Blockchain Papers

Nicolas Fahel

No abstract is available for this record.

Lawrence J. Trautman

On April 1, 2025 Circle Internet Group, Inc. (hereinafter referred to as "Circle," "the Company," or "issuer", filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) contemplating the "offering [of]… shares of Class A common stock." After the additional filing of prospectus amendments, the final offering prospectus is dated August 12, 2025. The offering of 34,000,000 shares was priced before market opening on June 4, 2025 at $31 per share. Circle's disclosure documents provide an excellent description of the many new blockchain-enabled Decentralized Finance [DeFi] technological and operational challenges facing participants and investors. These valuable disclosures benefit all who seek to understand these important developments impacting the future stability of global financial and currency markets. It is the actual disclosure language of Circle Internet Group, Inc. in their prospectus that is the focus of the article.

Fernando Mori

The XRP Ledger sustains federated consensus without paying validators any protocol-level monetary reward: transaction costs are destroyed rather than distributed. This paper argues that the curatorship of the default Unique Node List (dUNL) functions as the economic mechanism that monetary rewards would otherwise provide, and develops a formal framework for evaluating its design. The central thesis is that RPCA security requires alignment across three independent layers-technical consensus, individual incentive constraints, and governance compositionand that the failure of any single layer undermines the other two. Three formal contributions support this claim. First, we introduce Bayesian action-incentive compatibility (BAIC), an equilibrium concept appropriate for consensus settings with discrete hidden actions and imperfect public monitoring, in which validators choose actions rather than reporting types and the curator cannot deploy monetary transfers. Closed-form Bellman values and local comparative statics characterise when honest dUNL participation is individually sustainable; in particular, operational cost is neutral for the honesty margin and binds only at the participation constraint. Second, we correct the coalition-security analysis by distinguishing economically viable from threshold-exceeding coalitions: an economic-security gap exists only when the maximum bribeable coalition size reaches the minimum stylised thresholdexceeding size, with the precise characterisation depending on the internal-allocation rule (equal sharing versus transferable bribes). Third, a triple-alignment theorem integrates these results and yields an archetype-conditional dUNL composition diagnostic. A scenario-based calibration using public XRPL Negative UNL data classifies the 35 dUNL validators by incentive archetype and computes G crit k for each type; the H archetype anchors the lowest economic-security margin but is too few in number for a homogeneous threshold-size coalition, so under the transferable-bribe convention the least-cost threshold coalition is heterogeneous, mixing H-type and I-type validators.

Matthew Rosendin

Double-entry bookkeeping ensures internal balance but offers limited independent evidence that reported state follows from complete, unaltered records under a stated accounting policy. Ian Grigg's operational triple-entry model—cryptographically linked inter-firm receipts—and subsequent advances in hash commitments, zero-knowledge proofs, and payment-layer compliance attestations motivate ledger-native assurance: verification artifacts produced during accounting close, not assembled from exports afterward. This working paper presents a design-science framework with four assurance layers (source, posting, record, disclosure); a taxonomy of source-anchoring paths including on-chain settlement, TLS-attested ingestion, and bilateral finalization; an analysis of payment-layer versus ledger-layer zero-knowledge statements; and a close-cadence model distinguishing continuous, partial, and batch close under different capture postures. We state explicit scope limits aligned with audit evidence theory and outline an empirical and regulatory research agenda.

Muhammad Umair

The rapid growth of entities that hold, trade and earn revenue from crypto-assets has outpaced the development of auditing guidance tailored to this environment. Digital assets have moved decisively from the margins of finance into the balance sheets of regulated funds, market makers, fintechs and conventional corporates, with the global crypto-asset market now measured in the trillions of dollars. Auditors are now routinely asked to express opinions on financial statements that include digital assets, yet the established toolkit of external confirmations, period-end cutoff procedures and observable market prices maps poorly onto blockchain-based holdings and continuous, automated trading. This paper sets out, from a practitioner's standpoint, the principal challenges encountered when auditing crypto-holding and trading entities: establishing the existence and ownership of on-chain assets; obtaining assurance over the completeness of an entity's wallet population; valuing illiquid tokens, liquidity-pool positions, non-fungible tokens and stablecoins; auditing emerging instruments such as token loan agreements, warrants and forfeitures; addressing cutoff in markets that never close; and testing revenue arising from market-making, arbitrage and staking. For each area, the paper describes how the profession currently adapts existing standards-notably ISA 500, ISA 501, ISA 540 (Revised), ISA 240, IFRS 13 and the recently effective FASB ASC 350-60-and where meaningful gaps remain. The paper argues that strengthening audit practice in this domain is not a narrow technical concern but a matter of investor protection and financial-system integrity, given the scale of value now held in digital form and the heightened fraud and money-laundering risks that accompany it. It concludes with practical considerations for auditors and a call for more specific standard-setting and practitioner guidance.

Peyman Karimi, Gholamreza Askarzadeh Dareh, Alireza Rayati Shavazi, Seyed Yahya Abtahi

This study aimed to develop a conceptual model for pricing digital assets by integrating behavioral finance perspectives and identifying psychological and social factors influencing investors’ decision-making in decentralized markets. A qualitative grounded theory approach was adopted. The study involved 15 experts in digital currencies, blockchain, and behavioral finance selected through purposive sampling until theoretical saturation was achieved. Data were collected via semi-structured interviews and textual content analysis. Open, axial, and selective coding were applied to build the theoretical framework. Reliability was confirmed using quality control indices such as Krippendorff’s alpha, Holsti coefficient, Scott’s Pi, and Cohen’s Kappa, all indicating high inter-coder agreement. The resulting model captured multiple determinants of digital asset pricing. Causal factors included emotional and psychological behaviors (e.g., fear of missing out, fear and greed), the influence of news and media, and social association effects. Contextual factors encompassed uncertainty, ambiguity, and market volatility. Strategic factors such as market trust and credibility, investors’ knowledge and awareness, and reference points were identified. Core conditions included regulatory and legal environments, technological infrastructure, and macroeconomic conditions. Consequences involved enhanced market transparency, analysts’ and advisors’ influence, institutional and retail investor interactions, and the impact of past experiences on risk-taking. The proposed behavioral finance-driven model demonstrates that digital asset pricing extends beyond classical economic frameworks, heavily shaped by investor psychology and external information dynamics. The findings can guide investors toward more rational strategies and support policymakers in creating effective regulations and safer decentralized financial ecosystems.

Rafael Minuti

The accounting for cryptoassets under current IFRS remains fragmented. Following the IFRS Interpretations Committee's 2019 agenda decision on holdings of cryptocurrencies, most holders default to IAS 38 Intangible Assets unless IAS 2 Inventories applies. That outcome produces incomplete comparability, weak performance reporting, and a recurring tension between the economic liquidity of many cryptoassets and the accounting model applied to them. This discussion paper proposes a narrow holder-side framework for fungible cryptoassets that do not provide the holder with an enforceable claim on an issuer, measured subsequently at fair value through profit or loss, with business model affecting presentation and disclosures rather than measurement. The analysis also addresses matters commonly omitted in early crypto accounting proposals: counterpart entries for acquisition, use, rewards and disposal; liability-side consequences arising from taxes, slashing, safeguarding, financing and legal obligations; interaction with IFRS 13, IAS 12, IAS 37 and IFRS 7; and practical illustrations across treasury entities, funds, exchanges, validators, Web3 operators and payment platforms. Public-company reporting examples are incorporated as illustrative evidence of how existing accounting frameworks affect balance-sheet presentation, profit or loss, deferred taxes and scope boundaries in practice.

Rafael Minuti

The accounting for cryptoassets under current IFRS remains fragmented. Following the IFRS Interpretations Committee's 2019 agenda decision on holdings of cryptocurrencies, most holders default to IAS 38 Intangible Assets unless IAS 2 Inventories applies. That outcome produces incomplete comparability, weak performance reporting, and a recurring tension between the economic liquidity of many cryptoassets and the accounting model applied to them. This discussion paper proposes a narrow holder-side framework for fungible cryptoassets that do not provide the holder with an enforceable claim on an issuer, measured subsequently at fair value through profit or loss, with business model affecting presentation and disclosures rather than measurement. The analysis also addresses matters commonly omitted in early crypto accounting proposals: counterpart entries for acquisition, use, rewards and disposal; liability-side consequences arising from taxes, slashing, safeguarding, financing and legal obligations; interaction with IFRS 13, IAS 12, IAS 37 and IFRS 7; and practical illustrations across treasury entities, funds, exchanges, validators, Web3 operators and payment platforms. Public-company reporting examples are incorporated as illustrative evidence of how existing accounting frameworks affect balance-sheet presentation, profit or loss, deferred taxes and scope boundaries in practice.

Rafael Minuti

The accounting architecture for digital assets has developed unevenly. Under both IFRS and U.S. GAAP, recent technical activity has concentrated mainly on the holder-side of crypto-assets, while issuer-side token transactions remain fragmented across analogies to financial instruments, revenue contracts, loyalty programmes, provisions, and, in practice, non-recognition. That fragmentation is no longer tenable. Web3 issuers, centralised platforms, fintechs and traditional enterprises are now using tokens not only as fundraising devices, but also as access rights, governance mechanisms, customer-retention instruments, and promotional distribution tools. This paper develops a principles-based issuer-side model that separates token arrangements according to their economic substance rather than their technological form. The proposed framework proceeds through five decision gates: • (i) whether the token creates a contractual claim or residual interest within IAS 32 / IFRS 9; • (ii) whether it embodies an enforceable promise to transfer goods, services or network access within IFRS 15; • (iii) whether it grants a material right in a loyalty or rewards structure; • (iv) whether a promotional airdrop creates a substantive stand-ready obligation; and • (v) whether the token is, in substance, a governance-only digital right with no continuing issuer obligation. The paper argues that minting alone is ordinarily not a recognition event, that internally generated treasury tokens are not issuer assets, that governance tokens are not equity absent the IAS 32 residual-interest test, and that utility and loyalty tokens ordinarily create contract liabilities rather than immediate revenue. It also proposes a more disciplined treatment for promotional airdrops, together with journal-entry mechanics, disclosure requirements, market illustrations and a bridge to CPC and U.S. GAAP practice. The objective is to provide an auditable, globally usable foundation for the accounting of token issuance by issuers rather than holders.

Dongwu Lin

This paper develops computational methods for optimizing revenue recognition in machine learning platforms operating on cloud computing infrastructure. We analyze how Artificial Intelligence as a Service (AIaaS) platforms leverage distributed computing architectures, containerization technologies (Docker, Kubernetes), and microservices patterns to deliver AI capabilities, creating complex revenue recognition challenges under IFRS 15. Our research employs algorithmic analysis to examine five critical technical challenges: (1) computational resource allocation tracking across multi-tenant cloud environments, (2) real-time transaction price determination using usage metering APIs and consumption-based billing algorithms, (3) automated revenue allocation across platform components using distributed ledger technologies, (4) temporal revenue recognition optimization through event-driven architectures and streaming data processing, and (5) network effect quantification using graph algorithms and data analytics.

Siti Epa Hardiyanti

The phenomenon of increasing public interest in investing in crypto assets, especially Bitcoin, has raised major questions about its feasibility and profitability compared to conventional investment instruments such as mutual funds. This study aims to compare the profitability and risk levels between Bitcoin as a cryptocurrency asset and mutual funds as traditional financial instruments. Although Bitcoin has gained increasing popularity as an alternative investment, there remains a lack of empirical research directly comparing its performance with mutual funds over an equivalent time horizon. Using a quantitative approach, this study analyzes historical monthly data from 2015 to 2024. Metrics such as cumulative return, average monthly return, CAGR, Sharpe Ratio, and maximum drawdown were employed to evaluate the performance of both instruments. Positioned within the existing literature on asset comparison, this study offers a novel empirical contribution by directly contrasting Bitcoin and mutual funds through risk-return analysis. The findings reveal that while Bitcoin offers significantly higher returns, it also carries much greater volatility and drawdown risk. These insights serve as a practical foundation for designing investment strategies aligned with different investor risk profiles. The research contributes to the body of knowledge in portfolio management and data-driven investment decision-making. Keywords: Bitcoin, mutual funds, risk-return, volatility, investment performance, portfolio management

Afwil Jazil

This study aims to analyze the role of autonomous agent-based Information Systems in Accounting (ISA) in managing the decentralized accounting cycle using a socio-technical systems approach in the private sector. The background of this research lies in the increasing demand for speed, accuracy, and transparency in financial reporting within the competitive digital business ecosystem. This study adopts a qualitative method through in-depth interviews and document analysis, supported by thematic analysis for data interpretation. The findings reveal that autonomous agent-based ISA enhances transaction-processing efficiency, reduces recording errors, strengthens internal control, and provides real-time financial information for strategic decision-making. However, its effectiveness depends on the alignment between technological and social dimensions of organizations, including digital competence readiness, employee acceptance of automation, and role restructuring. This research concludes that agent-based accounting systems are not merely digital tools, but strategic infrastructures that shape long-term competitive advantage for private-sector firms

Nyoman Sri Subawa, Caren Angellina Mimaki, I Made Oka Mahendra, Made Srinitha Millinia Utami

Bitcoin halving is a quadrennial event that halves mining rewards and is believed to influence cryptocurrency prices and cryptocurrency market dynamics. This study examines the effect of Bitcoin halving on Cryptocurrency Prices, with Government Regulations, Market Sentiment, and Cryptocurrency Performance as mediating variables. A quantitative research approach was employed, gathering original data via survey instruments from 294 participants within the cryptocurrency community in Bali, which were analyzed using PLS-SEM. The findings indicate that Bitcoin halving exerts a favorable and statistically meaningful influence on Government Regulations, Market Sentiment, Cryptocurrency Performance, and Cryptocurrency Prices. Market Sentiment fully mediates the influence of Government Regulations and Cryptocurrency Performance on Cryptocurrency Prices, while Government Regulations and Cryptocurrency Performance partially mediate the effect of Bitcoin halving. These findings highlight that Cryptocurrency Prices are shaped by the interplay of technical, policy, and psychological factors, with strategic implications for investors, regulators, and developers.

Sajida Begum K

A digital or virtual currency that is virtually impossible to counterfeit or double-spend is called cryptocurrency. It is protected by cryptography. The majority of cryptocurrencies are maintained on decentralized networks through the use of blockchain technology, which is a distributed ledger maintained by various computer networks. This study aims to determine the degree of investor awareness of cryptocurrencies, as well as the preferences of investors across age and income brackets. Additionally, it will examine investor behaviour about crypto currencies and the awareness of various cryptocurrencies.

Tianyi Ma

In decentralized finance (DeFi), designing fixed-income lending automated market makers (AMMs) is extremely challenging due to time-related complexities. Moreover, existing protocols only support single-maturity lending. Building upon the BondMM protocol, this paper argues that its mathematical invariants are sufficiently elegant to be generalized to arbitrary maturities. This paper thus propose an improved design, BondMM-A, which supports lending activities of any maturity. By integrating fixed-income instruments of varying maturities into a single smart contract, BondMM-A offers users and liquidity providers (LPs) greater operational freedom and capital efficiency. Experimental results show that BondMM-A performs excellently in terms of interest rate stability and financial robustness.

Touloupou, Marios

No abstract is available for this record.

Khasatullaev Sobirjon, Elis Mediawati, Indah Fitriani

This study examines the growth trends of cryptocurrencies and their associated taxation policies, focusing on the unique technological advancements and regulatory frameworks shaping the market. Utilizing a systematic literature review methodology, this study synthesizes findings from academic and institutional sources to explore cryptocurrency growth and global taxation policies, the research investigates the adoption metrics of major cryptocurrencies and the comparative taxation policies across various jurisdictions. Findings reveal a substantial increase in cryptocurrency adoption driven by institutional investments and technological innovations. However, taxation policies vary widely, impacting investor behavior and market dynamics. This research contributes to understanding the interplay between cryptocurrency growth and taxation, providing insights for investors and policymakers.

Sonal Gupta, Sarla

Abstract : The purpose of this paper is to examine the issues regarding accounting for cryptocurrency. An in-depth study of accounting standards is performed to scrutinise their appropriateness for the accounting of cryptocurrency. This research paper focuses on significant accounting aspects which are relevant for crypto accounting. The title of this paper is pointing toward the issues related to accounting for cryptocurrency which requires clarification. This paper will help in understanding the characteristics of cryptocurrency having relevance to business for accounting for them correctly as cryptocurrency has characteristics of currency as well as assets and can act as inventory for some businesses. This paper will analyse the accounting standards and accounting of cryptocurrencies in the financial statement of a company. This paper will also examine the requirement of making amendments to existing accounting standards or having a new accounting standard for the financial reporting of cryptocurrency. The qualitative approach is used in this research. Secondary data is used for this study as previous literature regarding the topic is used for collecting the data through published resources including journals and books. This study finds that cryptocurrency cannot be considered as a currency because of some of its characteristics but can be considered as inventory or intangible assets on the basis of the business model as it has a quasi-currency and quasi-asset nature. The accounting for cryptocurrency needs stand-alone standards to simplify its reporting in the books of accounts to compare financial statements and to maintain consistency in the financial reporting of cryptocurrency. This research area has a lot of potential regarding clarification and guidance of experts for avoiding future issues regarding the accounting of cryptocurrency.

Abdessamad Snoussi Amouri

This comprehensive review examines the evolutionary trajectory of financial information systems from the 1670s to the present day, analyzing how technological innovations have fundamentally transformed financial reporting, auditing practices, and information accessibility. Through a bibliometric and conceptual analysis of seminal literature, this study identifies key technological inflection points including the emergence of structured bookkeeping systems, the institutionalization of financial publicity through the 1867 law, the development of sophisticated financial communication tools, and the recent integration of blockchain technology and data analysis capabilities. The review demonstrates that each technological wave has progressively enhanced data accuracy, real-time reporting capabilities, and audit efficiency while simultaneously introducing new challenges related to data security, regulatory compliance, and technological adoption barriers. Contemporary developments in distributed ledger technology and advanced analytics represent a paradigm shift toward autonomous financial reporting systems with unprecedented transparency and verification capabilities. The findings suggest that future financial information systems will be characterized by increased automation, enhanced predictive analytics, and seamless integration of blockchain-based audit trails. This evolution has profound implications for accounting professionals, regulatory frameworks, and corporate governance structures, necessitating adaptive strategies for stakeholder education and regulatory modernization.

Xiang, Yuexin, Yang Lei, Yuanzhe Zhang, Qin Wang · 7 authors

Stablecoins such as USDT and USDC aspire to peg stability by coupling issuance controls with reserve attestations. In practice, however, transparency remains fragmented across heterogeneous data sources, with key evidence about circulation, reserves, and disclosure dispersed across records that are difficult to connect and interpret jointly. We introduce a large language model (LLM)-based automated framework for bridging cross-domain transparency in stablecoins by aligning issuer disclosures with observable circulation evidence. First, we propose an integrative framework using LLMs to parse documents, extract salient financial indicators, and semantically align reported statements with corresponding market and issuance metrics. Second, we integrate multi-chain issuance records and disclosure documents within a model context protocol (MCP) framework that standardizes LLM access to both quantitative market data and qualitative disclosure narratives. This framework enables unified retrieval and contextual alignment across heterogeneous stablecoin information sources and facilitates consistent analysis. Third, we demonstrate the capability of LLMs to operate across heterogeneous data domains in blockchain analytics, quantifying discrepancies between reported and observed circulation and examining their implications for transparency and price dynamics. Our findings reveal systematic gaps between disclosed and verifiable data, showing that LLM-assisted analysis enhances cross-domain transparency and supports automated, data-driven auditing in decentralized finance (DeFi).

Hongxin Hu

In the context of economic globalization and rapid internet development, emerging digital technologies such as cloud computing, big data, and AI are revolutionizing industry production and sales. Smart Contracts, particularly empowered by blockchain advancements, present promising prospects. However, traditional contracts remain dominant in economic activities, especially in China’s vast SME market, where risks of real world transaction instability hinder smart contract adoption. Technical vulnerabilities and ecological security issues in smart contract platforms pose challenges in translating legal language into code. Despite progress in natural language processing, translating legal documents accurately remains difficult, burdening judges and programmers with time costs. Therefore, research on smart contract architecture and legal applications, along with practical solutions, is imperative for both theoretical and practical advancements.

Loso Judijanto

This study examines the emerging convergence of triple-entry accounting, blockchain technology, and machine learning as a transformative framework for enhancing financial transparency. Using a bibliometric analysis of Scopus-indexed publications from 2000 to 2025, the research identifies key intellectual structures, thematic clusters, and temporal trends that shape this field. The results show that blockchain serves as the foundational infrastructure enabling immutable, verifiable accounting records, while machine learning functions as an analytical layer that strengthens anomaly detection, continuous auditing, and fraud prevention. Triple-entry accounting is found to be evolving from a conceptual innovation into a practical accounting architecture supported by cryptographic verification and distributed ledger systems. The study highlights significant implications for auditors, regulators, and organizations seeking to modernize financial reporting through automation and secure digital ecosystems. Although promising, the research also notes limitations related to data scope, conceptual depth, and the need for empirical validation. Overall, the findings underscore the potential of technologically integrated accounting systems to redefine trust, accountability, and transparency in modern financial environments.

Bassam Sharaf

Purpose –this paper aims to examine the impact of the integration between Extensible Business Reporting Language (XBRL) and Smart Contracts, which represent the second generation of the decentralized ledger Blockchain, on the transition from continuous auditing to Real-time Auditing. Design/methodology/approach – Using Exploratory Study , this study examines the impact of the integration between XBRLand Smart Contracts on the transformation from continuous Auditing to Real-time Auditing. Findings – This paper finds that the XBRL- Smart Contracts is a good way to activate real-time Auditing because of the characteristics of XBRL and Smart contracts based on blockchain that can support real-time Auditing, including transparency, privacy, decentralization, and pre-validation of operations at the same time as they occur with no possibility of modification or fraud. Therefore, Smart Contracts is not a substitute for XBRL, as the Blockchain is a ledger through which transactions can be conducted, and XBRL is the standard that can standardize the terms and standards for the items that are exchanged in accounting in those transactions, which means that XBRL supports Smart contracts based on blockchain in transparency and trust in transactions. There for, this paper finds that the XBRL- Smart contracts based on blockchain integration affects significatively to transfer from continuous auditing to real time auditing. Originality/value – This paper contributes to the literature on Provide a proposed A Prospective framework for the integration between XBRL and Smart Contract to transfer from continuous Auditing to Real time Auditing.

Pratiti Mohapatra, Shreya Raut

Abstract Corporate treasury departments face growing challenges created by liquidity fragmentation, inefficient cash management, and delayed cross-border settlements-a perfect storm for increased financial risks for the firms and for operational difficulties. The present-day treasury systems rely on centralized banking and manual processes. A traditional one thus lacks the flexibility and the transparency needed in today’s very uncertain global environment.Decentralized finance (DeFi) is presented in this paper as an essential infrastructure layer that has the potential to transform how businesses handle liquidity. DeFi offers programmable, real-time, and international financial execution through the use of smart contracts, algorithmic liquidity pools, decentralized exchanges, and tokenized assets. Conceptual modeling links DeFi mechanics to essential treasury functions, comparative analysis examines DeFi and traditional systems, and scenario simulations explore practical examples of corporate use cases.It is found that DeFi can enhance access to liquidity, reduce transaction costs, and automate treasury operations, especially with respect to intercompany fund flows, short-term financing, and FX execution. However, adoption needs strong governance frameworks, regulatory agreement, and technical compatibility with existing systems. This study offers a practical framework for CFOs, fintech developers, and policymakers to evaluate DeFi’s role in corporate treasury environments. It positions decentralized infrastructure as a useful tool for next-generation liquidity strategies.