Blockchain Papers

Yuan Yuan, Xiao Liu, Shunyuan Zhang, Kannan Srinivasan

No abstract is available for this record.

Alifia Balqis, Andry Alamsyah, Dodie Tricahyono

Background in today’s digital age, the Web2 centralized model still dominates, presenting significant access, control, and innovation challenges. Web3, with its decentralized principles built on blockchain technology, offers a method to transition to a more open and innovative system, reducing dependence on large service providers and giving greater control to users. The objective of this research is to explore the impact of Web3 on digital industries, focusing on the financial sector through Decentralized Finance (DeFi), digital asset markets through Non-Fungible Tokens (NFTs), and the gaming industry. Using a qualitative method involving an extensive literature review, phenomenological analysis of current data, and in-depth interviews with Web3 industry experts, the results reveal that Web3 adoption significantly impacts the digital industry by improving operations and security, facilitating innovation, and expanding access and capabilities in the global market. The main conclusion of this research is that it provides valuable insights into the impact of Web3 technologies on the digital industry and suggests policy formation to support the expansion of these technologies for a more inclusive digital future.

Rafael Plata, Max Chan, Fernando Cerezetti

Recent years have witnessed noticeable expansion of new technologies related to distributed ledger technology (DLT) and blockchain networks in financial markets. As developments unfold, the key question that emerges is whether these technologies would work to foster traditional services or, conversely, would challenge their existence. Similar reflections exist for specific parts of the financial system. In particular for central counterparties (CCPs), proof-of-concepts and theoretical exercises have been conducted aiming at responding to such questions. While empirical experiences are yet to mature, theoretical exercises have suggested the impact on CCPs could be substantial, if not detrimental. The objective of this paper is to contribute to the literature and investigate the impact of DLTs on CCPs. Different from previous exercises, the paper resorts to the economic theory of financial service intermediation to substantiate the assessment. Using functional analysis and good type categorisation, the main conclusion of the paper is that under the current offering it seems challenging to foresee a scenario where any of the main services provided by a CCP would disappear or become fully disintermediated. The supporting argument is that the core functions of a CCP orbit around risk management, provided either as private or club type of good. Until now new technologies do not seem able to change the nature of these services and, therefore, render fundamental changes to CCPs less likely.

Jinge Sun, Wei Wang, Ping Cao, Xiang Shao · 5 authors

Spectrum data sharing is a prerequisite for obtaining spectrum situation and achieving dynamic spectrum sharing. However, current spectrum data sharing mechanism lacks ownership confirmation and proper incentive mechanism, which impedes data sharing among untrusted participants. In this paper, we propose an non-fungible token (NFT)-enabled spectrum data sharing model, where the data asset is created as an NFT to confirm the ownership and data transactions are conducted through the transfer of NFT ownership, with the transaction process recorded on the blockchain. We model the interactions among all participants as a Stackelberg game, and the optimal pricing and purchasing strategy are determined through Nash equilibrium analysis. Simulation results show that when the demand of spectrum data requesters (SDRs) remain constant, the profit of spectrum data owners (SDOs) with less data will gradually increase to a ceiling point by increasing its data supply, and then drop down due to the supply imbalance. As the budget of SDR increases, SDRs with lower budgets will experience a reduction in profits yet still manage to access a certain level of resources.

Mukala Patrick, Kabemba Ntumbwa Jonathan

Blockchain can be used to improve microfinance management in several ways. This can help reduce the costs of microfinance by eliminating the need for intermediaries such as banks and credit bureaus and increase transparency in the microfinance sector by making all transactions visible to everyone. stakeholders. This can help reduce fraud and build trust. Blockchain technology can also be used to improve access to finance for people living in poverty by making it easier for them to obtain loans and other financial services and to increase financial inclusion by providing people living in poverty a safe and reliable way to obtain funds, store and manage their money. Indeed, the blockchain is a secure, transparent and immutable distributed ledger. This means that data stored on a blockchain cannot be modified or deleted and is accessible to all network participants. Blockchain technology has the potential to revolutionize a wide range of industries, including finance, supply chain management, healthcare and voting. This makes blockchain a valuable tool for microfinance institutions, as it can help improve the efficiency and accuracy of their data management processes. For example, blockchain can be used to track loan repayments, manage customer information, and prevent fraud. This study aims to demonstrate that blockchain has the potential to revolutionize the microfinance sector by improving the transparency and accountability of microfinance institutions, given that all transactions on a blockchain are public and cannot be modified. This means borrowers and lenders can be confident that their transactions are recorded accurately and that there is no risk of fraud. Overall, blockchain technology has the potential to significantly improve information management in microfinance institutions. This can lead to increased efficiency, accuracy, transparency and accountability in microcredit management. Keywords: Microcredit, blockchain, security, transparency, decentralization, credit.

Yichen Luo, Yebo Feng, Jiahua Xu, Paolo Tasca

Total value locked (TVL) is widely used to measure the size and popularity of decentralized finance (DeFi). However, TVL can be easily manipulated and inflated through "double counting" activities such as wrapping and leveraging. As existing methodologies addressing double counting are inconsistent and flawed, we propose a new framework, termed "total value redeemable (TVR)", to assess the true underlying value of DeFi. Our formal analysis reveals how DeFi's complex network spreads financial contagion via derivative tokens, increasing TVL's sensitivity to external shocks. To quantify double counting, we construct the DeFi multiplier, which mirrors the money multiplier in traditional finance (TradFi). This measurement reveals substantial double counting in DeFi, finding that the gap between TVL and TVR reached \$139.87 billion during the peak of DeFi activity on December 2, 2021, with a TVL-to-TVR ratio of approximately 2. We conduct sensitivity tests to evaluate the stability of TVL compared to TVR, demonstrating the former's significantly higher level of instability than the latter, especially during market downturns: A 25% decline in the price of Ether (ETH) leads to a \$1 billion greater non-linear decrease in TVL compared to TVR via the liquidations triggered by derivative tokens. We also document that the DeFi money multiplier is positively correlated with crypto market indicators and negatively correlated with macroeconomic indicators. Overall, our findings suggest that TVR is more reliable and stable than TVL.

Brendan McGurk, Stefan Reichenbach

This chapter articulates the appeal Bitcoin holds for many retail investors across the world and positions it within the context of the monetary policy choices made by many of the world’s central banks over the last two decades. The chapter then goes on to provide an overview of the alternative models for financial services that can be offered through the sale or issue of digital or cryptoassets and assesses the possibilities to which a broader application of distributed ledgers gives rise. These include a widening of access to financial services, more efficient settlement systems, greater transparency in financial dealings and ownership, globalising access to investments and improved information sharing amongst others.

Rebecca Gerosa, Oliver Gloede, Philipp Müller

No abstract is available for this record.

Hanna Hałaburda, Daniel Obermeier

No abstract is available for this record.

Sørensen, Carsten, Viguerie, Christophe, Giraldo Mora, Juan Camilo; id_orcid 0000-0001-7598-4620, Ahmed, Thamim · 5 authors

No abstract is available for this record.

Filippo Zatti

The rapid advancement of digitization and decentralization is heralding a new era in social and economic organization. As nation-states grapple with the impact of (post-)globalization and technological innovation, increasing attention is being paid to blockchain technology's potential to enable the emergence of new governance structures, such as decentralized autonomous organizations (DAOs) and network states. This chapter analyzes whether DAOs could provide a viable framework for addressing the needs of future societies while maintaining fundamental principles such as democratic processes and the rule of law.

Independent Researcher, Moscow, Russia, Nataliia E. Dolgova, Ivan M. Dolgov

The authors present an overview of the development of Web3 from the inception of the internet to the present day. The article provides a detailed analysis of the working principles, presents a chronology of the Web, examines the key principles of Web3, and outlines its main characteristics, including commonly used abbreviations with explanations. Additionally, the article reviews trends in internet advertising, provides examples, and considers the implications of Web3 implementation for the economy as a whole and for advertisers and consumers in particular.

Igor Calzada

No abstract is available for this record.

Abesalom Webb

The advent of decentralized finance (DeFi) has instigated a paradigm shift in finance and economics, challenging the established norms of traditional network economics. This research offers a comprehensive comparative analysis of DeFi's impact on market power, pricing dynamics, and user adoption, juxtaposed against traditional centralized financial systems. Utilizing advanced analytical methodologies, the study reveals significant findings in the redistribution of market power, the evolution of pricing models, and the shifting landscape of financial service consumers. Central to this study is the investigation of how DeFi platforms, characterized by their decentralization, are reshaping market power dynamics. Traditional financial networks, often dominated by central entities (Nakamoto, 2008), are witnessing a gradual erosion of these centralized powers in favor of a more equitable distribution through DeFi systems (Schär, 2021). This redistribution represents a tangible shift in the power dynamics of financial markets, driven by the unique structure of DeFi. Additionally, the research explores the differences in pricing models between DeFi and traditional finance. It uncovers a novel pricing mechanism within DeFi that starkly contrasts with traditional methods, influencing asset valuation and market volatility (Gorton & Zhang, 2020). This distinct pricing approach in DeFi has the potential to significantly alter the global financial market landscape. Furthermore, the study examines user adoption patterns, highlighting a swift uptake of DeFi, especially in emerging economies (Catalini & Gans, 2020). This trend not only challenges existing financial models but also sheds light on the demographic and psychographic variances between DeFi and traditional finance users (Auer & Claessens, 2020; Biais et al., 2019). This research provides a foundational understanding of DeFi's implications on traditional network economics, paving the way for further studies and informing policy development. It is a vital resource for policymakers and financial institutions navigating the evolving financial service industry.

Busayo Omopariola

The transition toward a decentralized energy infrastructure in the United States is critical to addressing growing concerns over grid instability, energy security, and sustainability. Traditional centralized grids face increasing vulnerabilities due to aging infrastructure, climate-induced disruptions, and rising electricity demand. Decentralized energy systems, including distributed renewable energy sources, microgrids, and energy storage solutions, offer resilience and flexibility but require substantial investment. Public-private partnerships (PPPs) have emerged as a viable mechanism to bridge financing gaps by leveraging governmental support, private sector expertise, and innovative financing models. Digital financial instruments, such as blockchain-based energy trading platforms, green bonds, and tokenized energy assets, are reshaping investment strategies by enhancing transparency, liquidity, and accessibility in the energy market. The integration of decentralized finance (DeFi) in energy investment enables peer-to-peer transactions, reducing reliance on traditional financial intermediaries and fostering community-driven energy projects. Moreover, regulatory frameworks and policy incentives play a crucial role in incentivizing private sector participation and ensuring the scalability of decentralized energy initiatives. This paper examines how the synergy between PPPs and digital financial instruments can drive investment in decentralized energy projects, addressing grid instability challenges in the U.S. By analyzing case studies of successful implementations, policy recommendations, and emerging trends in energy finance, this study highlights the transformative potential of innovative investment models in accelerating the clean energy transition. The findings underscore the necessity of a collaborative, technology-driven approach to secure a resilient, decentralized energy future.

Young Yoon Park

This paper presents factors to consider when designing DeFi regulations.DeFi regulations may be established by imposing obligations on developers and operators, who exist even in extreme decentralization cases.However, the requirements in current financial legislation, which heavily rely on intermediaries' organization and personnel, are difficult to apply to DeFi.Instead, under DeFi, information can be obtained, analyzed, and aggregated on the blockchain and reported to the authority automatically and regulatory requirements may be reflected in the smart contract and automatically executed.This may require mandatory code audits by supervisory authorities and civil technology experts prior to execution, to check whether legal requirements are embedded in the code.In addition, measures addressing the risk-contagion effects in macroeconomic crisis, potentially arising from DeFi's connectivity with traditional finance, must be considered.

Marife Ballesteros, Elmer Mercado, Amillah Rodil-Ocampo, Tatum Ramos · 6 authors

Interlocal cooperation has long been promoted in the Philippines to address the resource limitations of local government units; however, there is a lack of discussion on how it can efficiently deliver urban services. This study aims to investigate cooperation models in the delivery of critical urban services by evaluating the management structure, financing strategies, sustainability, and issues/challenges of the interlocal arrangement in relation to operationalization. It focuses on answering the following policy questions: (1) what forms of interlocal cooperation have been utilized in the delivery of urban services; (2) how has interlocal cooperation improved the delivery of urban services; and (3) how can interlocal cooperation work better and be sustained given the decentralized nature of local politics. A closer look through findings from desk reviews and interviews is given to solid waste management and healthcare since they have been identified as services wherein cooperation among LGUs is extensively developed. Reforms are then proposed to improve the effectiveness of interlocal cooperation in efficiently delivering urban services.

Leandro Pupe Nóbrega, Carlo Kleber da Silva Rodrigues, Vladimir Rocha

This article aims to identify and discuss the challenges andopportunities involved in the deployment of the digital currencybased on Distributed Ledger Technology (DLT) in theBrazilian Payment System (BPS), regulated by the CentralBank (CB) of Brazil. To do so we consider the following twosteps. First, a theoretical study is made concerning learnedlessons from the digital-currency deployment projects in theBahamas, the Eastern Caribbean, and China. These countriesare herein explored due to the maturity stage alreadyreached in their respective projects. Second, an interviewis conducted with specialists in the Brazilian financial market.This interview is carried out with the goal of capturingthe perception of the Brazilian market in the face ofthe challenges and opportunities that lie ahead. The finalresults obtained in this work lead to the main conclusionthat the adoption of a digital currency in Brazil cannotresult successfully without considering proper governmentactions related to motivation for its adoption by the populationand financial institutions, besides the existence ofinvestment in cybersecurity technology. Furthermore, thisdeployment is likely to bear opportunities regarding the useof technology to boost the resilience, interoperability, programmability,and security of the BPS. In this context, as amain contribution, this article provides indicators and theoreticalsubsidies that may help assess the efficiency of theBPS in the face of the deployment of digital currency. Atlast, final conclusions and future works close this article.

Gauri Vikram, Yoshita Sood

No abstract is available for this record.

Nischal Aryal, Fariba Ghaffari, E. Bertin, Noël Crespi

International audience

John O. Oladipo

The Internet, in its embryonic form, emerged as a government research project designed to facilitate communication between researchers and scientists. Ever since then, the Internet has progressed tremendously from what we understand as an Internet where the functionality is to simply ‘read’, to the Internet where people can read, write, interact with other users, etc. The concept of life without the Internet is now inconceivable. At its current juncture, the Internet has permeated every facet of human existence, significantly impacting the world around us. Now, web 3.0 is the next step in the evolution of the Internet, emphasizing a decentralized Internet, ownership and advanced technologies. It is a paradigm shift for the internet that is defined by a collection of decentralized protocols and networks run by network participants worldwide. The decentralized nature of Web 3.0 will enable the creation of decentralized apps for finance, arts and collectables, gaming, and technology. Web 3.0 will provide users with greater data ownership, control, and privacy. It will be more secure, and scalable, and offer better privacy for users. It is also believed that Web 3.0 will create an ecosystem for users, by users, and of users. However, there are legal issues such as data autonomy, privacy, and protection, among others that need to be addressed. This article aims to demystify the emerging paradigm known as Web3—a new era of the Internet—and shed light on its relevance and the potential legal challenges it presents. Web3 is poised to reshape our digital landscape, and understanding its implications is vital as we navigate the ever-evolving intersection of technology and the law.

一正 小黒, Kazumasa OGURO

The main purpose of this paper is to set a model in which there exist multiple firms producing data in a situation where each firm produces data and shares it voluntarily for new additional revenue. The model is used for theoretical examination of the revenue distribution rule and behaviors to maximize the social welfare. Consequently, the following three main results can be obtained. First, if the number of firms is sufficiently large and some conditions are assumed, the revenue distribution rule to maximize social welfare in a decentralized economy coincides with the elasticity of additional revenue with respect to the provided data. Second, if each firm maximizes profit in the decentralized economy, the firm can achieve allocations to maximize social welfare in a command optimum for any revenue distribution rule as long as the government provides the policy of lump-sum tax and subsidy appropriately. Third, if the subsidy for data sharing is financed by a flat rate tax for additional profit, each firm has an incentive to participate in the platform irrespective of the subsidy rate and revenue distribution rule.

Annalee Newitz

No abstract is available for this record.

Stoyan N. Angelov

No abstract is available for this record.