Follow blockchain research across journals, conferences, and preprint repositories.
1,156 results · page 21 of 49
Tobias Berg, Jan Keil, Felix Martini, Manju Puri
No abstract is available for this record.
Yinhong Zhao
Delays in finance impose real costs, yet they are difficult to measure in traditional settings. Leveraging Ethereum's on-chain data and fee market, I estimate a structural queuing model that maps fee bids to time preferences and quantify delay costs in decentralized finance. The median transaction bears a 7.1 bps implicit cost, with costs highly skewed and totaling $9.88 million per day. Counterfactuals show that a flexible block gas limit as in EIP-1559 cuts the loss from delay by 32.9%, and doubling block frequency with half-size blocks cuts it by 13.6%. Combined, the two policies reduce losses by a striking 63.9%.
Wenxiao Yang, Zijun Shi, Song Lin
No abstract is available for this record.
Enrico Rossi
No abstract is available for this record.
Sebeom Oh
A nearly real-time, immutable blockchain audit trail is widely thought to deter market abuse, yet systematic evidence is scarce. Analyzing 7.4 million transactions from 561 NFT collections, which represent unique digital assets on public blockchains, I show that wash trading activity has a negligible impact on market outcomes. Rather than boosting the value of their own NFT collections, wash traders appear motivated by token reward programs offered by trading platforms. In contrast, purchases by apparent insiders predict positive returns for the associated collections. Transparent ledgers thus both neutralize obvious trade-based manipulation and give market participants enough information to detect insider activity.
Chuxuan Fan
Decentralized Autonomous Organization (DAO) is a blockchain-based governance structure allowing all shareholders to participate in daily decision-making through voting on proposals. However, as centralization trends of blockchain documented in previous literature, voting delegation is on the rise for governance efficiency. This paper utilizes a DeFi company called MakerDAO to analyze the efficiency of such delegation design on DAO. Firstly, the delegates have demonstrated their expertise, thereby more likely to participate in voting and make well-informed choices. Secondly, voting delegates may prioritize personal interests over the collective interests of MakerDAO when their interest conflicted with MakerDAO is large enough and they gain sufficient voting power to influence the voting outcome. Thirdly, market monitoring can generally reward (punish) delegates for correct (wrong) votes through giving new or withdraw old delegations. What’s more, delegates with skills will be further rewarded. However, it remains challenging to consistently penalize delegates whose interests misalign with those of DAO, even when their holdings are transparently visible. This paper contributes to literatures on the evolutionary process of decentralized designed platform to be centralized or reintermediated.
Linda Jo Bone Jeng, Christian Rome Lansang, Kristy Lam, Sean Lee · 5 authors
No abstract is available for this record.
Joana Pereira, M. Mahdi Tavalaei, Pedro L. Herrera, Boris Rebo
No abstract is available for this record.
Patrick Nicolas Tinguely, Yash Raj Shrestha
Abstract Non-fungible tokens (NFTs) are digital assets based on blockchain technology that are increasingly being used for various applications in organizations. Given NFTs’ unique technological features, we posit that traditional, centralized organizations can adopt them to introduce novel solutions to the fundamental problems of organizing, namely, division of labor and integration of efforts. We examine the prospects and promises of NFT-enabled organization design and suggest how organizations can navigate its potential hurdles. We discuss critical boundary conditions for the deployment of NFTs in organization design and conclude by articulating how our Point of View article contributes to scholarship on blockchain technology and decentralized autonomous organizations (DAOs).
Ioannis Filippos Kanellopoulos, Dominik Gutt, Murat Tunç, Ting Li
No abstract is available for this record.
Burcu Yüksel Ripley
In modern payment systems that are used today, non-cash payments are predominantly executed by banks, acting as an intermediary between payers and payees, in the form of bank-to-bank (interbank) funds transfers through bank accounts. A fundamental structural change has been introduced to this method of making payments with the emergence of cryptocurrencies underpinned by distributed ledger technology (DLT). This has enabled that non-cash payments can be made outside of the banking system directly from payer to payee and secure digital records can be held independently of the usual central trusted authorities such as banks. This global paradigm shift, starting with the possibilities of cryptocurrencies in payments, has introduced new challenges for private international law. The issue of characterisation of cryptocurrency transfers in DLT-based systems is at the heart of the some of the key private international law questions, including the determination of the law applicable to cryptocurrency transfers. The efforts have thus far mainly focused on characterising cryptocurrencies themselves as money, property or claims and a discussion around the application of the lex situs as the predominant connecting factor in international property law and the consideration of the relevant conflict of laws rules regarding the transfer of intangibles for cryptocurrency transfers. The purpose of this chapter is to offer a new perspective on the characterisation of cryptocurrency transfers taking place within DLT-based cryptocurrency systems by utilising an analogy to electronic funds transfers and funds transfer systems under unitary and segmented approaches and consider the potential effects of both approaches on the law applicable to cryptocurrency transfers.
Baptiste Perez Riaza, Jean‐Yves Gnabo
The objective of this study is to determine the factors that contribute to market efficiency in the crypto-asset market. Despite prior evidence from the literature demonstrating variations in efficiency across assets and time, few have investigated driving factors beyond liquidity. By using a dataset of 122 crypto-assets with imbalanced data, our analysis discovers that both market conditions and inherent characteristics of crypto-assets significantly impact the predictability of their returns. Specifically, market efficiency is positively associated with increased liquidity and age. Our findings highlight that DAO projects demonstrate greater efficiency compared to non-DAO projects. This result suggests that transparent decentralized decision-making model can help reduce information asymmetry leading to a more efficient market pricing.
Shengnan Li, Florian Spychiger, Claudio J. Tessone
Proof-of-Stake (PoS) variants provide an energy-efficient alternative to Proof-of-Work (PoW). However, it is not clear whether practical PoS implementations are fair with respect to wealth, stake, and reward distribution. In this paper, we analyse the fairness of the four wellknown PoS platforms Tezos, Polkadot, Cardano, and Casper through a data-driven approach. For this, we collect data on stakes and rewards for all the four platforms over several years. We then apply four measures to study the fairness along different dimensions. We calculate the Gini coefficient to explore the wealth inequality, the Nakamoto coefficient to investigate the degree of decentralization, and the expectational and robust fairness of the stake-reward proportions, i.e., if the validators receive their fair share of the rewards given their stake share. We can show that there are dynamics of high wealth inequalities and stake centralization in all the systems with Polkadot being the exception. With respect to stake-reward fairness, the platforms differ in the distributions of deviations from the fair share, i.e., in Cardano and Tezos, the differences have a lower magnitue as many small validators participate. However, by examining specific outcomes, we can show that platforms with a limited validator set such as Polkadot and Casper tend to be fairer regarding the reward payoffs, but it is not possible for smaller validators to participate. This mechanism sheds light on a trade-off that the platforms face: the more inclusive (open) the validation process is designed, the unfairer the reward distribution tends to be. Our results allow us to conclude that the way of how PoS is implemented matters greatly for its fairness.
Leonid Kogan, Giulia Fanti, Pramod Viswanath
In this paper we develop a valuation framework for a Proof-of-Stake (PoS) payment system. Active network participants (proposers and validators) are required to stake tokens, and receive payments in return for their services. This property of the PoS system connects cash flows to token holdings, and allows for valuation using conventional methods. As an application of our framework, we analyze security properties of the PoS system. We show that while high token valuation relative to the flow of transactions is central to network security, valuation bubbles have adverse security implications. State-contingent monetary policies can be used to alleviate this problem.
Thibault Schrepel
Web2 giants and Web3 projects entertain a complex relationship. They cooperate to maximize their chances of survival, yet they also compete through a combination of dynamic factors and anti-competitive strategies. The present contribution untangles Web2 and Web3’s relationship, explores their distinct value propositions, and outlines what may be one of tomorrow’s enforcement priorities for antitrust agencies.
Quinn DuPont
Abstract This paper critically evaluates the political economy of Web3 and offers a neo-institutional model to explain qualitative observations of contemporary digital social movements. By starting to develop a sociological model of Web3 rooted in micro-organizational practices, including trust mediation and social coproduction, this paper re-evaluates assumptions of scarcity, economic value, and social belonging. It concludes by introducing a novel research program to study digital polycentric governance that focuses on community self-governance of digital common pool resources (DCPRs) and looks forward to empirical research using on-chain datasets from decentralized autonomous organizations (DAOs).
Kanis Saengchote, Carlos Castro-Iragorri
No abstract is available for this record.
Thomas Puschmann, Marine Huang-Sui
Decentralized Finance (‘DeFi’) has gained tremendous momentum over the past three years by using novel approaches to disintermediating financial institutions in the provision of financial services. However, empirical research in this field is still rare, and a more comprehensive understanding of the domain is a missing component in academic research. This paper develops a taxonomy based on a comprehensive literature analysis to structure this emerging field systematically. The taxonomy includes three perspectives (strategy, organization, technology) and seven dimensions (blockchain, value proposition, token type, business process, price mechanism, protocol type, integration type) as well as thirty-six characteristics. The application of the taxonomy to 278 DeFi start-ups reveals that most of the DeFi start-ups focus on Ethereum (36.3%) and have a focus on analytics and automation (52%), while, surprisingly only a few incorporate decentralized governance approaches (3.3%), provide decentralized exchanges (14%) or integrate off-chain data.
Kaushal Shah, Dhruvil Lathiya, Naimish Lukhi, Keyur Parmar · 5 authors
Decentralized finance (DeFi) has revolutionized the financial industry in recent years. Industries such as banking, insurance, and investment are experiencing a significant shift due to the growth of DeFi. The decentralized finance market is expanding exponentially, emphasizing the potential of digital currencies and decentralized platforms in providing an alternative to the traditional finance paradigm. It eliminates the need for costly intermediaries, reduces transaction fees, and increases accessibility to financial services for everyone, regardless of their geographic location or economic status. With the enormous increase in cryptocurrency investment, individuals and institutions have started to use DeFi. In this context, understanding the architecture and working mechanisms of different DeFi protocols becomes crucial in creating new and innovative products. This review paper explores various DeFi protocols, including derivatives, decentralized exchanges (DEX), lending and borrowing, asset management, and stablecoins. It analyses their internal structure and composability, providing insights into how these protocols can be combined to create new and innovative DeFi products and explore the potential of DeFi in providing an alternative to the traditional finance paradigm.
Khando Khando, M. Sirajul Islam, Shang Gao
The interplay between finance and technology with the use of the internet triggered the emergence of digital payment technologies. Such technological innovation in the payment industry is the foundation for financial inclusion. However, despite the continuous progress and potential of moving the payment landscape towards digital payments and connecting the population to the ubiquitous digital environment, some critical issues need to be addressed to achieve a more harmonious inclusive and sustainable cashless society. The study aims to provide a comprehensive literature review on the emerging digital payment technologies and associated challenges. By systematically reviewing existing empirical studies, this study puts forward the state-of-the-art classification of digital payment technologies and presents four categories of digital payment technologies: card payment, e-payment,mobile payment and cryptocurrencies. Subsequently, the paper presents the key challenges in digital payment technologies categorized into broad themes: social, economic, technical, awareness and legal. The classification and categorization of payment technologies and associated challenges can be useful to both researchers and practitioners to understand, elucidate and develop a coherent digital payment strategy.
Luke Kowalski, William H. Green, Simon Lilley, Nikiforos S. Panourgias
Cryptocurrencies were supposed to replace traditional payment methods when they were invented over 13 years ago, but adoption by the general consumer is still lacking, at least in the United States. Instead, crypto is often used as a speculative investment, by illicit actors, or for use cases unrelated to everyday purchases. A literature review on general adoption barriers and interviews with experts has only unearthed factors like usability, performance, and political drivers, among other barriers. Brand as an adoption barrier is mostly missing from literature, at least for cryptocurrencies. This led to the formation of a hypothesis related to crypto’s lack of adoption as a payment method. A framework is being designed based on the technology adoption model to find out if “brand” has an impact on cryptocurrency adoption, which was paradoxically designed to be brandless and not needing any institutional trust. The intent is to focus on what “Bitcoin 2.0” might look like, and to also delve further and gauge perceptions about various types of brands getting involved in the next generation of cryptocurrencies, including traditional banks, governments, technology companies, and also some of the decentralized and hybrid consortia currently vying to get consumers to use stablecoins, nation-issued cryptocurrencies, and other forms of digital instruments. While other studies had focused on trust, early adopter usability, or performance of blockchain networks, this work intends to focus on the general consumer’s perceptions about digital money, and the types of brands and evolution of this instrument liable to increase uptake.
Ehsan Nowroozi, Seyedsadra Seyedshoari, Yassine Mekdad, Erkay Savaş · 5 authors
Digital wallet as a software program or a digital device allows users to conduct various transactions. Hot and cold digital wallets are considered as two types of this wallet. Digital wallets need an online connection fall into the first group, whereas digital wallets can operate without internet connection belong to the second group. Prior to buying a digital wallet, it is important to define for what purpose it will be utilized. The ease with which a mobile phone transaction may be completed in a couple of seconds and the speed with which transactions are executed are reflection of efficiency. One of the most important elements of digital wallets is data organization. Digital wallets are significantly less expensive than classic methods of transaction, which entails various charges and fees. Constantly, demand for their usage is growing due to speed, security, and the ability to conduct transactions between two users without the need of a third party. As the popularity of digital currency wallets grows, the number of security concerns impacting them increases significantly. The current status of digital wallets on the market, as well as the options for an efficient solution for obtaining and utilizing digital wallets. Finally, the digital wallets' security and future improvement prospects are discussed in this chapter.
Олексій Доценко
The functional features of cryptographic technologies in combination with decentralized data registries gave impetus to the development of the segment of decentralized financial assets. Evolutionarily, special decentralized applications were created that ensure the correct operation of the entire DeFi ecosystem. This work is devoted to the study of decentralized applications, since this is the main link of the market of decentralized finance, which provides an interface for the interaction of market subjects. In our work, we study the architecture of decentralized applications in particular detail. In the course of the work, we analyzed the dynamics of the creation of new decentralized applications on the main networks of the ecosystem. We found that most modern applications were created between 2017 and 2019, but new and newer use cases for decentralized applications are constantly emerging. We also identified and outlined the main categories of decentralized application architecture components. We added to the external parts of the architectural components: application developer, blockchain developer, application user, contract user, token user, consensus provider; and internal architectural components: client, smart contract, token, blockchain platform, other platforms. Several examples of the operation of blockchain protocols and the principles of transaction confirmation are in work. We created a detailed diagram of the interaction of all parts of the architecture, as well as subjects participating in the work of applications. We also explained the difference between tokens and coins, as well as accompanying conclusions regarding the practical side of the difference of decentralized assets. We also highlighted several features of the functioning of parts of the architecture of decentralized applications, in particular, management methods and the organization of interactions between different protocols in the middle of the DeFi ecosystem. We have also made appropriate conclusions on the work.
Jorge Soria, Jorge Moya Velasco, Amin Mohazab
This paper examines the economic mechanism of cryptocurrency mining. By presenting a profit function, a maximization equilibrium is obtained. The model provides a formal approach to the demand for hashing power as a function of revenues, mining costs and the number of miners. We consider how the equilibrium is affected by passive miners. We use these results to introduce a formulation of the price elasticity of the demand for hashing power with respect to the cost of energy. The model is simulated using Reinforcement Learning algorithms that arrive to similar equilibrium results. The article concludes with implications of the model for policymaking.