This exploratory applied study examines the nature and dimensions of cryptocurrency, namely bitcoin, a peer-to-peer network for facilitating digital barter. As the most widely used cryptocurrency, bitcoin has carved itself a niche market while also promoting the use of other cryptocurrencies. Through descriptive analysis and a visual analytic approach, the study highlights key characteristics and dimensions of bitcoin. The study helps understand the nature and extent of bitcoin use, assisting policymakers to shape and regulate the cryptocurrency marketplace in this contemporary volatile environment.
Blockchain technology, the bedrock of cryptocurrency, has evolved beyond its initial scope, paving the way for a plethora of decentralized, secure applications.The anticipation surrounding blockchain's potential to become the dominant technology orchestrating online transactions is growing, due to its ability to provide efficient and secure solutions for a diverse range of applications on a global scale.This study delves into the potential benefits of deploying blockchain technology in the realm of crowdfunding.In recent years, crowdfunding has emerged as an alternative route for startups to garner funds, presenting a less bureaucratic and simpler process.The conventional crowdfunding model entails a collective of individuals contributing minor sums to support a project or start-up, with the crowdfunding platform earning a commission to coordinate the needs of both funders and fundraisers.Nonetheless, blockchain technology could potentially enhance the crowdfunding process by introducing a decentralized, tamperproof system comprised of interconnected nodes, thereby bolstering transparency, trust, efficiency, and convenience.To realize this potential, this paper proposes the application of Ethereum smart contracts to tackle prevalent issues in both Donation-Based and Equity-Based crowdfunding models.By adopting this approach, we hope to bring about greater transparency and efficiency to the crowdfunding process, thereby fostering an environment of trust that may catalyze further innovation in this space.
Agata Gąsiorowska, Michał Folwarczny, Jón Þór Sturluson, Ender Demir
The purpose of this study is to investigate whether the variables that are usually considered predictors of participation in the stock market, such as gender, age, education, income, and financial risk attitude, are also useful for predicting participation in the cryptocurrency market. We conducted a unique survey of 1,036 adult participants from Iceland. The results reveal that 8% of the sample has invested in crypto-assets in the past, while the current ownership rate stands at 5%. Being young, male, risk-tolerant, open to new technologies, and perceiving savings in Icelandic banks as less secure was associated with a higher likelihood of crypto-assets investment. Furthermore, we found that higher individual subjective financial knowledge related to cryptocurrencies was is associated with a higher likelihood of owning cryptocurrencies and explains the association between gender and investment in cryptocurrencies.
Raising capital for a project from a crowd of retail investors has become established as a practice in the last decade. A practice mainly driven by the lack of alternatives for startup entrepreneurs, and the various positive features and functionalities of these models, allowing for more audience engagement, proof of concept, marketing, etc. With the proliferation of blockchain technologies (also known as distributed ledger technologies), there is a technical opportunity for these processes to be refined and for equity crowdfunding to enter a new stage of development. This study proposes a model for the application of blockchain aimed in this direction – addressing the problems and deficits of current models by implementing technological solutions based on distributed ledger technologies.
Purpose The review examines the existing literature on blockchain-based small and medium enterprise (SME) finance and highlights its trend, themes, opportunities and challenges. Based on these factors, the authors create a framework for the existing literature on blockchain-based SME financing and lay down future research paths. Design/methodology/approach The review follows a systematic approach. It includes 53 articles encompassing multiple dimensions of blockchain-based SME finance, including peer-to-peer lending platforms, supply chain finance (SCF), decentralized lending protocols and tokenization of assets. The review critically evaluates these approaches' theoretical underpinnings, empirical evidence and practical implementations. Findings The review demonstrates that blockchain-based SME finance holds significant promise in addressing the credit gap by leveraging blockchain technology's decentralized and transparent nature. Benefits identified include reduced information asymmetry, improved access to financing, enhanced credit assessment processes and increased financial inclusion. However, the literature acknowledges several challenges and limitations, such as regulatory uncertainties, scalability issues, operational complexities and potential security risks. Originality/value The article contributes to the growing knowledge of blockchain-based SME finance by synthesizing and evaluating the existing literature. It also provides a framework for the existing literature in the area and future research paths. The study offers insights for researchers, policymakers and practitioners seeking to understand the potential of blockchain technology in filling the SME credit gap and fostering economic development through improved access to finance for SMEs.
Stefan Kitzler, Stefano Balietti, Pietro Saggese, Bernhard Haslhofer · 5 authors
We present a study analyzing the voting behavior of contributors, or vested users, in Decentralized Autonomous Organizations (DAOs). We evaluate their involvement in decision-making processes, discovering that in at least 7.54% of all DAOs, contributors, on average, held the necessary majority to control governance decisions. Furthermore, contributors have singularly decided at least one proposal in 20.41% of DAOs. Notably, contributors tend to be centrally positioned within the DAO governance ecosystem, suggesting the presence of inner power circles. Additionally, we observed a tendency for shifts in governance token ownership shortly before governance polls take place in 1202 (14.81%) of 8116 evaluated proposals. Our findings highlight the central role of contributors across a spectrum of DAOs, including Decentralized Finance protocols. Our research also offers important empirical insights pertinent to ongoing regulatory activities aimed at increasing transparency to DAO governance frameworks.
CryptoAudit, the process of auditing cryptocurrencies and blockchain-based transactions, is essential in ensuring the accuracy, security, and compliance of activities within the emerging digital asset landscape. This paper explores the unique challenges faced in CryptoAudit, including the absence of a comprehensive regulatory framework, the complexities of blockchain technology, security concerns, valuation difficulties, and the global nature of cryptocurrencies. It also highlights the differences between CryptoAudit and traditional financial audit, emphasizing the need for specialized expertise and adaptability in this evolving field. The study employs a literature review approach and AI-based data analysis to provide insights into existing research and publications related to CryptoAudit. Key findings reveal the importance of staying updated on regulatory developments, collaborating with experts, and developing specialized audit procedures to address these challenges effectively. While CryptoAudit presents significant obstacles, it also offers opportunities for enhancing transparency, efficiency, and trust in the digital financial ecosystem. Auditors play a critical role in ensuring the reliability of cryptocurrency audits, fostering confidence, and facilitating the integration of blockchain technology into accounting and auditing practices. As the cryptocurrency industry continues to evolve, auditors must remain proactive and adaptable to navigate this complex landscape successfully.
In an era defined by rapid technological advancement, the realm of finance has undergone a profound transformation.The emergence of digital finance, characterized by the integration of cutting-edge technologies and financial services, has revolutionized how individuals and businesses interact with money.This publication delves into the multifaceted landscape of digital finance, exploring its key components, implications, and the potential it holds for driving economic growth and financial inclusion.The foundation of digital finance lies in block chain technology, a decentralized ledger system that ensures security and transparency in financial transactions.Alongside block chain, crypto currencies have emerged as a dynamic force in the global economy, offering new avenues for financial transactions and investment opportunities beyond traditional fiat currencies.This paper provides an in-depth analysis of crypto currencies, delving into their diverse applications and the impact they have on traditional financial systems.Moreover, digital finance encompasses a spectrum of payment systems, from mobile wallets to contactless transactions, revolutionizing the way individuals conduct daily financial activities.The democratization of lending and investment through peer-to-peer platforms and crowd funding further challenges conventional financial models, providing new avenues for capital formation and investment.Fintech, as a disruptive force within the financial sector, represents a key aspect of this digital revolution.The fintech ecosystem characterized by startups and established players alike, leverages cutting-edge technologies such as artificial intelligence and machine learning to redefine traditional financial services.This paper examines the role of AI and machine learning in enhancing decision-making processes, risk assessment, and customer experiences in financial services.However, this transformation is not without its challenges.Navigating the evolving regulatory landscape and ensuring compliance remains a critical concern for participants in the digital finance ecosystem.Additionally, as digital finance proliferates, addressing security and privacy concerns surrounding financial data becomes paramount.Crucially, digital finance has the potential to bridge the access gap, extending financial services to underserved and unbanked populations worldwide.Through case studies and successful initiatives, this publication highlights the transformative power of digital finance in driving financial inclusion and reducing economic disparities.As we look to the future, emerging technologies such as decentralized finance (DeFi), central bank digital currencies (CBDCs), and quantum computing hold the promise of further reshaping the financial landscape.However, they also bring with them new challenges, particularly in the realms of security and privacy.In conclusion, the journey from bits to bucks signifies a paradigm shift in the world of finance.By embracing digital finance, individuals, businesses, and governments can unlock unprecedented opportunities for efficiency, inclusivity, and economic growth.This publication serves as a roadmap for understanding, navigating, and harnessing the power of digital finance in the 21st century.
E-commerce is constantly exploring opportunities to streamline payment service integration, particularly in terms of purchase channels and settlement methods. Traditionally, such integrations were provided through bank-acquirers. New initiatives such as Open Banking present a novel approach by offering a centralized gateway for third-party access to banking services. The purpose of this paper is to propose a sample model of a merchant gateway that leverages distributed ledger technology to enable seamless integrations with both purchase and settlement systems. The model holds the potential for accelerating purchase and withdrawal processing but also introduces new challenges that need to be addressed.
The goal of grassroots cryptocurrencies is to provide a foundation with which local digital economies can emerge independently of each other and of global digital platforms and global cryptocurrencies; can form and grow without initial capital or external credit; can trade with each other; and can gradually merge into a global digital economy. Grassroots cryptocurrencies turn mutual trust into liquidity and thus could be a powerful means for 'banking the unbanked'. Grassroots cryptocurrencies have not been provided yet with a payment system, which is the goal of this paper. Here, we present Grassroots Flash, a payment system for grassroots cryptocurrencies that employs the blocklace -- a DAG-like counterpart of the blockchain data structure. We analyze its security (safety, liveness, and privacy) and efficiency, prove that it is indeed grassroots.
This paper aims to explore the concept of digital cryptocurrency and its potential role in achieving inclusive finance. By drawing on relevant studies conducted in both China and abroad, we delves into the history and development, nature and types, as well as the benefits and risks associated with digital currencies. Additionally, the impact of digital currencies on deposit money is thoroughly examined, focusing on three key aspects: deposit currency stock, credit creation, and payment and settlement methods. Furthermore, the study presents a compelling case study on financial inclusion, using Alipay as an illustrative example. Building upon this case study, the paper offers insights into the future development of digital currencies. Although the future development of digital currency remains somewhat speculative, this research provides valuable considerations and outlooks Overall, the emergence of digital currency technology represents a momentous milestone in the financial landscape. As we move forward, understanding its potential impact on inclusive finance becomes increasingly crucial. This paper aims to shed light on this fascinating subject, paving the way for further research and discussions in the field
Valerio Stallone, Martin Wetzels, Dominik Mahr, Michael Klaas
The increasing popularity of blockchain technology (BCT) has spurred interest in its potential to rejuvenate the digital advertising ecosystem. Due to its transparency, decentralization, and immutability, BCT offers the potential for customer-oriented, secure, and open platforms that might improve interactions between consumers and businesses. This article investigates applications of BCT in digital advertising and develops an integrative framework to classify innovations at this intersection. With a systematic literature review and Delphi study, the authors examine ten relevant use cases and compile qualitative and quantitative data on the expected probability of realization, expected impact on the industry, desirability of occurrence, and market establishment duration. The results reveal organizational activity theory–informed areas of innovation and provide useful insights for managers, researchers, and policy makers. Managers should focus on contextual innovations such as rewarding web users for web interactions, rewarding content creators for their contributions, and ensuring user data security as the most relevant potential applications. Boundary innovations require a better understanding before deploying solutions aimed at increasing advertising supply chain transparency, mitigating fraud, and verifying content. For domain-based innovation areas, researchers must rethink their foundations. Finally, the authors propose a detailed research agenda.
This article explores the rise of cryptocurrency adoption in Pakistan and examines the promising future that lies ahead for this emerging digital asset class in the country. Pakistan, with its cash-centric economy and limited access to formal financial services for a significant portion of its population, has witnessed a remarkable shift in attitudes toward cryptocurrencies. Factors such as financial inclusion efforts, economic instability, and supportive government policies have contributed to this growing interest. The younger generation, in particular, is embracing digital currencies as a means of participating in the global economy and preserving their wealth in the face of inflation. The establishment of crypto exchanges and supporting infrastructure, along with educational initiatives and awareness programs, has further facilitated cryptocurrency adoption. The government's positive approach and efforts to develop a comprehensive regulatory framework have instilled confidence and encouraged individuals and businesses to explore the opportunities presented by cryptocurrencies. Moreover, partnerships with global crypto projects and the potential applications of blockchain technology in various sectors have contributed to Pakistan's promising future in the cryptocurrency space. As more individuals and businesses embrace cryptocurrencies, Pakistan is poised to leverage the benefits of this transformative technology, fostering financial inclusion, economic growth, and technological innovation in the years to come. Cryptocurrencies have garnered significant attention and adoption worldwide, and Pakistan is no exception. In recent years, Pakistan has witnessed a growing interest in cryptocurrencies, with an increasing number of individuals and businesses embracing this digital financial revolution. This article explores the factors contributing to the rise of cryptocurrency adoption in Pakistan and examines the promising future that lies ahead.
Chung Seok Han, Majid Lotfi Ghahroud, Min Jae Park, Jalil Ghassemi Nejad
This article proposes a new decentralized asset investment and energy certificate platform: BIC (Blockchain Investment Certificate) which has a Korean patent for its new solution. The platform combines features of decentralized exchanges (DEX), crowdfunding, token economies, and insurance to provide a secure and efficient marketplace for buying and selling energy assets, including renewable energy certificates such as carbon credits. Decarbonization of energy systems has been a recent trend after 2020 where large-scale renewable energy sources (RES) are integrated into the power industry. The new business model and platform in this article offer unique solutions for investors, small and medium-sized enterprises (SMEs), and the overall economy. With its decentralized structure and innovative features, the platform has the potential to accelerate the transition to a low-carbon economy and promote sustainable investment practices. In addition, this platform provides a simple way to offset carbon footprints and support clean energy initiatives, contributing to the fight against climate change. Also, this platform not only supports the renewable energy market, encouraging the generation of renewable electricity on a larger scale but enables businesses to use renewable electricity without investing in costly facilities like solar panels, making renewable energy more accessible. Furthermore, this novel energy certificate platform facilitates the choice of exactly where to buy renewable energy, whether locally or from different regions in different countries, offering flexibility and increasing renewable energy adoption
<strong>Abstract</strong>: As India commences its journey on a digital trajectory, the fintech ecosystem has been the crucial enabler for digital transformation. A step ahead, next-generation trading currencies based upon blockchain technology became one of the most talked about technology terms in the fintech sphere. Digital currencies and assets, which also use DLT underneath, are however subjected to stricter legal lenses. This particular apprehension of policymakers and the Central Bank indicates the essentiality of legal frameworks that safeguards users’ interest as well as the nation’s economic and security interest simultaneously and this paper provides a ground to analyze the same. This paper is one of the primary papers that studies the legal framework regarding blockchain and digital assets through a Systematic Literature Review Methodology with consideration of 43 kinds of literature providing an Indian legal perspective which could be a critical resource for existing legal frameworks and possible future alterations required thereof. <strong>Keywords: </strong>Legal Framework, Blockchain, Cryptocurrency, Decentralize, Ethereum, Smart Contract <strong>JEL Classification Number:</strong> K39, K40
Decentralized exchanges (DEXs) are a cornerstone of decentralized finance (DeFi), allowing users to trade cryptocurrencies without the need for third-party authorization. Investors are incentivized to deposit assets into liquidity pools, against which users can trade directly, while paying fees to liquidity providers (LPs). However, a number of unresolved issues related to capital efficiency and market risk hinder DeFi's further development. Uniswap V3, a leading and groundbreaking DEX project, addresses capital efficiency by enabling LPs to concentrate their liquidity within specific price ranges for deposited assets. Nevertheless, this approach exacerbates market risk, as LPs earn trading fees only when asset prices are within these predetermined brackets. To mitigate this issue, this paper introduces a deep reinforcement learning (DRL) solution designed to adaptively adjust these price ranges, maximizing profits and mitigating market risks. Our approach also neutralizes price-change risks by hedging the liquidity position through a rebalancing portfolio in a centralized futures exchange. The DRL policy aims to optimize trading fees earned by LPs against associated costs, such as gas fees and hedging expenses, which is referred to as loss-versus-rebalancing (LVR). Using simulations with a profit-and-loss (PnL) benchmark, our method demonstrates superior performance in ETH/USDC and ETH/USDT pools compared to existing baselines. We believe that this strategy not only offers investors a valuable asset management tool but also introduces a new incentive mechanism for DEX designers.
At present, smart contracts are designed based on the application field, and their structure and functions are closely related to specific businesses. Even smart contracts within the same field and the same business have different structures and functions due to different developers, resulting in structural confusion, repeated development, and low levels of sharing. In response to this problem, this study conducts a full investigation of smart contracts in various fields, using big data technology to compare and analyze the structures of each contract and extracting the common content of their main bodies to study each feature, as well as to conduct induction and fusion. This study also generally designs a hierarchical structure and formulates structural modules such as transaction rules and the analysis of rights and responsibilities, as well as a reward and punishment mechanism. Data traceability is established, and the overall architectural specification of smart contracts is constructed. Additions, deletions, and improvements are made based on specific application environments to realize the dynamic updates of the architecture of contracts. Experiments show that the architecture of contracts can realize the various functions required in a transaction, solve the problem of the repeated development of current transactional smart contracts, and improve the sharing level.
Recent advances in technology have demonstrated the enormous flexibility of Distributed Ledger Technology (DLT), whose potential goes well beyond the cryptocurrency trading. This article explores the potential impact that the utilization of a permissioned blockchain could have on listed companies and how this could be an appropriate instrument for a more effective implementation of the provisions of the Shareholder Rights Directive II. This technological infrastructure could attest the correct formation of will within the shareholders’ meeting and contribute to the creation of a truly democratic space for the meeting and discussion among shareholders, thus allowing achievement of freedom to conduct a business. However, the most advanced use of blockchain technology has a disruptive effect and exposes us to the great danger of an “algocratic” drift. Therefore, this article analyses the main critical issues from both a technical and legal viewpoint of Decentralized Autonomous Organizations (DAOs).
Hisham O. Mbaidin, Mohammad A.K. Alsmairat, Raid Al-Adaileh
Blockchain technology has been gaining relevance in every walk of life. Keeping this relevance in the banking sector, the current study aims to synthesize the body of knowledge on blockchain adoption for sustainability in developing countries while encapsulating challenges and opportunities using a systematic literature review. It offers a review of scholarly published articles published between 2010 and 2022 in EBSCO, Web of Science, Scopus, and Google Scholar databases. The findings of the study revealed that scalability, the lack of operability among the blockchain service providers, and the absence of favorable regulatory laws and generally accepted rules were the major hurdles in the way of blockchain adoption in developing countries. Implantation of smart contracts, risk management, risk mitigation and faster payment are the opportunities for the banking sectors of developing countries to increase trust and transparency in their financial systems as well as formalization of their economy. However, the studies concluded that upon the adoption of blockchain technologies, there will be ease in financial transactions and transfers of money for financial institutions. Other challenges highlighted by the studies included threats of cybercrimes and privacy breaches.
Abstract Blockchain is employed as a technology holding a solutionist promise, while at the same time, it is hard for the promissory blockchain applications to become realized. Not only is the blockchain protocol itself not foolproof, but when we move from “blockchain in general” to “blockchain in particular,” we see that new governance structures and ways of collaborating need to be developed to make blockchain applications work /become real . The qualities ascribed to (blockchain) technology in abstracto are not to be taken for granted in blockchain applications in concreto . The problem of trust, therefore, does not become redundant simply through the employment of “trustless” blockchain technology. Rather, on different levels, new trust relations have to be constituted. In this article, we argue that blockchain is a productive force, even if it does not solve the problem of trust, and sometimes regardless of blockchain technology not implemented after all. The values that underpin this seemingly “trustless technology” such as control , efficiency , and privacy and the story that is told about these values co‐shape the actions of stakeholders and, to a certain extent, pre‐sort the path of application development. We will illustrate this by presenting a case study on the Red Button ( De Rode Knop ), a Dutch pilot to develop a blockchain‐based solution that enables people who are in debt to communicate to their creditors that they are, together with the municipality, working on improving their situation, thereby requesting a temporary suspension from debt collection.
Yuvraj Singh, M. A. Jabbar, Shishir Kumar Shandilya, Олена Вовк · 5 authors
Blockchain technology includes numerous elements such as distributed ledgers, decentralization, authenticity, privacy, and immutability. It has progressed past the hype to find actual use cases in industries like healthcare. Blockchain is an emerging area that relies on a consensus algorithm and the idea of a digitally distributed ledger to eliminate any intermediary risks. By enabling them to trace data provenance and any changes made, blockchain technology can enable different healthcare stakeholders to share access to their networks without violating data security and integrity. The healthcare industry faces challenges like fragmented data, security and privacy concerns, and interoperability issues. Blockchain technology offers potential solutions by ensuring secure, tamper-proof storage across multiple network nodes, improving interoperability and patient privacy. Encrypting patient data further enhances security and reduces unauthorized access concerns. Blockchain technology, deployed over the Internet, can potentially use the current healthcare data by using a patient-centric approach and removing the intermediaries. This paper discusses the effective utilization of blockchain technology in the healthcare industry. In contrast to other applications, the exoteric evaluation in this paper shows that the innovative technology called blockchain technology has a major role to play in the existing and future applications of the healthcare industry and has significant benefits.
Oluwaseun Oladeji Olaniyi, Samuel Oladiipo Olabanji, Olalekan Jamiu Okunleye
The present study aims to investigate the DAO initiative and scrutinize the diverse methodologies researchers employ for data collection in this area, highlighting any unresolved problems or limitations and suggesting approaches to enhance blockchain technology for future investigations. A remarkable blockchain initiative is the decentralized autonomous organization (DAO), a decentralized blockchain technology system that lets people self-govern through self-executing rules. The methodology is a qualitative analysis that uses contractual and business aspects to create a legally binding smart contract for DAO collaborations; thus, SPESC and Symboleo are smart-contract languages (SCL) that can involve IT and non-IT individuals in contract development. Blockchain technology has created Decentralized Autonomous Organizations (DAOs) that perform autonomously through smart contracts within their ecosystem without the necessity for centralized control or third-party intervention.
Commercial real estate transactions are notorious for their complexity, which stems from multiple property brokers, legal entities, illiquidity, heterogeneity, and a lack of transparency. This conceptual study proposes a novel approach to address these challenges using blockchain technology, which enables buyers and sellers to transact in an informationally symmetrical way within an open real-estate ecosystem. The proposed conceptual model employs tokenisation on the blockchain and is developed using the Design Science Research Methodology and Action Design Science Research approach. The model undergoes multiple stages of evolution, including pre-design, which is validated through expert interviews, to arrive at the final conceptual design. The study identifies six key factors that influence the application of blockchain in real estate transactions, including adoption, governance and compliance, transaction costs, transparency and immutability, security, and scalability. Overall, the study suggests that blockchain has the global potential to significantly reduce transaction costs and improve efficiency in the real estate industry, making it a promising solution for the challenges facing the sector.
Cryptocurrencies have become a popular discussion in the global economy as an increasing number of people adopt these despites their recent conception. As a result, governments worldwide are racing to incorporate assets into their legal frameworks. While Sri Lanka does not have a legal framework for such assets, there is a growing base for cryptocurrency investors in the country. This study analyzes the antecedents that drive Sri Lankan investors towards cryptocurrency investments and the influence of commonly known behavioral biases among these investors to examine the validity of behavioral finance theories in cryptocurrency markets. A structured questionnaire was distributed on social media platforms, which yielded 158 responses. Descriptive analysis was used to evaluate the demographic characteristics of the respondents, and PLS-SEM was used to examine the path model analysis of associations among the study variables. The findings suggest that the majority of respondents are males under 35 years of age with high educational qualifications, and that technical, economic, social, and personal factors are their main adoption motivators. The analysis of behavioral biases suggests that heuristic-driven and frame-dependent biases influence cryptocurrency adoption decisions. As a highly discussed topic in today’s world, there is a lack of studies focusing on the adoption motivators and behavioral biases of cryptocurrency investors. These findings provide valuable insights and enrich the existing knowledge in the domain of cryptocurrency, as this study is a pioneering endeavor focusing on behavioral biases in cryptocurrency markets.