Abstract This paper examines the efficiency of the Initial Coin Offering (ICO) market through a search-theoretical lens. Search intensity associated with the process of identifying valuable startups is increasing in market granularity. DLT increases market granularity because asset tokenization lowers entry barriers. Lower-end entrants, however, increase aggregate search intensity but may lack search skills. The resulting search-related inefficiency creates a niche for intermediaries or institutional investors that specialize on search. Consistent with the theory, specialized crypto funds increase ICO market efficiency by reducing search frictions, inter alia, by shortening the time-to-funding and increasing the funding amount. At the same time, crypto funds extract sizable economic rents for their intermediation services. Overall, the study relates to the general trade-off between centralization and decentralization in entrepreneurial finance. It suggests that market frictions specific to early-stage crowdfunding of entrepreneurship may prevent “perfectly” Decentralized Finance (DeFi) markets from functioning efficiently.
Abstract Amid the surge of intellectual property (IP) disputes surrounding non‐fungible tokens (NFTs), some scholars have advocated for the application of personal property or sales law to regulate NFT minting and transactions, contending that IP laws unduly hinder the development of the NFT market. This Article counters these proposals and argues that the existing IP system stands as the most suitable regulatory framework for governing the evolving NFT market. Compared to personal property or sales law, IP laws can more effectively address challenges such as tragedies of the commons and anticommons in the NFT market. NFT communities have also developed their own norms and licensing agreements upon existing IP laws to regulate shared resources. Moreover, the IP regimes, with both static and dynamic institutional designs, can effectively balance various policy concerns, such as innovation, fair competition, and consumer protection, which alternative proposals struggle to provide.
The intricate landscape of entrepreneurial finance, extending its focus beyond traditional bootstrapping methods. In an era characterized by diverse funding options, this study conducts a comprehensive analysis of the myriad strategies employed by entrepreneurs to finance their business ideas. The investigation encompasses an examination of established methods such as angel investment, venture capital, crowd funding, and traditional bank loans, as well as emerging trends in decentralized finance (DeFi) and other innovative financial models. The research adopts a multifaceted approach, considering regional variations, regulatory influences, and cultural dynamics shaping entrepreneurs' financing choices. Through extensive data collection and analysis, the study aims to discern the nuanced factors influencing the selection of specific financing avenues by entrepreneurs operating in various sectors and geographical locations. Furthermore, the research assesses the long-term implications of different financing strategies on business performance, sustainability, and growth. By exploring success factors in crowd funding campaigns, the study contributes valuable insights into the dynamics of contemporary entrepreneurial finance, shedding light on the role of marketing, pitch quality, and social engagement in funding success. In addition to quantitative analysis, the research delves into qualitative aspects, investigating psychological factors that play a role in entrepreneurial decision-making. The study aims to uncover the intricate interplay of risk tolerance, overconfidence, and decision biases in the financing choices made by entrepreneurs. As technological innovation continues to reshape the entrepreneurial landscape, this research explores the impact of emerging technologies, including blockchain and decentralized finance, on funding models. By examining the opportunities and challenges presented by these innovations, the study provides a forward-looking perspective on the evolving nature of entrepreneurial finance. "Beyond Bootstrapping" strives to offer a holistic understanding of entrepreneurial finance in the contemporary business environment, providing stakeholders, policymakers, and entrepreneurs themselves with valuable insights into the diverse strategies shaping the financial foundation of innovative ventures.
Cristina Blanco González‐Tejero, Enrique Caño-Marín, Klaus Ulrich, Silvia Giralt Escobar
The progress in industrial and corporate blockchain technology, particularly the pioneering fintech financing methods rooted in blockchain like Initial Coin Offerings (ICOs) and Security Token Offerings (STOs), has the potential to disrupt across industries. These innovations offer creative solutions to address longstanding challenges. However, the novelty of these concepts has given rise to issues related to information asymmetry among investors, exacerbated by the opinions shared on social media platforms. To comprehensively analyse the trends of these technologies and their societal impact, as well as their influence on the contemporary business landscape, we conducted a study in the social platforms X (formerly known as Twitter) analysing 59,453 tweets using natural language processing (NLP). Through this research, we have identified key topics such as investment security or corporate challenges that provide valuable insights and structured information essential for industry stakeholders. In summary, this study explores the dynamic interplay between blockchain technology, ICOs, STOs and social media in the industry. It sheds light on the sentiment and implications of the use of this technology and these emerging financial models, offering a nuanced understanding of their impact on the market. Thus, the idea that user opinions play a crucial role in influencing decisions is supported, and their impact can fluctuate depending on the changing dynamics of the market.
Smart contracts, as a type of contract technology on the blockchain, can effectively address many shortcomings of traditional contract systems in digital environments, including opaque contract execution, regulatory difficulties, and low dispute resolution efficiency, provide publishers with a more
With the rapid development of digital technology and blockchain technology, the application of digital assets in business models has become increasingly widespread. This paper analyzes the evolution and innovation of digital asset business models using movie derivatives to NFTs (non-fungible tokens) as an example. By studying movie derivatives and their traditional business models, this paper explores the role of digital transformation and NFT technology in reshaping their business models. The aim is to reveal the application of NFTs in movie derivatives and the resulting transformation of business models, analyzing the components, advantages, and challenges of NFT business models, and predicting their application prospects in various industries. The research indicates that NFT technology not only opens new commercial pathways for movie derivatives but also promotes business model innovation across the digital asset sector. Finally, the paper proposes future trends in digital asset and NFT business models and discusses their potential impact and business opportunities in the film industry.
Abeer Mirdad, Abdulaziz Khan, Farookh Khadeer Hussain
Blockchain technology has recently been used to provide a secure storage environment through a distributed ledger. Blockchain has increasingly been used in other sectors such as real estate and supply chains, where trust and transparency are paramount considerations. In the pharmaceutical industry, for operational efficiencies, information must be shared reliably between the various stakeholders. A significant limitation in the existing literature is the lack of work to address niche problems such as the just-in-time disposal of drugs that are close to expiry. To address this gap, we propose using blockchain technology. The architectural underpinning of the proposed system (PharmaBlock) is presented and discussed. The primary contribution of this paper is the use of an early warning system (EWS) coupled with marketplace to intelligently identify and dispose of near-expiry drugs. The EWS and marketplace are evaluated and benchmarked using an experimental setup. The result of this experimental has shown that over 90% of notifications were sent correctly and shown also more than 92% of the optimal prices were predicted correctly in PharmaBlock.
This chapter explores how decentralized digital asset markets, including decentralized autonomous organizations (DAOs), are reshaping the landscape of venture capital (VC) investment. Traditional VC tools – such as governance rights, exit strategies, and downside protections – often clash with the decentralized, token-based models of crypto markets. The authors analyze the legal, financial, and structural obstacles facing VC firms, including regulatory uncertainty, limited enforceability of term sheets, and reduced applicability of conventional exit paths like initial public offerings. Despite these challenges, the chapter argues that crypto's transparency, community-driven governance and smart-contract flexibility may offer new models of investor engagement. Venture capital may be particularly well-positioned to adapt to and shape these markets, but only with significant rethinking of risk pricing, control rights and legal frameworks. The chapter concludes by identifying pathways – such as tokenization and overseas regulatory regimes – that may support more stable VC involvement in digital assets.
Abstract The emergence of large language models (LLMs) has made it increasingly difficult to protect and enforce intellectual property (IP) rights in a digital landscape where content can be easily accessed and utilized without clear authorization. First, we explain why LLMs make it uniquely difficult to protect and enforce IP, creating a ‘tragedy of the commons.’ Second, drawing on theories of polycentric governance, we argue that non-fungible tokens (NFTs) could be effective tools for addressing the complexities of digital IP rights. Third, we provide an illustrative case study that shows how NFTs can facilitate dispute resolution of IP on the blockchain.
Blockchain Technology and Non-Fungible Tokens (NFTs) have drawn much interest due to their special qualities, and potential in numerous industries, including Pharma. Recently, medical asset management has grown significantly. This study explores how blockchain and a novel designed framework “TokenPharma” NFTs can transform medical asset ownership in healthcare. It examines cryptographic foundations, decentralized structures, and smart contracts. It addresses patient data security, asset management, and transparent transactions. This paper proposes an NFT-based Pharma marketplace using Solidity smart contracts, Ethereum Virtual Machine, and ERC721 tokens to overcome challenges. The proposed structure is tested by using Remix-IDE, Truffle, Metamask, and the Ethereum Sepolia test network. Various smart contracts, algorithms, events, and functions facilitate NFT token minting, purchase, and sale in the pharmaceutical marketplace. Performance tests using Ethereum SDK, Geth, and Hyperledger Caliper assess the proposal’s effectiveness. Following the data, the average latency for Resell_Token, Buy_Token, and Create_Token was 4.27 seconds, 4.68 seconds, and 5.04 seconds, consecutively. Further, the average throughput for Create_Token, Buy_Token, and Resell_Token was 223.83TPS, 262.7TPS, and 268.76TPS accordingly. Resell_Token has the highest throughput since it needs fewer write operations, although Buy_Token has a higher throughput than Create_Token, according to the performance analysis. The function measured the average CPU utilization, while the memory usage fluctuated between 645 to 780 MB on average. TokenPharma outperforms the state-of-the-art when the given parameters are taken into consideration.
Effective governance plays a pivotal role in aligning the interests of diverse stakeholders and shaping the strategic directions of organizations. However, the dominant model of corporate governance often concentrates power among a limited group of directors, leading to concerns about potential power imbalances that may distort fair representation and compromise decision-making integrity. Decentralized autonomous organizations (DAOs) present an alternative model that distributes power among a broader base of stakeholders, fostering a more democratic approach to collective decision making and governance. However, the openness and fluidity inherent in DAOs can expose them to coordination challenges, governance complexities, and potential exploitation by malicious entities. In response to possible governance challenges, we consider DAOs as digital commons and adapt Ostrom's eight principles for governing the commons to propose a new governance framework for DAOs. This governance framework is designed to foster the collective stewardship of shared digital assets and the equitable distribution of decision-making authority in the Web3 era. As DAOs emerge as a novel organizational structure, our governance framework aims to maintain their resilience, inclusiveness, and decentralization, reinforcing their crucial role in the evolving Web3 landscape.
This paper explores Web3, the next phase of internet evolution driven by decentralization and blockchain technology, contrasting it with Web1 and Web2.It examines Web3's transformative potential in industries such as finance, art, gaming, and governance, with a focus on Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), Metaverses, and Decentralized Autonomous Organizations (DAOs).While Web3 offers significant promise, it faces challenges like scalability, security, regulatory uncertainty, and user experience issues.The paper also addresses the SEC's investigation of OpenSea, the largest NFT marketplace, as a critical obstacle for Web3's future.Finally, it discusses Web3's trajectory and highlights areas for future research.
Douglas J. Cumming, Niclas Dombrowski, Wolfgang Drobetz, Paul P. Momtaz
Coordination frictions prevent the efficient adoption and governance of blockchain-based platforms. Crypto funds (CFs) create value by smoothing frictions on decentralized digital platforms (DDPs). CF-backed DDPs obtain higher valuations in the primary token market, outperform their peers after issuing tokens, and benefit from token price appreciation around CF investment disclosure in the secondary market. Primary transaction data from the Ethereum ledger shows that the valuations of DDPs with meager adoption and a higher centralization of token ownership benefit more from CF backing. The positive valuation and performance effects for CF-backed DDPs are more pronounced for CFs that are more central in investor networks.
A smart contract is an electronic transaction protocol intended to digitally facilitate, verify, or enforce the execution of the terms of underlying legal agreements. Thus, by following the traditional perception, smart contracts target reducing transaction costs, including arbitration and enforcement costs, by realizing trackable and irreversible transactions using blockchain technology for distributed databases. However, the potential of smart contracts goes far beyond cost reductions by facilitating the entrepreneurial collaboration of cross-organizational business processes. Industry 4.0 aims to create smart supply chains. Smart contracts and Non-Fungible Token (NFT) solutions can realize new smart business models in the circular economy. The recent case study from the automobile industry demonstrates how using NFT technology in the form of a digital certificate can become an integral part of smart product lifecycle management in the frame of a circular economy integrating innovative business models with smart service design concepts. By doing so, the use of NFT paves the way for dynamic and adaptable supply chains, evolving needs of stakeholders towards a sustainable and circular economy. The authors participated in research projects related to smart supply chains and circular economy. Thus, the paper discusses the question of how and to what extent smart contracting, blockchain technology, NFT solutions, and Service Design can facilitate the implementation of smart business models in the context of the circular economy. The research is based on expert interviews, surveys, and case studies from EU projects focusing on the Baltic Sea Region.