The advancement of the internet in the business world leads to positive and negative services to the world population. Especially e-commerce plays a critical role in the present business industry. However, security is the most basic criterion for doing all internet transaction activities. Different types of E-commerce are using in the present business industry. This paper presents the use of B2G E-commerce for smart contracts. This paper discriminates the difference between the traditional approach of contracts and smart contracts. Smart contracts are available in the business environment, but they are insecure. In this paper, new emerging blockchain technology is used for smart contracts. The use of bitcoin cryptocurrency is used for transaction purposes. Implementing the blockchain technology in smart contracts the process will make a faster, reliable, securable, and trust environment. Implementing the blockchain technology will improve the platform for the small scale contracts which can reduce the broker fees. All the transactions are openly visible and securable. The study convinces secure business transactions in a decentralized environment.
Omar Ali, Mustafa Ally, Clutterbuck, Yogesh K. Dwivedi
The modern trends of digitalization have completely transformed and reshaped business practices, whole businesses, and even a number of industries. Blockchain technology is believed to be the latest advancement in industries such as the financial sector, where trust is of prime significance. Blockchain technology is a decentralized and coded security system which provides the capability for new digital services and platforms to be created through this emerging technology. This research presents a systematic review of scholarly articles on blockchain technology in the financial sector. We commenced by considering 227 articles and subsequently filtered this list down to 87 articles. From this, we present a classification framework that has three dimensions: blockchain-enabled financial benefits, challenges, and functionality. This research identifies implications for future research and practice within the blockchain paradigm.
INDONESIA:
Artikel ini membahas tipologi dan karakteristik smart contract dengan peraturan perundang-undangan tentang kontrak, peraturan tentang ITE (informasi dan transaksi elektronik) di Indonesia, undang-undang tentang perlindungan konsumen dan unsure perjanjian syariah dalam bingkai maqosid syariah. Tidak seperti kontrak normal, yang dirancang oleh pengacara, ditandatangani oleh pihak yang ikut serta, dan ditegakkan oleh hukum, Smart Contract menetapkan hubungan dengan kode kriptografi.Untuk menemukan jawaban atas problematika tersebut, tipe penelitian yang digunakan dalam penelitian ini adalah normatif dengan pendekataan statute approach (undang-undang) dan konseptual perjanjian syariah. Adapun hasil dari penelitian ini adalah Smart Contract merupakan kontrak sah dan dapat diaplikasikan dengan berpedoman pada regulasi mengenahi kontrak, khususnya kontrak elektronik dengan mengedepankan asas kebebasan berkontrak, itikad baik, saling ridlo dan kemaslahatan.
ENGLISH:
This article discusses characteristics of the smart contract with theclaws and regulations concerning contracts, information and electronic transactions in Indonesia, consumer protection and elements of sharia agreements in the sharia maqosid frame. Unlike normal contracts, designed by lawyers, signed by participating parties, and enforced by law, Smart Contract establishes a relationship with cryptographic codes. To find answers to these problems, researchers used a type of normative research with a legislative approach and a conceptual approach to sharia agreements. The result of this research is that Smart Contract is a legal contract and can be applied by referring to regulations concerning the contract, especially the electronic contract by prioritizing the principles of freedom of contract, good faith, mutual respect and benefit.
The years 2017 and 2018 saw an influx of ventures raising substantial amounts of money through initial coin offerings (ICOs). The Ethereum blockchain greatly facilitated the spectacular surge of ICOs, even though utility tokens and cryptocurrencies are not primarily meant for raising external capital for start-up firms. Now that the ICO market bubble ebbed away security token offerings (STOs) have emerged, allowing investment in regulated securities recorded on a blockchain. Blockchain Capital paved the way with its crowd sale of equity tokens on a blockchain in April 2017. In August 2018, tZERO successfully completed the largest STO thus far, raising USD 134 million. More recently, in April 2019, Societe Generale SFH issued and settled covered bonds worth over USD 100 million as a security token. While the literature has succeeded in providing many insights about the gains and losses in both ICO and cryptocurrency markets, much less is known about this nascent STO market.
Sub-Saharan Africa requires affordable, reliable, and sustainable electricity to boost its economic, social, and human development. The main challenge posed to the region's electricity sector is the large investment gap needed to finance new power projects. The employment of new and innovative financing options is required to bridge this investment gap. Independent power projects have become one of the fastest-growing sources of new finance in the region. However, their development is constrained by the limited availability of debt finance for project implementation. The limited capital and bureaucratic burden of traditional financial institutions coupled with the high risks in the region ensures that the debt finance required by independent power projects is raised only after an arduous voyage and at high interest rates. We address these challenges by proposing a novel decentralized finance instrument, a blockchain special purpose vehicle that streamlines the processes in the financial layer of a traditional special purpose vehicle -- finance mobilization, revenue collection, and revenue disbursal. Specifically, the proposed decentralized finance instrument facilitates the mobilization of finance for the special purpose vehicle from a location-independent crowd, revenue collection from the electricity offtaker in a risk-mitigated manner, and disbursal of eventual project revenues to investors.
Kayode S. Adewole, Neetesh Saxena, Saumya Bhadauria
Owing to the distinctive properties of the blockchain, which is the decentralized and distributed ledger that is used to record transactions done, cryptocurrencies are being used as an online payment source in transactions. The cryptocurrencies, attributable to their notable characteristics, such as decentralized consensus, anonymity, distributed and shared ledger, immutability, and autonomy, are best managed with the blockchain. However, similar to other payment sources, the blockchain and cryptocurrencies are also prone to security attacks. The blockchain technology itself faces abuses, such as links to child abuse content, money laundering, tax evasion, financing illegal activities such as sex and drugs, and terrorism. In this chapter, the practical reach of cryptocurrencies to people and their use as an investment option are studied by getting responses from people through a questionnaire. To understand the real-time security threats that people have of cryptocurrencies and the prospects of cryptocurrency as a potential investment, a questionnaire on cryptocurrencies and its applications, potential risks seen by people, and its likelihood as an investment option is administered to a sample of 100 educated professionals. Analysis of responses shows that people are skeptical to adopt cryptocurrencies as an online payment medium owing to the security risks posed by it. The major security issues reported with cryptocurrencies are attacks on cryptocurrency wallet, time jacking, 51% attack, double spending, selfish mining, and fork issues. These issues are addressed by applying appropriate resolution techniques. Lack of common international governance and regulation has been found to be the primary cause of abuses of blockchain technology. This mandates that the world community come together and lay regulations and policies for preventing abuses on blockchain technology.
Blockchain is a distributed or decentralised ledger technology that uses cryptographic algorithms to verify the creation and transfer of digitally represented assets or information over a peer-to-peer network. It eliminates the need for a central authority to keep, update and verify data. Traditionally, services provided by these central authorities constitute a significant part of the services industry. This paper argues that Distributed Ledger Technology (DLT) is changing the services industry in three ways. First, services previously provided by central authorities are now being replaced and supplied jointly by some or all participants on the distributed ledger. Second, with the elimination of central authorities, auxiliary services used to support the operation of these central authorities are being eliminated. Third, services trade may be expanded and become more inclusive by engaging previously disadvantaged or marginalised individuals. This paper further argues that the General Agreement on Trade in Services (GATS), as the first and the only multilateral trade agreement on services, is highly relevant for the development and regulation of DLT-based applications. This relevance is unpacked by: (i) identifying the services relevant in the context of DLT-based applications; and, (ii) exploring whether a WTO Member, in adopting regulations affecting DLT-based applications, needs to consider its obligations under the GATS. The paper arrives at the conclusion that the GATS can be an effective instrument in expanding trade in DLT-replaced or enabled services.
Financial technology (FinTech) has been playing an increasingly critical role in driving modern economies, society, technology, and many other areas. Smart FinTech is the new-generation FinTech, largely inspired and empowered by data science and new-generation AI and (DSAI) techniques. Smart FinTech synthesizes broad DSAI and transforms finance and economies to drive intelligent, automated, whole-of-business and personalized economic and financial businesses, services and systems. The research on data science and AI in FinTech involves many latest progress made in smart FinTech for BankingTech, TradeTech, LendTech, InsurTech, WealthTech, PayTech, RiskTech, cryptocurrencies, and blockchain, and the DSAI techniques including complex system methods, quantitative methods, intelligent interactions, recognition and responses, data analytics, deep learning, federated learning, privacy-preserving processing, augmentation, optimization, and system intelligence enhancement. Here, we present a highly dense research overview of smart financial businesses and their challenges, the smart FinTech ecosystem, the DSAI techniques to enable smart FinTech, and some research directions of smart FinTech futures to the DSAI communities.
Abstract The point of departure of this short paper is that, in order to preserve the effectiveness of monetary policy in a world increasingly flooded by private digital currencies, central banks (CBs) will eventually have to issue their own digital currencies. The paper presents two proposals for the implementation of such a currency: A moderate proposal in which only the banking sector continues to have access to deposits at the CB and a radical one in which the entire private sector is allowed to hold digital currency deposits at the CB. The paper contrasts the implications of those two polar paths to a CBDC for the funding of banks, the allocation of credit to the economy, for welfare and for political feasibility. One section of the paper shows that the radical implementation may pave the way toward a narrow banking system and dramatically reduce the need for deposit insurance in the long run. The paper evaluates the relative merits of issuing a currency on a blockchain using a permissionless distributed ledger technology in comparison to a centralized (permissioned) blockchain ledger operated by the CB and concludes that the latter dominates the former in more than one dimension.
Francesca Dal Mas, Grazia Dıcuonzo, Maurizio Massaro, Vittorio Dell’Atti
Purpose The objective of this study is to deepen how blockchain technology through smart contracts can support the development of sustainable business models (SBMs). Particularly, the authors aim to determine the key elements enabling SBMs by applying smart contracts. Design/methodology/approach The research context focusses on the case study of SmartInsurance, which is a fictitious name for a start-up in the insurance sector and the real name of which is not to be revealed. The start-up was able to collect 18m euros in 80 s in a crowdfunding operation, using smart contracts and a revolutionary business model. Internal as well as external documents of different sources are analysed and coded to gather information about the company, its values and its business and what it pursues with employing blockchain technology. Findings The results show how smart contracts can reduce the costs of transactions, increase social trust and foster social proof behaviours that sustain the development of new SBMs. Originality/value This study contributes to both the transaction cost theory and social proof theory, showing how new technologies such as the blockchain can provide a fresh perspective to support the development of SBMs.
In this paper, we present CommonsHood, a Blockchain based Wallet app aiming to provide the general public with the tools to not only use, but also create new kinds of cryptographic tokens for their own purposes, something that currently resides only in the hands of technologists. It provides communities with instruments for financial inclusion to support the sustainability of the local economy. It provides commons and associations with instruments to help finance themselves with tokens representing prepaid cards, crowdfunding, complementary currencies, to share tools and infrastructures with tokens representing access rights. It provides small retailers with tokens representing loyalty tools and institutions with purpose-driven tokens to reward volunteers for, e.g., recycling. It allows the dematerialization of tickets and collectibles. All tokens can be distributed to the Wallet app of other users, via websites, QR codes, or proximity marketing using geolocalization. The use of Blockchain allows us to construct an open decentralized and disintermediated infrastructure to avoid the fees and data control of services such as group-buying or crowdfunding websites, and to have a general purpose single app, rather than different ones for different associations and retailers. Thanks to its flexibility, actually CommonsHood is used in different projects for supporting communities in the co-creation of local economy models.
The following topics are dealt with: cryptocurrencies; cryptography; distributed databases; data privacy; financial data processing; Internet; contracts; meta data; peer-to-peer computing; cryptographic protocols.
Facing on bursting of the huge quantity of trade, the problem of finance by micro and small firms, the expansion of business development of core enterprise in supply chain, the development of comprehensive finance services, it is not well worked by traditional ways. Moreover it is more and more restricting the development of supply chain. Considering the advantages of automatic executing and high efficiency of smart contract, the feature of decentralization, security, trustworthiness and anti-tampering of blockchain, it was presented a novel supply chain model based on smart contract and blockchain for solving the problem totally. The model relied on the core enterprise of supply chain, integrated the upstream and downstream industries, constructed a consortium chain, that consisted of core enterprise, financial institutions, suppliers and dealers, formed an encrypted credit named ET (Electronic Trust) based on the trustworthiness of the trust industries chain. Actually, ET is equaled to the actual credit, it could be paid for the suppliers according to the cargo value before the last settlement. So the ET could combine the virtual and actual capital. Thus it also could further solve the common pain points of supply chain.
Banks play a major role in all the economic and financial activities in modern society. Almost all forms of trade and commerce would slow down rapidly if banks were not there to handle financial transactions. The economic development of a modern society depends on industrial growth. Banks promote these activities by mobilizing small deposits from the public and providing financial resources to big industries. Thus, the major role played by banks is that of financial intermediation. The prevalence of cryptocurrency poses a competitive threat to banks due to its anonymity and the blockchain technology that drives it which offers a complete self-contained substitute to the traditional payment system. Cryptocurrencies and its underlying technology are transforming the global financial system by making it less centralized eliminating borders which continually diminish the dependence on traditional banks whose main function as financial intermediaries stands the risk of extinction. This article examines the concept of cryptocurrencies and how it poses a threat to the existing financial intermediation process in Nigeria. Article visualizations:
‘First, it was just tech people. Now, literally everyone is interested in bitcoin’, said CNN News while reporting on the bitcoin mania that haunted South Korean society in the winter of 2017–2018. This study takes that speculative frenzy as an entry point for exploring lay bitcoin investors’ experiences and the ‘magical’ features of contemporary financial capitalism. It first situates the bitcoin investment boom in the contexts of South Korea’s post-developmental transition and the rise of mass investment culture. Drawing upon participant observation of online communities for South Korea’s bitcoin investors, this study then demonstrates how lay bitcoin investors’ daily beliefs and practices are distinguished from more traditional economic subjectivities – namely, disciplined workers and rational investors. Lay bitcoin investors present themselves not simply as calculative investors but also as enchanted gamblers who often rely upon magical formulas and rituals that express their hopes and despairs in the face of an uncertain future. Instead of dismissing their beliefs and rituals as ‘irrational exuberance’, this study argues that their cultural practices should be understood as a reflexive response to the ‘magical’ mechanisms of the financial market based on self-referential valuation and self-fulfilling performativity. In examining how the logics of uncertainty and magic are returned at the heart of contemporary capitalism, this study consequently seeks to situate the lay investors’ struggles in dealing with the ambiguous future within the broader transformation of the human condition during the triumphant rise of financial capitalism.
Purpose This paper aims to examine how blockchain technology is disrupting business models for new venture finance. Design/methodology/approach The role of blockchain technology in the evolution of new business models to monetize the creative economy is explored by means of a case study approach. The focus is on the recorded music industry, which is in the vanguard of new forms of intermediation and financialization. There is a particular focus on emerging artists. Findings This paper provides novel case study insights and concludes by considering how further research can contribute to building a theory of technology-driven business models which apply to the development, on the one hand, of new forms of financial intermediaries, more correctly referred to as “infomediaries,” and on the other hand, to new forms of direct monetization by artists. Originality/value This paper provides early insight into the emerging potential applications of blockchain technologies to streamline music industry business service models and improve finance streams for new artists. The findings have far-reaching implications across the creative sector.
The proposed system is a decentralized authentic platform that aims to leverage blockchain along with other technologies to design a trusted framework which would enable charity donations to be as accountable, trustworthy and transparent. The paper explores the potential for deploying blockchain within existing organizations to support smooth conduction of charity funds from the donor to the actual needy person using a stable Ethereum based Blockchain oriented platform. In this fast developing world of modernization, some people are becoming too competitive to earn money while others have no clue about getting even a penny. But at the same time, there exist people who wish to contribute to the society out of altruism. There exist many online donation platforms in the world and yet issues concerning extra fees, accountability and processing delay still exist as well as these existing centralized systems for charities are so corrupt that people lose belief in these trustless systems and hence the charities become futile. This paper explores how the blockchain can be leveraged in the philanthropic sector, through charitable donation services via a web- based donor platform.
R. Kalaipriya, S. Devadharshini, R. Rajmohan, M. Pavithra · 5 authors
This paper exhibits a Blockchain-based design for our current Electronic Health Records (EHR) frameworks. Electronic Health Records commonly comprise extremely penetrating and precarious records associated with patients. It needs to track all the events that occurred in the records to achieve data integrity for secure transactions. To solve these problems, we proposed two smart agreements, classified contracts, and user record associated contracts. The classified contract involves organizing the records in a distributed ledger format with secured interventions of Doctors and healthcare providers. The user record associated contracts validate the transactions requested by the concerned miners. We evaluate the proposed architecture by realizing the Ethereum framework, which includes Remix environment, Metamask wallet, and Solidity language. Compared to conventional EHR frameworks, the suggested structure with the employment of the Blockchain has improved efficiency and security for storing electronic health records.
Purpose This paper aims to provide a systematic review of the literature addressing blockchain technology (BT) in general management and economics (GME). Design/methodology/approach A systematic literature review methodology is used to collect and analyze the literature. Findings Three clusters of research are identified, namely, law, economy and innovation. The use of BT in law areas fosters the registration of intellectual property (IP) rights, although conflict between some of BT applications and regulatory frameworks is present. Research on cryptocurrencies is of high interest to the economy today. In the innovation cluster, BT improves security, traceability and transparency in operations over supply chains. However, BT has many technical imperfections that hinder its wide adoption. Furthermore, the need for the full commitment of all business actors complicates its implementation. Research on BT is still at a nascent stage. Conceptual papers dominate the literature (18 theories are discussed). Eight main future research directions are described. For example, the relationship between the use of BT in supply chains and competitive advantage is not established; and quality standards for BT platforms are not developed. Research limitations/implications The review is restricted to academic journals in the fields of GME, which limits the extent of the conclusions. Originality/value The paper synthesizes 47 studies published in academic journals, avoiding misleading claims and inaccurate information insofar as possible; and provides a spectrum of descriptive statistics and qualitative meta-synthesis analysis of the current literature.