Fintech in simple terms is leveraging technology to deliver banking and financial solutions to individual and enterprise customers. This is one of the fastest-growing sectors in both developed & developing countries with India amongst the top three fintech startups globally. Blockchain, Cryptocurrency, AI, Data Analytics, Machine learning, Big data, Robotics, and Cloud are some of the top technologies leveraged by fintech firms to deliver products. Domestic & global broadband connectivity setup by telecom service providers made available basic infrastructure needed for fintech growth. One of the early fintech innovations was the installation of the first ATM by Barclays Bank in 1967. Post global financial crisis in 2008, many ex-employees of financial firms came up with innovative fintech products. The objective of this paper is to identify globally emerging fintech trends. The Qualitative research methodology was used relying on a review of literature, discussion with the professionals and researchers. The emerging trends include IMF focus on leveraging fintech for cross border payments using distributed ledger technology, Augmented reality for customer satisfaction, Digital insurance, Digital invoicing, Crowd-funding, Crowd investing, Robotics investment advisory, Future relationships between Banks and Fintech firms, Central bank regulatory role. It also came out that although there are many research papers on fintech globally, however, there is not much research work carried out on fintech in India and there is an opportunity for further research on innovation and growth of fintech in India.
Nowadays, we frequently encounter the term of “digital assets†within the financial market’s terminology and media. As this native asset class is maturing, the uncertainty with regards to the underlying value, remains. The cause is clearly the agitated history that transcended the space of cryptocurrencies, which during its evolving stages, created confusion and misconceptions with regards to the purpose and viability of digital asset classes across various industries. In order to understand the real potential of digital assets and its underlying technology, it is important to clearly assess and classify this novel assets class, outlining the benefits for all financial actors and institutions, before projecting the future of finance around Blockchain and Distributed Ledger Technology (DLT). This paper will focus on the evolution of financial digital assets and the impact Financial Technology played in the adoption of novel financial services as a new emerging asset class within the Alternative Investment Spectrum.
Abstract Initial coin offerings (ICOs) represent a novel funding mechanism where digital tokens are issued on the blockchain and sold to investors. One major reason for the success of this financing model is the fact that the issued tokens can immediately be traded on secondary markets. This event study analyzes 250 exchange cross-listings of 135 different tokens issued through ICOs on 22 cryptocurrency exchanges. We find significant abnormal returns of 6.51% on the listing day and 9.97% over a seven-day window around the event. Further analysis shows that the results clearly differ for individual cryptocurrency exchanges, as listings on individual exchanges yield returns of up to 34% on the event day, while others are negligible. An investigation of liquidity-related metrics shows that lower prior trading volume and asset market capitalization have positive effect on listing returns. Investors use phases of high market liquidity to sell off positions around the period of cross-listing events. The results on the cross-listing effects of ICOs may be of relevance to investors/traders, ICO projects, cryptocurrency exchanges and regulators.
Iyolita Islam, Kazi Md. Munim, Shahrima Jannat Oishwee, A.K.M. Najmul Islam · 5 authors
Blockchain is relatively a new area of research. However, a surge of research studies on the blockchain has taken place in recent years. These research studies have mostly focused on designing and developing conceptual frameworks to build more reliable, transparent and efficient digital systems. While blockchain brings a wide variety of benefits, it also imposes certain challenges. Therefore, the objective of this research is to understand the properties of blockchain, its current uses, observed benefits and pitfalls to provide a balanced understanding of blockchain. A systematic literature review approach was adopted in this paper in order to attain the objective. A total of 51 articles were selected and reviewed. As outcomes, this research provides a summary of the state-of-the-art research studies conducted in the area of blockchain. Furthermore, we develop a set of concept maps aiming to provide in-depth knowledge on blockchain technology for its efficient and effective usage in the development of future technological solutions.
Contract production and transaction are very common and important since it can greatly reduce future uncertainty and is well-organized by buyers, sellers, and trusted third parties (TTPs). However, current commodity trading systems (such as spot, futures, and forward contract) are still traditional centralized structures, which means that there may always be concerned about the single point of failure and data corruption. Besides, even though there already exists fragmentary decentralized applications (DApps) for the marketplace, order management, resale, delivery, financing, and insurance, they are not integrated for operating contract production and transaction comprehensively. In this work, a blockchain-enabled integrated marketing platform (BeIMP) is proposed for contract production and transactions. BeIMP is a consortium blockchain (CsBc) framework that enables better safety, efficiency, and interoperability among stakeholders. BeIMP can directly match producers and consumers and reduce the problem of intermediaries' improper market operation. BeIMP has a three-tier risk diversification mechanism. First, both parties can know the quantity and price according to the contract specification (CSpec) in advance to avoid future uncertainty. Second, the buyers can resell the established order if they need, thereby diversifying the risk. Third, the concept of insurance is introduced to reduce force majeure and other systemic risks. BeIMP can also help producers get the loan from the financial institution (FI) if they need fund for production. We implement and demonstrate the prototype in contract farming (CF) first and discuss its generalizability to other scenarios. Experiment results show that the smart contract (SC) function is stable enough and the proof of authority (PoA) has the advantage in throughput and can give users a better experience.
The global implementation architecture of the traditional stock market distributes responsibilities and data across different intermediaries, including financial and governmental organizations. Each organization manages its system and collaborates with the others to facilitate trading on the stock exchange platform, and typically buy-sell orders go through different parties before settlement. This design architecture that involves a complex chain of intermediaries has several limitations and shortcomings, such as a single point of failure, a longer time for financial settlements, and weak transparency. Blockchain technology consists of a network of computer nodes that securely share a common ledger without the need of having any kind of intermediaries. In this paper, we present a novel blockchain-based architecture for a fully decentralized stock market. Our architecture is based on a private Ethereum blockchain to create a consortium network leveraging organizations that are already involved in the traditional stock exchange to act as validating nodes. In our architecture, the stock exchange trading logic is completely implemented on a smart contract, while considering the existing governmental market regulations. Since the new platform does not introduce significant changes to the stock exchange trading logic and does not eliminate any of the traditional parties from the system, our proposal promotes efficient adoption and deployment of decentralized stock exchange platforms. In addition, we present a proof of concept implementation of the new architecture, including the smart contract for trade exchange, as well as a virtualization-based test network to assess the platform performance. The test network consists of virtual nodes that run the developed stock exchange smart contract where we measure the buy-sell orders throughput and latency under different network sizes and trading workload scenarios. The obtained results have shown that the proposed trading platform can reach a throughput of 311.8 tx/sec, which is equivalent to 89% of the optimal throughput when the sending rate is 350 tx/sec. This throughput is largely sufficient to meet the requirement of major stock exchanges, such as Singapore stock market.
Habeeb Ilufoye, Oluwatolani Vivian Akinrinoye, Chinelo Harriet Okolo
This paper proposes a strategic product innovation model specifically designed for launching digital lending solutions within the financial technology sector. Recognizing the unique challenges posed by rapid technological advancements, stringent regulatory requirements, and evolving customer expectations, the model integrates market opportunity identification, technology enablement, agile development, and cross-functional governance to guide successful product launches. Emphasizing a customer-centric and risk-aware approach, the framework facilitates alignment among diverse stakeholders and fosters continuous improvement through iterative feedback mechanisms. The study underscores the importance of balancing innovation speed with compliance and ethical considerations to build trust and ensure sustainability. Implications for both industry practitioners and policymakers are discussed, highlighting how the model can inform best practices and regulatory strategies that promote responsible fintech growth. Finally, the paper explores future directions for evolving the model alongside emerging technologies such as AI, blockchain, and decentralized finance, advocating for ongoing adaptation to maintain relevance in dynamic markets. This comprehensive approach aims to enhance the accessibility, inclusivity, and resilience of digital lending products, contributing to more equitable financial ecosystems.
The article describes current trends in the global financial market development as well as the formation of fundamentally new, innovative financial resources within the peering economy, such as cryptocurrencies. Its capitalization reached almost 1/100 of global gross domestic product. The purpose of the study is to analyze both the status of cryptocurrencies in different countries, including the United States of America, Japan, People’s Republic of China, and the European Union and the peculiarities of the cryptocurrency circulation development, as well as the money functions they are able to perform. The author has formulated the dilemma of this market regulation at the national and global levels. One should consider that the long-term role of crypto units depends upon the resolution of such a dilemma. And there is no unified approach of states and international organizations to the status and prospects of cryptocurrency regulation in our days. This creates a unique field of opportunities for further development of such instruments as the big economic and market movements undulate in big swings that were due to a sequence of actions and reactions by policymakers, investors, business owners, and workers. Given that state control over the emission of fiat money in the world can only be ensured to the extent that they control the banking system, the study provides an analysis of the legal status of such financial engineering products as cryptocurrencies. The author also accents on the three-tier blockchain technology. Finally, the domestic component is thoroughly analyzed, i.e. the regulation field of such instruments in Ukraine. The draft Concept of State Regulation of Cryptocurrency Transactions is also explained. Keywords: cryptocurrency; blockchain; status of crypto units; financial regulation; functions of money.
Blockchain originally emerged as the technological innovation that powered new
forms of digital currency like Bitcoin. However, recent years have seen leaders
in banking, finance, government, and many more organizations giving this new
innovation more attention than ever before. This reputation has been attributed
to its properties of allowing data to be shared across a large network of untrusted
entities without relying on a trusted third party. Blockchain provides advantage
for non-repudiation and integrity of secured data storage resulting in a more
transparent process. This paper critically analyzes whether a blockchain is ideally
the application technical solution for a specific scenario. Moreover, we compare
the differences between a 'permissionless' blockchain such as bitcoin, and a
'permissioned' blockchain such as hyperledger, commonly preferred by established
institutions like banks and compare their features with that of a centralized
database. We then provide a structured methodology to determine the efficient
solution to solve a specific application problem. With our methodology, we
explore three use cases payments, supply chain management, and decentralized
autonomous organizations and conclude this article with an outlook for further
opportunities.
Blockchain, the technology behind digital currency, is a decentralized, distributed ledger that records transactions in digital assets. By authenticating and recording immutable transactions, decentralized blockchains perform the same function as many intermediaries in our society that establish trust and maintain integrity between transacting parties. Due to its natural relation to accounting and possible uses in accounting functions, business operations, and financial services, it is important that accountants learn about blockchain technology and its opportunities and limitations. This chapter explores applications of blockchain technology in finance, auditing, financial reporting, and supply chain. We first discuss the classification, characteristics, and issuance of cryptoassets and the evolving regulatory environment. Then, we address potential innovative uses of blockchain in auditing and financial reporting, keeping in mind the limitations of its application. Finally, we explore how blockchain technology can enhance communication and trust between organizations in a supply chain or in contracting relationships.
Blockchain is a new generation technology that allows the central control mechanism or trusted authority to be removed, spreading the encrypted data across all participants in the network in a distributed database structure instead of central trust. The Smart Contract structure, which defines the rules and flow that allow the things we value to operate automatically as determined without the need for an external trigger mechanism, is the core element of this technology. Blockchain has gained popularity with its most famous application, Bitcoin. After Bitcoin became popular, it turned out that Blockchain might have new uses due to the advantage of technology such as security, brokerage, and transparency, and these areas are being investigated. Many big companies have started to invest in this technology in the face of the opportunities brought by Blockchain. HAVELSAN is a largescale software company that studies and adapts new generation technologies. Blockchain technology has become of the new generation technologies that HAVELSAN is interested in due to its impressive advantages. HAVELSAN has a wide range of activities, so the company can develop various Blockchain-based applications depending on these areas. Combining this diversity with the importance of the Smart Contract concept, which can be considered as the basis for most Blockchain applications, it is decided to create a strong Smart Contract framework before starting to build different applications with Blockchain technology. The creation of HAVELSAN Blockchain Smart Contract Framework; which infrastructures are used during the development phase, the problems encountered during development and the structure of the most suitable applications to be created with the framework to be developed will be explained in this article.
Smart contracts are increasingly popular in business and law. Smart contracts are also becoming increasingly complex. Advances in technology allow smart contracts to handle far more intricate transactions than the traditional—and simple— vending machine example. With increased complexity comes increased responsibility. When parties rely on an attorney to review or draft a smart contract, that attorney must understand what he or she is reading or writing. Smart contracts, however, are not written in a language most attorneys can understand, let alone write. While a general description of the contract may be translated into plain English, the contract itself is written in code. If an attorney cannot read the contract itself—and can only read a general description of the contract—can the attorney claim in good faith that he or she possesses the competence necessary to understand the terms of the contract? If the attorney cannot understand the contract, he or she can be held liable for malpractice if the contract leads to results contrary to what the attorney claimed could or would occur. The implementation of smart contracts is likely to give rise to specialized requirements for attorneys drafting and advising on smart contracts. Special requirements are not unheard of in the legal community. For example, to become a patent attorney, one must take and pass the Patent Bar Examination and fulfill other requirements, such as obtaining a bachelor’s degree in specified fields of science or engineering. Similar requirements—either in the form of a smart contract certification or exam—should be developed not only as a measure of attorney competence, but also as a protection against malpractice suits brought forth by clients.
Jan 1, 2020·Proceedings of the 2nd International Scientific and Practical Conference “Modern Management Trends and the Digital Economy: from Regional Development to Global Economic Growth” (MTDE 2020)
The subject of this paper is the review of the feasibility and advisability of using smart contracts based on blockchain technologies for the legal regulation of relations to provide the exclusive rights to means of individualization (trademarks). Blockchain technology is one of the very promising fields in the area of digitalization of the economy, which continues to be constantly and actively developed. The use of selfexecutable transactions by subjects of civil (commercial) circulation is becoming increasingly relevant. However, it should be noted that law enforcement practice has yet to be formed in this area. The existing civil (commercial) law has recently begun to develop provisions defining the specifics of the circulation of so-called digital assets, which may also include exclusive rights and the results of intellectual activity, including trademark rights. So far, the existing legal regulation regarding the rights to digital assets (tokens) and the introduction of smart contracts into the circulation can hardly be called sufficient. The paper discusses the rationale for the feasibility and advisability of using smart contracts for registration of license agreements regarding the use of trademark rights. As a result of the study and practical proposal, the authors focus attention on the need for an internationally unified approach to using blockchain technologies for fixing the transfer (assignment) of exclusive rights to the results of intellectual activity.
Smart contracts have the potential to improve many existing transactions and to enable entirely new business models. However, the technology supporting this new method of transacting is complex and the legal framework applying to it is somewhat unclear. Though theorised several decades ago, it was not until the advent of the distributed ledger technology known as blockchain that smart contracts were able to be practically implemented. This paper summarises the concept of smart contracts while providing the background and context of its development. It then distinguishes those smart contracts which are considered legally binding within the scope of US laws from those that may not have legal effect. Next, it provides an in-depth example of an exploitation of smart contracts and explores how the legal reaction to it is inadequate. To reduce the likelihood of future smart contract exploitations and to improve confidence for contracting parties, this article suggests adding explicit smart contract cybersecurity provisions to existing US legal frameworks. Specifically, I propose adapting several of the National Institute of Standards and Technology’s Federal Information Processing Standards to create minimum cybersecurity requirements for all legally binding smart contracts. I also examine the shortcomings of the Computer Fraud and Abuse Act while identifying it as a piece of legislation ripe for reform which, if done adequately, may provide a legal deterrent to would-be cyber hackers of smart contracts.
The study aims at understanding the current scenario of blockchain education and whether it is meeting the increasing demand of blockchain professionals in the job market. In addition, it also provided a comparison between Ethereum and Hyperledger and analyzed the one best suited for better academic curriculum design. By drawing from various sources of data, including journals, articles, reports, the study provided critical insights into the various aspects of a blockchain education. It assesses the existing curriculum on the blockchain that includes courses and programs from various renowned universities and business schools. The study reveals that although the courses are comprehensive in developing theoretical knowledge of the learner, it does not provide the scope for practical skill development. This gap reflects the skill-shortage of blockchain professionals in the job market. To address this, the research also provides some guidelines for developing a comprehensive pedagogical structure using Hyperledger technology. The discussion also highlights the benefits associated with Hyperledger and the way it can foster active learning among the learners. Finally, the researcher also provided the practical and theoretical implications of the study and assessed its limitations directing on the future course of research.
Xinwen Ni, Taojun Xie, Wolfgang Karl Härdle, Xiaorui Zuo
Abstract Cryptocurrency markets are highly sensitive to regulatory changes, often experiencing sharp price fluctuations in response to new policies and government interventions. Despite this, existing market indices fail to adequately capture the risks associated with regulatory uncertainty. In this paper, we introduce the Cryptocurrency Regulatory Risk Index (CRRIX), a machine learning-based index designed to quantify the impact of regulatory developments on cryptocurrency markets. Our methodology employs Latent Dirichlet Allocation (LDA) to classify policy-related news articles from major cryptocurrency news platforms, providing an objective measure of regulatory risk. We find that the CRRIX exhibits strong synchronicity with VCRIX, a cryptocurrency volatility index, suggesting that regulatory uncertainty plays a significant role in driving market fluctuations. Our results indicate that regulatory risk is a leading factor in market volatility, with major policy shifts triggering significant market movements. The proposed regulatory risk index provides a novel approach to quantifying policy uncertainty in the cryptocurrency sector, offering valuable insights for market participants navigating this rapidly changing environment.