This study presented a literature review on the main issue associated with the impact of Bitcoin on the financial market and the new technological development that has reformed market interaction within society. Currently, the usefulness of digital currency has expanded financial trading. Bitcoin is considered the most significant global cryptocurrency due to its significant market recognition and technological nature. Although various studies have explained the merits and demerits of Bitcoin, most studies emphasised its influence and relationship with the financial market. Hence, this study also addressed this gap. An instrument and concepts were provided to comprehend the dynamics of Bitcoin and determine its function in the financial market. Moreover, the global meaning and function of Bitcoin were examined. Virtual and previous literature reviews highlighted a strong relationship between Bitcoin and the financial market with other cryptocurrencies. Summarily, Bitcoin is still in the early stage and needs to be developed through technological growth.
An important virtue of distributed ledger technologies is their acclaimed higher level of decentralisation compared to traditional financial systems. Empirical literature, however, suggests that many systems tend towards centralisation as well. This study expands the current literature by offering a first-time, data-driven analysis of the degree of decentralisation of the platform Hedera Hashgraph, a public permissioned distributed ledger technology, employing data directly fetched from a network node. The results show a considerably higher amount of released supply compared to the release schedule and a growing number of daily active accounts. Also, Hedera Hashgraph exhibits a high centralisation of wealth and a shrinking core that acts as an intermediary in transactions for the rest of the network. However, the Nakamoto index and Theil index point to recent progress towards a more decentralised network.
Syahruddin Kadir, Abdu Rahman RAH, Nur Indri Andriyani Yusuf
Background: In 2022 a student traded his selfies for a profit of 1.7 billion rupiah and managed to attract the attention of the world community. Objectives: This research aims to review the concepts of NFT and DeFi and to determine their utilization value. Novelty: Value of benefits (Maqashid Sharia) in NFT and DeFi Research Methodology / Design: The method used is a literature study with a phenomenological approach and the grand theory is analyzed using a constant comparison technique (qualitative). Findings: The research results explain that NFT is a digital work such as art, music, and photos that are traded using blockchain technology. DeFi is a financial ecosystem built by blockchain technology by providing financial services using cryptocurrency as an investment tool with easy and transparent access without being controlled by any financial institution. DeFi and NFT will build a more advanced financial industry by presenting decentralized financial services in the era of society 5.0. With just an internet connection and a compatible device, people can access various financial services without having to rely on account books, mobile banking, and so on. Implication: Its presence will open up new avenues for digital financial technology in the future. NFT and DeFi contain beneficial values in terms of maqashid sharia, namely hifzu al-din (protecting religion), hifzu al-'aql (protecting reason), hifzu al-nafs (protecting the soul), hifzu al-nasl (protecting offspring, and hifzu al-mal (protecting property).
Financial technology and green finance have an irreplaceable position in today's society. The relationship between the two is becoming increasingly close due to the diversification of economic development. For a long time, with the main support of national banks, China's green finance has been initially developed, but there are still many defects in its development, mainly facing five major challenges of imperfect information sharing, high riskiness of green projects, low participation of green industry, lack of effective regulatory mechanism and too single green financial products. By systematically analyzing the problems faced in the development of green finance in China, this paper aims to propose five specific suggestions and solutions by combining the four characteristics of blockchain: distributed ledger, decentralization, de-trust and non-tamperability, as well as its three application types of public chain, private chain and alliance chain to improve the information sharing system, use smart contracts to reduce risks, promote the transformation of small and micro enterprises through inclusive finance, introduce sandbox supervision mechanism and increase supervision, and enrich green financial service products. The use of blockchain features can provide feasibility for solving the current dilemma of green finance development and empower the innovative development of green finance.
Ross P. Buckley, Douglas W. Arner, Dirk A. Zetzsche
This chapter considers how distributed ledger technologies and blockchain can contribute to the creation of new foundational infrastructure for financial services, including crypto-assets and smart contracts. We classify the new business models, analyse the opportunities, and highlight the regulatory challenges.
Julia Amend, Patrick Troglauer, Tobias Guggenberger, Nils Urbach · 5 authors
Abstract Climate change and an increasing food demand due to a growing world population pose significant challenges for agriculture. Smallholders play a decisive role in establishing a sustainable and efficient future agricultural system since they already provide up to 80% of food in developing countries. However, they often face severe obstacles, especially in developing countries, hampering effective and efficient cooperation and productivity. Even though organizations in the form of cooperatives could help overcome some of the challenges of facilitating smallholders’ cooperation, they still suffer from structural problems. Further, in many countries, a lack of formal mechanisms to enforce contractual agreements exists. Given such challenges, decentralized autonomous organizations (DAOs) have already proven to provide alternative forms of governance independent of formal contracts or intermediaries. Therefore, this study follows the design science research paradigm to design, develop, and evaluate a decentralized autonomous organization in the agricultural sector that makes use of cooperative principles. This cooperative-oriented DAO is governed by smart contracts and technically enabled by blockchain technology as the underlying infrastructure. Through our developed and evaluated artifact, the AgriDAO, we guide researchers and practitioners on how such a cooperative-oriented DAO could look to solve existing problems related to smallholders and cooperatives. Additionally, we present eight design principles that will guide the development of cooperative-oriented DAOs. Finally, our research shall initiate lively discussion and extensive exploration of this new form of organization.
Blockchains have inspired imaginaries of a new iteration of the internet, hailed as Web3, where the power of centralized platform companies would be limited and the ownership of personal data and content could be retained by their individual owners and creators. Web3 is expected to facilitate the emergence of novel protocols and platforms that enable decentralized coordination of data and digital assets. This article examines critically the experiences and imaginaries of creators working on two blockchain-based video-sharing platforms: Theta.tv and Odysee. Building on the studies of creator culture and institutionalist blockchain economics and based on open-ended interviews with the early adopters of these platforms, the paper investigates how the creators experience these decentralized social media applications in terms of their processes of governance, community creation, and career development. We show how the affordances of blockchains and creator expectations can result in further convergence of community management and career-building functions potentially benefiting creators. We also show that the new wave of decentralization, against optimistic blockchain visions, has not yet led to the distributed ‘ownership’ of social media networks. Rather, while blockchains seem to have increased creator autonomy and added career opportunities, novel forms of platform governance and power have also introduced new perceptions of precarity among creators.
One of the technological advances found in the economic field is the emergence of crypto currency or also known as cryptocurrency, one type of which is ethereum. The progressivity of these transactions makes transaction activities more efficient because they can be applied virtually. When viewed in terms of profit obtained, ethereum can provide significant returns, but on the other hand also has a very high potential risk in terms of investment. The extreme volatility of ethereum digital transactions allows for spikes in price increases and decreases very quickly. The high volatility in question is a reflection of the level of risk faced by investors. This research was conducted to review the essentiality of ethereum digital transactions in the perspective of Islamic economics, because these transactions are still experiencing debate both in terms of legality and regulation, especially from the perspective of Islamic economics.
Financial Literacy plus new purchasing power can drive rapid and environmentally sustainable, local-to-global, economic development. Historically, new technologies promote new forms of money and commerce that usher in new economic eras. This chapter is for leaders and innovators in financial services and sustainable economic development. It reveals an emerging era of sustainable prosperity for all. The world can now eradicate centuries-old poverty and inequality at the pace of mobile apps and social media. The funding for this paradigm shift is a next-generation financial instrument and not higher taxes, deeper debt, or redistribution of wealth schemes. The chapter introduces the first token-less ledger currency that is distributed through a public Business-Community Wealth Ledger (BCWL). Dual Currency transactions integrate fiat currencies with wealth-backed ledger currencies, monetizing and mobilizing currently underutilized business resources and increasing profits for participating businesses.
Within the realm of investment, investors are presented with a multitude of options in terms of investment vehicles. Three options that are experiencing growing popularity include equities, collective investment schemes, and digital currencies. The literature search was conducted across multiple databases, including PubMed, Web of Sciences, EMBASE, Cochrane Libraries, and Google Scholar, to explore the comparative aspects of stock investments, mutual funds, and cryptocurrencies. Stocks are a type of investment that symbolize ownership in a corporation, offering the possibility of long-term earnings through the firm's expansion and delivery of dividends. Stocks exhibit diverse levels of risk contingent upon the specific firm and industry and are typically more suitable for investors with long-term objectives. Mutual funds are financial instruments that aggregate capital from multiple investors and allocate it into a diversified collection of investments. This service offers automated diversification and is ideal for investors seeking to entrust the management of their portfolio to professionals. Mutual funds are appropriate for both short-term and long-term objectives. Cryptocurrencies are virtual assets that are bought and sold on cryptocurrency exchanges. Cryptocurrencies exhibit a high degree of speculation and volatility, characterized by swift and unpredictable price movements. Investing in cryptocurrencies necessitates a comprehensive comprehension of technical aspects and entails substantial risks, typically regarded as a short-term or speculative investment.
This chapter aims to critically examine the conflict-of-laws implications of asset tokenisation, i.e. the progressive and increasing use of Distributed Ledger Technologies (DLTs) to represent, manage, track and transfer real world assets. While the analysis is grounded on current DLTs applications and the current state of the law, it is also largely prospective. Both intra-systemic and inter-systemic dimensions are considered, as issues of the legal nature of tokens and their localisation are strongly intertwined. Also, the possibility to monetise poorly liquid assets appears to largely account for the keen interest showed by economic actors in the tokenisation of assets. It is argued that legal systems should take due account of this new reality and adapt both substantially and at the conflict-of-laws level to secure rather than hinder transactions. Various proposed solutions and alternatives are scrutinised to conclude that both substantive private law and conflict of laws should focus on where the risks of asset tokenisation concentrate, i.e. the moment of transmutation of the underlying assets into tokens and vice versa. Concrete proposals are made, but political and policy decisions will remain a key necessity.
That the legal nature of cryptocurrencies does not fit into a comprehensive definition is already known. On the one hand, EU case law, albeit for tax purposes, has categorised bitcoin as a means of payment (European Court of Justice, judgment of 22 October 2015, C. 264/14). On the other hand, the highest European banking authority, with the opinion of 12 October 2016, reiterated that “virtual currencies do not qualify as currencies”. These latter words stand up in defence of that State’s patent, theorised by Georg Simmel (in Philosophy of money), concerning the monopoly right to coin money. Yet, this antinomic contradiction is only illusory, as with Directive 843/2018/EU, the European legislator restated that virtual currencies are: a digital representation of value that is not issued or guaranteed by a central bank or a public authority, is not necessarily attached to a legally established currency and does not possess a legal status of currency or money, but is accepted by natural or legal persons as a means of exchange and which can be transferred, stored and traded electronically. On the basis of these considerations, in the first part of this chapter the authors try to outline the current legal framework of cryptocurrencies with regard to their qualification as property. This contribution also focuses on the analysis of the recent proposal of a Regulation of the European Parliament and of the Council, on Markets in Crypto-assets, and amending Directive (EU) 2019/1937. This legislative draft is part of the Digital Finance package (made up of 4 draft laws), with the aim of “ensuring that the EU embraces the digital revolution and drives it with innovative European firms in the lead, making the benefits of digital finance available to European consumers and businesses”. The Commission therefore goes beyond the wait-and-see approach, aiming at uniformisation of the discipline inherent to crypto assets at a supranational level. In this context, the second part of this chapter tackles the issue of the solvency of a debtor with digital assets from a European transnational perspective, especially in light of the discipline laid down by EU Regulation 848/2015. Specifically, it relates how the legal qualification of digital assets, especially concerning cryptocurrencies, will affect the claim of virtual assets owners against the insolvency estate. This analysis then focuses on the debated matters of the insolvency of cryptocurrency exchange platforms and e-wallet service providers (applicable law, jurisdiction, recoverable assets), also relating to insolvency proceedings case-law. The authors thus attempt to relate the issues concerning insolvency, ordinarily connected to the application of national law, with the Blockchain and its decentralisation.
A donation-tracking system leveraging smart contracts and blockchain technology holds transformative potential for reshaping the landscape of charitable giving, especially within the context of Web 3.0. This paper explores how smart contracts and blockchain can be used to create a transparent and secure ledger for tracking charitable donations. We highlight the limitations of traditional donation systems and how a blockchain-based system can help overcome these challenges. The functionality of smart contracts in donation tracking, offering advantages such as automation, reduced transaction fees, and enhanced accountability, is elucidated. The decentralized and tamper-proof nature of blockchain technology is emphasized for increased transparency and fraud prevention. While elucidating the benefits, we also address challenges in implementing such a system, including the need for technical expertise and security considerations. By fostering trust and accountability, a donation-tracking system in Web 3.0, empowered by smart blockchain networks, aims to catalyze a profound positive impact in the realm of philanthropy.
The rise of digital currency and the public ledger Block Chain has led to the development of a new type of electronic contract known as "smart contracts." For these contracts to be considered valid, they must adhere to traditional contract rules and be concluded without any impediments. Once written, encrypted, and signed, smart contracts are recorded in the Block Chain Ledger, providing transparent and secure record-keeping. Smart contracts offer several benefits, including their ability to execute automatically without requiring human intervention, their provision of public visibility of contract provisions on the Block Chain, their avoidance of financial crimes like Money Laundering, and their prevention of contract abuses. However, disputes arising from smart contracts still require human intervention, presenting unique challenges in enforcing these contracts, such as evidentiary issues, enforceability of waivers of defenses, and jurisdictional and choice-of-law considerations. Due to the novel nature of smart contracts, there are currently no standardized regulations that apply to them. Countries that have approved them have turned to customary law to legitimize their use. The Delphi method was used to identify critical success factors for applying blockchain transactions in a manufacturing company. Stepwise Weight Assessment Ratio Analysis (SWARA) was then utilized to determine the most influential factors. The proposed methodology was implemented, and results show that the most influential factors for the successful application of blockchain transactions as smart contracts in a manufacturing company are: turnover, the counter argument, vision, components for building, and system outcome quality. Conversely, connections with government entities and subcontractors, and the guarantee of quality have the least influence on successful implementation. These findings can contribute to the development of a legal framework for smart contracts in a manufacturing company.
Today, challenges in Know Your Customer (KYC) and Anti-Money Laundering (AML) processes include inefficiencies, data silos, and the risk of fraudulent activities. Integrating blockchain technology offers a transformative solution to these issues. Blockchain's decentralized and tamper-resistant nature ensures a single, verifiable source of truth for customer information, reducing data discrepancies across institutions. Smart contracts can automate AML compliance checks, ensuring real-time monitoring and rapid response to suspicious activities. The immutability of blockchain records enhances auditability, facilitating regulatory compliance. Furthermore, the secure and transparent nature of blockchain instills trust among stakeholders, fostering collaboration in combating financial crimes. By leveraging blockchain in KYC and AML processes, the financial industry can achieve enhanced efficiency, reduced fraud, and strengthened regulatory adherence.
Currently, the advantages of decentralization through blockchain technology in the financial sector are actively discussed. In this article, we investigate the decentralization in the governance of Decentralized Autonomous Organizations (DAO) using the Gini coefficient as an indicator of inequality among the token owners. This metric is analyzed in the context of Return on Investment (ROI) for companies in the decentralized finance (DeFi) sector. Our goal is to understand whether the level of "real" decentralization in blockchain-based governance affects financial efficiency, and to explore the benefits and possible limitations of such an approach. This analysis allows for a deeper understanding of the significance and impact of decentralization on the functioning and productivity of organizations in the DeFi sector, and to determine the extent to which this impact is positively or negatively reflected in their success and profitability. Additionally, the results of this analysis will provide a fuller understanding of the dynamics and potential of blockchain for organization governance.
In this research, we explore the nexus between artificial intelligence (AI) and blockchain, two paramount forces steering the contemporary digital era. AI, replicating human cognitive functions, encompasses capabilities from visual discernment to complex decision-making, with significant applicability in sectors such as healthcare and finance. Its influence during the web2 epoch not only enhanced the prowess of user-oriented platforms but also prompted debates on centralization. Conversely, blockchain provides a foundational structure advocating for decentralized and transparent transactional archiving. Yet, the foundational principle of "code is law" in blockchain underscores an imperative need for the fluid adaptability that AI brings. Our analysis methodically navigates the corpus of literature on the fusion of blockchain with machine learning, emphasizing AI's potential to elevate blockchain's utility. Additionally, we chart prospective research trajectories, weaving together blockchain and machine learning in niche domains like causal machine learning, reinforcement mechanism design, and cooperative AI. These intersections aim to cultivate interdisciplinary pursuits in AI for Science, catering to a broad spectrum of stakeholders.
Stefan Kambiz Behfar, Richard Mortier, Jon Crowcroft
Blockchain technology has revolutionized the way information is propagated in decentralized networks. Ethereum plays a pivotal role in facilitating smart contracts and decentralized applications. Understanding information propagation dynamics in Ethereum is crucial for ensuring network efficiency, security, and scalability. In this study, we propose an innovative approach that utilizes Graph Convolutional Networks (GCNs) to analyze the information propagation patterns in the Ethereum network. The first phase of our research involves data collection from the Ethereum blockchain, consisting of blocks, transactions, and node degrees. We construct a transaction graph representation using adjacency matrices to capture the node embeddings; while our major contribution is to develop a combined Graph Attention Network (GAT) and Reinforcement Learning (RL) model to optimize the network efficiency and scalability. It learns the best actions to take in various network states, ultimately leading to improved network efficiency, throughput, and optimize gas limits for block processing. In the experimental evaluation, we analyze the performance of our model on a large-scale Ethereum dataset. We investigate effectively aggregating information from neighboring nodes capturing graph structure and updating node embeddings using GCN with the objective of transaction pattern prediction, accounting for varying network loads and number of blocks. Not only we design a gas limit optimization model and provide the algorithm, but also to address scalability, we demonstrate the use and implementation of sparse matrices in GraphConv, GraphSAGE, and GAT. The results indicate that our designed GAT-RL model achieves superior results compared to other GCN models in terms of performance. It effectively propagates information across the network, optimizing gas limits for block processing and improving network efficiency.
Decentralized Finance (DeFi) is a prominent application of smart contracts, representing a novel financial paradigm in contrast to centralized finance. While DeFi applications are rapidly emerging on mainstream blockchain platforms, their quality varies greatly, presenting numerous challenges, particularly in terms of their governance mechanisms. In this paper, we present a comprehensive study of governance issues in DeFi applications. Initially, we collected 3,165 academic papers and numerous industry reports. After thorough screening, we selected 44 academic papers and 11 industry reports for detailed analysis. Drawing upon insights from industry reports and academic research articles, we develop a taxonomy to categorize these governance issues. We collect and build a dataset of 4,446 audit reports from seventeen Web3 security companies, categorizing their governance issues according to our constructed taxonomy. We conducted a thorough analysis of governance issues and identified vulnerabilities in the governance design and implementation, e.g., voting sybil attack and proposal front-running. Our statistical analysis indicates that a significant portion (35.48%) of governance-related issues is classified as severe. Within these, ownership-related problems constitute the largest share (65.38%). Despite DeFi governance being essential for the long-term success of DeFi projects, our data shows that both auditors and development teams have not fully grasped its significance. Based on audit reports, we also analyzed common vulnerabilities and issues in the governance domain. Our research identifies two primary categories of DeFi governance issues: technology-centric and human-centric. Technology-centric issues can be addressed through technology updates and iterations, whereas human-centric issues are influenced not only by the development team's technical skills but also by their understanding of DeFi governance. Data analysis reveals that design and implementation issues are frequently overlooked; although not directly associated with vulnerabilities, these issues can impact the equitable distribution of project benefits. Furthermore, our analysis of 104 projects’ tokenomics configurations, including 15 collected from DeFi platforms, uncovered 27 inconsistent configurations, with only two projects exhibiting no issues. This suggests that such issues are relatively common. We therefore advise project teams to ensure consistency between their tokenomics design and the actual code. Our study culminates in providing several key practical implications for various DeFi stakeholders, including developers, users, researchers, and regulators, aiming to deepen the understanding of DeFi governance issues and contribute to the robust growth of DeFi systems.
Van Duy Tran, Shingo Ata, Thi Hong Tran, Duc Khai Lam · 5 authors
The collection and examination of student data, encompassing academic achievements, awards, and certifications, assume an essential function within the field of education as a means of showing students’ capabilities. Nevertheless, it is crucial to note that regular paper-based records are vulnerable to both physical destruction and the act of fabrication, while standard databases can have security holes. Moreover, the process of manually gathering physical papers from centralized organizations is both laborious and complicated. To address the concerns above and foster sustainability in the field of education, this study first suggests using Scorechain. This innovative solution integrates blockchain technology into a comprehensive data-management system for managing all student-related data. Secondly, by utilizing the inherent security features of blockchain technology, Scorechain develops a stable multi-role hierarchy, increasing the integrity and reliability of data. This also facilitates the efficient transfer of information among various stakeholders, including parents, recruiters, and educational institutions, thus fostering transparency and accountability. Lastly, the Scorechain system facilitates collaboration and data exchange among universities inside a shared network. Scorechain was constructed using the Rust programming language and is based on the Substrate blockchain architecture. It underwent careful development, testing, and analysis to ensure operational efficiency. The feasibility and long-term viability of Scorechain in genuine educational contexts are highlighted as blockchain technology facilitates seamless integration into the education sector.
Rohan Gaikwad, Adesh Bhor, Yash Bhor, Prof. Shubham shelke
The concept of Non-Changeable Documents (NCDs) using blockchain technology is a pivotal development in ensuring data integrity and security. This paper explores the innovative approach of employing blockchain to create immutable records, guaranteeing the authenticity and integrity of documents. NCDs leverage the decentralization and cryptographic features of blockchain, rendering documents unalterable. Their application spans across various industries, including legal, healthcare, and finance, promising significant advantages in terms of fraud prevention, transparency, and compliance. This research paper also delves into the technical underpinnings of NCDs, elucidating the cryptographic mechanisms and consensus protocols that safeguard their reliability. By harnessing the decentralized and tamper-proof nature of blockchain, NCDs provide a formidable solution for organizations seeking to safeguard critical data against unauthorized alterations. This transformative potential of Non-Changeable Documents underscores their ability to elevate document security and establish trust in an increasingly interconnected digital landscape. In an era marked by data breaches and concerns over document authenticity, NCDs offer a promising avenue to ensure the integrity and security of sensitive information, reinforcing trust in digital records. Key Words: Blockchain, Documents, Fraud, Smart Contract, Ethereum Blockchain, Security
Darren Aiello, Scott Baker, Tetyana Balyuk, Marco Di Maggio · 6 authors
We provide a first look into the drivers of household cryptocurrency investing.Analyzing consumer transaction data for millions of U.S. households, we find that, except for high income early adopters, cryptocurrency investors resemble the general population.These investors span all income levels, with most dollars coming from high-income individuals, similar to equity investors.High past crypto returns and personal income shocks lead to increased cryptocurrency investments.Higher household-level inflation expectations also correlate with greater crypto investments, aligning with hedging motives.For most U.S. households, cryptocurrencies are treated like traditional assets.
Abstract—This research paper explores the integration of blockchain technology in healthcare to establish a decentralized system that enhances security, privacy, and patient control over health data. The proposed framework utilizes blockchain's tamper-resistant ledger to create a transparent and secure repository for patient records, ensuring data integrity and confidentiality. Smart contracts enable automated and controlled data sharing, fostering collaboration among healthcare stakeholders. Real-world implementations and case studies illustrate the potential impact of this decentralized healthcare system in revolutionizing data management, research collaboration, and patient outcomes. The findings highlight the significance of blockchain in addressing critical challenges in traditional healthcare systems, presenting a promising solution for a more secure and patient-centric future. Keywords—Distributed Ledger, Smart Contracts, Data Integrity, Patient Control, User interface, Regulatory compliance, Immutable Ledger
Abstract - The surge in cryptocurrency popularity has sparked significant interest in its impact on traditional financial markets. This study examines the multifaceted relationship between cryptocurrency adoption and established financial systems. Through a comprehensive literature review, we analyze previous research on the subject, investigating the influence of cryptocurrencies on stock markets, banking institutions, and regulatory frameworks. Methodologically, this research employs a mix of qualitative and quantitative approaches to assess cryptocurrency adoption trends, investor behavior, and market dynamics. The findings highlight both the disruptive potential and challenges posed by widespread cryptocurrency adoption, emphasizing the volatility, regulatory responses, and evolving investor sentiments. By exploring case studies and future implications, this paper offers insights into the evolving landscape of finance, providing recommendations for stakeholders navigating this intersection between emerging digital currencies and traditional financial markets. Key Words: Cryptocurrency, Financial Markets, Adoption, Influence.