Anjar Sri Ciptorukmi Nugraheni, Adalia Safira Rahma
Purpose: The development of digital finance is leading to the increasing use of Smart Contracts because of their simple and self-executing characteristics. However, there exists the potential for legal loopholes, including protection of the included parties aside from the simplicity and convenience. Methods: A normative method using primary, secondary, and non-legal materials was adopted. Meanwhile, legal materials were collected through literature review and analytical methods based on deductive syllogism. Results and Conclusion: The results showed that the synchronization of regulations supported the development, certainty, and stability of the Indonesian economy. The application of contracts law, technological neutrality, and privacy principles in Indonesian regulations related to the proliferation of technology-based contracts was adequate. Research implications: Therefore, this research analyzed the extent to which the Indonesian legal system afforded adequate protection to parties and identified the improvements necessary for the future development of Smart Contracts. Originality/value: It analyzes the importance of existing regulations with the social demands of the community to ensure the prompt establishment of economic certainty and stability.
Christina Christina, Florianus Yudhi Priyo Amboro, Rufinus Hotmaulana Hutauruk
Non-Fungible Tokens (NFTs) serve as a digital platform that aids creators of digital works, particularly E-Books, in marketing or introducing their creative outputs. This platform offers easy access and high-security systems to safeguard the copyright of E-Book creators. This study aims to analyze and provide insights into the copyright protection of E-Book works in the form of NFTs, under the perspective of Copyright Law. Additionally, the study seeks to determine whether NFT transactions can serve as a solution for Intellectual Property protection in Indonesia. The research employs a normative legal research method, utilizing literature review and descriptive techniques. The findings reveal that NFTs can indeed offer a solution for intellectual property protection in Indonesia. By transforming works into NFTs, their copyright is protected through ownership tokens that are automatically integrated into the blockchain (digital ledger).
Golshid Jaferian, Darya Ramezani, Michael G. Wagner
In the past few years, there has been a significant increase in the adoption and recognition of blockchain technology. The increasing demand for blockchain technology has led to its swift development and widespread adoption across various sectors, including the gaming industry. The potential implications of this nascent technology in the realm of digital games are considerable, yet it is crucial to acknowledge the absence of scholarly investigations regarding blockchain games. To bridge the current research gap, this study's objective is to conduct an in-depth review of the potential uses of blockchain technology in gaming.
Miguel Cárdenas, Carlos Madeira, Raúl Morales-Reséndiz, Miguel Musa · 6 authors
Distributed ledger technologies (DLT) are increasingly considered to enhance payment systems’ and market infrastructures’ functionalities like their accessibility and interoperability. We explore DLT architecture options to enable a new tiered access in the RTGS system of Chile for new payment service providers (PSP). We find that by introducing decentralized apps (DApps) the RTGS system would become more accessible and interoperable by enabling a tiered access to new participants. Our work also suggests that central banks exploring design alternatives for retail Central Bank Digital Currencies (CBDC) could find relevant our approach as a pivot to build a far-reaching PSP network.
In the era of technology 4.0, Indonesia is pursuing progress through the adoption of smart contracts on the blockchain. The government responded to this by establishing technology regulations to address emerging challenges. Legal principles demonstrate their adaptability in the digital era by utilizing information technology to build a modern legal and administrative framework, in line with the vision of industrial development 4.0. This normative juridical legal research evaluates the application of legal norms in a concrete context, using statutory and conceptual approaches. Data collection was carried out through literature study using primary, secondary and tertiary legal materials. Data analysis uses qualitative descriptive methods. Smart contracts are increasingly widely used, especially in electronic transactions such as stock trading, crypto and hotel reservations. As a form of electronic agreement, smart contracts facilitate the automation of contract processes. However, its use must comply with the law and technology neutral principles in the ITE Law. Even though it is automatic, this technology is recognized as an Electronic Agent in accordance with Article 1 Number 8 of the ITE Law. The validity of these automated contracts is only questioned if it is proven that the automated system is problematic. Smart contracts in Indonesia are recognized in the context of contract law based on freedom of contract and the legal basis of the Civil Code. This recognition occurs because the Civil Code is open and complementary. However, the use of smart contracts must comply with statutory regulations, principles of decency and public order. Regulations governing smart contracts include the ITE Law, PP PTSE, and PP PMSE. These three regulations stipulate the procedures for using electronic contracts, providing a clear legal basis for the implementation of smart contracts.
Blockchain technology has evolved beyond the use case of electronic cash and is increasingly used to secure, store, and distribute data for many applications. Distributed ledgers such as Bitcoin have the ability to record data of any kind alongside the transfer of monetary value. This property can be used to provide a source of immutable, tamper-evident data for a wide variety applications spanning from the supply chain to distributed social media. However, this paradigm also presents new challenges regarding the scalability of data storage protocols, such that the data can be efficiently accessed by a large number of users, in addition to maintaining privacy for data stored on the blockchain. Here, we present a new mechanism for constructing blockchain transactions using Merkle trees comprised of transaction fields. Our construction allows for transaction data to be verified field-wise using Merkle proofs. We show how the technique can be implemented either at the system level or as a second layer protocol that does not require changes to the underlying blockchain. This technique allows users to efficiently verify blockchain data by separately checking targeted individual data items stored in transactions. Furthermore, we outline how our protocol can afford users improved privacy in a blockchain context by enabling network-wide data redaction. This feature of our design can be used by blockchain nodes to facilitate easier compliance with regulations such as GDPR and the right to be forgotten.
This paper is written to provide an insight on how blockchain technology has a very high potential in providing an alternative way to attractively organize the modern finance.Blockchain today is not merely bitcoin or other crypto currencies.It impacts various other sectors such as supply chain management, voting mechanisms, original content creation, secure sharing of data, etc.But this paper relates to today's world of fluted, along with blockchain.It rightly points out the flaws associated with the current financial world and how blockchain provides a solution to it.This paper also demonstrates the various applications of blockchain in finance such as De-Fi (Decentralized Finance), Dapps (Decentralized Apps), Smart contracts, cross border payments, NFTs, DAOs (Decentralized Autonomous Organizations).It also shows how blockchain can bring out a more efficient and secure finance industry.It also contains information on crypto currencies, their various usages, and their underlying fundamental principles.The paper also describes some insights into blockchain security issues and remedies.
Advances in artificial intelligence, robotics, neural networks, artificial limbs and systems, automation, virtual and augmented reality, machine learning, and other fields hold great promise for improving efficiency and knowledge acquisition. Decentralization is one of the trends in the modern global finance market. The growth and active development of the Islamic finance and banking industry, the growth in the number of Muslims in the world and other factors determine the interest of researchers in digitalization issues. This paper is devoted to the study of the possibilities, approaches and views on the use of digital currencies from the point of view of Islamic finance. Methods of analysis and synthesis, comparative analysis are used. The approaches of various countries of the Muslim world to the introduction of digital currencies are analyzed, ongoing projects are considered. In the Islamic world, there has not yet been a consensus on the permissibility and scope of the possible use of digital currencies. The authors conclude that, in general, digital currencies can be harmoniously used within the concept of Islamic finance. This is facilitated by such factors as the transparency of decentralized finance and digital currencies, the contribution to the protection of the wealth of society, the focus on social benefits, which is in line with the good goals of Islamic finance and its social value.
Denis Triyuwono, Bezaliel Kevin Yonathan, Theresia Anita Christiani
Bitcoin is ctyptocurrency assets traded on the physical market of cryptocurrency assets on commodity future exchanges. The purpose of this research is to determine and explore the legal status and regulations regarding taxation of bitcoin conducted on commodity future exchanges. This research is conducted of secondary using a normative juridical method, which involves the use and collection of secondary data and focuses on legal regulations. The result of the research indicate that the legal status of bitcoin taxation on commodity future exchanges has been regulated by applicable laws and is recognized based on legal theories and princples.
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.
Cryptocurrencies have been defined and regulated differently in all corners of society. Much research has been made on countries' institutional measures to consummate regulations toward cryptocurrencies further. This paper explores the definition and nature of cryptocurrencies through a literature review method. The nature of cryptocurrencies has directly led to their benefits and misuse. This paper also explores the regulatory measures made by the U.S. and the flaws revealed in the Coinbase Case and Ripple Case. The ambiguous definition between regulatory departments and overlapping law enforcement power has made investors not knowing what course to take. New measures are taken in Hong Kong through a compulsory licensing system and laying major responsibility on platform service providers. This paper examines the new efforts and proposes some potential flaws under the new regulatory system. The Hong Kong regulatory approach is believed to provide insight and reference for other markets that would like to include cryptocurrencies into regulation.
D. Stamatakis, Dimitrios G. Kogias, Pericles Papadopoulos, Panagiotis Karkazis · 5 authors
The advancement and acceptance of new technologies often hinges on the level of understanding and trust among potential users. Blockchain technology, despite its broad applications across diverse sectors, is often met with skepticism due to a general lack of understanding and incidents of illicit activities in the cryptocurrency domain. This study aims to demystify blockchain technology by providing an in-depth examination of its application in a novel blockchain-based card game, centered around renewable energy and sustainable resource management. This paper introduces a serious game that uses blockchain to enhance user interaction, ownership, and gameplay, demonstrating the technology’s potential to revolutionize the gaming industry. Notable aspects of the game, such as ownership of virtual assets, transparent transaction histories, trustless game mechanics, user-driven content creation, gasless transactions, and mechanisms for in-game asset trading and cross-platform asset reuse are analyzed. The paper discusses how these features, not only provide a richer gaming experience but also serve as effective tools for raising awareness about sustainable energy and resource management, thereby bridging the gap between entertainment and education. The case study offers valuable insights into how blockchain can create dynamic, secure, and participatory virtual environments, shifting the paradigm of traditional online gaming.
Muhammad Farrukh Shahzad, Shuo Xu, Weng Marc Lim, Muhammad Hasnain · 5 authors
Abstract Cryptocurrencies—i.e., digital or virtual currencies secured by cryptography based on blockchain technology, such as Bitcoin and Ethereum—have brought transformative changes to the global economic landscape. These innovative transaction methods have rapidly made their mark in the financial sector, reshaping the dynamics of the global economy. However, there remains a notable hesitation in its widespread acceptance and adoption, largely due to misconceptions and lack of proper guidance about its use. Such gaps in understanding create an opportunity to address these concerns. Using the technology acceptance model (TAM), this study develops a parsimonious model to explain the awareness, acceptance, and adoption of cryptocurrency. The model was assessed using partial least squares structural equation modeling (PLS-SEM) with a sample of 332 participants aged 18 to 40 years. The findings suggest that cryptocurrency awareness plays a direct, positive, and significant role in shaping cryptocurrency adoption and that this positive relationship is mediated by factors that exemplify cryptocurrency acceptance, namely the ease of use and usefulness of cryptocurrency. The results also reveal that trust is a significant factor that strengthens these direct and mediating relationships. These insights emphasize the necessity of fostering an informed understanding of cryptocurrencies to accelerate their broader adoption in the financial ecosystem. By addressing the misconceptions and reinforcing factors like ease of use, usefulness, and trust, policymakers and financial institutions can better position themselves to integrate and promote cryptocurrency in mainstream financial systems.
Ample acceptance of Blockchain Technology in today's business world has increased number of use cases tremendously beyond cryptocurrencies for which it was originally developed. Hyperledger Fabric, as an enterprise-grade permissioned Blockchain platform, offers a secure and scalable infrastructure for diverse applications, including financial services. Since performance evaluation of the platform play major role in acceptability of the technology for various applications, in this research article we are presenting a comprehensive performance analysis of the Hyperledger Fabric Blockchain platform with the help of standard benchmarking tool-Hyperledger Caliper for Cross-Border Fund Transfer (CBFT) application and results are validated using existing queuing theory based theoretical model for Hyperledger Fabric. The primary objective of this study is to evaluate the most popular Blockchain platform's performance under various workloads and network conditions. By capturing the interactions between network participants and consensus mechanisms, we have presented latency analysis along with the insights into the platform's scalability and efficiency. This research contributes to a deeper understanding of Blockchain technology and aids in the design of more efficient and robust Blockchain-based applications.
Chit fund is a peer-to-peer saving and borrowing scheme operated among trusted groups of people. It is a reliable source of funds in emergencies with no guarantor and low-interest rate. Despite their enduring benefits, chit funds face challenges related to trust, transparency, and security. At present, unscrupulous subscribers might join chit-funds, borrow money, and make payment defaults. This leads to disruptions in contribution cycle and affects overall functioning. Additionally, non-transparent record-keeping and transaction processes, hinder participants from verifying fund activities, creating a susceptible environment for fraud and malpractice. These challenges are an obstacle to the sustainability and trustworthiness of the chit-fund system. Therefore, to overcome aforementioned challenges, this paper proposes TruChit, a blockchain-based chit fund system with creditworthiness evaluation framework. It leverages the Adaptive Neuro-Fuzzy Inference System (ANFIS) to assess the creditworthiness of subscribers, which ensures the credibility and reliability of individual participants. Further, proposes permissioned blockchain-assisted chit-fund framework with role-based access control to instill trust, security, and transparency within chit-fund operations. Moreover, the efficacy of TruChit is evaluated by analyzing credit score dataset and achieves 93.5% accuracy, which is better than other approaches.
Leonardo T. Kimura, Felipe K. Shiraishi, Ewerton R. Andrade, Tereza Cristina Melo de Brito Carvalho · 5 authors
The bioeconomy, an industrial production model based on biological resources and sustainable development, can be considered an emerging opportunity for biodiversity-abundant regions, such as the Amazon rainforest. However, existing genomic repositories lack data traceability and economic benefit-sharing mechanisms, resulting in limited motivation for data providers to contribute. To address this challenge, we present an implementation of Amazon Biobank, a community-driven genetic database. By leveraging blockchain and peer-to-peer (P2P) technologies, we enable distributed and transparent data sharing; meanwhile, by using smart contracts directly registered in the system, we enforce fair benefit-sharing among all system participants. Moreover, Amazon Biobank is designed to be auditable by any user, reducing the need for trusted system managers. This paper aims to validate this model, by describing the implementation of a prototype using Hyperledger Fabric and BitTorrent and evaluating its performance. Our results show that the prototype can support at least 400 transactions per second in a small network, a number that can be further improved by adding new nodes or allocating additional computational resources. We conclude that the Amazon Biobank proposal is technically feasible, and its real-world deployment has the potential to foster sustainable development in high-biodiversity regions, in addition to promoting collaborative biotechnology research.
The Blockchain Trilemma concept highlights the inherent trade-off among security, decentralization, and scalability in blockchain systems, where achieving all three simultaneously is challenging. Blockchain security can be categorized into block security and incentive security, with overall security increasing with the size of block producers. Horizontal scaling of a blockchain, through reducing the size of block producers, can compromise security, while vertical scaling, by increasing the computational requirements for producers, reduces decentralization. Consequently, solving the Blockchain Trilemma while maintaining overall blockchain security is a significant challenge using current methods. This paper introduces a time-beacon scheme to address the Blockchain Trilemma by restructuring the blockchain architecture. We argue that this scheme enables infinite horizontal scalability of the blockchain while preserving security and decentralization.
Dayani Cristina Ferreira Lopes, André Luís de Castro, Letícia Xander Russo
Abstract Purpose: This article aims to analyze pioneering public finance initiatives based on blockchain technology, identifying the Brazilian context amid the international. Additionally, this study seeks to present opportunities for blockchain technology applications and the challenges encountered for their expansion. Originality/value: Few studies have covered the public sector, especially public finance, despite using and testing this technology in different areas. The development of these innovative applications is limited, particularly in Brazil. Design/methodology/approach: Public documents, such as reports and official websites of public agencies, associations, and institutions, were identified and selected from the unit of analysis “pioneering public finance initiatives based on blockchain technology.” Findings: Blockchain technology has been used in government projects related to research, identity, economic development, and financial services, among others. Blockchain initiatives have been led by Brazil’s financial, technology, and education/media sectors. Finding technology applications in public finance was one of the difficulties in the research. The number of projects in this category involving blockchain and the public sector is scarce in Brazil and internationally. However, this scenario has shown signs of change. Although reduced, public sector participation has increased in recent years. Blockchain has much to offer the public finance sector, but governments have been cautious and insecure about introducing the technology. It happens because of uncertainty about whether the technology is developed enough to withstand critical problems in the public system or what unique issues could arise from that technology.
With the development of blockchain technology and the economy, the demand for data interaction and application collaboration between blockchains is increasing. Due to the differences in the data structure, interface protocols, consensus mechanisms, and even business models, new "chain silos" have been formed among blockchain applications, which limit the interoperability of asset exchange and business collaboration among blockchains. Based on the full analysis of blockchain technology characteristics and blockchain Internet development needs, this paper designs a blockchain cross-chain system based on the unified NFT identity identification technology, address tracking technology, and seamless interconnection of mobile security cross-chain technology, based on the "NFT + Cross-chain bridge". Based on the service mode, verification mode, and security of Bridges, six model timeliness, smart contract robustness, and convergence radius were selected from 44 cross-chain Bridges for experimental verification. Finally, it is concluded that the overall performance of the blockchain cross-chain system based on "NFT + Cross-chain bridge" is far more universal and better security than the performance of ordinary Bridges.
In modern cities, consumers with distributed energy resources (DERs) can trade energy by managing their consumption and supply. Blockchain is considered to provide technical support for establishing a distributed energy market, while the current mainstream blockchain technology cannot meet the requirement of efficiency and scalability under such a transaction scenario. In addition, the potential defaults of market players also hinder market implementation. Therefore, a reputation-based distributed energy trading mechanism and the corresponding blockchain consensus method considering reputation management are proposed in this paper. Firstly, a distributed reputation management mechanism is designed to systematically evaluate the user’s behavior in the market. Secondly, to address the limitations of traditional consensus methods in the distributed energy market distributed reputation control is introduced into the node model of blockchain, and a new energy blockchain consensus method named DPoR is proposed to solve the technical bottleneck under the distributed energy trading scenario. We also present a corresponding transaction mechanism to encourage market participants to maintain their reputations. Finally, the simulation results verify the effectiveness of the proposed transaction mechanism in this paper, and the presented blockchain consensus mechanism can meet the performance requirements under distributed energy trading scenarios in terms of high efficiency, low consumption, and openness.
The rapid development of the metaverse and generative Artificial Intelligence (GAI) has led to the emergence of AI-Generated Content (AIGC). Unlike real-world products, AIGCs are represented as digital files, thus vulnerable to plagiarism and leakage on the Internet. In addition, the trading of AIGCs in the virtual world is prone to various trust issues between the involved participants. For example, some customers may try to avoid the payment after receiving the desired AIGC products, or the content sellers refuse to grant the products after obtaining the license fee. Existing digital asset management (DAM) systems often rely on a trusted third-party authority to mitigate these issues. However, this might lead to centralization problems such as the single-point-of-failure (SPoF) when the third parties are under attacks or being malicious. In this paper, we propose MetaTrade, a blockchain-empowered DAM framework that is designed to tackle these urgent trust issues, offering secured AIGC trading and management in the trustless metaverse environment. MetaTrade eliminates the role of the trusted third party, without requiring trust assumptions among participants. Numerical results show that MetaTrade offers higher performance and lower trading cost compared to existing platforms, while security analysis reveals that the framework is resilient against plagiarism, SPoF, and trust-related attacks. To showcase the feasibility of the design, a decentralized application (DApp) has been built on top of MetaTrade as a marketplace for metaverse AIGCs.
The implementation of the Know Your Customer (KYC) strategy by banks within the financial sector enhances the operational efficiency of such establishments. The data gathered from the client during the KYC procedure may be applied to deter possible fraudulent activities, money laundering, and other criminal undertakings. The majority of financial institutions implement their own KYC procedures. Furthermore, a centralized system permits collaboration and operation execution by multiple financial institutions. Aside from these two scenarios, KYC processes can also be executed via a blockchain-based system. The blockchain’s decentralized network would be highly transparent, facilitating the validation and verification of customer data in real-time for all relevant stakeholders. In addition, the immutability and cryptography of the blockchain ensure that client information is secure and immutable, thereby eradicating the risk of data breaches. Blockchain-based KYC can further improve the client experience by eliminating the requirement for redundant paperwork and document submissions. After banks grant consumers loans, a blockchain-based KYC system is proposed in this study to collect limit, risk, and collateral information from them. The approach built upon Ethereum grants financial institutions the ability to read and write financial data on the blockchain network. This KYC method establishes a transparent, dynamic, and expeditious framework among financial institutions. In addition, solutions are discussed for the Sybil attack, one of the most severe problems in such networks.
J. Guruprakash, Dimitar Tokmakov, L. B. Krithika, Srinivas Koppu · 7 authors
Blockchain technology has the potential to revolutionize the insurance industry by bringing unprecedented levels of transparency, security and autonomous continuity. By leveraging this technology, insurance companies can streamline their processes, reduce costs, and provide better services to their customers. The proposed framework represents a significant step forward in the industry’s evolution, with the potential to create a more efficient and effective insurance ecosystem for all stakeholders involved. This framework offers a new and innovative approach to addresses many of the challenges associated with traditional processes in the insurance applications. By utilizing Blockchain and Internet of Things (IoT) technologies, the framework aims to provide greater transparency, security, efficiency and real-time data decision ultimately leading to an improved customer experience. The accomplished work serves as a foundation for further research and development in the field of blockchain-based insurance applications, with the goal of designing a lightweight, platform-agnostic, auditable, real-time and provable solution.
This study explores the humanity behind the digital phenomenon of cryptocurrency. It is an ethnography of the online cryptocurrency community and an analysis of the development of social and cultural structures in a hybridized digital and non-digital reality and the ethics of an alternative normative world. The study describes how cryptocurrency adopters have formed communities, on social media forums like Twitter/X and Reddit, that sustain an alternative normative world that rejects the notion of false consciousness and actively resists the state's control over the means of social and fiscal production. Taking advantage of both anthropological and theological perspectives, this study addresses the question, what is cryptocurrency. By establishing a theoretical base to look at the phenomenon as more than a technological advancement, this study argues that the phenomenon of cryptocurrency is inherently social. A phenomenon that is computationally generated but, sustained and materialized through its online community in direct opposition to centralized finance and its supporting institutions.