This pamphlet argues that the fiat monetary system is fundamentally incompatible with the deflationary nature of technological progress. It proposes an Energy Standard — a decentralized, blockchain-based currency backed by physically produced kilowatt-hours — as a thermodynamic anchor for money in the age of AI and robotics. Drawing on the Austrian School of Economics (Mises, Hayek), game theory, and thermodynamics, it analyses incentive structures in energy markets and makes the case for a market-driven ecological transition without state coercion.ditigal: petznek.at/pamphlet
Reviewing the evolution of classical physics and modern economics, all macroeconomic symbols and economic tools invented by humankind in the past (such as fiat currency and GDP) are essentially merely limited fittings to objective reality and "symbolic hallucinations." The previous work, The Entropy Standard: The Biosphere Fluid, Time Ledgers, and the Physical Limits of Civilization, starts from the first principles of thermodynamics and information theory, redefining human society as a "colloidal fluid" dissipative structure on the Earth's surface. It points out that traditional economics, having long been confined to lagging and subjective statistical reports, has driven modern society into terminal crises known as "Mechanization Blockade Disease" and "Complexity Parasitism". To address this, this proposal constructs the "Entropy Standard" economic physics tracking framework. In its underlying logic, this framework resolutely rejects the creation of unchanging, metaphysical absolute physical prototypes or "axioms." This is because social systems differ from the rigid, lifeless matter studied in classical physics; human civilization is a highly non-equilibrium, viscoelastic, and time-evolving complex fluid system. No static axiom or closed formula can lock down the truth once and for all; instead, they would simply devolve into dogma. Therefore, this framework instead embraces high-frequency, large-scale physical-level sampling protocols—sinking the sampling base directly to distributed physical edges (such as smart grid total loads, API call timestamps, and supply chain logistics). By continuously expanding the spatial sampling scope and increasing the temporal sampling frequency, it captures the system's true internal resistance and waste heat loss in real time, thereby endowing the dashboard with self-correcting and adaptive capabilities. Regarding the specific measurement methodology, this framework references the developmental trajectory of classical physics measurement history from "local crudeness" to "fundamental constants and absolute benchmarks," achieving hard-core tracking through two core measurement objects and quantitative mapping equations: Physical Stripping of the Social Total Time Ledger: Utilizing high-frequency timestamps and information-energy interfaces, the waking time of carbon-based individuals is objectively sliced to distinguish between effective working time (which genuinely extracts negative entropy from the physical world) and complexity overhead (which is swallowed by red tape). Circuitry Mapping of Negentropic Energy and System Internal Resistance: Introducing macro Ohm's law and the Joule heat formula, this approach discards illusory monetary prices and directly anchors to physical Joules and the basal metabolic energy level baseline. Through the dynamic tracking of waste heat loss and the establishment of a critical thermal breakdown criterion, it transforms metaphysical economic crises into physical phase-transition processes that can be warned in advance using mathematical integration.
Version: v1.6.4 (June 2026) Major additions in this version: phased migration protocol with cryptographic quarantine (Section 6.4.4), sensitivity boundaries delineating the statistical decoupling threshold up to mu = 1.9% (Section 6.7), and integration of recent empirical MEV findings (Mancino & Rezzoli, 2025). Abstract Contemporary blockchain architectures face a critical impasse defined herein as the "Tetra-Lemma"—a four-dimensional optimization problem encompassing decentralization, security, scalability, and thermodynamic sustainability. Legacy Proof-of-Work networks confront diminishing security budgets due to the exhaustion of block subsidies, while Proof-of-Stake systems inherently risk oligarchic centralization. This paper establishes a Unified Monetary-Supply Framework that resolves these structural conflicts by synthesizing the deterministic Customized Halving schedule with the probabilistic regeneration logic of the Proof of Rinne (PoR). We demonstrate that by enforcing a "Thermodynamic Statute of Limitations" on dormant assets, the protocol functions as a Non-Equilibrium Thermodynamic Engine. This architecture transforms entropic asset attrition—traditionally viewed as systemic loss—into a regenerative security budget. The remainder of the abstract, covering the SDE and Fokker-Planck validation, the ZKP owner recovery model, and the resulting equilibrium, is in the manuscript. Data & Code AvailabilityThe mathematical models and high-precision stochastic simulations (e.g., Monte Carlo paths, SDE convergence, and Fokker-Planck distributions) presented in this manuscript are fully reproducible. The corresponding Python simulation suite and open-source models are made available at the author's GitHub repository (rincoin-regenerative-simulations) to ensure scientific transparency. Integrity & Provenance This document is anchored to the Bitcoin blockchain via OpenTimestamps. The proof file verification_data_v1.6.4.ots, included in the files below, covers the SHA-256 digest of Tokino_Rincoin_v1.6.4.pdf: 5269207ea7e363e8df312ed50c00afc119b43e6fa5d3c717e6a7d8fc9863147b The archived proof is in its as-submitted form: it commits the digest to the public OpenTimestamps calendars and does not itself embed the Bitcoin attestations. Completing it against those calendars — which both verification paths below do automatically — yields three Bitcoin attestations, the earliest in block 952366. An OpenTimestamps proof carries no wall-clock time of its own — any date reported for it is read from a Bitcoin block header. To verify, upload the PDF and the .ots file to opentimestamps.org, or with a Bitcoin node: ots verify -f Tokino_Rincoin_v1.6.4.pdf verification_data_v1.6.4.ots — the -f flag is required because the proof's filename differs from the document's. The provenance of this document is recorded in a separate signed artifact, the Rincoin Provenance Certificate (10.5281/zenodo.21415730), which binds this whitepaper to the digest above and is the reference for the full anchoring detail. That certificate carries its own OpenPGP signature, Bitcoin anchor, and PAdES signature; this whitepaper itself carries the OpenTimestamps proof only. Zenodo archival gives this record a persistent identifier and an independent retrieval path; it is not itself a cryptographic control. Validation_Scientific_Provenance_v1.6.4.pdf in the files below is an earlier certificate edition, retained as evidence. It is superseded by the record cited above. Correspondence & AffiliationPrimary Author: Tokino, Michiru (時乃 満)Affiliation: Rincoin Core Research Academic Inquiries: edu@aevust.org Community Governance: @aevustus (Discord) / @aevust (X/Telegram) Keywords: Rincoin, Proof of Rinne (PoR), regenerative crypto-economics, non-equilibrium thermodynamics, non-equilibrium steady state (NESS), stochastic differential equations (SDE), Fokker-Planck equation, recirculation incentive mechanism, macroeconomic homeostasis, Nash equilibrium, cryptographic vault, zero-knowledge proofs (ZKP), modular blockchain architecture, account abstraction, blockchain tetra-lemma, MEV mitigation, sandwich attack resistance, sensitivity analysis, statistical decoupling threshold, phased migration protocol
Imoleayo Abraham Awodele, Molusiwa S. Ramabodu, Nathaniel Ayinde Olatunde, Iruka C. Anugwo
Africa is richly endowed with renewable energy resources, including solar, wind, and hydropower, yet the continent faces a significant energy access deficit, with over 600 million people lacking reliable electricity. Traditional fossil fuel-based energy models have proven inadequate for meeting the region's growing energy demands while posing environmental and economic challenges. This study explores the need to transcend these conventional energy paradigms by accelerating the adoption of sustainable, inclusive renewable energy systems tailored to Africa's unique context. Adopting a qualitative research approach, the study employed document analysis of policy reports, scholarly literature, and energy market trends to examine the continent's renewable energy transition. Thematic analysis identified key barriers such as limited access to financing, fragmented regulatory frameworks, and insufficient technical capacity. However, the findings also highlight transformative opportunities, including decentralized energy systems for off-grid rural communities, digital innovations, and international climate finance. The study recommends empowering community-driven energy models, adopting innovative financing mechanisms such as microcredit and crowdfunding and fostering cross-sectoral collaboration. These measures will not only expand energy access but also position Africa as a leader in global climate action, environmental sustainability, and inclusive energy innovation. Keywords: Renewable Energy Transition; Decentralized Energy Systems; Sustainable Development; Africa Energy Policy.
Abstract Grounded in a hard-core perspective at the intersection of thermodynamics and information theory, this paper strips away the symbolic illusions of traditional political economy, redefining human society as an active, viscoelastic "colloidal fluid" dissipative structure driven by external energy throughput and the fundamental "time ledgers" of carbon-based individuals. Moving beyond monetary and financial fictions, the framework establishes the Dual Constraint Equations of Civilizational Survival: The Upper Limit Constraint Equation, which maps the physiological and physical time limits imposed on carbon-based components by the combined demands of innovative labor, unmechanized repetitive labor, and exponential administrative/game-theoretic complexity overhead ; and The Lower Limit Maintenance Equation, which dictates the non-negotiable minimum energy baseline required to prevent system disintegration. Using this apparatus, the work diagnoses two terminal pathologies plaguing modern advanced societies: Mechanization Blockade Disease (where stalled technological evolution forces human flesh to brute-force unmechanized repetitive labor, triggering population cliffs) and Complexity Parasitism (where skyrocketing administrative and defensive friction devours society's scarce innovative brainpower). The classical scholar Gu Yanwu once distinguished between the "fall of a state" (wangguo) and the "collapse of all-under-heaven" (wang tianxia)—the former representing the mere succession of ruling algorithms, and the latter the disintegration of a civilization's high-order negative entropy system. Examining the present, the global sphere is deeply mired in the quagmire of AI algorithm bubbles and capital centralization; from Asia, Africa, and Latin America to Europe and the Americas, state will is reasserting comprehensive control over physical resources. History and the laws of physics indicate that even though technological bubbles will ultimately burst, and even though centralized control will cause internal friction and complexity overhead to expand exponentially, we must still hope that this represents merely a transient system damping in the long river of history. For the Second Law of Thermodynamics has long delivered its ultimate verdict: without free physical sampling and distributed trial-and-error, human civilization will inevitably descend into absolute information dead silence. This theory may well transcend its era. Humanity remains trapped in the illusions of gold and fiat currency vouchers, unable as yet to embrace a true "Entropy Standard." Yet, a day will come when civilization is anchored upon the physical ledger of entropy-based accounting, and humanity will no longer rely on crude "combustion and explosions" to enact its achievements, but will instead drive grand phase transitions via minute energy leaps. So long as civilization's informational genes are not swallowed by entropy increase, the myth will endure across the starry seas of the universe.
Asad Mujeeb, Jamiu O. Oladigbolu, Mutiu Shola Bakare, Abduljelil Atima Ibrahim
As the global push for carbon neutrality accelerates, energy efficiency has become essential for sustainable development, especially for nations like Nigeria that face rising energy demands and significant environmental challenges. This study explores how integrating energy efficiency with carbon neutrality can support Nigeria's strategic energy goals while offering global lessons for other countries facing similar challenges, focusing on key sectors, including industry, transport, and power generation. The study systematically examines the impacts of renewable energy (RE) technologies, like solar, wind, and hydropower—alongside policy reforms, technological innovations, and demand-side management strategies to advance energy efficiency in Nigeria. Key findings include the identification of strategic policy frameworks, technological solutions, and the transformative role of green hydrogen in decarbonizing hard-to-electrify sectors. The study also emphasizes the importance of international climate finance, decentralized RE systems like solar mini-grids for improving energy access, and economic opportunities for job creation in the RE sector. Furthermore, it highlights the need for behavioral changes, community engagement, and consistent policy implementation to address infrastructure gaps and drive energy efficiency goals. The novelty of this research lies in its scenario-based analysis of Nigeria's low-carbon transition, detailing both the opportunities and challenges, such as policy inconsistencies, infrastructure deficits, and financial constraints. The findings stress the importance of international collaboration, technological advancements, and targeted investments to overcome these challenges. By offering actionable insights and strategic recommendations, this study provides a roadmap for policymakers, industry stakeholders, and researchers to drive Nigeria towards a sustainable, carbon-neutral future by 2050.
Climate change, energy crises, military actions in the world, and unstable oil prices create enormous challenges for the world’s nations. The need to use less fossil fuels opens opportunities for new or somewhat neglected green technologies. To reform the energy sector, it is necessary to have a clear and measured strategy. This allows for the identification of the potential of renewable resources in each space, while finding sources of financing for the transformation. The use of renewable resources makes it possible to solve an actual problem of the developed world—as the population of cities grows, the economic vitality of regions drops significantly. By creating new energy production capacities in the regions, social exclusion is reduced, and the main resources of the regions are better used—land areas, farms, and biomass sources. Nowadays, mankind is experiencing the third significant transformation that converts from conventional fossil fuels to new energy. The future development will go along with the three major trends—resource-type carbon reduction, production technology intensification, and utilization method diversification [1]. Based on these directions of transformation, the main investment decisions will be made, which will promote the progress of the energy system. Humanity is so far the least advanced in carbon collection and burial technologies, but the development of other trends allows for tangible progress.
The shift from fossil-based energy systems to renewable sources like solar, wind, and hydro presents both opportunities and challenges for developing countries aiming to expand energy access, promote economic growth, and meet climate goals. This study examines the technological, financial, institutional, and governance aspects of clean energy transitions, focusing on regional disparities and implications for low- and middle-income economies. A systematic review of literature was carried out using the SPAR-4-SLR methodology across Scopus, Web of Science, and Google Scholar. Only peer-reviewed studies published in English from 2009 to 2025 were included, guided by four research questions: (1) technological and resource endowments, (2) capital structuring and financial market dynamics, (3) institutional and policy frameworks, and (4) decentralized, digital energy governance. Search terms were tailored for each theme, and studies were classified by topic, region, and methodology. Results show that decentralized renewable systems—especially solar micro-grids—offer affordable alternatives to fossil fuels in rural and off-grid areas, enhancing job creation, energy security, and poverty reduction. Examples from Kenya, India, and Southeast Asia highlight the importance of policy consistency, financial innovation, and institutional preparedness in promoting clean energy deployment. Still, ongoing challenges such as high initial costs, infrastructure gaps, and limited technical skills continue to hinder progress in many regions. • Institutional and financial factors outweigh resource availability in clean energy. • Local policy tools often outperform broad international frameworks of clean energy. • Blended finance reduces cost barriers in early-stage clean energy projects. • Inclusive planning links clean energy to health and equity gains. • Technology transfer works best with local training and governance support.
The technological foundation of each civilization determines its living conditions and prosperity [2,3,4]. Access to discussed resources should not be viewed as solely an individual concern, since abundance is significantly shaped by economies of scale and collective practices. At the same time, they are fundamentally linked to the political practices that must be followed. Wittfogel noted that hydraulic works requiring collective effort have underpinned social structures depending on elite oversight mainly due to their complexity [5] which refers to the behaviour of a system or model characterized by a large number of interconnected components, nonlinear interactions, and emergent properties that cannot be fully understood by analysing individual parts in isolation [6].However, there is always a turning point in economies of scale where, past a certain threshold, the rising managerial costs increases the unit cost [7,8]. Projecting this principle onto social dynamics, we note that, there is an optimal point at which society gains the most from cooperative behaviour [9], yet it becomes inefficient when social structures expand to such an extent that the cost of their coordination outweighs the provided benefits [10,11].The challenges of balancing cooperative benefits with coordination costs in achieving economies of scale by state regulations have been addressed through socio-political theories emphasizing the state's role. Adam Smith recognized that cooperative market interactions, facilitated by minimal state intervention, could create economies of scale through specialization and trade, with the state ensuring basic legal frameworks [12,13]. Karl Marx argued that cooperative labor under capitalism, while initially fostering economies of scale, required state-led collectivization to equitably distribute benefits and overcome exploitative capital accumulation [14,15]. John Maynard Keynes emphasized state-driven cooperation, advocating for public investment and demand management to stabilize markets and sustain economies of scale during economic downturns [16]. Neoliberalism, led by figures like Friedrich Hayek and Milton Friedman, critiqued state overreach, promoting cooperative market mechanisms with minimal state involvement to maximize economies of scale through competition and innovation [17,18]. These perspectives shaped societal systems, with capitalism and communism as the most prominent rivals [19]. However, both the Soviet Union (communism) and the United States (capitalism) landed humans on the moon in late 1960s, demonstrating that each system, could equally effectively achieve the monumental milestone of that era [20,21].The same principle applies to technological applications-there is a limit beyond which the evolution of complexity ceases to be beneficial. For instance, the embedded complexity in various consumer goods, such as cars, creates vulnerabilities that render these vehicles prematurely obsolete [22,23]. While in earlier times this was often regarded as a disadvantage, today it appears that the temporariness of an object, which creates the need for its replacement within a short period, promotes the desired outcome: the consumption of new products to replace it [24]. This could imply that the durability of things is almost undesirable [25].Within the framework of globalization, this may not have been a flaw, as global trade was encouraged to enable easy replacement and consumption, affecting every aspect of modern life [26,27]. However, it presupposes a complex, interconnected economic system that is fragile in the face of various regulatory attempts [28]. For example, maritime transport (Figure 1) underpins the global economy, facilitating approximately 80% of international trade by volume (left pie chart in the bottom of Figure 1) and around 70% by value (right pie chart in the bottom of Figure 1), underscoring its critical role in the global movement of goods (Figure 1) [29]. Systemic vulnerabilities are weaknesses within a system that arise from its structure, interconnections, or dependencies, making it susceptible to cascading failures or disruptions when stressed [31]. These vulnerabilities are often hidden and emerge under specific conditions as in electronic-based solutions. Electronics-based solutions [32] present systemic vulnerabilities beyond the regulatory risks evident in the 2022 Russian sanctions [33] or the recent U.S. trade conflicts (April 2025) [34]. Unlike simpler mechanical systems, these technologies are inherently susceptible to disruptions in sensitive supply chains, cyberattacks, and electromagnetic pulses-creating layers of systemic vulnerability often overlooked in technological adoption decisions [22,35].Systemic vulnerabilities in complex system appears highly unstable-especially when considering isolated technical incidents, such as two small fires at Heathrow Airport which disrupted global air travel. In addition, the rapidly interconnected world, which must manage emerging complexity with tools that have not yet reached full maturity, becomes vulnerable to malicious actions such as the Mt. Gox Hack (2014).Resilience is the capacity of a system to absorb disturbances, adapt to changes, and maintain its core functions and structure in the face of stress or shocks [36]. As it is a desired goal, a question arises as to whether and how societies can thrive without the emerging complexity that has been imposed through technological solutions as well as the communication and cooperative policies that sustain global trade.Ensuring social thriving is critical, an optimization is required-one that is simple, resilient, self-sufficient, and capable of supporting at least the foundation of societal prosperity-through available adaptations [37,38].Section 2 analyzes the methodology used to approach the vulnerabilities inherent in complex systems, focusing on their susceptibility to disruptions. Section 3 delves into examples of governmental failures and technical failures, using the evolution of technology of vehicles and digital infrastructure as case studies to illustrate fragility in advanced technologies. Section 4 emerges the role of critical aspects of modern civilization: digital infrastructures and satellites. Section 5 explores future technological paradigms, weighing the promises and perils of automation, digital currencies, and interconnected systems arguing that progress is neither linear nor guaranteed. The discussion in Section 6 synthesizes these insights, proposing strategies for resilience at governance and technological levels. Finally, Section 7 concludes with recommendations for proactive design and planning to ensure robust systems, emphasizing the urgency of action during periods of stability.This study adopts a multidisciplinary approach to analyze the interplay between technological complexity, systemic vulnerabilities, and resilience in modern civilizations, with a focus on resource management perspectives. The methodology comprises three key components:• Historical and Comparative Analysis: Historical case studies, such as the collapse of the Roman Empire, Soviet Union and the Qing Dynasty (China) are examined to identify patterns of overextended infrastructure and administrative complexity leading to systemic failure. These are compared with contemporary examples (e.g., megacity resource management, global trade disruptions) to draw parallels and highlight recurring vulnerabilities.• Data-Driven Visualization:Quantitative data from global datasets (e.g., World Bank, Marine Traffic-cargo ship positions, Flightradar-air traffic, TeleGeography-submarine cable) are analyzed to illustrate the scale and fragility of interconnected systems. Visualizations are generated to map trade complexity, economic impacts, and cascading failures.• Qualitative Risk Assessment: Technical and governance failures are evaluated through qualitative frameworks, focusing on vulnerabilities in digital systems (e.g., ECUs in vehicles, cyber-hacks, CBDCs and resource distribution). Scenarios such as EMP attacks and trade wars are explored to assess cascading risks.Insights are drawn from real-world incidents e.g., Mt. Gox hack (February 2014) Heathrow fires (March 2025) and the blackout in Iberian Peninsula (April 2025) to propose adaptability strategies.The above examples were used for the revision of the pyramid of human needs. This mixed-methods approach emphasizes governance and technological perspectives to propose resilience frameworks.Limitations include the speculative nature of future risk scenarios, which however are addressed through transparent sourcing and conservative assumptions.The methodological steps of the paper, the examined issues and the conclusions are visualized in Figure 2. The Industrial Revolution and the Electronic Era established sophisticated infrastructures driven by economies of scale, rapid communication, global connectivity, and widespread access to knowledge. Evidently, global poverty rates dropped dramatically over the past century, a triumph humanity owes to these technological breakthroughs [39].Economies of scale and large-scale infrastructure have enabled the clustering of the population in major urban centers [40]. Megacity aqueducts [41], supply chains [26], industrial production, refineries, and critical infrastructure facilitate human coexistence [42]. However, these systems demand complex management, forming a fragile equilibrium that sustains societies. A deliberate or accidental failure in any major infrastructure, especially to the communication system which solves this puzzle, could immediately trigger an existential crisis.The vulnerability of the contemporary communication system, underpinned by the internet, is exemplified by approximately 1.4 million kilometers of submarine fiber-optic cables linking over 1,200 landing points worldwide [43]. Figure 3 Today, the discourse on climate change [55, 56], a narrative that remains under discussion and not fully understood due to its complexity and conflicting viewpoints [57,58,59,60,61], has led to policies aimed at reshaping the energy mix through the adoption of renewable energy sources. Even if the narrative of climate change and the associated technologies supporting it are subject to debate [62], the associated technologies introduce new challenges in their management due to their stochastic nature.The above vulnerabilities suggest that there is always the possibility that society could become trapped in a death spiral [63] of complexity, from which it would be very difficult to break free.Historically, excessive bureaucratic complexity and endemic corruption have precipitated the collapse of entire societies, as seen in Roman Empire, the Soviet Union and the late Qing Dynasty.Tainter argues that the collapse of the Roman Empire illustrates how overextended infrastructure and reliance on complex administrative systems precipitate societal decline [64]. He contends that the empire's dependence on intricate networks-such as extensive road systems, aqueducts, and a sprawling bureaucracy-demanded substantial resources to sustain. As economic returns diminished, these systems rendered the empire vulnerable to external pressures (e.g., barbarian invasions) and internal weaknesses (e.g., corruption) [65,66]. The rigid centralized administrative structure further constrained adaptability, as simplifying governance through decentralization was politically and culturally untenable, accelerating systemic failure.The Soviet Union (1922-1991) developed a highly centralized, bureaucratic system to manage its vast economy and diverse population, but this complexity fostered inefficiencies and corruption. Lengthy administrative processes, coupled with opaque resource allocation, enabled the elites to siphon resources, eroding public trust and economic stability [67]. By the 1980s, the system's rigidity stifled innovation and failed to address growing economic stagnation, culminating in the USSR's dissolution in 1991 [68].The Qing Dynasty in China succumbed to bureaucratic bloat and corruption, were intricate governance structures and rampant bribery undermined resource distribution and public welfare, particularly in urban centers. This weakened the dynasty's ability to respond to internal rebellions and external pressures, leading to its collapse in 1912 [69].The complexity of managing resources such as Water-Energy and Food nexus [70] in present megacities is a critical factor underpinning their sustainability and functionality, rendering them highly vulnerable to disruptions like tariffs and trade wars.Megacities, characterized by dense populations and intricate infrastructural networks, rely on efficient resource distribution systems that are often strained by global economic policies. For instance, tariffs can increase the cost of imported food in mega-cities which could be considered as food deserts [71,72,73]. Trade wars further complicate this by disrupting supply chains, as seen in the U.S.-China trade tensions affecting waterintensive agricultural exports [74].The interconnectedness of resource systems amplifies these risks, with energy shortages potentially cascading into water and food crises [75]. Moreover, the governance of these resources in megacities often involves multiple stakeholders, adding layers of complexity that tariffs can destabilize by altering economic incentives [76]. Consequently, such economic policies pose perilous threats to megacities' stability, where resource mismanagement could lead to existential challenges [77].Our interconnected world relies on the complexity of created synergies [78], as highlighted by the lessons learned from the COVID-19 pandemic. During this period, global trade was agitated, and global growth was halted as it is evident by Gross National Income (GNI) growth and Gross Domestic Product (GDP) growth. Therefore, these synergies promote advancement, but they also made systems vulnerable to unexpected disruptions [79] (Figure 4). While complexity in governance is often necessary for managing intricate systems, it can also harbor corruption, as the concealment of resources or procedures from public scrutiny may obscure unethical practices. When governmental systems are perceived as overly complex and subjective, they often fail to deliver timely resolutions, leading to a loss of public trust. This occurs as lengthy procedures for processing standard requests, such as issuing permits or accessing public services, may create opportunities for bribery payments, particularly in countries with high corruption levels [82,83,84].Modern vehicles have advanced through Electronic that and compared to simpler However, this a critical failure in an system can render these a to the resilience of vehicles Unlike that changes, technological design that address challenges Electronic both complexity and For example, a in systems, its core modern cars, such as from rely on intricate and sophisticated making them and but Figure 4 the of a with of The of technological and that the can be using tools if it while the replacement with the specific that presupposes the of supply The reliance on and modern to supply risks, as seen during the COVID-19 when shortages halted in an increase in their While these design specific they not compared to the of requiring that not The this with not to goods but to vehicles due to their dependence on how resource can these systems the between advanced and resilience the of these technological complexity can be to infrastructure and a failure can a in the collapse of the entire system it For example, the two small fires in critical of Heathrow Airport on a that global air (Figure underscoring how complexity but amplifies the risk of cascading failures when key The digital world is a of with social and how we and As we rely on these systems, they complex, the intricate social structures of such as and have become to modern communication, but their by vast and such as the data million political and eroding trust This complexity, can lead to vulnerabilities, such as or social networks, which digital or digital (Figure technologies are for interconnected systems, but their complexity can create critical vulnerabilities if not The which and through a supply how sophisticated systems can be the of on robust frameworks to that could destabilize entire economies As digital infrastructures become into as and risk of systemic A of risk that cost in emphasizing the of the economic and its for global stability technologies like which underpins such as further increase systemic complexity due to their and reliance on While is for data it remains susceptible to sophisticated The World 2022 on digital how such complexity can risks, particularly when digital systems are embedded in critical infrastructure This reliance on digital that any failure or can have for society and the economy in of a can as seen in the Mt. 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This often and systemic as these structures failed to ensure for the of a new social embedded in complex governance systems a critical When this corruption can trigger that social The becomes particularly when political or governance that could effectively address these systemic the and resilience by systems of The their vast into with managing and while The the system, and administrative to under the Empire small and them to and provided they and This of and fostered stability these dependence on digital systems and the risk of systemic failure if they collapse EMP and that societies with resources, such as to during crises Therefore, real-world social and economic structures is critical and trade to a basic of life with without prosperity it is an particularly for social and an in society is in infrastructure, and societies that clustering the and management of growth through economies of scale the of resources but resilience as a but growth. that adapt their model to ensure stability, and vulnerabilities embedded in intricate systems, whether governmental corruption, economic or fragile technological societal stability, as by and contemporary rely on intricate supply chains, and industrial a fragile equilibrium where failures, like and food supply disruptions can trigger existential systems, such as and food management or can resilience by on interconnected resilience of governmental and technological systems on deliberate during periods of stability and is an or a become a systemic underscoring the urgency for proactive planning is for societies to in critical to robust governance frameworks and technological a that both resilience frameworks and humanity can technological growth thriving
Maksym Lazirko, Deniz Appelbaum, Miklos A. Vasarhelyi
Cryptocurrency exchanges face increasing pressure to demonstrate reserve adequacy following platform failures, yet current Proof of Reserves (PoR) systems suffer from incomplete verification approaches that examine either on-chain or off-chain assets separately. This study introduces the Double-Helix Framework, a verification methodology that integrates on-chain blockchain analysis with off-chain consensus algorithms to provide complete assessment of exchange financial positions. The framework employs parallel verification strands that simultaneously validate blockchain-recorded transactions and off-chain financial information, creating a unified assessment mechanism that addresses the verification gaps in existing PoR systems. The framework's integration of traditional auditing principles with distributed ledger verification creates new possibilities for regulatory compliance and investor protection in digital asset management. This framework has implications for accounting practice, suggesting that comprehensive cryptocurrency audits require verification approaches that extend to on-chain, off-chain, and intersecting transactions that have varying degrees of separation between ledgers.
Georgeio Semaan, Guizhou Wang, Quoc Si Vo, Gopalakrishnan Kumar
Despite advances in biofuel production and biomass processing technologies, biorefineries still experience commercialization issues. When costs exceed revenues, their long-term economic sustainability is threatened. Although integrated biorefineries have significant global potential due to process integration and product co-generation, it is crucial that they generate a positive net return, thereby incentivizing their continual operation. Nonetheless, research and development into new system designs and process integration are required to address current biorefinery inefficiencies. The integration of Bitcoin mining into biorefineries represents an innovative approach to diversify revenue streams and potentially offset costs, ensuring the economic viability and commercial success of biorefineries. When using bio-H2, a total of 3904 sats/kg fuel can be obtained as opposed to 537 sats/kg fuel when using syngas. Bitcoin, whether produced onsite or not, is an accretive asset that can offset the sales price of other produced biochemicals and biomaterials, thereby making biorefineries more competitive at offering their products. Collaborations with policy makers and industry stakeholders will be essential to address regulatory challenges and develop supportive frameworks for widespread implementation. Over time, the integration of Bitcoin mining in biorefineries could transform the financial dynamics of the bio-based products market, making them more affordable and accessible whilst pushing towards sustainable development and energy transition.
The execution of smart contracts on Ethereum, a public blockchain system, incurs a fee called gas fee for its computation and data storage. When programmers develop smart contracts (e.g., in the Solidity programming language), they could unknowingly write code snippets that unnecessarily cause more gas fees. These issues, or what we call gas wastes, can lead to significant monetary losses for users. This paper takes the initiative in helping Ethereum users reduce their gas fees in two key steps. First, we conduct an empirical study on gas wastes in open-source Solidity programs and Ethereum transaction traces. Second, to validate our study findings, we develop a static tool called PeCatch to effectively detect gas wastes in Solidity programs, and manually examine the Solidity compiler's code to pinpoint implementation errors causing gas wastes. Overall, we make 11 insights and four suggestions, which can foster future tool development and programmer awareness, and fixing our detected bugs can save $0.76 million in gas fees daily.
The adoption of blockchain technology has spurred significant growth in the global Non-fungible tokens (NFT) market, which distinguishes itself from traditional markets by features such as free second-hand transactions and creator royalties. To navigate this burgeoning landscape, diverse business models have emerged, such as No secondary market and no royalties, Secondary market but no royalties, and Secondary market with royalties (mandatory royalty). In response, our theoretical model delves into the impact of these models on creator decisions, profits, consumer surplus, and social welfare. The NFT secondary market proves pivotal, enabling creators to set higher prices and enhance profits. Interestingly, introducing a creator royalty, under certain conditions, further boosts profits. Contrary to expectations, a low royalty doesn't always harm consumers; in fact, a sufficiently high royalty prompts creators to lower regular selling prices, fostering secondary transactions and expanding consumer surplus. Beyond the secondary market's conventional role in improving social welfare, our research reveals that a well-calibrated royalty, coupled with creator investment in NFT quality, can amplify social welfare. A low royalty incentivizes creators to prioritize highquality NFT production. We also scrutinize mandatory versus optional royalty policies (Consumer Optional Royalty), finding that the creator's profit is higher under the optional royalty framework with moderate or substantial royalties. We recommend that NFT creators opt for a medium royalty rate when given the choice to set it themselves. Otherwise, in instances where the royalty rate is predetermined, creators are better with mandatory (optional) royalty when royalty is small (large).
Abstract In this paper, a multigeneration cycle of electricity, cooling, and Bitcoin whose energy source is geothermal, has been subjected to energy, exergy, and economic analyses. The cycle under consideration includes the steam cycle (upstream cycle), the carbon dioxide cycle (downstream cycle), and the liquid–gas line to absorb the heat dissipated by the carbon dioxide cycle. In this cycle, the steam cycle condenser acts as the carbon dioxide cycle evaporator. Part of the electricity generated by this cycle is used to generate Bitcoins. Energy and exergy efficiencies at baseline (excluding Bitcoin production) are 45.8% and 38.1%, respectively. In this cycle, if more power is spent on producing Bitcoin as a product, the energy and exergy efficiencies of the cycle are reduced. Because Bitcoin itself is not valuable in terms of energy and exergy. Considering the average price of Bitcoin during the years 2015–2022 and if 100% of the electricity generated by the system is spent on Bitcoin production, the payback period in 2018, 2021, and 2022 when the price of Bitcoin is equal to $13,412.4, $21,398.8, and $47,743.0, respectively, are less than the baseline. Therefore, the production of Bitcoin with a variety of renewable energies can be considered as a solution. Of course, it should be noted that large changes in the price of Bitcoin can affect the issue of economic benefit.
Marco Schletz, Axel Constant, Angel Hsu, Simon J.D. Schillebeeckx · 6 authors
The Regenerative Finance (ReFi) movement aims to fundamentally transform the governance of global common pool resources (CPRs), such as the atmosphere, which are being degraded despite international efforts. The ReFi movement seeks to achieve this by utilizing digital monitoring, reporting, and verification (D-MRV); tokenization of assets; and decentralized governance approaches. However, there is currently a lack of a clear path forward to create and implement models that actually drive the “Re-” in ReFi beyond perpetuating the existing extractive economics and toward actual regeneration. In addition, ReFi suffers from growing pains, lacking a common interoperability framework and definition for determining what a ReFi project is and how the individual components align toward the grand ambition. This paper provides a definition of the ReFi stack of interconnected components and examines how it can address limitations in climate change accounting, finance and markets, and governance. The authors also examine the theory of regenerative economics and CPRs to encourage further discussions and advancements in the ReFi space. The crucial question remains if and how ReFi can drive a change in paradigm toward the effective regeneration of global CPRs.
As global economies accelerate toward net-zero carbon goals, the financing of clean technology (clean tech) deployment has become a critical priority. Yet, energy transition projects often face challenges of capital intensity, long payback horizons, and market uncertainty—particularly in emerging economies and decentralized energy systems. Strategic cost modeling provides a foundational tool for addressing these barriers by quantifying lifecycle costs, de-risking investments, and guiding capital allocation in alignment with environmental and economic objectives. This study presents a comprehensive approach to cost modeling tailored for clean tech financing, focusing on solar PV, wind, green hydrogen, battery storage, and grid modernization initiatives. It integrates techno-economic analysis with risk-adjusted financial modeling, incorporating dynamic inputs such as regulatory volatility, carbon pricing, technology learning curves, and supply chain bottlenecks. The paper also evaluates funding structures including blended finance, green bonds, and public-private partnerships (PPPs), highlighting how cost models inform structuring choices. Case studies from North America, Sub-Saharan Africa, and Southeast Asia illustrate how well-calibrated models support investment-grade project profiles, attract concessional and institutional capital, and align with climate finance frameworks. The role of digital tools—such as AI-driven scenario simulators and geospatial LCOE calculators—is explored for improving precision and investor transparency. Ultimately, the paper argues for a paradigm shift in energy finance where strategic cost modeling is not an afterthought but a core enabler of accelerated, equitable, and bankable clean tech deployment. This integration is vital for unlocking the trillions in climate-aligned capital needed to meet the ambitions of the global energy transition.
<b>Overview</b><br/>The energy sector as a main contributor to greenhouse gas emissions needs to undergo a large and rather quick transition in order to adjust for the Paris Agreement and to limit global warming to 1.5 or at least two degrees. Moving from conventional to renewable energy generation might also shift the place of installation, especially for small-scale end-users (i.e. citizens). We recognize that the current regulatory set-up in Europe results in large distributional effects of costs: high income households are more likely to own properties and therefore generation technologies while low-income households co-finance the installations and the system via taxes, levies and fees, leading to an increase in their costs (Borenstein and Davis 2016; Lüth, Weibezahn, and Zepter 2020). However, there is large potential to install generation technologies at smaller capacities, but the latest development has shown that more emphasis is put on the development of large-scale renewable energy installations, i.e. onshore and offshore wind farms or open-space PV (BMWi 2019). In an urban context, there is a limitation of space for highcapacity installations, yet high, centralized electricity demand.<br/>However, decentralized residential and small-scale technologies that combine generation and storage in the vicinity of the end-user in one location have not been regarded as one of the main influential parts of the transformation to sustainable energy. On the one hand, we find studies that emphasize the potential of residential and urban renewable energy technologies (Fraunhofer ISE 2020), but also see reports, on the other, that present the downsides of the approach to roll-out small-scale technology (Mathiesen et al. 2017). Considering rooftop PV, some studies show that costs for the technology, installation, and maintenance are much higher than for PV parks (Fraunhofer ISE 2018). Arguing based on pure system costs, we see a limitation in the approach (acatech, Akademienunion, and Leopoldina 2020) and formulate the hypothesis that decentralized generation in an urban high demand area is equally important for a successful energy transition as the large-scale deployment onshore and offshore. This follows earlier, established theories of decentralization (Schumacher 1973; Weizsäcker, Lovins, and Lovins 1997).<br/>In order to address monetary and non-monetary aspects of a large and small-scale technology deployment, we develop an alternative assessment scheme based on ecological, economic, and social criteria to qualitatively contrast the value of large-scale and small-scale renewable energy technologies. We apply this method to the context of the Global North and the Global South context to evaluate and identify advantages and current barriers as well as disadvantages of each approach from both a system and societal perspective.
The global oil and gas markets are characterized by extreme price volatility driven by geopolitical events, supply-demand imbalances, and macroeconomic factors. Traditional trading strategies often struggle to maintain profitability while mitigating risks in such unpredictable environments. This study explores the development and implementation of innovative trading strategies that optimize profitability and reduce risk in global oil and gas markets. By leveraging advanced analytics, algorithmic trading, and real-time market intelligence, traders can improve decision-making, enhance risk-adjusted returns, and achieve greater market resilience. The research examines key components of effective trading strategies, including price forecasting models, quantitative risk management techniques, and adaptive trading algorithms. Machine learning and artificial intelligence (AI) are integrated to analyze historical data, detect emerging trends, and generate predictive insights for market positioning. Additionally, the study explores the role of hedging instruments such as futures, options, and swaps in reducing exposure to market fluctuations. A comprehensive framework is proposed that incorporates sentiment analysis, technical indicators, and fundamental analysis to optimize trading margins and maximize profitability. Furthermore, the study highlights the significance of real-time data analytics and high-frequency trading (HFT) in capitalizing on short-term market inefficiencies. Scenario-based simulations and stress testing are employed to evaluate strategy performance under different market conditions, ensuring robustness and adaptability. The research also discusses the importance of regulatory compliance, liquidity management, and risk mitigation techniques in sustaining long-term profitability. Findings suggest that integrating AI-driven forecasting models and quantitative trading strategies significantly improves accuracy in market predictions, leading to enhanced profitability and reduced risk exposure. The proposed strategies offer actionable insights for energy traders, financial analysts, and policymakers seeking to navigate the complexities of the oil and gas markets. By adopting a data-driven, technology-enhanced approach, traders can gain a competitive advantage and improve market efficiency. Future research should explore blockchain-based trading platforms and decentralized finance (DeFi) solutions for further optimizing oil and gas trading strategies.
Lars Holstenkamp, Wiesenthal, Jan, Najamul Saqib Memon
The transformation of the energy system will require massive investments in the coming years. The total global investment requirement from 2018-2050 is estimated at 110 trillion US dollars. The magnitude of the investment needs makes it clear: investments are needed by all actors. An increasingly important role is played by citizens. They can invest individually and become prosumers (self-consumers of self-generated electricity) or they can organize themselves in bottom-up models such as Energy Communities, Community Energy or Local Energy Initiatives and jointly finance the investment costs.<br> But how is financing actually defined? What are the financing instruments? And what are the connections between financing (-instruments) and the energy transition? And what role do bottom-up models play in the energy transition? The aim of this paper is to trace and illustrate the links between financing, energy and the current role of bottom-up models in financing of the energy transition.<br> Financing can be understood in two different ways. In an energy economic sense, financing means the refinancing of capital employed. This includes energy sector regulations such as energy market design, environmental policies or private contracts. In a managerial sense, financing means the procurement of funds. A distinction can be made here between private and public financing. Not least because of the great importance of the regulatory framework, both aspects - energy policy instruments and financing in the managerial sense - are interrelated: The type and scope of the design of the financial requirement (e.g., the implemented support programs) directly influence the coverage of the financial requirements in the managerial sense. In the context of this study, we provide a brief overview of the various financing instruments. The financing instruments have already been intensively researched. For bottom-up models it emerges that risk-minimizing, transparent instruments such as FITs are advantageous. However, the question arises as to what overall effects on the system the various financing instruments have.<br> Based on a literature review on energy and financing, four perspectives were identified that have been discussed in past research. These include: micro-level perspectives, policy perspectives ("sustainable finance discourse"), system-level perspectives and literature studying the effects of developments in the energy sector on financial markets ("energy-to-finance"). Each of these perspectives contains elements of all three approaches to the topic of financing (managerial, energy economic, regulatory).<br> Looking at the bottom-up models, it is clear that considerable changes have taken place in recent years. Both technological progress, which has facilitated decentralized energy generation, and regulatory interventions, such as the Clean Energy Package, have strengthened bottom-up models in recent years. While research on bottom-up models has been conducted in the past in several countries with well established bottom-up models, research needs to be extended to other countries in order to generate transferable results. It is also clear that bottom-up models bring new challenges. One example is a tradeoff between investor risk management and the ability to finance bottom-up models. This also needs to be addressed in further research.
In view of the continuous debates on the environmental impact of blockchain technologies, in particular, cryptocurrency mining, accompanied by severe carbon dioxide emissions, a technical solution has been considered assuming direct monetization of associated petroleum gas currently being flared. The proposed approach is based on the technology of low-temperature steam reforming of hydrocarbons, which allows flare gas conditioning toward the requirements for fuel for gas piston and gas turbine power plants. The generation of electricity directly at the oil field and its use for on-site cryptocurrency mining transform the process of wasteful flaring of valuable hydrocarbons into an economically attractive integrated processing of natural resources. The process is not carbon neutral and is not intended to compete with zero-emission technologies, but its combination with technologies for carbon dioxide capture and re-injection into the oil reservoir can both enhance the oil recovery and reduce carbon dioxide emissions into the atmosphere. The produced gas can be used for local transport needs, while the generated heat and electricity can be utilized for on-site food production and biological carbon dioxide capture in vertical greenhouse farms. The suggested approach allows a significant decrease in the carbon dioxide emissions at oil fields and, although it may seem paradoxically, on-site cryptocurrency mining actually may lead to a decrease in the carbon footprint. The amount of captured CO 2 could be transformed into CO 2 emission quotas, which can be spent for the production of virtually "blue" hydrogen by steam reforming of natural gas in locations where the CO 2 capture is technically impossible and/or unprofitable.