Blockchain Papers

Wulf A. Kaal

No abstract is available for this record.

Ashwin Nagappa

This thesis tells the story of DTube, a blockchain-based social media (BSM) platform positioned as an alternative to YouTube. BSM platforms are situated at the intersection of the emergent Web3 discourse and the dominant platform paradigm. These novel initiatives attempt to develop community-led alternatives to mainstream commercial platforms by leveraging emergent Web3 technologies. Using the platform biography approach, the thesis traces DTube’s evolution between 2017-2022, locating these changes within the history of the web and digital media platforms. It contributes to a broader understanding of changing discourses, technologies, and practices of the web at a crucial historical juncture.

Ellie Rennie

Mobile devices have been constructed for particular uses, prioritising interaction with externally maintained products and services as opposed to "user-in-control" processes. Attempts to increase web3 mobile adoption have to date focused on app design, device security and speed of payments. Meanwhile, web3 mobile wallets and other applications typically rely on third party services to interact with the blockchain. While resilient blockchain infrastructures seek to be unanchored from geographical and regulatory ties, significant data and computing processing power is required to run a full node of a public blockchain. If mobile devices require users to go through other people's nodes without verification, this produces points of centralisation within the network, making it vulnerable to nation state censorship. This chapter users the concept of "the confidence machine" to unpack web3 mobile futures and provide a conceptual basis for further research into web3 adoption and digital inclusion.

Eliza Yip

No abstract is available for this record.

Lukas Schweiger, Matteo Protopapa, Linard Barth

No abstract is available for this record.

Wulf A. Kaal

No abstract is available for this record.

Jan Pevzner

This article introduces the LP forward contract, a derivative replicating the payoff of a liquidity position (LP) at a future date without intermediate yield. It provides tools for mitigating directional risks and managing impermanent loss. The framework applies the Black-Scholes model to the crypto space, offering closed-form solutions for LP forwards and dynamic hedging strategies. It breaks down HODL portfolios into impermanent loss-hedging portfolios and LP forward contracts, quantifying yield farming costs and enhancing risk management for liquidity providers. This approach aligns the interests of Web3 projects and investors, promoting sustainable growth in DeFi.

Li Lin, Peishu Peng, Gang Ren

This study investigates ownership of blockchain-based digital assets in a decentralized metaverse platform enabled by Web3 and built on blockchain technology. Using the dual-process model of psychological ownership, the research examines factors influencing individuals' desire for ownership in this context. Through fsQCA analysis, necessary conditions and configurations driving ownership patterns are identified. Findings reveal a substitutive relationship between Transfer rights and Voting rights, as well as between Control usage and Voting rights. Additionally, a complementary relationship is observed between the presence of Self-investment and absence of Trade as core conditions within configurations. Notably, in the absence of Profits and Trade, possessing Transfer rights or Voting rights plays a crucial role in driving individuals to acquire higher levels of blockchain-based digital asset ownership. High profits are also highlighted as a motivator for digital asset ownership. These findings shed light on the psychological dynamics of ownership in decentralized metaverse platforms and DAOs.

Ming‐Hui Wen, Jerry Chun‐Wei Lin

In the era of generative artificial intelligence (GAI), preserving personal authenticity is crucial for maintaining trust in online communities. Blockchain technology, with its unique blend of anonymity and data transparency, has facilitated the development of decentralized identities (DIDs) on the internet. These DIDs serve as digital representatives for individuals online, enhancing user trust through self-sovereign identity, transparency, and user control, while strengthening privacy. Current DID solutions, such as Proof-of-Personhood and Proof-of-Reputation, have demonstrated technological maturity and paved the way for identity applications in Web3. Building on this foundation, the Twin3 project advances the concept further by introducing the innovative Proof-of-Authenticity (PoA) to represent pluralistic human characteristics in digital format. Specifically, Twin3 employs blockchain-based Soulbound Tokens (SBTs) to transform human identities into a programmable hexadecimal matrix with 256 characteristic spaces, representing a comprehensive spectrum of human attributes, akin to a digital DNA (Decentralized Nexus of Authenticity). This study presents the Twin3 system architecture, user data management,demonstrating how this approach can enhance personal digital identity verification and management. The potential applications of Twin3 SBTs in creating personal AI agents and facilitating participation in the agentic economy are explored, demonstrating how Twin3 can digitize human attributes comprehensively and empower individuals within emerging agent-based workflows and digital ecosystems.

Tuan Tran, Duc A. Tran, Tam Nguyen

Decentralized exchanges are becoming a competitive necessity for Web3 users. However, they cannot beat centralized exchanges in terms of user experience. Due to expensive gas fees, the blockchain cannot implement the classic order book model which is the pillar for traditional finance exchanges. Instead, most decentralized exchanges operate on the Automated Market Maker (AMM) model using a pre-defined mathematical pricing rule. AMM is more efficient to run on the blockchain but the biggest tradeoff is impermanent loss for liquidity providers and price slippage for traders. This remains the most noticeable drawback of today’s AMM. In this paper, we make the following contributions. First, we observe that if AMM is virtualized as an order book, its “order-book" shape is awkwardly different from that of a real-world order book. We argue that this is conceptually connected to the above weakness. We are thus motivated to design an AMM, the first of its kind, that mimics the price impact behaviors of real-world order books. Second, the proposed AMM, thanks to this property, significantly outperforms the state-of-the-art AMM in impermanent loss. Interestingly, our AMM can even result in impermanent gain. We are also better for large orders where price slippage is a concern. Third, another feature is that, while today’s AMM typically requires a fixed inventory ratio for the liquidity pool, the new AMM allows this ratio to vary, giving liquidity providers flexible options for joining or exiting the pool. All these advantages are offered without losing desirable properties of an AMM regarding split-order exploitation, arbitrage risks, and liquidity continuity. Our findings are validated by theoretical analysis with mathematical proofs and, also, experimental evaluation which was comprehensively conducted using two real-world datasets and a synthetic dataset representing different market scenarios. Our research is the first in the literature on AMM design that factors in statistical properties from the order book model.

David Kerr, Miles Jennings

The rapid evolution of blockchain technology and its offshoots like decentralized finance (DeFi) is redefining the internet's utility, paving the way for an infrastructure not bound by centralized control. This paper addresses the critical juncture at which the United States stands in the face of this global shift towards a web3 paradigm. It highlights the country’s current trajectory towards falling behind in the blockchain and web3 sector, primarily due to the migration of blockchain projects and decentralized autonomous organizations (DAOs) abroad, prompted by regulatory ambiguities and the inconsistent application of U.S. securities laws. Nevertheless, it underscores the U.S.'s unique position to lead the web3 revolution, given its stable legal system, a high number of developers, and a growing need for data sovereignty. The paper examines congressional and executive efforts to embrace web3 growth and argues for the necessity of state-level legislative support to maintain the U.S. as a tech hub. It delves into the challenges DAOs face in legal entity formation, concluding that the unincorporated nonprofit association (UNA) offers the most viable solution to these challenges. It also discusses the limitations of existing UNA statutes and the hesitancy of DAOs to adopt this structure due to the lack of clarity and long-term certainty. In response, Part III of this series proposes the Model Decentralized Unincorporated Nonprofit Association Act (Model DUNAA), designed to integrate into existing business organization codes and to cater specifically to the needs of decentralized organizations. The paper outlines the benefits for states adopting the Model DUNAA, such as fostering innovation, attracting economic growth, and having a hand in shaping consistent legal frameworks. The Model DUNAA is constructed based on principles that ensure minimal deviation from existing laws, avoidance of conflicts of law, technological neutrality, suitability for decentralized organizational structures, and maximal flexibility to accommodate future legal and technological developments. This proposed legal framework aims to provide a stable, clear, and adaptable legal entity option for DAOs, which could solidify the U.S.’s position in the forefront of web3 innovation.

Justin Banon, Jason Potts

No abstract is available for this record.

Mustafa TANRIVERDİ

Today, educational data, controlled centrally by educational institutions and administrative units, may be vulnerable to damage caused by natural disasters, political instability, and wars. Simultaneously, challenges arise in accessing this data for educational activities within the framework of exchange programs or lifelong learning. In the literature, there are numerous blockchain-based studies focusing on storing and sharing data in various fields. While several studies exist on blockchain applications for certification, verification, and data sharing in the education sector, a fully decentralized infrastructure has not yet been presented. To address this issue, it is proposed that data control should shift to the hands of students, who are the rightful owners of the data, rather than being solely in the hands of educational institutions. In alignment with the decentralized internet vision, Web3, public blockchain networks are considered the most suitable infrastructure for this purpose. To meet this need, a framework named PublicEduChain has been introduced within the scope of this study. PublicEduChain allows students to store their data in smart contracts created on the public Ethereum network, making it possible to share this information with any educational institution and administrative units. Educational institutions can access student data stored in smart contracts on the public Ethereum network through Learning Management System (LMS) applications and can add data to these contracts. PublicEduChain ensures that data is managed under student ownership within a fully decentralized infrastructure. The practical steps in PublicEduChain, such as creating a smart contract, logging into LMSs with Ethereum IDs, and allowing LMSs to read and write data in the student contract, are explained in detail.

Wulf A. Kaal

No abstract is available for this record.

Wulf A. Kaal

Impact innovation has progressed through three phases: 1.0, 2.0, and 3.0. Impact 1.0 introduced carbon credit trading, while Impact 2.0 added participatory grantmaking, impact measurement, and price competitions. Impact 3.0 incorporates Web3 community tools and impact certificate trading. This paper examines the evolution of these phases, focusing on Impact 3.0’s influence on philanthropic practices. Through an analysis of the literature and case studies, Web3 technologies and impact certificate markets are investigated for how these innovations affect transparency and efficiency in social impact initiatives. The information gathered indicates that Impact 3.0 facilitates decentralized impact verification and creates a marketplace aligning stakeholder interests. Consequently, leveraging the features of Web3 technologies can enable philanthropy to scale significantly and provide insights for impact-focused donors aiming to improve outcomes.

Jason Potts, Kurt Dopfer

No abstract is available for this record.

Yanxin Wang, Jingzhao An, Xi Zhao, Xiaoni Lu

No abstract is available for this record.

Ellie Rennie, Jason Potts

No abstract is available for this record.

Yatipa Chaleenutthawut, Vyacheslav Davydov, Michael Evdokimov, Sudarut Kasemsuk · 7 authors

Decentralized finance (DeFi) offers a range of financial instruments and services that leverage the capabilities of web3 technology. Maker protocol, which enables users to obtain loans backed by cryptocurrencies, is one of them. Unlike traditional banks, Maker’s data is transparently recorded on the Ethereum blockchain. In this research paper, we focus on analyzing the lending aspect of Maker from a traditional finance perspective. To achieve this, we create a unique dataset with loan portfolios from the MakerDAO project, making it the first dataset of its kind in the DeFi field. This publicly available dataset contains essential financial characteristics related to borrowing, including balance, loss given default, annual equivalent rate, and probability of default. Additionally, we develop a specialized mathematical model tailored specifically to this project. This model allows us to estimate the probability of default by considering the presence of crypto-collateral and utilizing Brownian motion passage levels. The results of this study provide valuable insights into lending practices in DeFi projects. They also help bridge the gap between traditional finance and blockchain-based financial services.

Pradeep Gupta, Nusrat Nigar, Roma Paswan, Rajat Kumar Singh · 5 authors

The advent of non-fungible tokens (NFTs) has revolutionized the digital landscape, providing creators and brands with unprecedented avenues to engage their communities and explore innovative monetization methods. Beyond their origins in digital art and collectibles, NFTs have catalyzed diverse applications, reshaping the way digital assets are perceived and utilized. One such innovation is the concept of NFT-gated websites, which has gained substantial momentum. These platforms facilitate community engagement by granting exclusive access to content and experiences, all while generating new revenue streams. NFT-gated websites operate by mandating users to connect their crypto wallets and prove ownership of specific NFTs or crypto tokens, thereby creating a unique layer of restricted access. This novel approach empowers creators and brands to nurture exclusive communities and deliver distinct experiences to their audience. In the rapidly evolving Web3 ecosystem, this transformative technology stands poised to redefine digital interactions, enabling creators and brands to thrive in this new era.

Tayrin Tunzina, Md Asif Karim Chayon, Pritam Gupta Jitu, Mosammed Upnan Ankon · 10 authors

The advent of Central Bank Digital Currencies (CBDCs) represents a significant evolution in monetary systems, enhancing transparency, efficiency, and resilience in financial transactions. This research presents a comprehensive CBDC framework that integrates centralized databases with decentralized blockchain technology, aimed at strengthening monetary oversight and tackling challenges such as money laundering and financial irregularities. By employing blockchain’s immutable ledger, the proposed system supports secure and transparent digital transactions, thereby fostering trust and accountability in the financial ecosystem. Furthermore, the framework promotes financial inclusion by offering various transaction methods, such as internet-based payments, smart cards, and offline One-Time Password (OTP) systems. This diverse approach helps users in areas with limited internet access, effectively bridging critical gaps in digital accessibility and ensuring that everyone can participate in the digital economy. Through prototype development and empirical evaluation using tools like Ethereum, Geth, and web3.js, the study explores CBDC’s potential for sustainable economic development, offering insights into practical applications and future scalability.

Alani Kuye

No abstract is available for this record.

Michel Avital

This opinion paper aims, following a brief overview of the state of affairs of the academic publishing ecosystem, to shed light on a market failure that stems from commercial publishers harnessing that ecosystem for exorbitant profits at the expense of the scientific enterprise and society at large. The paper examines how emerging technologies can help the scientific community grapple with this predicament and reestablish an institutional logic that favors scholarship and world benefit over the economic interests of publishers. Building on Web3 technologies, the paper suggests a two-pronged strategy that relies primarily on blockchain and AI technologies to help restore a fair and equitable power balance and improve the publishing experience. This proposed course of action presents an opportunity to tackle the grand challenge faced by the academic publishing ecosystem while simultaneously asserting the IS community’s proclaimed role as stewards of the digital revolution. It is time for us to harness digital technology to transform our journals from monolithic monarchies to agile democracies.

Cristian Nicolae Buţincu, Adrian Alexandrescu

The increased digitalization of society raises concerns regarding data protection and user privacy, and criticism on how the companies handle user data without being transparent and without providing adequate mechanisms for users to control how their own data is being processed or shared. To address this problem and open the way for a secure and efficient society, where the privacy of citizens is paramount, the identity concept and proof of identity mechanisms need to be redesigned from the ground up. In this paper we discuss how the emerging Web3 technologies like distributed ledger technology (DLT), blockchain, smart contracts, decentralized storage systems, and crypto wallets can be leveraged to design and implement a decentralized digital identity system based on decentralized identifiers (DID) and self-sovereign identities (SSI). Such a system puts the users in full control over their own data while also providing a solid backbone for building interoperable systems that are secure, scalable, and efficient. We propose different architectures for the decentralized identity infrastructure and storage layer, and also discuss the mapping of these architectures on cloud platforms. The main goal is to provide an architectural blueprint for a scalable, secure, privacy-preserving and trusted system.