Blockchain Papers

Gilles Chemla, William J. Knottenbelt, Zhengming Li, Xihan Xiong · 6 authors

No abstract is available for this record.

Md. Mokshud Ali, Tanbina Tabassum

This research study offers a comprehensive overview of current advancements in financial practices in the United States. This research will examine recent shifts in American financial habits and offer stakeholders guidance on how to effectively manage the evolving financial landscape. A thorough assessment of prior literature reviews and empirical studies on digital finance in the US is part of the research methodology.The literature review focuses on how developments in financial technology (FinTech), regulatory changes, a growing emphasis on sustainability, and shifting consumer behavior have significantly altered the financial sector.. The influence of regulatory barriers, ESG integration, evolving consumer behavior, and the complex interactions affecting US financial practices are the main topics of discussion. The results underscore the significance of digital transformation, regulatory impediments and campaigns, consumer inclinations, the advantages and challenges of decentralized financing (DeFi), and cybersecurity and privacy issues. Recommendations are provided based on the results to enhance regulatory flexibility, raise financial literacy and awareness, fund cybersecurity infrastructure, encourage cooperation and information exchange, welcome responsible innovation, and track and react to market dynamics. By putting these recommendations into practice, stakeholders can better navigate the complexity of digital banking in the US and foster innovation, inclusion, and trust in the digital financial ecosystem while averting the dangers and difficulties that come with it.

Surekha Thota, Shantala Devi Patil

The conventional process of credit document verification heavily relies on manual methods, making it tedious and time-consuming. The advent of self-sovereign identity (SSI) revolutionised the landscape of credit document verification. SSI empowers individuals with complete control over their identity, ensuring privacy, trust, and security. This paper presents an in-depth exploration of SSI's application in the credit processing domain. This paper highlights the implementation of SSI using the Trust over IP framework on Hyperledger Aries, empowering borrowers to own and control the sharing of their verifiable credentials. By integrating Hyperledger Aries and SSI, a robust and interoperable blockchain-based identity framework can be built. This allows individuals to store their verifiable credentials on a distributed ledger securely and selectively disclose them to lenders as needed. This model empowers borrowers to present accurate and tamper-proof credentials, enhancing data privacy, transparency, and trust, while promoting a borrower-centric approach to sharing credentials.

Benu Chatterjee

The research paper investigates the profound impact that cryptocurrencies have exerted on traditional financial systems since the emergence of Bitcoin in 2009. The rapid growth of cryptocurrency market and its increasing integration in global economics have raised significant questions about the future coexistence and potential transformation of traditional financial structures. The study employs a multidisciplinary approach, combining economic analysis, regulatory examination and technological insights to explore the multifaceted implications of cryptocurrencies.

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Bitcoin was created as a way for people to send money over the internet. The digital currency was intended to provide an alternative payment system that would operate free of central control but otherwise be used just like traditional currencies. Are bitcoins safe?

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Bitcoin was created as a way for people to send money over the internet. The digital currency was intended to provide an alternative payment system that would operate free of central control but otherwise be used just like traditional currencies. Are bitcoins safe?

Cameron MacDonald, Laura Zhao

No abstract is available for this record.

Ethereum Trader

Ethereum Trader In spite of the fact that exchanging bitcoin isn't basic, it has become simpler to do so because of the accessibility of various different exchanging programs. Then again, finding the right and genuine exchanging stage stays a troublesome undertaking. A Ethereum Trader survey was led to have an exhaustive comprehension of the exchanging bot's usefulness. We want to ensure that these cases are precise so you can choose whether or not this exchanging bot deserve your consideration.\n\nhttps://www.theethereumtrader.com

Nassim Nicholas Taleb

This discussion applies quantitative finance methods and economic arguments to cryptocurrencies in general and bitcoin in particular -- as there are about $10,000$ cryptocurrencies, we focus (unless otherwise specified) on the most discussed crypto of those that claim to hew to the original protocol (Nakamoto 2009) and the one with, by far, the largest market capitalization. In its current version, in spite of the hype, bitcoin failed to satisfy the notion of "currency without government" (it proved to not even be a currency at all), can be neither a short nor long term store of value (its expected value is no higher than $0$), cannot operate as a reliable inflation hedge, and, worst of all, does not constitute, not even remotely, a safe haven for one's investments, a shield against government tyranny, or a tail protection vehicle for catastrophic episodes. Furthermore, bitcoin promoters appear to conflate the success of a payment mechanism (as a decentralized mode of exchange), which so far has failed, with the speculative variations in the price of a zero-sum maximally fragile asset with massive negative externalities. Going through monetary history, we show how a true numeraire must be one of minimum variance with respect to an arbitrary basket of goods and services, how gold and silver lost their inflation hedge status during the Hunt brothers squeeze in the late 1970s and what would be required from a true inflation hedged store of value.

Nassim Nicholas Taleb

We apply quantitative finance methods and economic arguments to cryptocurrencies in general and bitcoin in particular -- as there are about $10,000$ cryptocurrencies, we focus (unless otherwise specified) on the most discussed crypto of those that claim to hew to the original protocol (Nakamoto, 2009) and the one with, by far, the largest market capitalization. In its current version, in spite of the hype, bitcoin failed to satisfy the notion of without (it proved to not even be a currency at all), can be neither a short nor long term store of value (its expected value is no higher than $0$), cannot operate as a reliable inflation hedge, and, worst of all, does not constitute, not even remotely, a safe haven for one's investments, a shield against government tyranny, nor a tail protection vehicle for catastrophic episodes. Furthermore, there appears to be an underlying conflation between the success of a payment mechanism (as a decentralized mode of exchange), which so far has failed, and the speculative variations in the price of a zero-sum asset with massive negative externalities. Going through monetary history, we also show how a true numeraire must be one of minimum variance with respect to an arbitrary basket of goods and services, how gold and silver lost their inflation hedge status during the Hunt brothers squeeze in the late 1970s and what would be required from a true inflation hedged store of value.

Jiahua Xu, Nikhil Vadgama

The Internet of Value (IOV) with its distributed ledger technology (DLT) underpinning has created new forms of lending markets. As an integral part of the decentralised finance (DeFi) ecosystem, lending protocols are gaining tremendous traction, holding an aggregate liquidity supply of over $40 billion at the time of writing. In this paper, we enumerate the challenges of traditional money markets led by banks and lending platforms, and present advantageous characteristics of DeFi lending protocols that might help resolve deep-rooted issues in the conventional lending environment. With the examples of Maker, Compound and Aave, we describe in detail the mechanism of DeFi lending protocols. We discuss the persisting reliance of DeFi lending on the traditional financial system, and conclude with the outlook of the lending market in the IOV era.

T Diana Cristina Bueno, Julio Cesar de (Org.) Aguiar

The purpouse of this paper is analyse if the called bitcoin can be defined as currency.Therefore, first is analysed the bitcoin tecnology, specially its structuring from the encryption development by blockchain. The main characteristics of this technological structure are studied, wich allowed its fast diffusion, with the sufficient confidence and security in the transactions, at low cost, without the intervention of third parties, be it the State or the banking system.Later, the study turns to the concept of money, from the economic point of view, under the focus of the main theories developed. At this point, a special analysis is made from the studies of the Austrian school of economics, especially by Luwig von Mises and his regression theorem, developed to explain the origin of the currency. Once these parameters have been established, bitcoin attributes are analyzed, having this paper concluded that its volatility and lack of liquidity prevent, for the moment, its characterization as currency. It should be noted that this paper serves as a starting point for future work on the legal effects of bitcoin, in particular in criminal law. However, it is necessary to define the nature of bitcoin.

Alexander Libman

Crises frequently weaken subnational governments but in some cases they lead to greater decentralization. Does this decentralization, however, support the search for optimal crisis response strategies? Generally speaking there are several arguments, which suggest that decentralized systems will manage crises better than centralized ones. This article, however, considers two scenarios (decentralization of weakness and decentralization of responsibility) where the apparently increasing autonomy of subnational governments leads to important problems. Decentralization of weakness emerges when the central government for certain reasons refuses to actively implement an anti-crisis policy. Under these conditions, regional measures, while to some extent compensating the inactivity of the central government, create a number of other problems - that of external effects, possible ideologization of politics and insufficient use of expert knowledge. Decentralization of responsibility emerges when regions accept responsibility for implementing anti-crisis measures, but the center keeps control over resources - thus, regions have to focus on competing for central financing. For the modern Russia, the risks of these two scenarios are substantial.

Binali Selman EREN, Mustafa Salim Erek

This paper aims to examine the relationship between Bitcoin and preeminent financial indicators using Copula-GARCH method. In the study, we use closing prices of Bitcoin and US 10-Year Bond Yield, Gold Spot US Dollar, US Dollar Index, S&P 500, FTSE 100 and NIKKEI 225. To our knowledge, our paper is the first to examine this issue empirically. Analysis results show that there is no strong interdependence between Bitcoin and preeminent financial indicators. These findings provide new information that will benefit policy makers, banks, financial investors, and risk managers in trading activities for both long-term and short-term strategies.

Andrzej Sławiński

The paper highlights why, contrary to frequent claims, cryptocurrencies will not replace the existing monetary system. The reason is that despite its shortcomings the current monetary system is a product of a long evolution which had adjusted it to the needs of the economy. Cryptocurrencies will probably remain what they have been during the last decade, i.e. the popular speculative assets and the means of payment used – due to their anonymity – for illicit operations. The recent monetary system, based on deposit money issued by commercial banks, will not be replaced also by deposit money issued by central banks (Central Bank Digital Currency) as the CBDC would lack a rational mechanism of its allocation and would pose risks to financial stability

Douglas J. Cumming, Sofia Johan, Anshum Pant

Distributed ledger technology, also known as the blockchain, is gaining traction globally. Blockchain offers a secure validation mechanism and decentralized mass collaboration. Cryptocurrencies make use of this technology as a new asset class for investors worldwide. Cryptocurrencies are being used by companies to raise capital via initial coin offerings (ICOs). The substantial inflow of unregulated capital into a transactional and transnational industry has aroused interest from not just investors, but also national securities and monetary regulatory agencies. In this paper, we review the Security and Exchange Commission’s initial statements and subsequent pronouncements on ICO’s to illustrate the potential problems with applying an older legal framework to an ever-evolving ecosystem. Recognizing the inability of enforcement within existing regulatory frameworks, we discuss the importance of regulation of the crypto asset class and internal collaboration between government agencies and developers in the establishment of an ecosystem that integrates investor protection and investments.

Ekrem Tufan, Hasan Gül, Özgür Manap, Bahattin Hamarat

Crypto currencies whose traders are not known, affect the world economy. In thiscase, it is possible to assert that an international terrorist organization can also trade them.In the market, Bitcoin is well-known and regarding volume is a leader crypto currencybetween the crypto currencies. In this paper, it has been searched if there could be a strong correlationbetween bitcoin prices and ISIS. As methodology it has been checked ISIS attacks and Bitcoin pricesrelation, by graphics.&nbsp;<br>

Simon Trimborn, Wolfgang Karl Härdle

The cryptocurrency market is unique on many levels: Very volatile, frequently changing market structure, emerging and vanishing of cryptocurrencies on a daily level. Following its development became a difficult task with the success of cryptocurrencies (CCs) other than Bitcoin. For fiat currency markets , the IMF offers the index SDR and, prior to the EUR, the ECU existed, which was an index representing the development of European currencies. Index providers decide on a fixed number of index constituents which will represent the market segment. It is a challenge to fix a number and develop rules for the constituents in view of the market changes. In the frequently changing CC market, this challenge is even more severe. A method relying on the AIC is proposed to quickly react to market changes and therefore enable us to create an index, referred to as CRIX, for the cryptocurrency market. CRIX is chosen by model selection such that it represents the market well to enable each interested party studying economic questions in this market and to invest into the market. The diversified nature of the CC market makes the inclusion of altcoins in the index product critical to improve tracking performance. We have shown that assigning optimal weights to altcoins helps to reduce the tracking errors of a CC portfolio, despite the fact that their market cap is much smaller relative to Bitcoin. The codes used here are available via www.quantlet.de .

S. Andryushin

Objective: to consider the features of centralized and decentralized monetary systems development and to identify the necessary conditions for the transition of the national economy to decentralized network platforms operating within the distributed ledger technology, public and private digital currencies.Methods: a systemic approach to the cognition of economic phenomena, enabling to study them in dynamic development, taking into account the influence of various environmental factors. The systemic approach determined the choice of specific research methods: empirical, historical, logical, comparative and statistical.Results: the article considers different approaches to the organization of money issue. It is shown that the era of the centralized monetary system, based on the issue of Central banks, has come to its end. The Central bank is the main link of the centralized monetary system, while in the context of 2008 financial crisis the functions of the Central Bank as the lender of last resort were significantly expanded by changing the paradigm of the monetary mechanism. It is established that the new monetary mechanism has become the main channel of money supply in the economy, while the main factors of the new monetary supply formation are the reserve money of Central banks, new Basel standards and high requirements for borrowers. This monetary policy and the centralization of the financial market have led to a distortion of the market pricing mechanism in the monetary market and to the disruption of competition in the financial intermediation market. The author analyzes the new trends in the emergence of a decentralized monetary system in the world economy based on public and private digital currencies issued by users of distribution computer networks. The article shows the mechanism and technology of crypto currency emission, which implies the use of public or private blockchain without any participation of the Central bank and other financial intermediation institutions.Scientific novelty: for the first time, the article shows that the era of centralized monetary system based on monopoly issue by Central banks, has come to its logical end; a decentralized monetary system is emerging in the world economy today, based on public and private issue of digital currency; in the course of legalization, growth of scalability, confidentiality, validation and tokenization of real assets, the crypto currencies will become a liquid and less volatile monetary asset.Practical significance: the main provisions and conclusions of the article can be used to clarify the target mandates, tools, channels and mechanisms of monetary policy of the Bank of Russia, capable of launching a decentralized crypto currency market, acting as a built-in stabilizer of financial sustainability and elastic regulation of trade and financial imbalances within the country and between countries.

MR Islam, Omar Faruque, A. H. M. Kamruzzaman

No abstract is available for this record.

Thomas S. Umlauft

No abstract is available for this record.

Moritz Hütten, Matthias Thiemann

This chapter examines how Bitcoin came to secure a place as money at the margins of the global monetary system by focusing on the possibly most controversial question surrounding Bitcoin. It examines the topic of theorizing money. The chapter discusses the initial positioning of Bitcoin against the dominant money game. It develops the original three phases that defined the evolution of Bitcoin as a money game based on evaluation of recent journalist, academic, and governmental publications. The chapter summarizes how the Bitcoin money game changed and shifted since its inception, and how this might affect other existing money games. Bitcoin was initially positioned as a clear criticism of the two-level money system consisting of central banks and commercial banks. The chapter examines the development of the Bitcoin money game over time to understand how Bitcoin could prevail despite starting off without any institutional underpinning or political backing.

Sharan Bathija

No abstract is available for this record.

Bruno Saboia de Albuquerque, Marcelo de Castro Callado

The objective of this work is to do a briefing about the digital currency named Bitcoins, as well as&nbsp;the general concept behind digital currencies and cryptocurrencies. Such currencies usage and public knowledge is increasing hastily on the last few months.