Innerhalb der letzten Jahre wurden Blockchain-Technologien in vielen traditionellen Sektoren (z.B. im Finanzbereich) adaptiert. Dadurch wurden existierende Systeme neu ĂŒberdacht und ganzheitlich neuartige Systeme erfunden. Allerdings blieb wĂ€hrend dieser Zeit des raschen Fortschritts der Fokus stets auf der schnellen Produktentwicklung, was zu vielen Sicherheitsproblemen gefĂŒhrt hat durch die mehrere hundert Millionen von USD gestohlen oder verloren wurden. Nahezu alle derzeitig öffentlichen Blockchains bieten keine formale Semantik oder formales Framework zur Verifizierung von Smart-Contract-Code. Diese Arbeit prĂ€sentiert eine neuartige Semantik fĂŒr Smart-Contract-Interaktionen und eine state-of-the-art Implementierung eines smart-contract-basierenden Investmentfonds fĂŒr die Ethereum Blockchain. Der Fokus liegt darauf, eine formale Semantik fĂŒr Smart Contracts mit dem tatsĂ€chlichen, wirtschaftlichen Anwendungsfall eines Investmentfonds zu verbinden. Genauer gesagt, die eingefĂŒhrte Semantik bietet einen neuartigen Denkansatz dadurch, dass sie Smart Contract Interaktionen und nicht einzelne Smart-Contract-AusfĂŒhrungen in den Mittelpunkt stellt. Die Blockchain wird durch einen Global State reprĂ€sentiert, auf welchem komplexe Transaktionen durch eine Big-Step-Semantik modelliert werden können. Der im Laufe dieser Arbeit entwickelte Investmentfonds ERCFund macht es möglich, in ein aktiv verwaltetes Portfolio von ERC20-Tokens und Ether zu investieren. Dies wird realisiert durch Tokens, welche als Anteil des Investmentfonds genutzt werden und je nach Bedarf gemĂŒnzt und vernichtet werden können. AuĂerdem unterstĂŒtzt die Software mehrere fortgeschrittene Funktionen, wie z.B. Cold-Wallet-Support und Multi-Signature-Schutz durch Off-Chain-Signaturen. Wir zeigen, dass die eingefĂŒhrte Semantik in einer realen, geschĂ€ftlichen Situation anwendbar ist, indem wir eine wesentliche Sicherheitsfunktion des Investmentfonds adaptieren und formal beweisen.
Cryptocurrency exchanges, i.e. online platforms where customers exchange their cryptocurrencies for other cryptocurrencies or fiat currencies, are routinely targeted by hackers, which often result in a massive drain of cryptocurrencies. The heists can be large enough to bring down the exchanges to their knees. The customers of an exchange who have entrusted it with cryptocurrencies would have a contractual right to claim their return. If the exchange is wound up, however, personal claims (such as a contractual claim) brought in bankruptcy proceedings would not yield to them a full recovery. It is, therefore, practically important to examine whether the cryptocurrencies entrusted to an exchange are shielded from the bankruptcy of the exchange provider, so that the customers can obtain a full recovery. Under most, if not all, legal systems, the answer to this question would be unclear because cryptocurrencies are a novel asset and because the legal relationships between an exchange provider and its customers have not been sufficiently scrutinised. This article will seek to improve legal clarity by presenting an analytical framework, identifying issues, and pointing to possible solutions.
It will begin by examining the law of Japan, possibly the only country in the world where the matter has been litigated. Following a hacking attack, Mt Gox, the worldâs biggest operator of a Bitcoin exchange at that time, became insolvent. After the opening of bankruptcy proceedings, one of its former customers filed a suit against the bankruptcy trustee in Japan, seeking a full recovery of the Bitcoins he had entrusted to the exchange. Rather than relying on a personal claim, the plaintiff asserted ownership over what he saw as âhis Bitcoinsâ. His claim was, however, dismissed by the Tokyo District Court for reasons to be examined in this article. More recently, other customers filed a suit in Japan by trying another legal avenue to obtain a full recovery. They are arguing that their Bitcoins had been held by the exchange on trust for them.
After presenting an analysis under Japanese law, this article will explore its relevance to other legal systems. Since Japanese law belongs to the family of civil law systems, the analysis concerning the ownership of cryptocurrencies would have direct relevance to other civil law systems in the context of rei vindicatio (vindication of property). It would also inform the debate whether cryptocurrencies are âpropertyâ in terms of the tort of conversion in common law systems. The analysis concerning whether an exchange holds cryptocurrencies on trust for its customers would be useful to all the common law systems of which the law of trusts forms an integral part as well as any civil law systems which, like Japanese law, have introduced the concept of trusts.
Decentralised (on-blockchain) and centralised (offâblockchain) platforms are available for the implementation of smart contracts. However, none of the two alternatives can individually provide the services and quality of services (QoS) imposed on smart contracts involved in a large class of applications. The reason is that blockchain platforms suffer from scalability, performance, transaction costs and other limitations. Likewise, offâblockchain platforms are afflicted by drawbacks emerging from their dependence on single trusted third parties. We argue that in several applications, hybrid platforms composed from the integration of on and offâblockchain platforms are more adequate. Developers that informatively choose between the three alternatives are likely to implement smart contracts that deliver the expected QoS. Hybrid architectures are largely unexplored. To help cover the gap and as a proof of concept, in this paper we discuss the implementation of smart contracts on hybrid architectures. We show how a smart contract can be split and executed partially on an offâblockchain contract compliance checker and partially on the rinkeby ethereum network. To test the solution, we expose it to sequences of contractual operations generated mechanically by a contract validator tool.
Recent developments in the field of electronic documents have given signs that the use of paper will completely eliminated after a period of time in all business processes. As a result of the developments in information systems, the use of electronic documents has become widespread and even become mandatory in some areas. Foreign trade financing is one of the areas where electronic documents are useful. But use of electronic documents has not yet become widespread in this area. The continuation of paper-based processes shows that this area needs radical and comprehensive changes such as infrastructure, legal compliance, innovative products and investments. Foreign trade requires the creation of common platforms that bring together all parties involved in the transaction so that paper documents can be completely removed. In this case, legal integration from one country to another is required in many areas from electronic signature to foreign trade. The emergence of blockchain technology, which has the ability to provide document integrity without the need for a third party to act as a trusted third party, has created a new hope for this integration. This study approached to the electronic documents in foreign trade and finance in the perspective of blockchain technology
Aishath Muneeza, Nur Aishah Arshad, Asmaâ Tajul Arifin
The emergence of innovative digital financial technologies, namely blockchain and crowdfunding, indicates new ways to reach the poor and economically vulnerable groups. This paper contributes to the emerging literature on financial technology by presenting the case of crowdfunding in financial inclusion. The rationale behind this inquiry is to demonstrate the relevance of crowdfunding to financial inclusion, and how might blockchain technology fuel the development of crowdfunding. This paper also constitutes one of the first attempts to analyse crowdfunding in Malaysia and Shariah-compliant crowdfunding. In this paper, a desk research is conducted where journal articles, books, magazines, newspapers, industry reports published on the subject matter are reviewed critically. To analyse the development of crowdfunding in Malaysia, 6 crowdfunding platforms are examined. The outcome of this research suggests that crowdfunding is a viable means to promote financial inclusion, and blockchain technology could help mitigate the current issues faced by platform operators.
In the era of the Internet of Things (IoT), smart connected devices have the ability to generate data that could be of interest to the public. This paves the way for an emerging market for monetized data exchanges, where IoT device owners can sell access to live data generated by their connected devices to interested users. Implementing a trusted, costâefficient, automatic monetization solution of IoT data can be a challenging problem and usually involves intermediaries and centralised governance and management. Blockchain and smart contracts introduce a secure and trusted platform to carry out transactions in a highly trusted, secure, decentralised manner. In this study, they present a blockchainâsolution and implementation using Ethereum smart contracts for monetizing IoT data with automated payment involving no intermediary. The authors discuss key aspects related to architectural design, entity relations, interactions among participants, logic flow, implementation and testing of the overall system functionality.
The paper presents the blockchain crowdfunding technology and its economic implications. It is a separate, decentralized model of social funding, based on âblock chainsâ, growing in response to technological progress, as well as to expectations of IT users with respect to the increasing popularity of cryptocurrencies and the demand for new categories of systems. The essence of the blockchain technology is presented, along with the potential benefits and the variety of applications, especially in the field of banking and finance. The blockchain crowdfunding model and the Initial Coin Offering process are described. Furthermore, the global blockchain crowdfunding market segment is estimated and analyzed. The main benefits and factors (risks) of the model are identified, as well as its growth prospects.
Blockchain does appear to have a transformative potential for creativity industries. Mougayar (2016) states that blockchain technology is as important as the World Wide Web. Although this technology is in its early days, it holds the potential to drastically change the supply chain. Organizations such as Open Music Initiative have already started to explore these possibilities. This article aims to analyze how might blockchain technology emerges as a disruptive force on the music industry.
The ultimate development of a disruptive and innovative contractual form has been imposing new challenges and the need of a proper regulatory framework in the legal field. Smart contracts consist on an internet protocol in which programming language and digital codes are used to input clauses that had already been agreed by the parties and that, upon the fulfillment of a determined condition previously established, shall be automatically self-executed. This new way of creating, transferring and extinguishing patrimonial rights and duties has been playing a major role in the context of the Creative Economy, in which intellectual capital, agility and the automatization of operations constitute fundamental factors. In order to investigate the characteristics and possibilities of adopting smart contracts under the perspective of the Brazilian legal order and its insertion in the Creative Economy, this paper has applied the theoretical and methodological framework of the Economic Analysis of Law so as to pursue the analytical exercise that it is committed to perform.
Blockchain Report 2018 Blockchain Report UG/Campus FryslĂąn, Data Research Centre and Globalisation Studies Groningen organised a Blockchain4SDGs interdisciplinary workshop that brought together experts from the development and humanitarian sectors with experts on blockchain technology. Participants jointly explored the implications of blockchain â both its possibilities and limitations â in the field of development and humanitarian action and discussed how the technology could be used to address the United Nationsâ Sustainable Development Goals (UN SDGs). This report presents the results of those discussions. After an introduction to blockchain technology in the fields of humanitarian and development aid, the report summarizes the individual participantsâ contributions to the Blockchain4SDGs workshop. These contributions range from practise examples to theoretical and technological developments. The report also includes summaries of the themes raised during the roundtable discussions and final remarks.
Digital currency became a relevant topic lately, with the central banks contemplating the idea of issuing their own virtual currencies. Central banks may issue their virtual currencies to simplify interbank cross-border settlements and make them cheaper. In order to achieve this, both commercial and central banks recognize these virtual currencies as means of payments. In these projects blockchain could be used to store information about the digital currencies, instead of fiat money. We have identified the risks associated with the virtual currencies issued by the central banks: conversion and volatility risks. We have looked at different approaches to the distributed ledger, principles for decentralized virtual currencies, possibility of these technologies being used by the central banks, various risks and their mitigation strategies. We also formulated the technological and legal principles that may guide the issuance of the digital currency by the central banks. And reviewed the practicability of issuing virtual currencies by the central banks, based on exogenous and endogenous factors.
Subscribing to a techno-utopian discourse replacing institutions and experts with âtrust in code,â digital alternative currency Bitcoin is pitched as a âmath-based moneyâ governed by incorruptible code rather than human regulators. In three cases, which occurred between 2013 and 2015, we examine this system at moments of breakdown. In contrast to the discourse, we find that power is concentrated to critical sites and individuals who manage the system through ad hoc negotiations, and who users must therefore implicitly trustâa contrast we call Bitcoinâs âpromissory gap.â But even in the face of such contradictions between premise and reality, the discourse is maintained. We identify four authorizing strategies used in this work: conflating people with devices, assuming actors conform to notions of economic rationality, appealing to technical expertise, and explaining contradictions as temporary bugs. We contend that these strategies are mobilized widely to legitimize a variety of applications of algorithmic regulation and peer production projects.
With their innovative and fundamentally liberalising approach to data storage, distributive ledger technologies (DLTs) like blockchainâand other associated technologies offer immense benefits to both the public and private sectors, not least in terms of upping efficiency. Lovers of freedom should also note, however, that they offer an important chance to empower individuals in their necessary engagements with the state, and to rebuild societal trust for the common good. In this paper, we propose the establishment of a UK-based international blockchain competition, and a public-facing **âChief Blockchain Officer.â** We also propose a UK **âblockchain departmental targetâ**: a long-term aim for government departments to make a 1% efficiency saving by embracing blockchain and other associated innovative technologies. A renewed UK focus on efficiency and the opportunities of new technology would be inspirational, and we look forward to discussing these proposals, and carrying out further research into Distributed Ledger Technologies.
This paper examines how circular economics addresses and uses smart technology, and demonstrates the lack of consideration given to ownership issues in such contexts. The extent to which circular economic ideals require controlling goods down-stream will be exposed. Following this is an analysis of the ramifications of smart technology, illustrated with recent examples of control through smart technology. This leads to a critique of the US Supreme Courtâs recent decision on patent exhaustion Impression Products v Lexmark alongside the CJEUâs decision in UsedSoft on copyright, addressing implications for contracting practices. The article concludes by urging close comparison of claimed benefits arising from circular economic approaches to smart technology with the potential costs of control (or lack thereof) of novel technologies.
Objectives Smart e-Forms are a new form of technology that converts complex paperwork to digital forms in an enterprise setting. In the context of the rapidly changing communication channels brought by the move toward a digital innovation environment in the financial industry, this paper examines a smart e-Form solution that can aid effective business communication. Methods Financial services using smart e-Forms are developing multilaterally with the use of electronic documents in both face-to-face and non-face-to-face channels. The electronic document system for enhancing competitiveness in face-to-face environments includes PPR (paperless and process reconstruction) and tablet banking systems, while the distance contract system through mobile banking can be utilized in non-face-to-face environments. Results As a functional document format that includes business logic, smart e-Forms allow various types of data input such as photos, voice recordings, barcode scanning, and e-Signatures through the use of smart devices. This technology has been utilized in implementing paperless services, tablet banking, and distance contract systems for a number of financial institutions, and e-Form technology is being optimized for the latest mobile devices in response to the demands of the financial market. Conclusions The rapid development of smart e-Form technology has played a major role in innovation in the financial sector. This technology improves customer convenience and work efficiency for a diversified financial environment, and the e-Form-based financial service system is becoming more competitive in various ways to lead the Fourth Industrial Revolution.
This Article, which takes into account developments up until summer 2017, evaluates the early days of regulatory engagement with blockchain technology. My analysis unfolds in three parts. First, I provide a cursory overview of the technology itself to highlight considerable uncertainties concerning its future. Regulators asked to engage with distributed ledgers are thus compelled to regulate the unknown. Second, I will introduce a typology of regulatory strategies adopted to date and highlight their respective advantages and shortcomings. Third, I will outline a number of guiding principles regulators should follow in respect of blockchain technology. I will make the argument that despite the technology's uncertain future, early regulatory engagement is warranted as a young technology is a malleable technology. As technology develops, law has to adapt. As a consequence, I put forward a number of regulatory techniques, including a process of polycentric co-regulation that relies on the regulatory potential of (blockchain) software and the adoption of a so-called â28 th regimeâ at the EU level which may help navigate the uncertainties of blockchain development and regulation.
C. Kouzinopoulos, Konstantinos M. Giannoutakis, Konstantinos Votis, Dimitrios Tzovaras · 10 authors
The H2020 European research project Safe-Guarding Home IoT Environments with Personalised Real-time Risk Control (GHOST) aims to develop a cyber-security layer on IoT smart home installations. The proposed system analyses packet-level data flows for building patterns of communications between IoT devices and external entities. To ensure non-repudiation, integrity and authentication of the data captured, they are stored in a Blockchain, a distributed ledger network, as digitally-signed transactions. Since the data can potentially include sensitive user information, it is imperative to promote trust by informing users about the operating principles of the network as well as to request the acceptance of a consent form by them. This paper presents the design and implementation of a Forms of Consent application, a Distributed Application that interacts with a set of Smart Contracts deployed on a private Ethereum network. The application is being developed as part of the GHOST project.
Cryptocurrency, a new technology depended electronic currency, is seemed as business commodity for investment and medium of exchange to few number of people of the world. It has different forms in different countries even more different forms in the same country. Bit coin, the first and most popular cryptocurrency, is paving the way as a disruptive technology to long standing and unchanged financial payment systems that have been in place for many decades. In some countries, cryptocurrency has been recognized by the respective governments. While cryptocurrencies are not likely to replace traditional fiat currency, they could change the way internet connected global markets interact with each other, clearing away barriers surrounding normative nationa currencies and exchange rates. Cryptocurrencies bear both some advantages and disadvantages in uses. Over the last few years, it has been gaining rapid popularity in the public eye. In India, recognition process has been started to come into mainstream o the public domain. In this article, a short analysis of cryptocurrency is presented, which illuminates some of the recent events and movements that could influence whether cryptocurrency contributes to a shift in economic paradigms. The article covers th original idea and motivation, the mode of operation and possible applications of Cryptocurrencies block chain technology. We conclude the article mentioning the prospect of cryptocurrency well as in the world.
The "buzz" surrounding cryptocurrencies in online media last year has led to an increased interest in the topic as a possible source for investments. This paper aims to identify the key success factors for an m-learning cryptocurrency application that explains blockchain technology and cryptocurrencies for non-tech savvy people. The research methodology used for this paper applies the experimental method and probative logic. A survey was conducted among 128 participants, the target population being composed of people who have an interest in cryptocurrencies and who are involved in online crypto communities. The results of the study show that the people who invest in cryptocurrencies are usually those who have a high income and who possess other investment methods as well. When it comes to analyzing the mobile applications success factors, the study revealed that there are no significant differences between people who have cryptocurrency investments and those who do not in ranking mobile apps success factors. Also, besides cryptocurrency training the news and prices are among the most important features of an m-learning cryptocurrency application and on that account such an app must include them. The originality of this study comes from addressing an innovative topic as the research in this field is scarce. Furthermore, this paper raises awareness towards the necessity of educating people on this topic, on the need to research before investing in a specific project.
There are no solid arguments to sustain that digital currencies are the future of online payments or the disruptive technology that some of its former participants declared when used to face critiques. This paper aims to solve the cryptocurrency puzzle from a behavioral finance perspective by finding the parallelism between biases present in financial markets that could be applied to cryptomarkets. Moreover, it is suggested that cryptocurrencies' prices are driven by herding, hence this study test herding behavior under asymmetric and symmetric conditions and the existence of different herding regimes by employing the Markov-Switching approach.
Blockchain and blockchain-related technologies are being rapidly invented to the point that it is difficult to define specifically which properties are necessary to constitute a blockchain. It may therefore seem far too early to meaningfully discuss the creation of international blockchain standards. This article will argue the opposite by summarising some existing international standards work related to blockchains, and propose directions for additional standards development that could meaningfully be explored in the near future without negatively impacting additional invention.