Through creative, open, and interoperable financial solutions, decentralized finance is upending the financial system. Decentralized finance, based on distributed ledger technology, is a young and quickly developing field. In terms of growth, decentralized finance protocols are experiencing a perfect storm. However, this developing field requires careful examination because particular hazards are associated with these financial innovations for consumers, creators, regulators, and other stakeholders. The current study seeks to categorize and rank the risks involved in decentralized finance. The present study aims to identify the numerous dangers of decentralized finance through a thorough literature review. Data obtained from experts in previous studies were used for the survey used for empirical analysis. A Fermatean fuzzy AHP (FF-AHP) was used to rank various risks in decentralized finance. Technical risks are the most important, followed by legal, regulatory, and financial risks, according to pairwise comparisons and weights of all the criteria and sub-criteria. Financial risks are the most significant sub-risk, followed by smart contract and transaction risks. The findings of this study have several ramifications for legislators, businesspeople, technologists, and practitioners. These stakeholders can concentrate on these weaknesses in the future and provide longer-lasting solutions.
In the era of digital economy, the digital transformation of the payment industry has become a general trend. However, digital transformation can bring development opportunities to the payment industry, but it also faces some challenges. Blockchain technology is regarded as the key core technology to support the future development and application of the Internet. The development of blockchain has become the focus of financial technology. Its decentralization, simple process, openness, transparency, and non-tampering characteristics can effectively solve traditional payment problems. problems existing in. It is precisely because of the characteristics of decentralization that the payment method is more information symmetric and transparent, which greatly improves the security of the transaction process. Commercial banks use the blockchain consensus mechanism to ensure that the data of the platform, upstream and downstream, and other participants reach a consensus across the entire network to ensure information symmetry and transparency; the secure interaction of information is achieved through encryption algorithms, which solves the possibility of information being tampered with; blocks The timestamp feature of the chain ensures the integrity of historical data. This topic is based on the research on the role of blockchain technology in the digital transformation of the payment industry. It is mainly used in the following three aspects:1.This technology has the intelligent features of payment settlement and fund management. Ensure the safe interaction of transaction information by improving payment efficiency and the security of fund transactions. 2.This technology has the characteristics of high efficiency and low cost. It efficiently and low-costly obtains true and reliable data in the system, optimizes the credit creation mechanism, forms a new trade financing model, and effectively reduces financing risks. 3.This technology has safe and low-risk characteristics. Improve the level of data governance, improve the intelligence level of KYC, risk control strategies, and anti-money laundering, and reduce the risks of both banks and the industrial Internet.
With the popularity of Non-Fungible Tokens (NFTs), which has now become a financial market that has attracted extensive attention worldwide. A large number of investors and creators are flocking to this emerging market in search of investment opportunities. Nowadays, many studies have analysed this phenomenon from an economic perspective. However, we know little about the players and ecosystem characteristics of this market. To fill this knowledge gap, we first provide a processed large-scale dataset of the Ethereum blockchain-based NFT market, containing more than 80 million NFT transaction records from January 2018 to April 2022. Second, we constructed the NFT creator graph (NCG) and NFT holder graph (THG) to delve into the characteristics of the NFT market. Further, we analyse the market preferences and trends using statistical methods to reveal the development trends of the NFT market. Finally, we focus on predicting the transaction volume of the NFT market and analyse the influence factors. This study provides data support for participants and researchers to explore the NFT market, while our analysis promotes a deeper understanding of the NFT market among the public.
Ahmad Anwar Zainuddin, Hariz Syahmi Hairo Rose Sidi, Muhammad Dini Aulia Shamsudin, Khaleel Ahmad · 8 authors
In recent times, attention has surged towards entities with the potential to revolutionize various sectors. The integration of Internet of Things (IoT) and blockchain technologies, known as IoT-blockchain, offers numerous advantages, including heightened security, privacy, traceability, transparency, and reduced costs. This abstract delves into the taxonomy and prominent platforms of blockchain applications for IoT in networking systems, exploring recent advancements, obstacles, and future research avenues. IoT blockchain's crucial aspect lies in establishing decentralized networks, enabling secure collaboration and data interchange among diverse devices without a central governing entity. Platforms like Ethereum, Hyperledger, and IOTA facilitate the creation and management of these networks. Recent developments focus on enhancing security, scalability, and efficiency through novel consensus mechanisms and cryptographic techniques. Challenges persist, including the need for improved interoperability, integration with existing systems, efficient governance, regulatory structures, and the identification of use cases and business models for widespread adoption. The examination of successful governance, regulatory frameworks, and potential adoption catalysts completes the discourse on IoT blockchain technology.
Since Bitcoin was first proposed in late 2008 and went live in 2009, hundreds of research papers have been published trying to understand the behaviour of cryptocurrencies and their impact on financial markets. Their size and importance to the financial sector has increased substantially also has the number of challenges they face and the negative externalities they have caused. This article reviews the related cryptocurrency literature and introduces articles included in this special issue on this theme which were presented at the 2020 Cryptocurrency Research Conference. We conclude by offering possible future research directions.
In recent years, there has been a growing interest in real estate investments that utilize blockchain technology. Traditional real estate investments usually involve third-party intermediaries for verifying and recording real estate informal transactions. This paper proposes a blockchain-based real estate investment model and presents a detailed description of the real estate register authentication aspect of the model. The model uses blockchain technology to create tamper-evident records of real estate transactions and provide secure authentication and verification of real estate informal transactions. Meanwhile, each real estate transaction is recorded in a block, and all transaction records are kept on the blockchain. This means that inventors can access these transaction records and verify their authenticity and validity. The system can also use smart contracts to automate the process of real estate transactions, which further improves transaction efficiency and reduces costs. Further, the model's timestamp and authentication mechanism can eliminate third-party intermediaries and ensure the authenticity and validity of real estate transactions through distributed ledgers and verification mechanisms. Overall, blockchain-based real estate systems offer advantages of security, transparency, efficiency, and cost reduction. With ongoing blockchain advancements, these systems are expected to play a crucial role in future real estate investment transactions.
Blockchain technologies have been used to facilitate Web 3.0 and FinTech applications. However, conventional blockchain technologies suffer from long transaction delays and low transaction success rates in some Web 3.0 and FinTech applications such as Supply Chain Finance (SCF). Blockchain sharding has been proposed to improve blockchain performance. However, the existing sharding methods either use a static sharding strategy, which lacks the adaptability for the dynamic SCF environment, or are designed for public chains, which are not applicable to consortium blockchain-based SCF. To address these issues, we propose an adaptive consortium blockchain sharding framework named ACSarF, which is based on the deep reinforcement learning algorithm. The proposed framework can improve consortium blockchain sharding to effectively reduce transaction delay and adaptively adjust the sharding and blockout strategies to increase the transaction success rate in a dynamic SCF environment. Furthermore, we propose to use a consistent hash algorithm in the ACSarF framework to ensure transaction load balancing in the adaptive sharding system to further improve the performance of blockchain sharding in dynamic SCF scenarios. To evaluate the proposed framework, we conducted extensive experiments in a typical SCF scenario. The obtained experimental results show that the ACSarF framework achieves a more than 60% improvement in user experience compared to other state-of-the-art blockchain systems.
The Theory of Planned Behaviour is used in this study to investigate the investment intentions of young potential investors in Indonesia. As supplementary dimensions, financial self-efficacy, risk-taking proclivity, and inclination for innovation are offered. A questionnaire-based survey was utilised to collect responses from 276 potential investors, and AMOS and SPSS were used to identify correlations between the components. Financial self-efficacy appears to play a dual function in the association between personality characteristics and investment intention, according to the data. The study only looks at investing intentions, not actual investment behaviour or demographic characteristics. The findings might help financial service providers create "behavioural portfolios" based on their clients' personality attributes, fostering financial confidence in individuals. This research is one of the first efforts in the Indonesian cryptocurrency market to introduce financial self-efficacy as a dual construct within the TPB framework.
Despite the growth in the number of decentralized applications (DApps) supported by the Ethereum blockchain, we can observe the narrow scope of these DApps, concentrated within the fintech and games areas. A cause for the lack of range of DApps lies in the fees for transactions sent to backing smart contracts. While consistent steps have been made to overcome cost efficiency problems, introducing rollups as a secondary layer solution, intertwined accessibility and security drawbacks still persist. Measures addressing some of these issues like account abstraction were independently proposed. These solutions bring changes in transaction handling that often exceed the scope of smart contracts, where the core of DApp logic resides. Integrating such measures often requires the use of new frameworks and understanding the changes in the transaction flow, which can prove challenging to a DApp developer. A question is whether the current landscape of solutions proposed for increasing usability is capable of producing a consistent impact on DApp scope trends. In this position paper we try to answer this, raising also the matter of impact on DApp engineering.
The study focuses on developing a smart contract framework for the sharing of government big data in the context of “ckchain + government big data." The unique characteristics of government big data sharing are taken into consideration during the modeling process. The analysis of the smart contract's operational mechanism for "blockchain + government big data" sharing encompasses various aspects, including contract generation, deployment, and invocation. Furthermore, the research investigates the key challenges associated with cross-chain sharing of government big data. Building upon this analysis, the framework and operational mechanism of a smart contract for cross-chain sharing of government big data are examined within the specific scenario of cross-chain sharing. Consequently, valuable recommendations are proposed to facilitate the open sharing and controlled utilization of government big data within the blockchain context.
Nazaruddin A. Wahid, Dara Amanatillah, Cut Dian Fitri
The rapid growth of information technology, along with the increasing global digital economy and the public's need for reliable and secure payments, led to the invention of various digital currencies, including cryptocurrency. These currencies are based on the principles of supply and demand, with Bitcoin emerging as the leading crypto. This study aims to analyze the potential and challenges of using Bitcoin as a medium of exchange or commodity in Indonesia. Employing a qualitative approach, the study extensively explores library research methods, gathering data from various scholarly sources, including articles, books, and other relevant documents. The findings reveal that from an Islamic jurisprudence (fiqh) perspective, electronic money is considered a legitimate transactional instrument, similar to physical currency. Any costs incurred during the top-up process are considered as wages or fees (ujrah). If Bitcoin were to attain currency status, it would be subject to regulation under currency exchange laws (al-sarf) and categorized as usury property (al-maal al-ribawi). However, due to the absence of regulatory oversight by Indonesian financial authorities, the use of Bitcoin as a medium of exchange or a commodity does not carry legal implications. This regulatory gap results in more disadvantages than advantages in its implementation.============================================================================================================ABSTRAK – Dari Fikih ke Keuangan: Mengases Status Bitcoin dalam Sistem Moneter Indonesia. Pertumbuhan teknologi informasi yang pesat diikuti perkembangan ekonomi digital global, dan kebutuhan masyarakat akan metode pembayaran yang handal dan aman, memunculkan berbagai mata uang digital, termasuk cryptocurrency. Nilai uang ini didasarkan pada prinsip permintaan (demand) dan penawaran (supply), dimana Bitcoin menjadi mata uang cripto yang paling populer. Penelitian ini bertujuan untuk menganalisis potensi dan tantangan penggunaan Bitcoin sebagai alat tukar atau sebagai komoditas di Indonesia. Dengan pendekatan kualitatif, studi ini menggunakan metode library research dengan mengumpulkan data-data dari artikel, buku, dan berbagai sumber ilmiah relevan lainnya. Temuan penelitian menunjukkan bahwa dari sudut pandang fikih, uang elektronik dianggap sebagai alat pembayaran yang sah, disamakan dengan uang fisik. Untuk biaya-biaya yang dikeluarkan selama proses pengisian ulang dianggap sebagai ujrah. Jika Bitcoin berstatus sebagai alat tukar resmi, maka pengaturannya akan berada dalam konteks al-sarf dan dikategorikan sebagai harta ribawi (al-maal al-ribawi). Akan tetapi, OJK sebagai otoritas keuangan di Indonesia telah menerbitkan aturan yang melarang lembaga keuangan menggunakan, memasarkan, dan memfasilitasi perdagangan aset kripto. Meskipun Bitcoin dapat diperdagangkan sebagai komoditas di bawah pengawasan Bappebti Kementerian Perdagangan, ia tidak diakui sebagai instrumen pembayaran di Indonesia. Oleh karena itu, penggunaannya dalam transaksi keuangan berpotensi menimbulkan lebih banyak kemudharatan dibandingkan kemaslahatan akibat ketiadaan status hukum sebagai alat tukar.
We find that planned cryptocurrency forks, like voluntary corporate spin-offs, are wealth-creating. Involuntary forks that are forced due to hacks and other problems with the blockchain are not. We find diminishing returns for second-generation forks, alleviating the concern of forking solely for wealth creation.
I study the price dynamics of non-fungible tokens (NFTs) and propose a deep learning framework for dynamic valuation of NFTs. I use data from the Ethereum blockchain and OpenSea to train a deep learning model on historical trades, market trends, and traits/rarity features of Bored Ape Yacht Club NFTs. After hyperparameter tuning, the model is able to predict the price of NFTs with high accuracy. I propose an application framework for this model using zero-knowledge machine learning (zkML) and discuss its potential use cases in the context of decentralized finance (DeFi) applications.
A distributed and decentralised ledger system shared by a variety of users in a peer-to-peer network is defined as a blockchain. Through its decentralised approach, it makes pharmaceutical products more accessible and secure for vendors, while they can maintain and access their inventories themselves. Between a company and its suppliers, a supply chain is used to produce and distribute a specific product or service, whose efficiency is increased with its integration in the supply chain. For efficient and transparent tracking of products, blockchain will be the right choice. In view of blockchain being incorporated into the supply chain system, it solves many logistical issues that supply chains face, such as appropriate data access, ensuring data quality, and many more. This can increase the traceability of the material supply chain and improve the maintenance of the list when there are several products to be supplied. Therefore, the concept of supply chain was developed in two platforms namely, Hyperledger Fabric and Hyperledger Sawtooth. Finally, Hyperledger Sawtooth was found to be well suited for creating decentralised apps or platforms with respect to resource utilization It enables developers to separate their application domain from the core system so that business rules for apps can exist without requiring knowledge of the primary platform's underlying architecture. The proposed system shows that Hyperledger Sawtooth framework consumes lower CPU than Fabric which helps in increasing the number of transactions.
As blockchain smart contracts become more widespread and carry more valuable digital assets, they become an increasingly attractive target for attackers. Over the past few years, smart contracts have been subject to a plethora of devastating attacks, resulting in billions of dollars in financial losses. There has been a notable surge of research interest in identifying defects in smart contracts. However, existing smart contract fuzzing tools are still unsatisfactory. They struggle to screen out meaningful transaction sequences and specify critical inputs for each transaction. As a result, they can only trigger a limited range of contract states, making it difficult to unveil complicated vulnerabilities hidden in the deep state space. In this paper, we shed light on smart contract fuzzing by employing a sequence-aware mutation and seed mask guidance strategy. In particular, we first utilize data-flow-based feedback to determine transaction orders in a meaningful way and further introduce a sequence-aware mutation technique to explore deeper states. Thereafter, we design a mask-guided seed mutation strategy that biases the generated transaction inputs to hit target branches. In addition, we develop a dynamic-adaptive energy adjustment paradigm that balances the fuzzing resource allocation during a fuzzing campaign. We implement our designs into a new smart contract fuzzer named MuFuzz, and extensively evaluate it on three benchmarks. Empirical results demonstrate that MuFuzz outperforms existing tools in terms of both branch coverage and bug finding. Overall, MuFuzz achieves higher branch coverage than state-of-the-art fuzzers (up to 25%) and detects 30 % more bugs than existing bug detectors.
Aušrinė Šilenskytė, Jurgita Butkevičienė, Andrius Bartminas
Digital globalization enabled by disruptive technologies has opened a myriad of ways to create value, warranting a cross-disciplinary research agenda on digital connectivity in international business (IB). Given the scarcity of understanding about the role of specific technologies enabling value creation through digital connectivity, we investigate how blockchain-based digital connectivity shapes value creation in international digital platforms and ecosystems (DPEs). Building on a comparative empirical analysis of international DPEs enabled by different types of blockchain technology, we develop a typology of blockchain-based connectivity in IB. The typology demonstrates how different blockchain technology types enable different kinds of connectivity, resulting in diverse approaches to value creation within newly emerging forms of DPEs. These findings contextualize the concept of digital connectivity, enabling more precise explanations of blockchain's adoption in DPEs, and expand the conceptualization of DPEs, with three new types emerging from the utilization of blockchain-based connectivity. Moreover, this interdisciplinary explanation reveals why certain features theoretically attributed to blockchain (e.g., decentralization, trust) do not always realize or support value creation in practice in IB based on the DPE business model.
Jayson Diaz, Mikko Abang, Maria Atam, Mark Ballados
This research delves into investigating the awareness and engagement of vicenarian professionals with cryptocurrency and the digital economy in Koronadal City, Philippines. The study examined the demographic profiles to gain a comprehensive understanding of the participants. Furthermore, it assesses the participants' level of awareness concerning cryptocurrency applications, trading platforms, and associated risks and opportunities. To achieve its objectives, the research adopts a descriptive multivariate correlational approach, leveraging confirmatory predictive analysis to identify significant factors influencing engagement. The study reveals a balanced gender distribution among the participants, showcasing diverse income levels and educational backgrounds. Interestingly, most respondents demonstrate neutral levels of awareness concerning cryptocurrency applications and the associated risks and opportunities. Surprisingly, technological awareness, economic conditions, government regulations, and security concerns do not emerge as significant factors influencing engagement. However, the study uncovers that social media factors play a pivotal role as a significant determinant of engagement among vicenarian professionals. This finding provides valuable insights for policymakers and industry stakeholders aiming to boost cryptocurrency and digital economy participation among young professionals in the region.
Minh Vu Nguyen, Ngoc Thuy Le, Dung Hoang Duong, Yannan Li · 5 authors
This paper presents a comprehensive investigation into the role, functionalities, and complexities of blockchain oracles, focusing particularly on the implications for smart contracts in legal reasoning contexts. Oracles serve as a vital bridge to smart contracts’ inability to interact with external or “off-chain” data, enabling them to be used in a variety of real-world situations. Oracle’s integration, however, introduces a number of complexities, including security vulnerabilities, collectively referred to as the Oracle Problem. In addition to a review of existing literature, we also provide a mathematical analysis quantifying the computational complexity associated with automating legal reasoning and a novel design framework aimed at establishing oracles that are secure, efficient, and legally compliant. The paper aims to serve as a foundational text for researchers, legal practitioners, and blockchain developers, advancing the academic discourse surrounding blockchain oracles and their role in smart contracts.
This research delves into the intricate world of Non-Fungible Token (NFT) scripts, focusing on globally renowned platforms and the underlying technologies that power them, with a particular emphasis on core blockchain and Polygon Matic. The study aims to provide a comprehensive analysis of the scripting languages and smart contract functionalities employed in crafting world-famous NFTs. Leveraging the blockchain core and Polygon Matic, this exploration encompasses an in-depth examination of scripting intricacies, interoperability challenges, and the evolving standards that define the NFT landscape. The research also addresses the scalability concerns associated with core blockchain and explores how Polygon Matic, a layer-2 scaling solution, contributes to overcoming these limitations. Furthermore, the study investigates the environmental implications of NFT scripting by analyzing the energy efficiency of blockchain technologies. As NFTs continue to shape the digital ownership paradigm, understanding the scripts on both core blockchain and Polygon Matic becomes pivotal for creators, collectors, and researchers alike. The findings aim to contribute insights into the technical nuances, future trends, and sustainable practices within the dynamic and global domain of NFT scripting.
Abstract The emergence of blockchain technology has spurred research and industrial advances, presenting potential benefits and practical solutions for various industries and their communities. Blockchain technology enables the efficient distribution, sharing, and secure storage of transactional data, leading to increased transparency and productivity in supply chains. While blockchain is seen as a disruptive technology, it is essential to explore its applicability to various industries. To this end, this study conducts a bibliometric analysis of the extant blockchain literature to better understand its potential applications. The study presents a systematic literature review that highlights the practical application of blockchain technology transfer in various industries, such as pharmaceuticals, banking and financial services, and media and entertainment.
Nir Chemaya, Lin William Cong, Emma Joergensen, Dingyue Liu · 5 authors
Decentralized Finance (DeFi) is revolutionizing traditional financial services by enabling direct, intermediary-free transactions, thereby generating a substantial volume of open-source transaction data. This evolving DeFi landscape is particularly influenced by the emergence of Layer 2 (L2) solutions, which are poised to enhance network efficiency and scalability significantly, surpassing the existing capabilities of Layer 1 (L1) infrastructures. However, the detailed impact of these L2 solutions has been somewhat obscured due to a dearth of transaction data indices that can provide in-depth economic insights for empirical research. This study seeks to address this critical gap by conducting a comprehensive analysis of raw transactions sourced from Uniswap, a central decentralized exchange (DEX) within the DeFi ecosystem. The dataset encompasses an extensive collection of over 50 million transactions from both L1 and L2 networks. Additionally, we have curated a wide-ranging repository of daily indices derived from transaction trading data across prominent blockchain networks, including Ethereum, Optimism, Arbitrum, and Polygon. These indices shed light on crucial network dynamics, such as adoption trends, evaluations of scalability, decentralization metrics, wealth distribution patterns, and other key aspects of the DeFi landscape. This rich dataset serves as an invaluable tool, enabling researchers to dissect the complex interplay between DeFi and Layer 2 solutions, thus enhancing our collective understanding of this rapidly evolving ecosystem. Its notable contribution to the data science pipeline includes the implementation of a flexible, open-source Python framework, enabling the dynamic calculation of decentralization indices, customizable to specific research requirements. This adaptability makes the dataset particularly suitable for advanced machine learning applications, including deep learning, thereby solidifying its role as a critical asset in shaping Blockchain as the foundational infrastructure for the intelligent Web3 ecosystem.
Nir Chemaya, Lin William Cong, Emma Jorgensen, Dingyue Liu · 5 authors
Decentralized Finance (DeFi) is reshaping traditional finance by enabling direct transactions without intermediaries, creating a rich source of open financial data. Layer 2 (L2) solutions are emerging to enhance the scalability and efficiency of the DeFi ecosystem, surpassing Layer 1 (L1) systems. However, the impact of L2 solutions is still underexplored, mainly due to the lack of comprehensive transaction data indices for economic analysis. This study bridges that gap by analyzing over 50 million transactions from Uniswap, a major decentralized exchange, across both L1 and L2 networks. We created a set of daily indices from blockchain data on Ethereum, Optimism, Arbitrum, and Polygon, offering insights into DeFi adoption, scalability, decentralization, and wealth distribution. Additionally, we developed an open-source Python framework for calculating decentralization indices, making this dataset highly useful for advanced machine learning research. Our work provides valuable resources for data scientists and contributes to the growth of the intelligent Web3 ecosystem.
Yue Xue, Dunqiu Fan, Shen Su, Jialu Fu · 7 authors
Decentralized finance (DeFi) is a general term for a series of financial products and services. It is based on blockchain technology and has attracted people’s attention because of its open, transparent, and intermediary free. Among them, the DeFi ecosystem based on Ethereum-based blockchains attracts the most attention. However, the current decentralized financial system built on the Ethereum architecture has been exposed to many smart contract vulnerabilities during the last few years. Herein, we believe it is time to improve the understanding of the prevailing Ethereum-based DeFi ecosystem security issues. To that end, we investigate the Ethereum-based DeFi security issues: 1) inherited from the real-world financial system, which can be solved by macro-control; 2) induced by the problems of blockchain architecture, which require a better blockchain platform; 3) caused by DeFi invented applications, which should be focused on during the project development. Based on that, we further discuss the current solutions and potential directions of DeFi security. According to our research, we could provide a comprehensive vision to the research community for the improvement of Ethereum-based DeFi ecosystem security.