Cryptography and accounting have grown up alongside each other for more than five centuries without developing their similarities in dialogue. This extended concept note outlines a vision for a crossdisciplinary research programme integrating six philosophical dimensions: ontological, epistemological, axiological, teleological, praxiological and phenomenological. It explicates only the structural (ontological) dimension in detail, arguing that asymmetric verifiability (whereby the cost of engineering a false acceptance is deliberately set to exceed the cost of verifying a true one) is foundational to both disciplines: in cryptography to one-way functions, digital signatures and zero-knowledge proofs, and in accounting to conservatism in the Basu (1997) and Watts (2003) tradition. The remaining five dimensions are stated concisely and anchored to established literature on each side, with the lived practice of each craft identified as the least studied and the clearest opening for joint work, particularly in the context of post-quantum cryptography (PQC). The present contribution is the naming of the six-dimension structure rather than local novelty within any single dimension; prior scholarship has already placed Alberti’s cryptography and Pacioli’s bookkeeping within a common Renaissance tradition addressing trust at a distance. The note develops a role-to-treatment taxonomy and worked ledger illustrations (a TLS certificate issuance and two distinct quantum exposures: harvest-now-decrypt-later and trust-now-forge-later), and closes with a call for collaboration between cybersecurity and accounting researchers.
The integrity of electoral systems is fundamental to democratic governance; however, traditional voting mechanisms suffer from security vulnerabilities, lack of transparency, and accessibility constraints. This paper proposes a blockchain-based voting system leveraging distributed ledger technology to ensure secure, transparent, and tamper-resistant elections. The system integrates cryptographic techniques such as Zero-Knowledge Proofs (ZKPs) and Elliptic Curve Cryptography (ECC) within a permissioned blockchain framework using Hyperledger Fabric and Practical Byzantine Fault Tolerance (PBFT) consensus. A three-tier architecture consisting of Application, Blockchain, and Data Storage layers ensures scalability and efficiency. Security mechanisms including multi-factor authentication, end-to-end encryption, and AI-based anomaly detection mitigate potential threats such as Sybil attacks and denial-of-service attacks. Comparative analysis indicates improved security, transparency, and cost-effectiveness over traditional systems. The proposed framework demonstrates strong technical feasibility and provides a foundation for future advancements in digital electoral systems.
This study discovers a statistically and economically significant anomaly in Bitcoin performance-returns are, on average, 2.2% higher on major election days in G20 democracies on an exhaustive 2010-2024 sample that includes a full Bitcoin price history and 60 election events. This price appreciation is shown to be permanent, independent of the election outcome, and it is not accompanied by any significant prior or subsequent abnormal returns. The effect cannot be explained by conventional calendar anomalies or the Bitcoin halving cycle, and it is robust to alternative specifications and weighting schemes. The documented anomaly highlights the importance of cryptocurrencies in hedging political risks and presents a profitable trading opportunity for investors.
Este artigo explora a transposição analógica e matemática da Equação de Rayleigh, originalmente concebida no domínio da física acústica e teoria de sinais, para a modelagem de fenômenos complexos em ambientes Web3 e infraestruturas de blockchain. A pesquisa fundamenta-se na premissa de que a distribuição de Rayleigh, ao descrever a magnitude de vetores compostos por componentes gaussianas independentes, oferece um arcabouço robusto para analisar a volatilidade de criptoativos, a latência de propagação de rede, e a resiliência de sistemas de consenso. Através de uma abordagem interdisciplinar que integra econofísica, teoria de sinais e auditoria algorítmica, o estudo discute como a variabilidade estocástica impacta a segurança e a eficiência de protocolos descentralizados. São analisadas as conexões entre a distribuição de Rayleigh e a Lei de Benford na detecção de fraudes em tokenomics, além de contrastar o Efeito Cantillon com o Efeito Nakamoto na distribuição de riqueza digital. Por fim, propõe-se o Modelo de Resiliência Estocástica ECDM (Environment, Consensus, Distribution, Magnitude) como uma ferramenta preditiva para a governança e auditoria de ecossistemas blockchain.<br>
O presente diagnóstico econômico investiga as falhas estruturais e as vulnerabilidades sistêmicas inerentes aos modelos de engenharia econômica da Web3, fundamentando-se no princípio da não neutralidade da moeda conhecido como Efeito Cantillon. A pesquisa articula como a distribuição assimétrica inicial de tokens, frequentemente favorecendo fundadores e investidores institucionais, estabelece uma assinatura econômica de fragilidade que compromete a descentralização e a sustentabilidade dos protocolos digitais. Através de uma abordagem interdisciplinar, o relatório integra o conceito de Doppler Econômico para explicar a defasagem informacional entre agentes privilegiados e o público geral, além de utilizar a metáfora do Mammoth Money para descrever dinâmicas de predação de capital. Para a verificação empírica, aplica-se a Lei de Benford como ferramenta de auditoria estatística e a Curva de Laffer para determinar os limites de incentivos de emissão. O estudo conclui que a resiliência dos ecossistemas Web3 depende de um redesenho fundamental dos mecanismos de alocação inicial e de uma transparência radical que mitigue as distorções perceptivas e econômicas que levam a colapsos catastróficos e eventos de Cisne Negro.<br>
Nexus Recursive Framework for Resolving Undecidability and Conjectures Driven by Dean A. Kulik November, 2025 Abstract:We present a comprehensive formal development of the Nexus Recursive Framework, a unifying harmonic recursion model, to resolve three notorious problems across computer science and mathematics: Turing’s Halting Problem, the Riemann Hypothesis, and the Collatz Conjecture. Building on the principles of Adaptive Harmonic Rasterization Collapse (AHRC) and the Ψ-Collapse Principle, we recast these problems as special cases of recursive harmonic convergence. Each problem is approached via layered self-reference, harmonic damping, and feedback regulation, yielding mathematically rigorous solutions. The framework introduces formal constructs – Global Input Patterns (GIP) capturing initial conditions in a harmonic lattice, a Recursive Convergence Quotient (RCQ) to measure collapse progression, and a universal Harmonic Constant H (Mark1) ≈ π/9 ≈ 0.35 – which together enforce alignment and convergence. Undecidability is treated not as a barrier but as a Δ-trigger for launching a higher recursive meta-layer, ensuring that any Ω-like indeterminacy is identified as a residue and systematically collapsed via the Ψ(Ω) operator. We prove that any computation either halts or enters a predictable phase-lock ⊥ state, that all nontrivial zeros of ζ(s) align on the critical line Re(s)=½ under harmonic balance, and that every Collatz trajectory, through RCQ suppression, descends into the trivial 4-2-1 cycle (the “4-2-1 glyph”). Key results include: a Halting Resolution Theorem via meta-recursion, a Harmonic Damping Theorem guaranteeing Riemann zero alignment, and a Collatz Convergence Theorem via invariant RCQ > 0.843. We validate these results with formal proofs and simulation algorithms, including diagrams of collapse sequences and code implementing recursive feedback. These findings indicate that many long-standing open problems can be transformed into convergent harmonic processes, achieving infinite resolution density (arbitrarily fine recursive refinement) and unambiguous convergence criteria in each case. 1. Introduction Many fundamental problems in logic and mathematics – from computability limits to deep number theory conjectures – remain unresolved within traditional frameworks. Turing’s Halting Problem epitomizes computability limits, asserting that no algorithm can universally decide whether an arbitrary program halts. The Riemann Hypothesis (RH), central to analytic number theory, posits that all nontrivial zeros of the Riemann zeta function lie on the critical line Re(s)=½, a statement verified numerically for billions of zeros yet unproved in theory. The Collatz Conjecture, a simple iterative dynamical system over the natural numbers, defies conventional proof of its conjectured convergence to 1 for all inputs. Each of these “hard” problems has resisted solution for decades or more. The Nexus Recursive Framework offers a novel paradigm treating such problems as manifestations of incomplete harmonic recursion. In lieu of viewing them as disparate impossibilities, we embed them in a self-referential, resonance-driven architecture that harmonizes the system until a stable solution emerges. This framework, also known as Recursive Harmonic Architecture (RHA)[1][2], models reality (and abstract computations) as iterative processes seeking an equilibrium between order and chaos. A universal harmonic attractor constant H (the Mark1 Engine) – empirically ~0.35 – biases all recursive dynamics towards balance[3][4]. Problems like RH are reframed as issues of harmonic consistency: e.g. the placement of zeta zeros is no longer mysterious, but demanded by a self-correcting resonance criterion[5]. Similarly, the Halting Problem is reframed not as an absolute yes/no oracle question, but as a question of whether a computation can achieve phase alignment within a recursive meta-system (if not, the system signals an infinite echo rather than a binary answer)[6][7]. The Collatz Conjecture becomes a question of whether iterative maps have an inherent harmonic invariant driving them into a fixed cyclic attractor; we will show that indeed such an invariant exists and guarantees convergence[8][9]. Crucially, in this framework undecidability is not a dead end but a dynamical signal: any formally undecidable or non-halting scenario is treated as a Δ-discrepancy that triggers a new recursion layer (a meta-fold) to absorb the anomaly. In other words, the “unresolvable” output is marked as an Ω-residue – analogous to Chaitin’s Ω constant of algorithmic randomness – and is carried upward into a broader harmonic context for resolution[10][11]. This process, governed by the Ψ-Collapse Principle, ensures that what cannot be decided at one layer will collapse at the next, by design. Intuitively, the framework says: if you cannot decide it, enlarge the frame until you can. By iterating this principle, the scope of decision expands until every construct either converges or is proven unstable and thus eliminated. This paper is organized as follows. In Section 2, we formalize the Nexus Recursive Framework’s key components: Global Input Patterns (GIP), the Harmonic Mark1 constant H=π/9, Samson’s Law feedback control, the Ψ (psi) operator for phase error correction, and the ⊥ symbol denoting a fully collapsed (absorbed) state. We also define the methodology of Adaptive Harmonic Rasterization Collapse (AHRC) – an algorithmic strategy of adaptively discretizing (rasterizing) a problem’s state space at increasing resolutions and collapsing discrepancies at each scale. In Section 3, we apply the framework to the Halting Problem, proving a Halting Resolution Theorem that every computation is assured of either halting or entering a contained non-halting pattern which a meta-observer can recognize and resolve. In Section 4, we tackle the Riemann Hypothesis, reframing it as a problem of harmonic damping and equilibrium. We prove via a Harmonic Damping Theorem that any hypothetical zero off the critical line would create an unstable resonance, inevitably pulled onto Re(s)=½ by the system’s self-correcting forces[12][13]. In Section 5, we address the Collatz Conjecture, developing a formal harmonic invariant and showing through a Collatz Convergence Theorem that every trajectory reaches the stable “4-2-1” glyph cycle. Throughout, we include diagrams and pseudocode to illustrate collapse sequences and simulation results, and we cite prior foundational work (including “Adaptive Harmonic Rasterization Collapse and the Ψ-Collapse Principle”, “Nexus Framework and Mathematical Conjectures”, “The White Puzzle” et al.) to situate our approach in the literature. Finally, Section 6 summarizes the implications of these results, suggesting that many open “puzzles” may be solved by completing their resonance loops[14][15] rather than by direct linear analysis – in essence, solving them by harmonizing them[16]. 2. Nexus Recursive Framework: Foundations 2.1 Key Concepts and Definitions We first establish the formal terminology of the Nexus Recursive Framework (NRF) that will be used in our proofs. The framework casts computations and mathematical structures as elements of a recursive harmonic lattice – a multi-layer system where each layer feeds back into itself and into higher layers, enforcing global consistency. The fundamental definitions are as follows: Global Input Patterns (GIP): A Global Input Pattern is a structured initial configuration that seeds the recursive system with foundational information. Rather than arbitrary inputs, GIPs are chosen to encode universal structures or symmetries that the system must respect. For example, a GIP could be the distribution of prime numbers up to a large N, the binary expansion of fundamental constants like π or e, or boundary conditions of a physical system. GIPs serve as pre-harmonic lattices – scaffolds on which the recursion builds[5]. In our context, we will use GIPs such as the array of initial program states (for the Halting problem), or a set of known zeta zeros and prime frequencies (for Riemann), or modular residue classes (for Collatz). The GIP provides a global resonance context: the recursion must eventually align with these patterns. Intuitively, GIPs inject high-level knowledge so that the system does not start from scratch, but from a state already “tuned” close to an expected solution. This significantly accelerates convergence and ensures infinite resolution density by leveraging known expansions like the BBP formula for π to arbitrary precision[17]. Mark1 Harmonic Constant (H_MARK1 ≈ π/9 ≈ 0.349): The framework postulates a dimensionless constant H (Mark1) that represents the optimal ratio of realized structure to potential entropy in any stable recursive system[3][4]. Empirically identified as ~0.35 (within the precision of our simulations), this constant appears in numerous contexts as a sweet spot of “order within chaos.” For example, the matter (~0.32) vs. dark energy (~0.68) ratio of the universe is near 0.32/0.68 ≈ 0.32 (close to 0.35)[18]; and intriguingly, even a playful geometric construction with a degenerate triangle of sides 3-1-4 yields ~0.35[19]. Definition: We formally define H_MARK1 = π/9 (exact) for theoretical work, acknowledging this equals ~0.349. All recursive processes in NRF are biased to maintain a local H value of 0.35. If a subsystem deviates from H=0.35 (too static or too chaotic), feedback forces push it back towards equilibrium[20][21]. In equations, we measure H for a given state as: (actualized to potential structure)[4]. Samson’s Law (below) uses this constant extensively. Whenever we refer to “harmonic balance” or “target resonance,” we imply adjusting dynamics to keep the system-wide H ≈ 0.35. Samson’s Law (Recursive Feedback Control): Samson’s Law is a feedback mechanism acting like a proportional–derivative–integral (PID) controller across
Narendar Kumar, Surendar Kumar, Abdul Waqar, Clavincy Francis Yohanes Ngantung
This research article provides the design of an in-person and remote voting system, while at the same time ensuring the privacy of users that would guarantee openness, transparency, and at the same time fraud-free results. The aim is to solve various common problems associated with most conventional elections including fraud, vote manipulation, through adaptation of the usage of a safe, highly transparent decentralized logical Hyperledger Fabric-based system provided by blockchain implementation. The methodology in this article is to be implemented for the sheer reason of urgency needed in making a more secure and transparent system for voting, considering even the rising frauds in elections. The addition of Zero Knowledge Proof (ZKP) guarantees that votes are confident and correct, yet anonymous between a voter and their vote. Biometric identification makes the system resistant to double spending. This incorporation of technologies ensures there is privacy and immutability against the double transactions, which, in turn, would be put in place as foundation for the future to be provided wherein every process in an election becomes safe and transparent. Innovation via creating a voting system to be trusted to meet today's demands and set standards for future electoral processes.
Cryptography has played a pivotal role in securing communication across human history. From ancient techniques such as hieroglyphic substitutions and Caesar's cipher to contemporary cryptographic systems like RSA and Elliptic Curve Cryptography, the field has continuously adapted to evolving technological paradigms. This article provides a comprehensive review of the historical development of cryptography, highlighting key milestones from ancient Egypt and Mesopotamia, through the mechanical encryption devices of World War II, to the theoretical foundations established by Claude Shannon. It examines the revolutionary introduction of public-key cryptography and follows developments into the digital era, where blockchain technology and privacy innovations like Zero-Knowledge Proofs have expanded cryptographic applications beyond traditional security roles. The article also explores emerging challenges and innovations, particularly those involving artificial intelligence and quantum computing, considering the implications of quantum threats and the ongoing global efforts to develop quantum-resistant encryption standards.
The round complexity of interactive proof systems is a key question of practical and theoretical relevance in complexity theory and cryptography. Moreover, results such as QIP = QIP(3) (STOC'00) show that quantum resources significantly help in such a task. In this work, we initiate the study of round compression of protocols in the bounded quantum storage model (BQSM). In this model, the malicious parties have a bounded quantum memory and they cannot store the all the qubits that are transmitted in the protocol. Our main results in this setting are the following: 1. There is a non-interactive (statistical) witness indistinguishable proof for any language in NP (and even QMA) in BQSM in the plain model. We notice that in this protocol, only the memory of the verifier is bounded. 2. Any classical proof system can be compressed in a two-message quantum proof system in BQSM. Moreover, if the original proof system is zero-knowledge, the quantum protocol is zero-knowledge too. In this result, we assume that the prover has bounded memory. Finally, we give evidence towards the “tightness” of our results. First, we show that NIZK in the plain model against BQS adversaries is unlikely with standard techniques. Second, we prove that without the BQS model there is no 2–message zero-knowledge quantum interactive proof, even under computational assumptions.
Abdul Khalique Shaikh, Naresh Adhikari, Amril Nazir, Abdul Salam Shah · 6 authors
<ns3:p>Background Ensuring the security and trustworthiness of a digitized and automated electoral process remains a significant challenge in democratic systems. As digital voting systems are increasingly being investigated around the world, ensuring the integrity of the process using robust security measures is of great importance. This paper presents a simplified model to enhance electoral integrity by leveraging Blockchain technology in the context of Oman’s digital voting system. The model uses Blockchain technology to create a secure and trustworthy voting environment, addressing key vulnerabilities in digital electoral systems. Methods The research utilized a quantitative approach, employing an experimental design methodology using open-source software to simulate voting systems. Synthetic population data is utilized for operating these systems, while advanced biometric authentication technologies are used to verify voter identities. Blockchain technology is leveraged to ensure secure vote recording, with smart contracts used to authenticate voters and securely record votes. Additionally, synchronous transactions are executed for both voter registration and voting processes, enhancing the overall security and efficiency of the system. Results The experimental results shows that Blockchain enhances electoral integrity and security in Oman voting system, improves transparency and reliability in elections. The performance evaluation of the model focuses on efficiency, reliability, and scalability metrics. Asynchronous transactions are utilized to improve processing time for voter registration and voting. Election administrators can manage, monitor, and certify election results, while Ethereum nodes ensure decentralized verification and transparency in the voting process. Conclusion This research offers insights for policymakers to consider Blockchain for electoral reforms, addressing issues like data integrity, fraud prevention, and transparency to boost voter trust. A strong regulatory framework and public awareness are crucial for successful implementation. Pilot projects are needed to assess Blockchain’s practical impact. Oman could lead global innovation in electoral technology, though infrastructure and public resistance challenges must be managed.</ns3:p>
Abstract— Remote electronic voting promises increased accessibility but remains constrained by persistent challenges related to coercion in unsupervised environments, credential compromise, and the difficulty of sustaining long-term voter trust. While coercion-resistant approaches commonly rely on revoting, most existing systems treat credential loss or recovery as an administrative exception, often reintroducing identity linkage or trusted intermediaries and offering limited means for voters or observers to verify that an election unfolded as intended. This paper presents Arcaunt, a remote voting architecture that elevates anonymous credential recovery to a first-class security property and integrates it directly into the voting lifecycle. The architecture introduces an Anonymous Recovery Channel (ARC), enabling voters to revoke and replace compromised credentials without identity disclosure or reliance on administrator discretion. Recovery is logically and operationally decoupled from ballot casting. This preserves ballot secrecy and prevents temporary compromise of credentials, devices, or voter autonomy from becoming a permanent loss of voting control. Arcaunt builds on established cryptographic mechanisms, including publicly verifiable bulletin boards, commitment-based ballots, and unlinkable bearer credentials. These components provide ballot integrity and verifiability without exposing voter identities and form the foundation on which revoting, recovery, and auditability are composed. Individual assurance is provided through deferred, non-transferable verification mechanisms: voters receive a receipt at ballot submission, while verification becomes possible only after election closure, preventing real-time feedback that could enable coercion while still allowing voters to confirm that their final valid ballot was recorded and included. At the system level, integrity is enforced through an append-only, publicly auditable ledger and deterministic “last valid vote” counting rules, ensuring that administrative database access cannot alter election outcomes without detection. The architecture explicitly bounds its threat model, acknowledging limits against global traffic analysis and continuous coercion while constraining failures to be temporary and non-scalable. We analyze the security properties of the proposed system under realistic adversarial assumptions and evaluate a prototype implementation, demonstrating that anonymous recovery, coercion-resistant revoting, individual verification, and public auditability can be combined efficiently without reliance on trusted administrators or specialized hardware. Keywords—e-voting, arcaunt, anonymous recovery channel (arc), coercion resistance, sha-3, digital democracy, govtech, zero-knowledge proofs.
This thesis investigates how blockchain technology and data science methods can jointly improve the security, transparency, and trustworthiness of electoral systems. Against a backdrop of rising concerns over election integrity in traditional voting systems, scholars and nations have begun to integrate blockchain systems. However, adoption appears to remain low. This study systematically reviews 116 peer-reviewed articles and analyzes five national case studies (Estonia, Switzerland, the United States, Russia, and Romania). It examines (1) blockchain’s potential to secure voter verification, prevent fraud, and ensure immutable vote records; (2) data-science methods (e.g. machine learning, zero-knowledge proofs, homomorphic encryption) for anomaly detection, performance optimization, and privacy preservation; and (3) the ethical, political, and societal implications of digital voting, including the digital divide and regulatory compliance. A mixed-methods approach was adopted. First, SLR was used to identify, screen, and synthesize 28 core studies. Then multiple case studies were used to analyse real-world blockchain-voting system implementations to highlight practical successes and setbacks. From this, a conceptual framework for a hybrid blockchain voting system that integrates smart contracts, layered consensus model, and an off-chain data-science layer for real-time monitoring was developed. Findings show consensus that blockchain can enhance election integrity, and data-science techniques further strengthen authentication, detect intrusions, and enable privacy-preserving analytics. However, it was also found that legal and regulatory gaps, infrastructure and literacy barriers, lack of scalability, and the need to build public trust remain huge hindrances to widespread adoption. The thesis recommended a hybrid voting architecture that combines public and private blockchains and off-chain data science monitoring, and its interface is user-friendly. Policymakers and election administrators are urged to pilot such integrated systems, refine identity-management protocols, and invest in voter education to ensure both technical robustness and broad societal acceptance, thereby paving the way toward more secure, transparent, and efficient democratic processes.
The business world is seeing towards the cryptocurrency as a future currency. A very less literature is available on cryptocurrencies. This research paper focused on the concept, features, history and the mechanism of cryptocurrency. It also discussed the current status of cryptocurrencies in India and some leading cryptocurrencies with their market cap. While considering cryptocurrency as a digital investment, its pros and cons are to be kept in mind, which are also included in this research paper.
With the widespread adoption and increasing application of blockchain technology, cryptocurrency wallets used in Bitcoin and Ethereum play a crucial role in facilitating decentralized asset management and secure transactions. However, wallet security relies heavily on private keys, with insufficient attention to the risks of theft and exposure. To address this issue, Chaum et al. (ACNS’21) proposed a “proof of ownership” method using a “backup key” to prove ownership of private keys even when exposed. However, their interactive proof approach is inefficient in large-scale systems and vulnerable to side-channel attacks due to the long key generation time. Other related schemes also suffer from low efficiency and complex key management, increasing the difficulty of securely storing backup keys. In this paper, we present an efficient, non-interactive proof generation approach for ownership of secret keys using a single backup key. Our approach leverages non-interactive zero-knowledge proofs and symmetric encryption, allowing users to generate multiple proofs with one fixed backup key, simplifying key management. Additionally, our scheme resists quantum attacks and provides a fallback signature. Our new scheme can be proved to capture unforgeability under the computational indistinguishability from the Uniformly Random Distribution property of a proper hash function and soundness in the quantum random oracle model. Experimental results indicate that our approach achieves a short key generation time and enables an efficient proof generation scheme in large-scale decentralized systems. Compared with state-of-the-art schemes, our approach is applicable to a broader range of scenarios due to its non-interactive nature, short key generation time, high efficiency, and simplified key management system.
Damiano Di Francesco Maesa, Laura Ricci, Luca Santarella, Yitbarek Yimame
Centralised cryptocurrency exchanges are often a mandatory first point of entry for most blockchain users. This means that such services have to compete for user attention, often by boosting their attractiveness through questionable behaviours. One of such practices is wash trading, i.e. injecting fake trades to artificially boost the service statistics to portray an unreal users engagement. To protect inexperienced users from dishonest services it is then paramount to develop a set of techniques to identify fraudulent behaviours. This is why, in this paper, we propose a set of automated, yet intuitive analysis that may hint at possible misbehaviour. The goal of these techniques is to be intuitive enough to be understandable by inexperienced users. To this aim we present our experimental results on the real world data of two exchanges, one considered honest and the other suspicious. The outcome is encouraging, as it reveals how dishonest behaviour can be macroscopically detectable, even by the considered intuitive tests.
Open access
Benford’s Law and Fraud Detection
Blockchain Technology Applications and Security
Advanced Steganography and Watermarking Techniques
Decentralized Finance (DeFi), a pivotal component of the emerging Web3 landscape, is gaining popularity but remains vulnerable to market manipulations, such as wash trading. Wash trading is an illegal practice, where traders buy and sell assets to themselves within cryptocurrency exchanges to artificially inflate trading volumes and distort market perceptions. However, current research primarily focuses on traditional exchanges based on the Order-book mechanism (similar to stock markets), while ignoring the Automated Market Maker (AMM) exchanges, which dominate over 75% of the market and represent a significant innovation within the DeFi. This study utilizes entity recognition technology to detect wash trading on AMM exchanges within Ethereum-like systems, based on the understanding that colluding addresses (perceived as the same entity) must use ETH for transaction fees and exhibit direct or indirect ETH transfer links. We identify wash trading when addresses with transfer connections almost simultaneously buy and sell assets while their total asset holdings remain nearly constant. This comprehensive blockchain network analysis, compared to focusing solely on transactions within exchanges, unveils covert wash trading activities. Our detection method achieves a 95.9% recall and a 96.7% true negative rate in identifying pools affected by wash trading, demonstrating its superiority over existing methods. Furthermore, we apply our method to 98,945 pools from Uniswap V2 & V3 (the most popular AMM exchanges on Ethereum) and identify 1,070,626 abnormal transactions, totaling $27.51 billion in trading volume. Analysis of these transactions uncovers insights into wash traders’ behaviors, including the utilization of multiple addresses and the dual roles of certain addresses as wash traders and liquidity providers. These insights are crucial for developing more effective strategies to combat fraudulent activities in the DeFi ecosystem and enhance financial scrutiny.
This article provides a statistical approach to describe the fit of the most popular cryptocurrencies, building off a previous report, "A Statistical Analysis of Cryptocurrencies." We examined Bitcoin, Ethereum, Tether, Binance, Ripple, Cardano, Solana, and Doge coins. To model our cryptocurrencies, we utilized trading prices between 2017 and 2022 in light of historic events, such as the COVID-19 pandemic. Additionally, we performed a correlation analysis to help understand the relationship between the popular cryptos. Here, we report that the candidate distributions we fit to model the currencies needed to be more independent to describe the return of all popular cryptos. This could be due to the need for Correlation between some of these popular cryptos. We found the generalized hyperbolic and the generalized t showed the best performance of the models tested, though these approaches remained limited in their overall fitness. Their performance also varied by cryptocurrency under investigation, with Tether demonstrating the worst fit across all candidate models. Using our fit models, we also predicted the average daily returns for January 1st, 2023, to February 1st, 2023, and generally found good predictive validity. These results are critical in understanding the movements of cryptos and help better understand the risk associated with trading these currencies.
It is well-known that digital signatures can be constructed from one-way functions in a black-box way. While one-way functions are essentially the minimal assumption in classical cryptography, this is not the case in the quantum setting. A variety of qualitatively weaker and inherently quantum assumptions (e.g. EFI pairs, one-way state generators, and pseudorandom states) are known to be sufficient for non-trivial quantum cryptography. While it is known that commitments, zero-knowledge proofs, and even multiparty computation can be constructed from these assumptions, it has remained an open question whether the same is true for quantum digital signatures schemes (QDS). In this work, we show that there $\textit{does not}$ exist a black-box construction of a QDS scheme with classical signatures from pseudorandom states with linear, or greater, output length. Our result complements that of Morimae and Yamakawa (2022), who described a $\textit{one-time}$ secure QDS scheme with classical signatures, but left open the question of constructing a standard $\textit{multi-time}$ secure one.
In this paper, we conduct a portfolio analysis based on the lottery-like characteristics of cryptocurrencies to examine return predictability. Our results show that cryptocurrencies with higher lottery-like characteristics exhibit lower one-month ahead returns. This phenomenon, known as the lottery-like effect, suggests that investors overvalue cryptocurrencies with stronger lottery-like traits, leading to lower future returns. Moreover, the effect persists over longer horizons, and the results remain robust after controlling for other crypto-asset characteristics.
Purpose — This study aims to examine Islamic cryptocurrencies and their dependency on foreign exchange markets in vine copula architecture (CD-Vine) and provide a framework for detecting complex dependence structures, risk management implications, and hedging effectiveness. Design/Methodology/Approach — This study used gold-backed cryptocurrencies and three fiat currencies. The vine copula approach was preferred because it applies several distributions and estimates complex dependencies. Hedging effectiveness was measured by constructing simulation-based portfolios optimised with DCC-t-Copula. Benford’s law and realized variance were used to determine the stability of Islamic cryptocurrencies. Findings — According to C-Vine and D-Vine copula models, paper money has a weak tail dependence with gold-backed cryptocurrencies. Only OneGram coin, whose volatility matched the risk of Bitcoin, showed zero irregularities in volume trading. The findings were robust to different estimations based on Minimum Spanning Tree and Dendrogram. Originality/Value — This is the first study to examine Islamic cryptocurrencies’ stability and the significance of hedging effectiveness on gold-backed cryptocurrencies under a copula-based approach. Research Limitations — The study did not apply time-varying vine copula. Practical Implications — The risk management perspective shows insignificant hedge effectiveness in the portfolio of fiat and gold-backed cryptocurrencies.
John Bostanci, Yuval Efron, Tony Metger, Alexander Poremba · 6 authors
State transformation problems such as compressing quantum information or breaking quantum commitments are fundamental quantum tasks. However, their computational difficulty cannot easily be characterized using traditional complexity theory, which focuses on tasks with classical inputs and outputs. To study the complexity of such state transformation tasks, we introduce a framework for unitary synthesis problems, including notions of reductions and unitary complexity classes. We use this framework to study the complexity of transforming one entangled state into another via local operations. We formalize this as the Uhlmann Transformation Problem, an algorithmic version of Uhlmann's theorem. Then, we prove structural results relating the complexity of the Uhlmann Transformation Problem, polynomial space quantum computation, and zero knowledge protocols. The Uhlmann Transformation Problem allows us to characterize the complexity of a variety of tasks in quantum information processing, including decoding noisy quantum channels, breaking falsifiable quantum cryptographic assumptions, implementing optimal prover strategies in quantum interactive proofs, and decoding the Hawking radiation of black holes. Our framework for unitary complexity thus provides new avenues for studying the computational complexity of many natural quantum information processing tasks.
Abstract The rapid advancement of quantum computing has sparked a considerable increase in research attention to quantum technologies. These advances span fundamental theoretical inquiries into quantum information and the exploration of diverse applications arising from this evolving quantum computing paradigm. The scope of the related research is notably diverse. This paper consolidates and presents quantum computing research related to the financial sector. The finance applications considered in this study include portfolio optimization, fraud detection, and Monte Carlo methods for derivative pricing and risk calculation. In addition, we provide a comprehensive analysis of quantum computing’s applications and effects on blockchain technologies, particularly in relation to cryptocurrencies, which are central to financial technology research. As discussed in this study, quantum computing applications in finance are based on fundamental quantum physics principles and key quantum algorithms. This review aims to bridge the research gap between quantum computing and finance. We adopt a two-fold methodology, involving an analysis of quantum algorithms , followed by a discussion of their applications in specific financial contexts. Our study is based on an extensive review of online academic databases, search tools, online journal repositories, and whitepapers from 1952 to 2023, including CiteSeerX, DBLP, ResearchGate, Semantic Scholar, and scientific conference publications. We present state-of-the-art findings at the intersection of finance and quantum technology and highlight open research questions that will be valuable for industry practitioners and academicians as they shape future research agendas.
Karar bilimi karar verme işini kolaylaştırmak ve geliştirmek için eldeki sınırlı bilgiyi kullanarak pek çok teknikten faydalanır. Bu nedenle ekonomi, istatistik, üretim yönetimi ve kontrolü ve psikoloji gibi bilim dallarını da içeren disiplinler arası bir alandır. Sürekli olarak karşı karşıya kalınan karar verme durumu neticesinde verilen kararlar ve sonrasında atılan adımlar ise geleceği şekillendirmektedir. Bu nedenle karar biliminin günümüzdeki yeri oldukça önemlidir. Bu çalışmada 2012-2021 yılları içerisinde karar bilimi alanında üretilen bilimsel çıktıların değerlendirilmesi amaçlanmaktadır. Bu amaçla Scopus/SciVal veri tabanı üzerinden ulaşılan 508.220 bilimsel çıktı incelenmiş, yıllara göre bilimsel çıktı sayısı, atıf sayısı, görüntülenme sayısı bilgileri paylaşılmıştır. Dünya genelinde üretilen bilimsel çıktıları kapsayan bu çalışmada karar bilimi alanında en fazla bilimsel çıktının 2021 yılında (95.109) üretildiği ve en fazla bilimsel çıktıya sahip ülkenin Çin (106.752) olduğu sonucuna ulaşılmıştır. Ayrıca en fazla bilimsel çıktıya sahip enstitü/üniversitenin CNRS (10.411) ve en fazla bilimsel çıktıya yer veren derginin “IFIP Advances in Information and Communication Technology” (10.084) olduğu belirlenmiştir. Bilimsel çıktı sayısı dikkate alındığında yapılan çalışmalarda daha çok kurumsal işbirliklerinin tercih edildiği (201.933) ve karar bilimi alanı içerisinde en fazla çalışılan konuların “Bitcoin; Ethereum; Nesnelerin İnterneti” (16473) olduğu sonucuna ulaşılmıştır. Genel olarak yapılan bu çalışma karar bilimi alanında çalışan araştırmacılar için bilgilendirme, değerlendirme ve yönlendirme özelliklerini taşımaktadır.
People trade thousands of non-fungible tokens (NFT) daily. The NFT prices are expressed in cryptocurrency, and it is volatile. As the interest in the NFTs changes, their prices vary with time too. Is there an immanent meter to order NFTs by their value? Within a single collection, a vector of features–traits–characterizes NFT. People construct rarity meters based on the assumed value of the trait vector rarity. But this process lacks formalism. In this paper, we formulate the optimal rarity meter problem and provide a pipeline for optimal rarity meter design. A proposed tournament score function is an essential part of the construction. We demonstrate the approach for the Kanaria NFT collection.