A Futuristic Operating transactions Reaching beyond Territorial borders In blockchain Smart contract model (Fortis-ámyna) for cross border transactions in a quantum setting is proposed. A simple hybrid classical-quantum model has been described whose main ingredients are a classical blockchain capable of handling stateful smart contracts with quantum defence. This hybrid payment model uses quantum states as bank transactions and a classical blockchain to settle disputes and keep track of the valid reference numbers. The proposed model fortis ámyna has several desirable properties like de-centralized, requiring no trust in any single entity; Quick payments as quantum communication, regardless of the total number of users to speed up the transactions. In addition, fortis ámyna handles the situation in lighting speed in quantum bank-transaction if failed or has error due to connectivity, helping the initiator to track back the transaction from origin. This fortis ámyna model has tremendous advantages regarding speed, security, and authentication, guarding against quantum breaches. Ensuring more authenticity to customers and creating by linking a Distinct (De-Centralized) Identifier with blockchain’s current transaction state eventually leads to the updated digital ledger.
Abstract The number of users approaching the world of cryptocurrencies exploded in the last years, and consequently the daily interactions on their underlying distributed ledgers have intensified. In this paper, we analyze the flow of these digital transactions in a certain period of time, trying to discover important insights on the typical use of these technologies by studying, through complex network theory, the patterns of interactions in four prominent and different Distributed Ledger Technologies (DLTs), namely Bitcoin, DogeCoin, Ethereum, Ripple. In particular, we describe the Distributed Ledger Network Analyzer (DiLeNA), a software tool for the investigation of the transactions network recorded in DLTs. We show that studying the network characteristics and peculiarities is of paramount importance, in order to understand how users interact in the DLT. For instance, our analyses reveal that all transaction graphs exhibit small world properties.
Zusammenfassung Die Distributed Ledger- bzw. Blockchain-Technologie führt zu einer zunehmenden Dezentralisierung von Finanzdienstleistungen, die weitgehend ohne die Einschaltung von Finanzintermediären angeboten werden können. Dazu trägt wesentlich die „Tokenisierung“ von Vermögensgegenständen, Zahlungsmitteln und Rechten bei, die verschlüsselt als Kryptowerte in verteilten Transaktionsregistern digital abgebildet werden können. Dieser Beitrag erläutert die Grundlagen und Anwendungsfelder dezentraler Finanzdienstleistungen mit Kryptowerten, die mittelfristig die gesamte Architektur des Finanzsektors verändern könnten.
The paper aims to analyse adoption of cryptocurrencies and blockchain technology in the Baltic States in the context of regional competitiveness. To achieve the aim, the following tasks are set: 1) to investigate crypto activity and crypto regulation, 2) to analyse blockchain applications and policy actions beyond crypto space, 3) to investigate interconnections between blockchain adoption and regional competitiveness. The study employs methods of descriptive statistics and content analysis. The study concludes that Estonia’s leadership in the majority of regional competitiveness indicators correlates with its leading position in blockchain adoption not only in Baltic States, but also worldwide, specifically in the area of e-government. Lithuania shows an overall competitive position in blockchain adoption in fintech area. In contrast, Latvia significantly lags behind Estonia and Lithuania in terms of regional competitiveness and adoption of blockchain technology, which is weakened by the regulatory unclarity for virtual asset service providers and the lack of supportive actions from the government for blockchain innovation and its further adoption within and beyond crypto-space.
Asif Bhat, Rizal Mohd Nor, Md Amiruzzaman, Md. Rajibul Islam
Blokchain is used in a variety of applications where trustworthy computing is\nre-quired. Trade finance is one of these areas that would benefit immensely\nfrom a decentralized way of doing transactions. This paper presents the\npreliminary as-sessment of Accepire-BT, a software platform developed for the\npractice of col-laborative Trade Finance. The proposed solution is enforced by\nsmart contracts using Solidity, the underlying programming language for the\nEthereum block-chain. We evaluated the performance in the Rinkeby test network\nby using Remix and MetaMask. The results of the preliminary trial show that\nsmart contracts take less than one minute per cycle. Also, we present a\ndiscussion about costs for us-ing the public Ethereum Rinkeby network.\n
Imminent changes to the international monetary system alongside a shift toward more egalitarian principles of justice in commercial contracts for trade are now taking place. Such changes however do not sufficiently account for circumstances of hardship, or black-swan events such as COVID-19, whereby the relative losers of trading arrangements should continue to receive outcomes which are not only efficient, but also fair and resilient. We argue that the ‘Society-in-the-Loop’ (SITL) social contract paradigm, in conjunction with the use of Strategic Responsible Innovation Management (StRIM), can together provide a solution for improving distributive justice in trade. Through collaboration with a locally based trade facilitation company, we describe the innovation-planning phase of a blockchain smart contract solution based on Derek Leben's idea of a ‘Rawlsian Algorithm’ (2017). It is demonstrated how this can be used to strengthen the algorithmic fairness of commercial contract implementation in accordance with existing ISO 20022 standards. Since currently no formal design framework exists for modeling blockchain oriented software (BOS), an agile development approach is adopted which takes account of the substantial difference between traditional software development and smart contracts. This method involves the construction of UML Use Case, Sequence, and Class diagrams, with a view to blockchain specificities. Evaluation and feedback from the company is also considered.
Decentralized autonomous organizations are a new form of smart contract based governance. Decentralized autonomous organization platforms, which support the creation of such organizations, are becoming increasingly popular, such as Aragon and Colony. Selecting the best fitting platform is challenging for organizations, as a significant number of decision criteria, such as popularity, developer availability, governance issues, and consistent documentation of such platforms, should be considered. Additionally, decision-makers at the organizations are not experts in every domain, so they must continuously acquire volatile knowledge regarding such platforms. Supporting decision-makers in selecting the right decentralized autonomous organizations by designing an effective decision model is the main objective of this study. We aim to provide more insight into their selection process and reduce time and effort significantly by designing a decision model. This study presents a decision model for the decentralized autonomous organization platform selection problem. The decision model captures knowledge regarding such platforms and concepts systematically. The decision model is based on an existing theoretical framework that assists software engineers with a set of Multi-Criteria Decision-Making problems in software production. We conducted three industry case studies in the context of three decentralized autonomous organizations to evaluate the effectiveness and efficiency of the decision model in assisting decision-makers. The case study participants declared that the decision model provides significantly more insight into their selection process and reduces time and effort. We observe in the empirical evidence from the case studies that decision-makers can make more rational, efficient, and effective decisions with the decision model. Furthermore, the reusable form of captured knowledge regarding Decentralized Autonomous Organization Platforms can be employed by other researchers in their future investigations.
Victoria L. Lemieux, Atefeh Mashatan, Reihaneh Safavi–Naini, Jeremy Clark
IntroductionIn his 2004 book, The Medici Effect, Francis Johansson describes how creativity and innovation emerge when new ideas are begotten of existing ideas (Johansson, 2004). As ideas bounce off one another, they sometimes stick and form new combinations, and these recombinant ideas generate better ideas. When a person steps into the intersection of disciplines or
Bu çalışma kripto paralar için miktar teorisinin geçerliliğini sınamaktadır. Son yıllarda para piyasalarında gündeme gelen kripto paralar, paranın yeni bir türü olarak algılanmaktadır. Paranın tarihsel gelişimi ele alındığında kripto paraların çıkışı, geleneksel paraların kullanılmasına neden olan ihtiyaçlar ile benzerlik göstermektedir. Dolayısıyla literatürdeki para kurallarının geleceğin parası olarak adlandırılan kripto paralar için test edilmemesi büyük bir eksikliktir. Çalışma kapsamında kripto paraların çıkışı ve kullanıma başlaması diğer para türleri ile karşılaştırmalı olarak ele alınmış ve kripto paralar için Fisher’in miktar teorisi modeli test edilmiştir. Temel kripto para birimi olan Bitcoin’in piyasa değeri ve miktarı kullanılarak Ağustos 2010 ve Nisan 2021 dönemini kapsayan aylık frekanslı veriler ile zaman serisi analizi yapılmıştır. Yapılan analiz sonucu Bitcoin miktarı ve değeri arasında doğrusal bir ilişki olduğu anlaşılmıştır. Bu durumun temel nedeni blok zincir yöntemini kullanan kripto paralardaki madencilik faaliyetleri ile açıklanmıştır. Yapılan ekonometrik analiz Covid-19 salgınının Bitcoin miktarı ve piyasa değeri arasındaki doğrusal ilişkiyi güçlendirdiğini göstermiştir. Analiz sonuçlarının anlaşılması ve literatürdeki boşluğu doldurmak amacıyla çalışma kapsamında blok zincir yöntemini kullanan kripto paralar için para arzı, emisyon ve senyoraj geliri gibi konulara değinilmiş ve bu süreçlerin işleyişi açıklanmıştır. Bu çalışma kripto paralarda Fisher Miktar Teorisinin geçerli olmadığını gösteren öncül bir kaynaktır.
Does the proof-of-work consensus protocol serve its intended purpose of supporting decentralized cryptocurrency mining? To address this question, we develop a game-theoretical model in which miners first invest in hardware to improve the efficiency of their operations and then compete for mining rewards in a rent-seeking game. We show that centralization grows with heterogeneity in mining costs, but hardware capacity constraints prevent the most efficient miners from monopolizing the mining process. Investment leads to a more decentralized network unless larger miners have a significant comparative advantage in acquiring new hardware. Our model generates empirically supported implications: (i) mining centralization is countercyclical with respect to mining reward, and (ii) a change in mining reward leads to a less-than-proportional change in hash rates. This paper was accepted by David Simchi-Levi, Special Section of Management Science: Blockchains and Crypto Economics. Supplemental Material: The data file is available at https://doi.org/10.1287/mnsc.2023.4840 .
The use of currency as a medium of exchange for goods and services is essential in our daily lives. The concept of currency evolved from bartering to the use of coins and notes and now to the current digital age as the continuation of society's advancement has led to a new series of technological innovations with regard to payment methods around the world. Methods of payment are built on various platforms such as mobile phones, the internet, and digital storage cards. These payment systems have fostered the development and growth of fintech companies such as Paypal, Apple Pay, Samsung Pay, Alipay and others. The latest development is the use of blockchain to facilitate payments, more specifically the use of cryptocurrencies to facilitate transactions. The most popular cryptocurrency is bitcoin. Payments form part of commercial contracts which parties have a legal obligation to perform. South Africa has a legislative framework for payment systems wherein users have rights and obligations. This article will discuss the development of currency in South Africa and determine whether the current legislative framework for payment systems is applicable to cryptocurrencies such as bitcoin.
Blockchain technology is gaining prominence after its first famous implementation as part of the digital currency Bitcoin. It is made up of a series of blocks (the ledger) that give a secure, unchangeable, and auditable list of records. Once a block is recorded using encryption and a distributed database, it cannot be modified. The ledger in the case of Bitcoin stores the history of all monetary transactions. In three sections, this paper provides a review of blockchain technology for an interface design audience: (1) The fundamentals that enable block-chain technology are briefly discussed. (2) Specific examples include the use of HCI in blockchain research and development. (3) In the form of a fledgling research agenda, opportunities and difficulties for HCI and interface design are presented.
To non-experts, the traditional Centralized Finance (CeFi) ecosystem may seem obscure, because users are typically not aware of the underlying rules or agreements of financial assets and products. Decentralized Finance (DeFi), however, is making its debut as an ecosystem claiming to offer transparency and control, which are partially attributable to the underlying integrity-protected blockchain, as well as currently higher financial asset yields than CeFi. Yet, the boundaries between CeFi and DeFi may not be always so clear cut. In this work, we systematically analyze the differences between CeFi and DeFi, covering legal, economic, security, privacy and market manipulation. We provide a structured methodology to differentiate between a CeFi and a DeFi service. Our findings show that certain DeFi assets (such as USDC or USDT stablecoins) do not necessarily classify as DeFi assets, and may endanger the economic security of intertwined DeFi protocols. We conclude this work with the exploration of possible synergies between CeFi and DeFi.
Galina Kondrateva, Elodie de Boissieu, Chantal Ammi, Éric Seulliet
Research literature on blockchain technology is starting to emerge. Blockchain technology is primarily associated with cryptocurrencies, raising interest in an application in other business sectors, thanks to its characteristics. The decentralized nature of blockchain creates the new concept of a token economy, which can help to trace and valorize intellectual property - one of the essential challenges in co-creation. This paper considers how blockchain technology and tokenization can solve challenges in co-creation projects consisting of large companies, startups and entrepreneurial accelerators. The paper proposes an exploratory analysis based on interviews conducted with French companies and startups. The findings include a framework of (1) challenges, lack of operating rules, trust, and traceability, and (2) the potential benefits of blockchain and tokenization to solve issues that arise. The findings can be useful for both startups and large companies as a starting point for understanding and adopting blockchain technology.JEL Codes: O3, L2
In the current global situation-burdened by, among others, a vast number of\npeople without formal identification, digital leap, the need for health\npassports and contact tracking applications-providing private and secure\ndigital identity for individuals, organizations and other entities is crucial.\nThe emerging self-sovereign identity (SSI) solutions rely on distributed ledger\ntechnologies and verifiable credentials and have the potential to enable\ntrustful digital interactions. In this human-centric paradigm, trust among\nactors can be established in a decentralized manner while the identity holders\nare able to own and control their confidential data. In this paper, we build on\nobservations gathered in a field study to identify the building blocks,\nantecedents and possible outcomes of SSI ecosystems. We also showcase\nopportunities for researchers and practitioners to investigate this phenomenon\nfrom a wide range of domains and theories, such as the digital innovation\necosystems, value co-creation, surveillance theory, or entrepreneurship\ntheories.\n
The rapidly evolving blockchain technology space has put decentralisation back into the focus of the design of techno-social systems, and the role of decentralised technological infrastructures in achieving particular social, economic, or political goals. In this entry we address how blockchains and distributed ledgers think about decentralisation.
In the rapidly evolving landscape of the sixth generation (6G) network, smart contracts emerge as a pivotal technology for enforcing trustful rules. However, the conventional lifecycle model of smart contracts—encompassing stages from initiation to the termination of a contract instance—suffers from rigidity and lack of customization, leading to notable operational challenges. These challenges primarily manifest as heightened resource demands, including longer waiting periods and escalated transaction costs, which hinder the adaptability of smart contracts in the varied and dynamic contexts of 6G-connected environments. Driven by these issues, this article conducts a comprehensive analysis of the smart contract lifecycle. We introduce an innovative lifecycle model that offers customizable flexibility, allowing for the merging or separation of different stages in the smart contract process. Meanwhile, we propose a unique transaction data structure designed to integrate parameters of combined stages, each marked with distinct identifiers for differentiation. Further, we introduce an innovative address scheme for smart contract instances, which provides an identifier to simplify instance access while also maintaining a mechanism for traditional access methods. The verification results show that the model can save 52.72% of processing fee and 68.09% of completion time compared with the conventional method.
Smart contract-based methods are used to implement the blockchain applications. While smart contracts have separate pre-deployed steps, which are suitable for applications that are deployed once and invoked many times. However, there are smart contracts that are used only one time (the disposable smart contract) or few times. Pre-deployment requires an additional step and additional transactions, which bring burdens (such as longer waiting time and more transaction fees) to users. In this paper, we propose a new Lifecycle model of smart contracts, which allows combining the pre-deployment with function invocations. This facilitates the usage of the disposable smart contract, as users are only required to send one transaction to perform both the pre-deployment and the function invocation. Together with the smart contract separation, it also allows participants to customize their special smart contracts at the request time. At last, we verify the proposed model and it shows the potential to save additional burden and to facilitate the usage of the smart contract.
Youssef Faqir-Rhazoui, Miller-Janny Ariza-Garzón, Javier Arroyo, Samer Hassan
Blockchain technology has enabled a thriving emergent ecosystem of tools and communities actively using decentralized systems. However, most blockchain infrastructure (e.g. Ethereum) requires users to pay some fees to execute their desired actions in these novel online services. To which extent an increase in the price of such fees negatively affects user activity? Would significant price surges deter users from using blockchain-enabled online services? In this work, we study the 2020 surge of transaction fee price in the Ethereum network, and analyze how that affected user activities. Our use cases are the blockchain-enabled Decentralized Autonomous Organizations (DAOs) from the platforms DAOstack and DAOhaus. Thus, we analyzed 5,580 transactions from 7,825 users grouped in 191 DAO communities, using a VAR model with a daily time series of the average fee value and the DAO operations. Our results show just a minor influence of the fee (gas) price and the activity of DAO users. The insensitivity of the activity to the fee price is an anomaly in a supposedly self-regulated market, and we consider this should be tackled in future implementations.
Digital platform as an organising logic has prominently reshaped the innovation activities in many sectors. Previous studies have extensively investigated the digital platforms from two views: economic view (i.e., as a sided marketplace) and engineering view (i.e., as an innovation infrastructure). Blockchain---a digital artefact that connects the distributed ledgers, resembles great overlaps and specifics to digital platforms. Building on this aspect, I first demarcate the Blockchain Product as a Platform (BPaaP) informed by the economic view and the Blockchain Network as a Platform (BNaaP) inspired by the engineering view. Given the scant of research around BNaaP, this research aims to depict the BNaaP’s architectural design by drawing on the layered design of digital technologies. Using PingAn Group as a case, this research applies the thematic analysis method in analysing online open data. As the main contribution, this research proposes the Adapted Layered Architecture of BNaaP that consists of 1) three design layers(foundation layer, interaction layer, and application layer); 2) adapted business scenarios; 3) environmental factors. The suggested architectural design implies the BNaaP’s internal synergistic collaboration among layers and the external adaptability to different business contexts. Overall, this research provides a novel angle to understand the Blockchain phenomenon and brings insightful implications to Blockchain practitioners.
The purpose of this study is to analyze the contents of cryptocurrency value design based on adaptability to the current market. It is also intended to provide a method of issuing cryptocurrency before its creation, and an operation method afterwards. Activities before the creation of cryptocurrency must determine desirable behaviors and rewards to create value, and suggest countermeasures to prevent participants from engaging in undesirable behaviors. After the creation of a cryptocurrency, it is necessary to propose a method to induce scarcity and increase demand so that the value of the generated cryptocurrency can be sustained. To observe this, we looked at the contents of the value design of the eight types of cryptocurrencies currently in use in the market. Some cryptocurrencies, such as Bitcoin, are choosing mining as a reward, to secure scarcity for maintaining the value of cryptocurrency, limiting the amount of issuance, and burning the already issued cryptocurrency in the market. Also, increasing demand helps maintain the value of cryptocurrency. This study can contribute to supporting the growth of a healthy cryptocurrency market through cryptocurrency-related research.
A smart contract is a technology that allows the creation of a negotiation process capable of running independently, without human intervention. This chapter intends to frame the figure of the “smart contract” from a legal point of view. It shows that the smart contract is an advanced tool in the context of a contractual relationship. The possibility of making a smart contract “the contract” in a legal meaning opens up scenarios which have hitherto been unexplored for contract law. It is still difficult to determine to what extent current rules are adequate to govern this phenomenon. The chapter will therefore conclude with a review of the strengths and weaknesses of the smart contract technology and with some suggestions for a future smart contract law.
Since its advent in 2009, Bitcoin, a cryptography-enabled peer-to-peer digital payment system, has been gaining increasing attention from both academia and industry. An effort designed to overcome a cluster of bottlenecks inherent in existing centralized financial systems, Bitcoin has always been championed by the crypto community as an example of the spirit of decentralization. While the decentralized nature of Bitcoin's Proof-of-Work consensus algorithm has often been discussed in great detail, no systematic study has so far been conducted to quantitatively measure the degree of decentralization of Bitcoin from an asset perspective -- How decentralized is Bitcoin as a financial asset? We present in this paper the first systematic investigation of the degree of decentralization for Bitcoin based on its entire transaction history. We proposed both static and dynamic analysis of Bitcoin transaction network with quantifiable decentralization measures developed based on network analysis and market efficiency study. Case studies are also conducted to demonstrate the effectiveness of our proposed metrics.
Abstract Smart contracts created to issue tokens and control other digital financial assets on the majority of blockchain platforms require knowledge of programming language for specific platforms. This fact imposes a restriction on attracting financial specialists from conventional markets. This paper presents the concept of a Restricted Move language allowing the users to form a smart contract description in financial English, as well as its further development into a high-level digital asset management language, which can be extended by users and can open new opportunities to automate their market operations.