and voting. This review will answer the question: Is it possible for a state government to use blockchain employing trusted nodes given that the nature of blockchain is that of a distributed network of peers accompanied by a public ledger without a central authority?\nFinally, the requirements for a specific application case study will be defined and developed. The desired application will be a smart contract to invoke a statutory durable power of attorney using blockchain technology for oneself in case of incapacitation while still living.