Cryptocurrencies, since its creation, have evolved by attracting investors (companies, financial institutions and individuals) that seek significant results, based on the great value of these. However, the finance market is characterized at the level of volatility and uncertainty, which leads to the ups and downs in the price, facing these difficulties, the investment manager must make decisions. This paper proposes a methodology to support decision-making in the investment management in the cryptocurrencies market, adopting a conservative investment position that should reduce risk and maximize the return on investment. The methodology seeks from the historical price of the cryptocurrencies the estimation of the transitions probabilities of the returns and establish levels, this is done based on the analysis of the Markov chains, which is integrated into the multiple decision trees to identify the cryptocurrency that projects a greater return when is sold one and two periods after having been acquired. The results are compared with the real data and the efficiency of the methodology for the support to the decisions in the management of the investment in the cryptocurrencies is checked.
This article contains a description of the present state of business processes formalization developments. Currently existing formalized contracts automation methods have different functional limitations in application. The methodical approach to creating the tool for constructing formalized automated contracts containing a complex of hierarchically connected multilevel contracts is developed. Requirements to the tool for constructing formalized automated contracts (FACT) are defined, its structural components and mechanisms of interaction between them are described, the areas of application of the FACT and its prospects are defined.
Economic and Technological Systems Analysis
Advanced Research in Systems and Signal Processing
The article is devoted to the analysis of the cryptocurrency market functioning and the existing problems of its development. Today, the world needs electronic transactions and the elimination of the state monopoly on the issuance of funds. The cryptocurrency market is the evolution that can change the current situation. The factors affecting the demand for cryptocurrencies were determined in this article. One of the most important is the desire of investors to receive a one-time income on the difference in purchase and sale prices, not showing interest in long-term investment in new technologies. Also, regulatory and legal features of cryptocurrency regulation in the international space are revealed. Thus, in some developed countries, cryptocurrencies are recognized as a legal, regulated means of payment, which is allowed to be used when paying for goods and services. The article identifies barriers to market development, including a ban on turnover in some countries and the lack of elaboration of the legal aspect. In conclusion, the opportunities and prospects for the development of cryptocurrency as a means of exchange are revealed. It is noted that more and more countries are beginning to actively understand the issue of the cryptocurrency market and make at least some regulatory framework for their regulation, but at the moment the main financial regulator of the Russian Federation continues to adhere to a negative point of view in terms of cryptocurrencies.
In recent years, blockchain technology has begun to attract close attention. The blockchain solved the problem of replacing the original centralized ledger with a low level of trust, on a decentralized form with a high level of trust, which has various objects, or, in other words, checking nodes. The main feature of the blockchain technology is a consistent algorithm that decides how an agreement is reached on adding a new block between all nodes in the checking network. Blockchain algorithms can be divided into two main groups. There is consensus based on evidence. This group requires that nodes connecting to the inspection network show that they are more qualified than others to do the extra work. The second type is consensus, which is based on voting and requires that the nodes in the network exchange the results of the verification of a new block or transaction before making a final decision. This article provides an overview of existing blockchain consensus algorithms.
Blockchains were initially introduced in 2009, and since then, they have evolved into a revolutionary technology that has affected, not only the digital world but also our everyday lives and activities. Blockchain systems and architectures continue to grow at a fast rate, constantly introducing innovative solutions across multiple research topics. However, despite their wide adoption by the research community, the technology is still not mature enough to address the problems of business use cases. Issues like scalability, complexity, cryptocurrencies' market fluctuations etc. prevent the proposed solutions from being widely accepted. Based on this observation this paper introduces an innovative solution to enable Big Data analysis of private information using blockchains. This solution is based on the Hyperledger Fabric blockchain and is able support the strict privacy and security requirements of operational and business environments.
Igor Kovalenko, Yevhen Davydenko, Alyona Shved, Anzhela Boiko
Creation of funds transfer system of the main organization between its instances in the form of a smart contract has been studied. This contract fully covers the expenses of third parties, provides support for information security in the network and maintains a security protocol that guarantees the inviolability of funds by anyone other than the specified addressees.
The article deals with information technology blockchain. The possibility of databases creating using blockchain is described. The simple writing data procedure to the blockchain is realized. The main domains for the technology applying are given. The smart contract in blockchain are shown. The potential of this technology is described.
Sep 1, 2019·2019 10th IEEE International Conference on Intelligent Data Acquisition and Advanced Computing Systems: Technology and Applications (IDAACS)
Jan Stodt, Eugen Jastremskoj, Christoph Reich, Dominik Welte · 5 authors
Maintenance processes in Industry 4.0 applications try to achieve a high degree of quality to reduce the downtime of machinery. The monitoring of executed maintenance activities is challenging as in complex production setups, multiple stakeholders are involved. So, full transparency of the different activities and of the state of the machine can only be supported, if these stakeholders trust each other. Therefore, distributed ledger technologies, like Blockchain, can be promising candidates for supporting such applications. The goal of this paper is a formal description of business and technical interactions between non-trustful stakeholders in the context of Industry 4.0 maintenance processes using distributed ledger technologies. It also covers the integration of smart contracts for automated triggering of activities.
The article has been devoted to the system analysis of supply chains digital integration. The main goal is to study the practical significance of the blockchain in terms of digital integration of supply chains, to identify areas for further development. World experience of implementing blockchain projects in supply chains has been analyzed, trends in the use of digitalization technologies in logistics have been identified, components of digital supply chain integration have been considered. The general scheme of work with information is the collection of relevant data from news messages, evaluation of requests on the Internet by statistics analysis tools “Yandex. Choice of words” and “Google Trends”, analysis of legal and law enforcement documents using the search and analytics capabilities reference-legal systems, study of intellectual property through the service “Yandex. Patents». Systematization of the data was carried out by expert methods by the specialists of the Logistics Department from the State University of Management. The phenomenon of the popularity of the term “blockchain” has been examined, a plenty of papers, news articles, legal acts, devoted to the blockchain (distributed registry) and related with it technologies has been studied. The shortcomings of the blockchain, complicating the practical commercial application of technology in logistics and the economy as a whole, has been systematized; domestic legal support, regulating the issues of blockchain, cryptocurrency and related concepts has been analyzed; innovations (technologies, inventions, platforms and systems), related to the digitalization of the economy have been classified, and the components of digital integration of supply chains and logistics business processes have been formulated. The results of this study can be used to consolidate information about the opportunities and problems of blockchain in connection with related technologies, as well as in making decisions about the application of blockchain in logistics in order to integrate modern supply chains.
The article presents the results of research aimed at assessing the Bitcoin (BTC) capability to act as a widely accepted means of payment. The analysis includes technological and economic conditions of the BTC operation system. The research used data on market capitalization, the number of participants and the level of volatility of the BTC exchange rate in 2010-2018 from the portal coinmarketcap.com. The results of the research showed that BTC possesses certain characteristics typical of money, and has the potential to increase its share in the payment system in the future. BTC's ability to act as an electronic equivalent of cash depends on such factors as the stability of its exchange rate and the level of acceptance among users and payment acceptors. The statistical analysis of the correlation showed that along with the increase in the capitalization value of the BTC market the volatility of the exchange rate of this currency is lowered and the level of acceptance among e-commerce participants is increased. Such dependence will allow for further technological development of BTC and other cryptocurrencies and a wider use in trade.
Qilei Ren, Ka Lok Man, Muqing Li, Bingjie Gao · 5 authors
With the continuous development of Internet of things, all kinds of smart systems are quickly evolving to make our day-to-day life smoother and safer. Like many other sectors, transportation has entered a period of rapid change. Intelligent Traffic System is one of the fastest-growing fields within the smart systems, which is expected to increase road safety, mitigate traffic congestion, and enable fuel efficiency. The main functionalities of Intelligent Traffic System are as follows: (1) monitoring real-time traffic conditions in specific areas, (2) locating traffic emergencies (i.e. traffic accidents) in specific areas, and (3) dynamic monitoring and managing the continuous use in public transit services (i.e. change in car lanes) that may lead to changes in macro traffic conditions. This article will use the above-mentioned functionalities of the Intelligent Traffic System as underlying simulative scenarios, to design and to implement a smart transportation system based on Internet of things and blockchain—both share inherent distributed technology characteristics—combining both Internet of things sensor nodes and distributed ledger technology, to (1) record the changes in intelligent transportation systems and (2) set up a credit-token mechanism for paying the use and misuses in public transit services accordingly. The Intelligent Traffic System described in this article is intended to be used as experimental project only, given the terms and conditions as depicted in the simulated scenario. In real-life traffic scenarios, it may generate more complex system and data security issues, which will be elaborated and analyzed at the end of this article. Intelligent Traffic System is a comprehensive smart system; it can significantly change and reinvent the wheel for traffic conditions. Based on the system development as discussed in this article, there are still a lot of demands and challenges that need to be addressed in the future. Such topic scope will be explored in depth in our subsequent research.
One of the new technologies that will determine our future is Blockchain. The article describes the technology of the Blockchain, analyzes the world experience of using the technology, gives examples of the use of the Blockchain in public administration. Special attention is paid to mathematical methods of evaluating the effectiveness of technology implementation in the public sector.
In the paper, modern blockchain technologies are called a revolutionary phenomenon, equal in importance to the ingenious invention of the 20th century — the Internet. Originally developed for Bitcoin digital currency and launching the network of the same name, the blockchain technology created a platform for the new type of the Internet, influenced the decentralization of the Network according to the distributed registry principle, and began to be used in various types and combinations for various purposes, including cybersecurity. The paper argues that the use of blockchain technology to ensure cybersecurity is infinite due to such unique properties as reliability, accessibility, high adaptability, economic efficiency, profitability. The use of blockchain technologies to combat cybercrime, including cyberterrorism, may extend to control over financial services, transportation or any other industry. However, the growth of criminal activity using the blockchain technology will also be enhanced if the law enforcement agencies are not technologically competent, can detect these developing centers, determine their actions and destroy plans at a faster pace.
The subject of the research is the NEO and Ethereum cryptocurrencies. The relevance of the research is due to the following. First, these cryptocurrencies are expected to play the key role in establishing the future digital economy. Second, cryptocurrency developers are competing to gain leading positions in the development of financial technologies of the digital revolution. Third, the above cryptocurrencies are designed to perform almost identical functions, therefore, to determine the advantages of either of them, a comparative analysis is needed and appropriate conclusions for the Russian economy should be made. The purpose of the paper was to perform a comparative analysis of the Ethereum and NEO cryptocurrencies to identify trends in the digital economy of the future and determine the main targets to enable Russia’s entry into the top five largest world economies. The information sources include articles, books, regulations, departmental documents and conference materials on FinTech, crypto-markets and the digital economy. The research made it possible to reveal specific features of the cryptocurrencies and the corresponding digital platforms that are important for the development of the digital economy of the future. The goal of Ethereum developers is to create a platform for decentralized applications, based on which it will be possible to form a global, easy-to-access, free and reliable Internet of the future. The paper concludes that at present, the NEO has advantages over the Ethereum in terms of both the transaction speed and operational fitness for the development of prospective technologies of the digital economy. However, it may happen that in the near future, the Ethereum developers will be able to improve their blockchain technology so as to ensure the priority of their project in the competition for leadership in the development of the digital economy of the future. Given the contradictions revealed and taking into account the raw materials orientation of the Russian economy, a number of targets are proposed to bring Russia into the five largest world economies.
Innessa Efremenko, Victoria BONDARENKO, A.Ya. Palant, G.V. Nazarenko
The article investigates specific features of state regulation of operations with cryptocurrencies in the conditions of the world economy digitalization. Design/Methodology/Approach: In order to form the state regulation of operations with cryptocurrencies, which create additional risks for the national currencies functioning in international financial and credit relations, it is necessary to consider this phenomenon first, from the position of a complete ban on the use of cryptocurrencies as a means of payment, second, in combination of a ban on the use of cryptocurrencies as means of payment, third, from the possibility of expanding the range of cryptocurrency users by including legal entities into it and fourth, the full legalization of the cryptocurrency.
Recently, the applications of Blockchain technology have begun to revolutionise different aspects of supply chain (SC) management. Among others, Blockchain is a platform to execute the smart contracts in the SC as transactions. We develop and test a new model for smart contract design in the SC with multiple logistics service providers and show that this problem can be presented as a multi-processor flexible flow shop scheduling. A distinctive feature of our approach is that the execution of physical operations is modelled inside the start and completion of cyber information services. We name this modelling concept ‘virtual operation’. The constructed model and the developed experimental environment constitute an event-driven dynamic approach to task and service composition when designing the smart contract. Our approach is also of value when considering the contract execution stage. The use of state control variables in our model allows for operations status updates in the Blockchain that in turn, feeds automated information feedbacks, disruption detection and control of contract execution. The latter launches the re-scheduling procedure, comprehensively combining planning and adaptation decisions within a unified methodological framework of dynamic control theory. The modelling complex developed can be used to design and control smart contracts in the SC.
Blockchain is a technology that uses a chain of blocks, which allows sending and storing information in a distributed way, creating a decentralized data register. The article presents the concept of using a model, that uses blockchain technology, in the area of electromobility, which is the process of charging electric vehicles. The work shows the concept of a model in which through the use of block chains it would be possible to settle the purchase and sale transactions of electricity in the charger. This technology could allow partial or complete decentralization of the process, full automation without involving intermediate units. The article also shows how such transactions could be carried out automatically and without supervision - giving certainty of previously established principles, rules and assumptions implemented on the basis of smart contracts. The article presents a new idea for using the model for settlements in the area of the electricity market.
The paper proposes the link between cryptocurrency implementation in the financial sector and energy consumption worldwide. The underlying mechanism of this blockchain infrastructure is described, practical cases of its adoption in various segments of the financial sector are provided. This paper tries to explain the power consumption of the cryptocurrency mining at the case of Bitcoin, Ethereum, Monero, Litecoin. Since mining is not regulated by the state, and even banned in some countries, it is difficult to find accurate data on how much electricity is spent on it. Method of Herfindahl–Hirschman is used for efficiency estimate of crypto market.Keywords: energy consumption, mining pools, bitcoin, blockchain, cryptocurrency, cloud mining.JEL Classifications: G32, G34, O33.DOI: https://doi.org/10.32479/ijeep.7685