Blockchain Papers

Durvas Wanjale, Saket Medhekar, Arathi Kizhakoodan

No abstract is available for this record.

Peterson K Ozili

No abstract is available for this record.

Tahmina Ehsan, Muhammad Usman Sana, Muhammad Usman Ali, Elizabeth Caro Montero · 7 authors

Smart contracts are becoming increasingly popular for managing transactions or activities in fog computing environments. However, the use of smart contracts for registration and resource access granting is vulnerable to various types of attacks that can compromise their security. Detecting these attacks can be challenging, as attackers can use sophisticated techniques to evade detection. This research uses a machine learning-based approach for detecting different attacks on smart contracts used for registration and resource access granting in fog computing. Data is collected from online Ethereum’s official site “etherscan.io”. Different feature extraction methods and machine learning models are tested. Using accuracy, precision, recall, F1 score, cross-validation, and computational time, the performance of models is evaluated. Results indicate that extreme gradient boosting (XGB) and random forest (RF) provide the highest accuracy of 80% using the term frequency-inverse document frequency (TF-IDF) approach. The light gradient boost classifier provides the highest accuracy of 81% with the Bag of Word (BoW) approach. Similarly, the extra tree provides the highest accuracy of 83% using the N-gram technique. Furthermore, performance using TF-IDF is slightly poorer than BoW and N-gram, however, it has less computational complexity.

Inna Kruglova, Valery Alexandrovich Dolbezhkin, Shota Egutia

This article explores the potential benefits of implementing blockchain technology and outsourcing contracts in the new market participants called specialised banking communities, formed as part of the banking sector reform in Russia. The authors compare this experience to the European model of banks' unions in institutional protection schemes (IPS), highlighting similarities and differences. They emphasize the objective properties of banking communities as subjects of production cooperation in the financial sector. The article also discusses the parameters for implementing a private blockchain network, specifically focusing on the priorities of PoS (Proof of Stake) and DPoS (Delegated Proof of Stake) consensus algorithms. To optimize operational resources, the authors recommend the use of outsourcing contracts for the better distribution of digital production capacities within these communities. Overall, this article highlights the potential of blockchain technology and outsourcing contracts in improving the efficiency and effectiveness of specialised banking communities in Russia.

Randy Priem

No abstract is available for this record.

Miloš Grujić, Želјko Vojinović

This paper examines the complex landscape of digital currencies, non-fungible tokens (NFTs), and distributed ledger technology (DLT), focusing on their implications within the accounting and financial reporting sector. The surge in popularity of these assets has brought about reporting challenges and complexities. The lack of comprehensive accounting standards and the digitization of financial reporting processes further compound the situation. These challenges underscore the need to update accounting practices to align with the security and transparency offered by DLT. The study examines the International Financial Reporting Standards (IFRS) for digital currency reporting, analysing their implications and potential solutions for the accounting community. Central to this exploration is the question: How can the accounting sector navigate the multifaceted challenges and harness the multifarious opportunities that stem from digital currencies, NFTs, and DLT? Using a comprehensive research approach, including a literature review, empirical analysis, case studies, and comparative analysis, this study identifies strategies for managing the reporting complexities of digital assets. It also highlights the importance of collaborative dialogue between stakeholders and regulators to ensure consistency in an evolving landscape. This paper guides the accounting and investment sector in making informed decisions, fortified by a nuanced understanding of the evolving digital asset terrain.

Shuyang Chen, Yu Xian, Jinhua Liang, Cuicui Feng · 5 authors

Abstract Blockchain is one of the key technologies for the digital transformation of corporate finance because it satisfies the requirements of enterprise financial sharing with its features of contract execution, openness and transparency, decentralized distributed ledger, traceability, and non-tampering. In order to support business digital transformation under the financial sharing model, blockchain technology is used in this study, along with an analysis of the internal and external factors influencing enterprise financial digital transformation. In order to guarantee data security and enhance the processing efficiency of the financial sharing center, the Byzantine fault-tolerant RAFT algorithm is adopted as the private chain’s consensus algorithm, and PBFT is adopted as the federated chain’s consensus algorithm. These decisions are based on the compatible architecture of blockchain technology and the characteristics of financial sharing. The financial sharing center’s effects are assessed in relation to Enterprise A’s blockchain-based financial activity application system. According to Enterprise A’s cash flow statistics, paid employee compensation fell in 2018 from 2.943 billion to 2.864 billion. The audit and accounting industry may streamline procedures, expedite processing, lower labor and time expenses, and achieve favorable outcomes by utilizing the financial shared service model under the blockchain paradigm.

Iryna Shkodinа

This article aims to explore the use of digital finance and fintech in financing sustainable projects and explain trends in the development of sustainable digital finance. Sustainable digital finance is the targeted application of digital finance to finance and support appropriate institutional and market mechanisms that contribute to the achievement of sustainable development. It is determined that the decentralization of the financial sphere opens up new opportunities for «green» investments and achievement of sustainable development goals. Transparency, trust, and efficiency are becoming essential components of a sustainable financial ecosystem that conserves natural resources and supports environmentally friendly initiatives. The use of digital technologies such as artificial intelligence (AI), blockchain and the Internet of Things (IoT) in the financial sector to support sustainable development and green finance is considered. By providing financial risk forecasting and analysis, these technologies help create sustainable and effective strategies for issuers and investors, which contributes to the development of a sustainable financial sector. The taxonomy of «green» digital finance, which combines sustainable development goals with digital financial technologies, is considered. The characteristics and examples of different types of sustainable digital financial solutions are provided. The importance of continuing research in the field of sustainable digital finance to promote «green» initiatives and effectively address modern global challenges is emphasized. The practical value of this article is that it provides an overview of modern technological and financial innovations in green finance and sustainable development. The results of the study can be useful for researchers interested in the integration of finance and technology in the context of sustainable development, providing them with a basic understanding of key concepts and trends in this direction.

Marina Estato Apsan Frediani

This article provides a comparative analysis of financial regulations across different jurisdictions, including the United States the UK and the European Union that could be applied to crypto market. It discusses the economic, social, and technological factors driving the need for crypto regulation and explores the challenges and opportunities these regulations present for financial stability, consumer protection, and innovation. By examining the different regulatory approaches, the article offers insights into the development of a balanced regulatory framework that addresses the unique aspects of digital currencies, maintaining the innovative approach of the crypto market while safeguarding against risks.

Christos Makridis, Joshua Ammons

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.

Chin‐Ling Chen, Wanbing Zhan, Woei-Jiunn Tsaur, Der‐Chen Huang · 5 authors

In the charity sector, fundraising and transparency have long been key issues. Charity NFT (Non-Fungible Token) auctions, an emerging charity fundraising model integrating blockchain and NFT concepts, bring opportunities and challenges. Blockchain provides distributed data integrity and transparency via cryptography-linked data blocks, while NFTs enable unique digital ownership representation. This study designs a charity NFT auction platform on the Fisco Bcos blockchain, using multi-signature algorithms to ensure NFT authenticity, ECDSA (Elliptic Curve Digital Signature Algorithm) signatures for transaction integrity and traceability, NFTs and virtual currencies to reduce costs, and IPFS (InterPlanetary File System) for storage. The implemented system achieves 2104 TPS throughput with 492-millisecond latency, increasing transaction processing with low latency. Overall, the platform aims to address charity issues like opaque fund flows, high costs, and fake initiatives through the strategic application of blockchain and NFT functionality.

Daniel Liebau

No abstract is available for this record.

Nima Ballaji

Blockchain-powered smart contracts are automating contract execution, completely changing the way business transactions are conducted. In the era of automation, this article examines the legal ramifications of smart contracts, contrasting them with conventional contracts and examining the advantages and disadvantages they offer. The essay explores regulatory considerations for incorporating smart contracts into current legal frameworks while protecting the interests of contractual parties and consumers by drawing on the nexus between law and technology. Stakeholders can efficiently manage the intricacies of smart contracts and promote innovation and legal compliance in commercial transactions by identifying best practices and recommendations.

Samuel Oladiipo Olabanji, Tunbosun Oyewale Oladoyinbo, Christopher Uzoma Asonze, Chinasa Susan Adigwe · 6 authors

The integration of cryptocurrencies, particularly Bitcoin, into retirement savings plans has recently garnered significant attention. This interest has been amplified by the U.S. Securities and Exchange Commission's approval of Bitcoin Exchange-Traded Funds (ETFs) in January 2024 and Fidelity Investments' decision to include Bitcoin in their 401(k) plans. These landmark developments represent a paradigm shift in retirement investment strategies, merging traditional financial planning with the dynamic and volatile world of cryptocurrencies. The entry of Bitcoin introduces novel challenges, including increased volatility and regulatory uncertainty, necessitating a comprehensive examination of its impacts on retirement savings. The study sought to explore the role of Financial Technology (FinTech) in managing these risks and assess the adequacy of current regulatory frameworks. Employing a quantitative research approach, the study collected data from 386 participants, including FinTech practitioners and investment portfolio managers through a survey that combining closed-ended and open-ended questions. Multiple regression was used to analyze the relationships between variables such as FinTech integration, regulatory compliance, and the risk associated with cryptocurrency-inclusive retirement portfolios. The study revealed that the inclusion of Bitcoin significantly increases portfolio volatility. It also found that advanced FinTech data management techniques significantly enhance risk mitigation, while current regulatory frameworks are inadequate for governing the inclusion of cryptocurrencies in retirement plans. A comprehensive framework combining FinTech and regulatory compliance was shown to effectively reduce investment risks. The study recommends cautious consideration of cryptocurrencies in retirement portfolios, with an emphasis on assessing the risk appetite of participants. It advocates for dynamic regulatory frameworks and enhanced use of FinTech for real-time risk management. The study suggests that retirement plan providers should adopt an integrated approach, combining technological innovations with regulatory oversight, to navigate the complexities of cryptocurrency investments effectively.

Lin Chen, Jiaming Zhu, Yuting Xu, Huanqin Zheng · 5 authors

In the information age, electronic documents (e-documents) have become a popular alternative to paper documents due to their lower costs, higher dissemination rates, and ease of knowledge sharing. However, digital copyright infringements occur frequently due to the ease of copying, which not only infringes on the rights of creators but also weakens their creative enthusiasm. Therefore, it is crucial to establish an e-document sharing system that enforces copyright protection. However, the existing centralized system has outstanding vulnerabilities, and the plagiarism detection algorithm used cannot fully detect the context, semantics, style, and other factors of the text. Digital watermark technology is only used as a means of infringement tracing. This paper proposes a decentralized framework for e-document sharing based on decentralized autonomous organization (DAO) and non-fungible token (NFT) in blockchain. The use of blockchain as a distributed credit base resolves the vulnerabilities inherent in traditional centralized systems. The e-document evaluation and plagiarism detection mechanisms based on the DAO model effectively address challenges in comprehensive text information checks, thereby promoting the enhancement of e-document quality. The mechanism for protecting and circulating e-document copyrights using NFT technology ensures effective safeguarding of users’ e-document copyrights and facilitates e-document sharing. Moreover, recognizing the security issues within the DAO governance mechanism, we introduce an innovative optimization solution. Through experimentation, we validate the enhanced security of the optimized governance mechanism, reducing manipulation risks by up to 51%. Additionally, by utilizing evolutionary game analysis to deduce the equilibrium strategies of the framework, we discovered that adjusting the reward and penalty parameters of the incentive mechanism motivates creators to generate superior quality and unique e-documents, while evaluators are more likely to engage in assessments.

Araddhana Arvind Deshmukh, Prabhakar Rao Kandukuri, Janga Vijaykumar, Anna Shalini · 7 authors

The combination of blockchain technology and smart contracts has become a viable way to expedite claims processing and payouts in the quickly changing insurance industry. Enhancing efficiency, transparency, and reliability for the industry may be achieved by automating certain procedures and initiating them on predetermined triggers, smart contracts that is event-based. Conventional insurance procedures can be laborious, slow, and prone to human mistake, which can cause inefficiencies and delays in the resolution of claims. This research proposes a simplified system that automates the whole claims process from submission to reimbursement by utilizing blockchain technology and smart contracts. The suggested method does away with the requirement for human claim filing by having policyholders' claims automatically triggered by predetermined occurrences. These occurrences might be anything from medical emergencies to natural calamities, enabling prompt and precise claim start. The whole claims process is managed by smart contracts that are programmed with precise triggers and conditions, guaranteeing transaction immutability, security, and transparency. Moreover, reimbursements are carried out automatically after the triggering event has been verified, disregarding conventional bureaucratic processes and drastically cutting down on processing times. This strategy decreases the possibility of fraud and disagreement while also improving operational efficiency by combining self-executing contracts with decentralized ledger technology. Insurance companies and policyholders will both eventually profit from an accelerated, transparent, and reliable claims processing procedure thanks to the use of event-based smart contracts. A Python-implemented system achieving 97.6% accuracy using the proposed method, demonstrates its efficacy and reliability for the given task.

Luke Lee

This paper examines the complex legal landscape surrounding digital assets, analysing how they are defined and regulated as property across various jurisdictions. As digital assets such as cryptocurrencies and non-fungible tokens (NFTs) increasingly integrate with global economies, their intangible nature presents unique challenges to traditional property law concepts, necessitating a re-evaluation of legal definitions and ownership frameworks. This research presents a comparative analysis, reviewing how different legal systems classify and manage digital assets within property law, highlighting the variations in regulatory approaches and their implications on ownership, transfer, and inheritance rights. By examining seminal cases and regulatory developments in major jurisdictions, including the United States, the European Union, and Singapore, this paper explores the emerging trends and potential legal evolutions that could influence the global handling of digital assets. The study aims to contribute to the scholarly discourse by proposing a harmonized approach to digital asset regulation, seeking to balance innovation with legal certainty and consumer protection.

David Krause

No abstract is available for this record.

Margarita Capretto, Martín Ceresa, César Sánchez

Abstract Blockchains are decentralized systems that provide trustable execution guarantees through the use of programs called smart contracts. Smart contracts are programs written in domain-specific programming languages running on blockchains that govern how tokens and cryptocurrency are sent and received. Smart contracts can invoke other smart contracts during the execution of transactions initiated by external users. Once deployed, smart contracts running code cannot be modified, so techniques like runtime verification are very appealing for improving their reliability. Moreover, the conventional model of computation of smart contracts is transactional: once operations commit, their effects are permanent and cannot be undone. Therefore, errors in smart contracts may lead to millionaire losses of money. In this paper, we present the concept of future monitors which allows monitors to remain waiting for future transactions to occur before committing or aborting. This is inspired by optimistic rollups, which are modern blockchain implementations that increase efficiency (and reduce cost) by delaying transaction effects. We exploit this delay to propose a model of computation that allows bounded future monitors. We show our monitors correct respect with legacy transactions, how they implement bounded future monitors and how they guarantee progress. We illustrate the use of bounded future monitors by implementing correctly multi-transaction flash loans.

Luca Olivieri, Vincenzo Arceri, Badaruddin Chachar, Luca Negrini · 8 authors

Smart contracts are undoubtedly one of the most successful and popular applications of the blockchain industry. They consist of computer programs that are stored in blockchain, typically immutable, allowing the creation of decentralized applications (DApps). Their source code describes how the blockchain’s global state should evolve as a consequence of input received from transaction requests. There are two categories of programming languages for writing smart contracts: domain-specific languages (DSLs) and general-purpose languages (GPLs). The research community has spent a great effort for proposing, studying, and verifying DSLs, while the same is not true for GPLs applied to blockchain, although the most popular blockchains adopt them at different levels of the software development. This paper investigates the use of the most popular GPLs in smart contracts and DApps development. It first overviews blockchains that use GPLs for writing smart contracts. Then, it provides a taxonomy of how GPLs are used to develop smart contracts, highlighting limitations and challenges for each type of GPL. The goal of this study is to provide blockchain practitioners with a better comprehension of GPLs, while shedding light on this class of programming languages that are widespread in blockchain software.

Inwon Kang, William Van Woensel, Oshani Seneviratne

We explore using Large Language Models (LLMs) to generate application code that automates health insurance processes from text-based policies. We target blockchain-based smart contracts as they offer immutability, verifiability, scalability, and a trustless setting: any number of parties can use the smart contracts, and they need not have previously established trust relationships with each other. Our methodology generates outputs at increasing levels of technical detail: (1) textual summaries, (2) declarative decision logic, and (3) smart contract code with unit tests. We ascertain LLMs are good at the task (1), and the structured output is useful to validate tasks (2) and (3). Declarative languages (task 2) are often used to formalize healthcare policies, but their execution on blockchain is non-trivial. Hence, task (3) attempts to directly automate the process using smart contracts. To assess the LLM output, we propose completeness, soundness, clarity, syntax, and functioning code as metrics. Our evaluation employs three health insurance policies (scenarios) with increasing difficulty from Medicare's official booklet. Our evaluation uses GPT-3.5 Turbo, GPT-3.5 Turbo 16K, GPT-4, GPT-4 Turbo and CodeLLaMA. Our findings confirm that LLMs perform quite well in generating textual summaries. Although outputs from tasks (2)-(3) are useful starting points, they require human oversight: in multiple cases, even "runnable" code will not yield sound results; the popularity of the target language affects the output quality; and more complex scenarios still seem a bridge too far. Nevertheless, our experiments demonstrate the promise of LLMs for translating textual process descriptions into smart contracts.

Fumiko Hayashi, Aditi Routh

Cryptocurrency owners without sufficient financial literacy and risk tolerance may be financially vulnerable, as the cryptocurrency market is highly volatile and lacks consumer protections. Our study divides cryptocurrency owners into three groups based on their purpose for holding cryptocurrencies-for investment only (investors), for transactions only (transactors), and for a mix of investment and transactions (mix users)-and examines how each group correlates with financial literacy and risk tolerance compared to consumers who do not own cryptocurrencies (nonowners). Using the 2022 Survey of Household Economics and Decisionmaking, we find that investors and mix users are significantly or moderately more financially literate and risk tolerant than nonowners, but transactors are less financially literate and slightly more risk tolerant than nonowners. We also find that the three groups of cryptocurrency owners vary by demographic and financial characteristics. Our findings highlight that transactors could be particularly financially vulnerable in the absence of consumer protections in the cryptocurrency market.

David Ardia, David Ardia, Keven Bluteau, Keven Bluteau

We study the relation between the promotion of a cryptocurrency on Twitter and its return dynamics around pump-and-dump events. By analyzing abnormal returns, trading volume, and tweet activity, we uncover that Twitter effectively garners attention for pump-and-dump schemes, leading to notable effects on abnormal returns before the event. Our results indicate that investors relying on Twitter information exhibit delayed selling behavior during the post-dump phase, resulting in significant losses compared to other participants. We also find that, while tweets directly promoting pump schemes align with anticipated market phases, a noteworthy portion of indirect, non-pump-aware tweets significantly influence market movements pre-event.

Ifigenia Georgiou, Svetlana Sapuric, Petros Lois, Alkis Thrassou

The aim of this study is to analyze and synthesize the key challenges that are prevalent in the application of blockchain in accounting and auditing, to study the approaches to account for cryptocurrencies, to study the effect of blockchain on the accounting and auditing profession, and to identify the current direction of research of blockchain in accounting and auditing, as well as identify potential avenues of future research. The research is based on 75 peer-reviewed academic studies on the topic of blockchain in accounting and auditing, followed by a descriptive and thematic analysis of the literature. Our results indicate that there is a need for more empirical studies to be carried out, which coincides with the notion of growing digitization and blockchain adoption in accounting and auditing. Based on our thematic analysis of the literature, we recommend that future research on blockchain in accounting and auditing should concentrate on the following specific areas: skills and education, governance, auditor independence, accounting standards and regulation, and the challenges faced by the accounting and auditing professions due to the adoption of blockchain technology.