Purpose This study aims to investigate the integration of smart contracts into the legal framework of Saudi Arabia, spotlighting the pivotal role of blockchain technology in revolutionizing contractual processes. It evaluates the capacity of smart contracts to enhance the efficiency, security and transparency of legal transactions, while critically examining the legal challenges their adoption presents. Design/methodology/approach Through qualitative analysis, this research explores the operational dynamics of smart contracts, with a focus on their autonomous execution and the digital codification of contractual terms. It scrutinizes the alignment of smart contracts with the Saudi legal system, concentrating on pivotal issues such as the establishment of mutual consent, the verification of contracting partiesâ capacity and adherence to conventional legal doctrines. Findings This study uncovers the transformative potential of smart contracts in redefining the execution of contracts, highlighting their advantages in streamlining transactions and enhancing contractual reliability. However, it also identifies significant obstacles in the path of their full integration into Saudi Arabiaâs legal landscape, notably the challenge of reconciling smart contractsâ technology-driven operations with established legal norms and rectifying potential legal inconsistencies. Originality/value Offering fresh perspectives on the confluence of technology and law, this paper illuminates the complex task of implementing smart contracts within a legal framework that is in the process of adapting to digital innovation. It advocates for a sophisticated strategy of regulatory adjustment that promotes the legal system's evolution alongside technological progress, ensuring the effective and legally sound utilization of smart contracts.
Several large financial trading platforms have recently begun implementing âcopy trading,â a process by which a leader allows copiers to automatically mirror their trades in exchange for a share of the profits realized. While it has been shown in many contexts that platform design considerably influences user choicesâusers tend to disproportionately trust rankings presented to themâwe would expect that here, copiers exercise due diligence given the money at stake, typically USD 500â2 000 or more. We perform a quantitative analysis of two major cryptocurrency copy-trading platforms, with different default leader ranking algorithms. One of these platforms additionally changed the information displayed during our study. In all cases, we show that the platform UI significantly influences copiersâ decisions. Besides being sub-optimal, this influence is problematic as rankings are often easily gameable by unscrupulous leaders who prey on novice copiers, and they create perverse incentives for all platform users.
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.
Research shows that governance is critical to predict the value and success of blockchain platforms. Although prior studies have recognized multiple mechanisms employed in governing blockchain platforms, the combined effects of these mechanisms on platform performance are still poorly understood. In this paper, we examine the interactions among decentralization, consensus mechanisms, and whales ownership concentration mechanisms and their impacts on the market performance of blockchain platforms. We analyze data of 555 and 243 largest market capitalization blockchain platforms using Hierarchical Linear Regression. Our analysis shows support for our hypotheses of the two-way and three-way interactions among the governance mechanisms. With a low degree of decentralization, proof-of-stake and other consensus mechanisms, such as proof-of-authority or the combined proof-of-work and proof-of-stake, are associated with higher market value than the proof-of-work mechanism. The interaction between decentralization and other consensus mechanisms is reinforced when there is low whale ownership concentration, highlighting the important role of the information environment. Our findings are robust to various endogeneity tests, offering important theoretical and practical implications regarding the interplay between consensus mechanisms, decentralization, and whale ownership concentration and their impacts on the market value of blockchain platforms.
Non-fungible tokens (NFTs) and the blockchain are a relatively new technology that is becoming ubiquitous â yet most creators and buyers are saturated with an ever-increasing arsenal of jargon that, in some cases, makes it difficult to fully appreciate what exactly an NFT is and how the blockchain really works and, thus, to comprehend what is being sold and bought and which rights the players are entitled to. This chapter serves two purposes, namely, to introduce the main technical concepts underlying NFTs and the blockchain in laymanâs terms, and to set the mise-en-scène for the rest of the chapters of the compilation.
Decentralized Autonomous Organizations (DAOs) have become a transformative force in the ever-evolving landscape of decentralized finance (DeFi), reshaping traditional investment frameworks. This research thoroughly examines the intricacies of DataDAO Club, an innovative platform that utilizes on-chain governance, Filecoin storage, and smart contracts to redefine the landscape of investment management. The study encompasses an in-depth literature review, delving into the broader context of DeFi, previous DAO research, and the integration of block chain technologies such as Filecoin. The methodology section meticulously dissects the smart contracts deployed on the calibration testnet, showcasing real-world implementation through features like on-chain governance, economic models for dataset value generation, and proof of data storage inclusion (PoDS I). The findings shed light on the platform's impact, emphasizing its role in democratizing access to investment funds, evaluating the efficacy of Filecoin storage deals, and assessing the resilience of the implemented features. This study not only reveals the intricate workings of DataDAO Club but also discusses user interactions, delves into the challenges encountered during development, and proposes potential avenues for future improvements. This research contributes valuable insights to the ever-changing landscape of decentralized finance, offering a nuanced understanding of the practical implementation and impact of DAOs, thereby paving way for continued innovation and exploration in the field of decentralized investment management.
Current attempts to regulate blockchain technology are mainly based on securities law framework, which considers crypto tokens and digital assets as either securities, currencies or derivatives thereof. The main limitation of such approach lies in its inability to accommodate the diverse legal rights, obligations and assets that blockchain technology can virtually reproduce. Already in 2017â2018 there were attempts to tokenize rights outside of securities law framework, these initiatives served more as makeshift solutions to circumvent securities regulations than as thorough frameworks for managing real-world assets and commercial activities. This article conducts a comparative and historical analysis of blockchain regulatory initiatives in Europe and the US, positing that the regulation of blockchain technology through a securities law lens is driven by reactionary opportunism. Such a basis is deemed inappropriate and insufficient, as securities laws being a field of public law were not designed to govern real-world assets and commerce, which fundamentally rely on the principles of laissez-faire and freedom of contract inherent in private law. A regulatory stance focused solely on public law overlooks the full potential of blockchain technology, and risks stifling innovation and practical applications. To illustrate this, the article presents case study of tokenization of contractual rights demonstrating that securities law-focused legal regulations, such as the EU Regulation 2023/1114 on Markets in Crypto-Assets (MiCA) and Regulation 2022/858 on Distributed Ledger Technology (DLT), inadequately address the field of private commerce. Based on the analysis, the article concludes that comprehensive legal framework for blockchain technology shall combine public and private law regime akin to the regulation of traditional rights, obligations and assets.
Blockchain is a secure database shared across a network of all participants, characterised by immutability, openness, transparency, and traceability. Therefore, blockchain technology is widely used in supply chain management, which can increase consumers' understanding of product information when goods arrive at the consumer end and increase the risk of consumer privacy information leakage. Considering a supply chain system that consists of a manufacturer and a platform, this paper studies the strategic interactions between the platform's adoption of blockchain technology and the manufacturer's product line design based on blockchain's positive and negative impacts on consumers. We examine the driving factors of the platform's use of blockchain technology, which are related to the effect of information transparency and privacy concerns caused by blockchain and the marginal production cost coefficient. In particular, a higher marginal production cost coefficient could make the platform more likely to use blockchain technology. We also find that the practice of blockchain technology may incentivize a manufacturer to extend its product line.
Smart contracts have played a pivotal role in the evolution of blockchains and Decentralized Applications (DApps). As DApps continue to gain widespread adoption, multiple smart contract languages have been and are being made available to developers, each with its distinctive features, strengths, and weaknesses. In this paper, we examine the smart contract languages used in major blockchain platforms, with the goal of providing a comprehensive assessment of their main properties. Our analysis targets the programming languages rather than the underlying architecture: as a result, while we do consider the interplay between language design and blockchain model, our main focus remains on language-specific features such as usability, programming style, safety and security. To conduct our assessment, we propose an original benchmark which encompasses a wide, yet manageable, spectrum of key use cases that cut across all the smart contract languages under examination. ⢠We give an abstract overview of smart contract platforms, discussing the impact of different design choices. ⢠We illustrate by examples how different design choices give rise to different programming styles for smart contracts. ⢠We consider 6 leading smart contract languages: Solidity (Ethereum), Rust (Solana), Aiken (Cardano), PyTeal (Algorand), Move (Aptos), SmartPy (Tezos). ⢠We develop an open-source benchmark of use cases of smart contracts, implemented in all the languages in our selection. ⢠Based on our benchmark, we evaluate smart contract languages focussing on their security, code readability, usability, and functionalities.
Krzysztof Gogol, Yaron Velner, Benjamin Kraner, Claudio J. Tessone
Liquid staking and restaking represent recent innovations in Decentralized Finance (DeFi) that garnered user interest and capital. Liquid Staking Tokens (LSTs), tokenized representations of staked tokens on Proof-of-Stake (PoS) blockchains, are the leading staking method. LSTs offer users the ability to earn staking rewards while maintaining liquidity, enabling seamless integration into DeFi protocols and free tradeability. Restaking builds upon this concept by allowing staked tokens, LSTs or native Bitcoin tokens to secure additional protocols and PoS chains for supplementary rewards. Liquid Restaking Tokens (LRTs) unlock liquidity of restaked assets. This Systematization of Knowledge (SoK) establishes a comprehensive framework for the technical and economic models of liquid staking protocols. Using this framework, we systematically compare protocols mechanics, including node operator selection, staking reward distribution, and slashing. Our empirical analysis of token performance reveals that protocol design and market dynamics impact token market value. We further present the recent developments in restaking and discuss associated risks and security implications. Lastly, we review the emerging literature on liquid staking and restaking.
In recent years, blockchain technology has drawn a lot of attention, especially in the field of decentralised finance (De-Fi). However, scalability problems have come to light as a significant obstacle to the broad use of blockchain-based applications. To solve the issue of scalability, this paper has created a decentralised finance application with three main components: the addition of more liquidity to the swapping application, the implementation of a Polygon Proof of Stake bridge to enable efficient asset transfers, and the ability to transfer tokens between accounts seamlessly regardless of network agnosticism. The first feature, network agnostic capabilities for interoperability, facilitates token transfers between blockchain networks, allowing users to access and transact across them with ease The second component, the Polygon Proof-of-Stake bridge, makes asset transfers more efficient by taking advantage of the Polygon network's scalability advantages, which drastically lower transaction costs and processing times. Finally, adding more liquidity to the swapping programme makes it more scalable by guaranteeing that there is enough money for transactions, which prevents delays and bottlenecks. The scalability issue with blockchain technology is efficiently resolved by adding these three characteristics to the decentralised finance application, creating new opportunities for the mass acceptance and utilisation of blockchain-based financial services.
This book chapter explains the significant influence of cryptocurrencies and fintech startups on business models and entrepreneurship by examining their revolutionary junction. The chapter thoroughly examines fintech's birth and development, charting its disruptive path inside the conventional financial services industry. It simultaneously explores the history of cryptocurrencies, revealing the blockchain's technical foundations and growing popularity in the corporate community. The story highlights the explosive rise of fintech companies and identifies its driving forces, including changes in consumer preferences, legislative changes, and technology breakthroughs. The chapter's main focus is how companies embrace cryptocurrencies, use them for transactions, hold ICOs to raise money, and add them to investment portfolios. The chapter also discusses technological difficulties and regulatory issues when merging fintech and cryptocurrency solutions.
As emerging digital assets, NFTs are susceptible to anomalous trading behaviors due to the lack of stringent regulatory mechanisms, potentially causing economic losses. In this paper, we conduct the first systematic analysis of four non-fungible tokens (NFT) markets. Specifically, we analyze more than 25 million transactions within these markets, to explore the evolution of wash trade activities. Furthermore, we propose a heuristic algorithm that integrates the network characteristics of transactions with behavioral analysis, to detect wash trading activities in NFT markets. Our findings indicate that NFT markets with incentivized structures exhibit higher proportions of wash trading volume compared to those without incentives. Notably, the LooksRare and X2Y2 markets are detected with wash trading volume proportions as high as 94.5% and 84.2%, respectively.
This chapter examines the different types of âtokensâ DLT projects can create, including security tokens, exchange tokens and utility tokens. It reviews the current state of regulatory thinking about what has been called âthe token economyâ - the digitisation of interests located in both the physical world and the metaphysical world of the distributed ledger. Many new investment offerings begin life through an âInitial Coin Offeringâ (ICO), a form of public offering of digital tokens designed to raise capital funding for the investment or project in question. The chapter reviews when ICOs constitute securities and when they might fall outside the scope of financial services regulation.
Traditional financial systems have limitations like centralized control, slow transactions, and lack of transparency. Emerging decentralized technologies offer an alternative model by giving users more direct control over their digital assets and identities. This chapter explores the potential of balancing centralized and decentralized elements in the evolution of digital currencies. It provides frameworks and real-world examples to examine how decentralized innovations can enhance speed, reduce costs, automate governance, and cut out intermediaries. The authors analyze the history of finance and argue that thoughtful integration of human oversight with decentralized automation can strengthen these systems. The goal is to inform policymakers, central bank experts, blockchain developers, and cryptography researchers on this key trend shaping the future of digital money.
Eleunthia Wong Ellinger, Robert Wayne Gregory, Tobias Mini, Thomas Widjaja ¡ 5 authors
Decentralized autonomous organizations (DAOs)âcollectively owned human-machine systems deployed on a blockchain that self-govern through smart contracts and the voluntary contributions of autonomous community membersâexhibit the potential to facilitate collective action in managing digital commons. Yet the promise of decentralization and collective action is difficult to sustain. To this end, this paper critically examines the transformational potential of DAOs in the case of decentralized finance. Using a polycentric governance lens, we contribute to the literature on technology-enabled forms of organizing with a model explaining the transformational potential of DAOs to facilitate collective action in digital commons. Our study highlights that (1) DAOs are a new form of organizing enabled by blockchain technology in which individuals are free to pursue their objectives within a general system of rules enforced by smart contracts, (2) collective action for managing digital commons can be sustained through a set of three mechanismsâsustained participation, collective direction, and scaled organizing, and (3) DAOs tend to strike a balance between centralized and fully decentralized or community-based governance by implementing a polycentric governance system involving a combination of human and machine agency that creates skin in the game.
This study delves into the dynamic landscape of public sentiment surrounding cryptocurrency through a comprehensive social media discourse analysis. Employing the Python Selenium library, data from 1000 public profiles across major platformsâX, Facebook, Instagram, and LinkedInâwere systematically collected. Using advanced text-mining techniques in R Studio, sentiment analysis was conducted with the âSyuzhetâ package and word frequency analysis via the âtmâ package. The results unveiled a nuanced emotional landscape characterized by dominant sentiments of anticipation and positivity, interwoven with expressions of negativity, notably anger, and loss. Word frequency analysis highlighted vital themes such as established cryptocurrencies (e.g., Bitcoin, Ethereum), blockchain technology, and practical and financial aspects of cryptocurrency usage. The study illuminated technical interest, financial speculation, and reactions to regulatory and economic developments. Offering insights crucial for stakeholders, including investors and policymakers, this research contributes to the academic understanding of public sentiment, emphasizing the volatile nature of crypto-currency markets and the transformative potential of blockchain technology and calls for ongoing monitoring of public sentiment to inform policy, investment, and technological innovation in the ever-evolving cryptocurrency ecosystem.
This research paper delves into the multifaceted potential of the Tron blockchain platform across various industries and use cases. Tron has emerged as a prominent player in the blockchain space, offering high throughput, scalability, and smart contract functionality. This paper examines the diverse applications of Tron, ranging from decentralized finance (DeFi) and gaming to content distribution and supply chain management. Drawing from case studies, industry insights, and expert analysis, the paper explores how Tron's unique features and capabilities can revolutionize existing systems and create new opportunities for innovation. By uncovering Tron's power and versatility, this paper contributes to a deeper understanding of its role in shaping the future of decentralized technologies and digital ecosystems.
This chapter examines the dynamic fusion of the Metaverse and the retail industry, highlighting the fundamental shift toward digital goods and immersive purchasing experiences. It investigates the Metaverse's fundamental concepts, historical development, and current impact on retail. Digital products, such as non-fungible tokens (NFTs), virtual goods, and augmented reality products, assume centre stage and potentially transform shopping experiences. However, it also faces obstacles during this metaverse transition, including technological hurdles, security concerns, and challenges related to customer adoption. Future trends and practical strategies for seamless integration, customer engagement, and marketing are discussedâthe metaverse ushers in a revolutionary era for retail, presenting boundless opportunities for those who embrace it. Retailers are urged to embark on this journey to satisfy evolving customer expectations and remain competitive in the future retail landscape.
Thabang Excellent Mofokeng, Steven Mbeya, Daniel K. Maduku
Abstract Online retailers in emerging markets like South Africa are adopting Bitcoin payments. This study explores factors driving consumer adoption and word-of-mouth (WOM) recommendations for Bitcoin in online transactions. Using an integrated model combining valency theory, social contagion theory, and the technology acceptance model (TAM), we analyse data from 521 South African online shoppers. Findings reveal that perceived usefulness, ease of use, social pressures, trust, and perceived risk significantly influence both adoption and WOM. Importantly, self-efficacy moderates the relationship between these factors and behaviour. This research contributes to the literature by offering a comprehensive understanding of Bitcoin adoption. For business and policy actors, enhancing consumer self-efficacy can foster trust, ease concerns, and encourage positive WOM, ultimately aiding successful Bitcoin implementation and promotion.
Decentralized autonomous organizations (DAOs) are not a novel social phenomenon; rather, they draw inspiration from self-organizing systems and are often regarded as digital counterparts of cooperatives (Co-ops), wherein members fully own and govern the organization. The advancement of digital solutions for decentralization, such as Distributed Ledger Technology (DLT), along with the emergence of the third generation of websites (Web3) and platforms, has propelled DAOs to a new echelon. As such, DAOs represent the next generation of organizations, aptly referred to as Organization 5.0 in the context of Society 5.0. The objective of this paper is to provide a comprehensive overview of the evolutionary trajectory of decentralized autonomous organizations and their classification. The advent of Ethereum in 2015 enabled the realization of DAOs, with "The DAO" being the first large-scale example established in 2016 as a decentralized venture fund within the Ethereum ecosystem. Over time, DAOs have expanded their scope beyond fundraising and have evolved to serve various purposes. To provide a comprehensive context, the paper presents background information on the evolution of blockchain applications and discusses ethical considerations related to DAOs. In order to identify the most common categories of DAOs, this paper consults various DAO explorers and include, for each identified category, a descriptive example of a DAO. Finally, the paper concludes by offering an outlook on the future of DAOs.