Blockchain Papers

Zhen Ge, Caixia Zhou

No abstract is available for this record.

Giorgio Remotti

No abstract is available for this record.

Roberto Moro Visconti

No abstract is available for this record.

Abubakar Mohammed, Vidyasagar Potdar, Li Yang

No abstract is available for this record.

Devesh Chandra, Pranav Tyagi, Radhe Shyam Gupta, Aayush Mohan Saxena · 5 authors

  The application of machine learning algorithms in predicting cryptocurrency prices has gained significant attention in recent years. Researchers have explored various approaches such as recurrent neural networks, deep learning neural networks, Bayesian regression, k-nearest neighbor, support vector machine, and other algorithms to forecast the prices of cryptocurrencies like Bitcoin, Ethereum, Dogecoin and Litecoin. This paper will draw on established literature on price prediction using machine learning, including studies on NFT sales predictability, NFT sale price fluctuations prediction, gold price prediction, and silver price forecasting. The research paper has focused on utilizing high-dimensional features, time-series analysis, as well as the comparison of different statistical models and machine learning algorithms. Additionally, the prediction models have incorporated factors such as market liquidity, exchange market dynamics. While the literature acknowledges the potential of machine learning in cryptocurrency price prediction, gold, silver and NFT’s there is a recognized gap in the application of these techniques across a broader range of cryptocurrencies. The proposed methodology will integrate various machine learning models and statistical methods to predict the prices of cryptocurrencies, gold, silver, and NFTs, taking into account factors such as market trends, trade networks and visual features. Furthermore, the studies emphasize the importance of feature engineering, sample dimension engineering, and the use of various machine learning techniques to enhance the accuracy and stability of cryptocurrency price predictions. As the cryptocurrency market continues to expand, there is a need for further research to develop robust machine learning models that can effectively forecast the prices of diverse cryptocurrencies, contributing to the advancement of this field.

Artur Meynkhard

No abstract is available for this record.

Burcu Kapar, José Olmo

Abstract This paper proposes an empirical model for analysing the dynamics of Bitcoin prices. To do this, we consider a vector error correction model over two overlapping periods: 2010–17 and 2010–19. Price discovery is achieved through the Gonzalo–Granger permanent‐transitory decomposition. The pricing factors are endogenous linear combinations of the S&P 500 index, gold price, a Google search variable associated to Bitcoin and a fear index proxied by the FED Financial Stress Index. Our empirical analysis shows that during the first period, a linear combination of four pricing factors describes the efficient Bitcoin price. The S&P 500 index and Google searches have a positive effect whereas gold prices and the fear index have a negative effect. In contrast, during the second period, the efficient price behaves idiosyncratically and can be only rationalised by individuals' search for information on the cryptocurrency. These findings provide empirical evidence on the presence of a correction in Bitcoin prices during the period 2018–19 uncorrelated to market fundamentals. We also show that standard empirical asset pricing models perform poorly for explaining Bitcoin prices.

Tiantian Yu

Focusing on accounting information quality optimization of the listed company, this paper proposes a blockchain-based accounting process to optimize accounting information quality. It will effectively reduce the accounting fraud behavior and seriously affected the process of value discovery, which will enhance securities market effectiveness. The blockchain-based accounting process involves four parts: (a) confirmation of accounting information; (b) measurement of accounting information; (c) recording of accounting information; (d) reporting of accounting information. The blockchain-based accounting process makes it possible to automate all the transaction by smart contracts. The cryptographic algorithms guarantee the security of the transaction data.  The new accounting method attempts to record the accounting information of the listed company by distributed ledger technology. Consensus mechanism verifies the validity of accounting process. Finally, this paper uses EVA to evaluate the performance of the listed company after adopting blockchain-based accounting process. Hence, the blockchain-based accounting process can avoid accounting fraud, which will protect investors from financial fraud and ensure the effectiveness of the security markets.

Byung Jo Yoon

본 연구에서는 아시아 6개국(한국, 일본, 싱가포르, 인도네시아, 말레이시아, 인도)을 대상으로 주식시장의 급격한 하락국면에서 비트코인의 대안적 안전자산 가능성을 실증분석하였다. 표본기간은 2013년 1월 7일부터 2017년 12월 28일까지이며, 국가별 비트코인 가격과 주가지수의 일별자료를 사용하였다. 연구방법론으로는 분포의 꼬리 부분만을 구분해 분석할 수 있는 cross quantilogram 기법을 사용하여, 분위(quantile) 차원에서 안전 피난처의 가능성을 탐색하였다. 본 연구에서 제시하는 표본기간동안의 실증분석 결과는 다음과 같다. 한국의 경우 전통적 안전자산인 금과 달러에 비해 비트코인의 안전 피난처 특성이 강하게 나타났지만, 일본에서는 상대적으로 약화된 현상이 발견되었다. 그리고 싱가포르에서는 비트코인이 금보다 안전 피난처의 특성이 강하고, 인도네시아와 말레이시아에서는 투자 대안처로서의 강도가 3개 자산 모두 비슷하였다. 마지막으로 인도의 경우 모든 자산이 lag에 따라 유사한 특성을 가지는 것으로 확인되었다. 본 연구는 글로벌 금융위기 이후 전통적인 안전 자산의 기능이 점차 약화되어가는 투자환경에서 새로운 대안을 모색중인 시장참가자에게 유용한 결과를 제공할 것이며, 주식시장의 지표가 극단적인 하락추세에 진입했을 때 안전 피난처 자산으로 분류될 수 있는 비트코인, 금, 달러를 포트폴리오 차원에서 비교분석하는데 도움이 될 것이다.This study analyzed whether Bitcoin could be a safe haven in the stock market crash of six Asian countries (Korea, Japan, Singapore, Indonesia, Malaysia and India). The analysis period of the samples was from January 7, 2013 to December 28, 2017, and the daily data of Bitcoin price and stock index were used. In particular, the concept of safety shelter was applied at the quantile level, using a cross-quantilogram technique that can concentrate on the tail of the distribution. The results of empirical analysis during the sample period presented in this study are as follows. In Korea, bitcoin is a safe asset compared to gold and dollar, but in Japan, it has not found the dominant characteristics of bitcoin. And in Singapore, Bitcoin and the dollar are more safe havens than gold, while in Indonesia and Malaysia, all assets have shown potential as investment alternatives.Finally, in India, all assets were found to have similar characteristics. This study will provide useful results for market participants seeking new alternatives in an investment environment where the function of traditional safe assets is weakening after the global financial crisis. It will help to compare bitcoin, gold and dollar that can be classified as assets at the portfolio level.

Riaz Ahmad Ziar, Syed Irfan Ullah, Rafiulllah Omar

The introduction of smart devices and the IOT network has led to the creation of large amounts of data that require protection from intrusion. Most users desire to have personal data kept confidential while seeking for platforms that would prohibit their vendors from distributing it to third parties without their consent. However, the users that are conscious of data privacy often share information with third parties, contradicting their intentions in keeping their information confidential. The difference between user intentions and actions regarding data privacy is called privacy paradox while privacy fatigue refers to the weariness of people on implementing security and privacy solutions. In this proposed system we design and develop smart contracts to provide interaction for the IoT device and company which require personal data. A company or Application requests personal information from the device to share the device sends, that information to the smart contract, smart contract uses dynamic rules to check PII in the users' personal information. Base on the PII(,) system would alert users on the limit and risk of sharing personal information through a public network. We used solidity programing language for the modeled of the smart contract. The performance of the contract is evaluated on the Repsten test network.

Alexandre Santos

With blockchain technology, information is recorded in a permanent distributed ledger that is maintained by multiple computers in a peer-to-peer network. There is no central authority that can alter records or change network consensus rules. Such technology could be utilized for voting, title transfers, issuance of company shares, document notarization, but currently, the most popular use-case are virtual currencies. An interesting feature that some virtual currencies have is a multisignature (multisig) protocol that requires the electronic signatures from more than one private key to initiate a transfer of funds. Raw data of a multisig transaction may be recognized as an arbitral award under the New York Convention, where the law of England is the lex arbitri and parties have opted-out of a reasoned award.

Edward Chen

The focus of this chapter will be on how this blockchain technology should be appropriately implemented in the financial services industry. Once widely overlooked by many due to its association with the controversial digital currency Bitcoin, the underlying technology, the blockchain, has since become a large area of focus for most major financial institutions. At its core, the blockchain serves as an immutable, secure, distributed ledger shared among the participants connected to it. The primary attributes of the blockchain, including transparency, speed of settlement, security, and automation, have the potential to significantly change the way financial institutions operate today. This chapter will also address the implications of moving towards a blockchain general ledger and the hurdles that must be overcome.

Gulani Senthuran, Malka N. Halgamuge

Over the last few years, cryptocurrencies have turned into a worldwide wonder known to many people. Bitcoin and Ethereum are widely used at present in global financial markets and so far, have received a significant value improvement and market capitalization with Ethereum being more impervious to downgrading than the other cryptocurrencies. The main aim of this study is to ascertain the prediction accuracy of both Bitcoin and Ethereum currencies using historical data (blockchain data with cryptocurrency data). This is the first study of this kind that we are aware of that predicts cryptocurrency prices using a Deep learning algorithm and blockchain information (Bitcoin and Ethereum). To accomplish this task, the blockchain data (2015–2018) of both Bitcoin and Ethereum currencies were collected to enhance the security and the prediction rate. Further, the market price of Bitcoin and Ethereum currencies were retrieved online. The effectiveness of the prediction accuracy was investigated using Deep learning approach with crypto currency data and blockchain data. The results of data analysis showed that when the blockchain data were used together with Bitcoin and Ethereum prices, the prediction performance is high for both currencies. In addition, the comparison between Bitcoin and Ethereum revealed that Ethereum currency has the highest percentage of the prediction accuracy and the lowest error rate. Moreover, descriptive analysis was undertaken for blockchain attributes such as difficulty, hash rate, number of transactions, average block size and miner’s revenue. The blockchain data directly influenced the prediction accuracy of both currencies (i.e., Bitcoin and Ethereum). The Deep learning prediction approach was found to be very effective for analysing blockchain and cryptocurrency data set. The price prediction of the cryptocurrency market price is vital as Bitcoin and Ethereum are effective in the present financial market.

Seda Karagöz Zeren, Engin Demirel

No abstract is available for this record.

Dilek Akdoğan Akbaş, Gamze Yıldız Şeren, Osman Geyik

Last revolution of industry history is known as “Industry 4.0” or also known as 4th Industrial Revolution that<br> forms the basis of increasing technology network has emerged as digital technology-based digital revolution. Digitalisation<br> in 4th Industrial Revolution reflected to currency and cryptocurrencies has become a part of today’s<br> world. Blockchain technology as the basis of virtual currency is one of the leading technologies under 4th Industrial<br> Revolution and gradually increases impact range. Bitcoin as a cryptocurrency that introduced blockchain technology<br> to the world can be characterised as the most important financial technology (fintech) innovation of digital<br> age. Income from bitcoin as cryptocurrency are at significant level and risks of using bitcoin in money laundering<br> and financing illegal activities have led countries to apply regulations for cryptocurrencies. This study aims to<br> analyse regulations for cryptocurrencies that gradually increases market cap under 4th Industrial Revolution process.

Hyung-Suk Jin, Kwang-So PARK, Dong-Suk CHUN

블록체인 기술의 발전은 스마트계약의 기술적 구현 및 상용화를 가능케 하였고 국제무역 대금결제에 있어 신뢰성과 효율성 측면의 근본적인 변화를 가져오리라 기대를 모으고 있다. 블록체인 및 스마트계약의 도입을 통해 서류의 위변조를 방지하고 계약체결 및 계약의무이행의 자동화가 가능해질 경우, 전통적인 화환신용장에 소요되는 비용과 시간을 혁신적으로 단축시켜 1일 이내 가능케 하리라 전망한다. 실제로 HSBC 등 글로벌 금융기관에서는 이와 같은 1일내 신용장 결제 구현사례가 발표되고 있다.BR 본 연구는 블록체인 기반 스마트계약을 도입하여 새로운 ‘스마트계약신용장’의 도입을 제안한다. 특히, 전통적 화환신용장의 7단계 계약관계가 3단계로 축소되고 통지은행은 없어지는 등 달라지는 절차 및 계약관계, 향후 예상되는 쟁점 및 특징을 탐색적으로 규명하였다. 선행연구의 부족을 보완하기 위해 전문가 인터뷰를 통해 본 제안의 타당성을 검증하였고 스마트계약신용장의 향후 전망을 함께 검토했다.

Harsh Jot Singh

La blockchain propose un système d'enregistrement décentralisé, immuable et transparent. Elle offre un réseau de nœuds sans entité de gouvernance centralisée, ce qui la rend "indéchiffrable" et donc plus sûr que le système d'enregistrement centralisé sur papier ou centralisé telles que les banques. L’approche traditionnelle basée sur l’enregistrement ne fonctionne pas bien avec les relations numériques où les données changent constamment. Contrairement aux canaux traditionnels, régis par des entités centralisées, blockchain offre à ses utilisateurs un certain niveau d'anonymat en leur permettant d'interagir sans divulguer leur identité personnelle et en leur permettant de gagner la confiance sans passer par une entité tierce. En raison des caractéristiques susmentionnées de la blockchain, de plus en plus d'utilisateurs dans le monde sont enclins à effectuer une transaction numérique via blockchain plutôt que par des canaux rudimentaires. Par conséquent, nous devons de toute urgence mieux comprendre comment ces opérations sont gérées par la blockchain et combien de temps cela prend à un nœud du réseau pour confirmer une transaction et l’ajouter au réseau de la blockchain. Dans cette thèse, nous visons à introduire une nouvelle approche qui permettrait d'estimer le temps il faudrait à un nœud de la blockchain Ethereum pour accepter et confirmer une transaction sur un bloc tout en utilisant l'apprentissage automatique. Nous explorons deux des approches les plus fondamentales de l’apprentissage automatique, soit la classification et la régression, afin de déterminer lequel des deux offrirait l’outil le plus efficace pour effectuer la prévision du temps de confirmation dans la blockchain Ethereum. Nous explorons le classificateur Naïve Bayes, le classificateur Random Forest et le classificateur Multilayer Perceptron pour l’approche de la classification. Comme la plupart des transactions sur Ethereum sont confirmées dans le délai de confirmation moyen (15 secondes) de deux confirmations de bloc, nous discutons également des moyens pour résoudre le problème asymétrique du jeu de données rencontré avec l’approche de la classification. Nous visons également à comparer la précision prédictive de deux modèles de régression d’apprentissage automatique, soit le Random Forest Regressor et le Multilayer Perceptron, par rapport à des modèles de régression statistique, précédemment proposés, avec un critère d’évaluation défini, afin de déterminer si l’apprentissage automatique offre un modèle prédictif plus précis que les modèles statistiques conventionnels.

ChangYoul Choi, Hyung-Jun Hahm

4차 산업혁명으로 전통적 금융제도인 증권제도가 전자증권제도로의 변화를 가져왔다. 본 연구는 선진국의 증권 결제제도를 살펴보고 문제점을 도출한 후 대응방안 제시하고 있다. 첫째, 자본시장과 금융 투자업에 관한 법률에서는 블록체인 기술을 이용한 증권 발행에 대한 규정이 없기 때문에 블록체인 증권의 발행, 그리고 예탁결제 업무와 관련해서 한국 거래소와 예탁 결제원이 담당할 수 있는 규정이 필요하다. 둘째, 전자거래기본법에서 블록체인 기술 또는 분산원장 관련 기록이 전자문서로서 수용할 수 있는가의 문제가 존재하기 때문에 기술적 측면에서 내용을 파악할 수 있는 법률 조항을 제시할 필요가 있다. 셋째, 무허가 전자등록 행위를 금지하고 있어 전자 등록업 허가를 받지 않는 경우 전자증권 발행시 증권의 결제와 청산에 문제가 발생할 수 있어 충분한 이해상충 방지 체계가 필요하다. 넷째, 개인정보와 분산 원장의 관리에 대한 문제점으로 현재 금융기관이 보유한 개인정보와 블록체인 증권의 정보가 비교적 용이하게 결합될 수 있기 때문에 제3의 기관을 통해 예탁 결제제도를 운영할 수 있도록 시스템 구축이 필요하다.The 4th Industrial Revolution has brought changes in the securities system which is a traditional financial system. This study looks into the securities settlement systems in developed countries, draws up problems and suggests countermeasures for efficient growth. As a result of the study, the problems related to the securities settlement system were drawn out and the countermeasures were suggested as follows; First, there are no provisions on the issuance of securities using block chain technology in Act on Capital Market and the Financial Investment Businesses. There will be no operational problems if the Act prescribes that Korea Exchange and Korea Securities Depository shall take charge of the issuance of block-chain securities and the deposit & settlement businesses. Second, questions arise as to whether block chain technology or distributed ledger records can be accepted as electronic documents in the Framework Act on Electronic Commerce. Articles need to be presented in the Act so that it is easy to grasp the contents from technological aspect. Third, since unauthorized electronic registration is prohibited, there can be problems in issuing electronic securities for those who are not authorized to run electronic registration business. Thus, as there can be problems in the settlement and liquidation of securities issued based on the block chain technology, and sufficient system is required which can prevent conflict of interests. Fourth, there are problems regarding the management of personal information and distributed ledger. Therefore, it is necessary to construct the system so that a third independent institution can operate deposit and settlement system.

Alexandre Dolgui, Dmitry Ivanov, Semyon Potryasaev, Boris Sokolov · 6 authors

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.

Silke Finken, Dirk Finkemeyer

This paper analyses the impact of distributed ledger technology (DLT) on various areas of transaction banking (TxB), identifies the most promising use cases and discusses the impact on banks’ business models. By means of both a theoretical analysis as well as expert interviews using a variation of the Delphi approach, a number of potential use cases and their relative importance are evaluated. The most promising use cases identified were the utilisation of DLT for internal systems among disparate entities, securities settlement, cross-border payments, remittances, trade and supply chain finance and regulatory compliance. The impact on banks’ business models depends on the role that banks play in the ecosystem. If banks build or control their own private ledgers, DLT-based applications can significantly increase efficiency and reduce transaction cost and times for banks and, therefore indirectly, their customers. If other players build up exclusive private ledgers without banks, banks face a significant threat of disintermediation and high business model impact. Finally, while not likely in the near future, the possibility exists that overarching public ledgers with various participants will emerge. These would not necessarily disintermediate banks but rather provide a significant opportunity for new business models, forcing banks to adjust to these changes.

Neethu Gopal

The graduation certificate forgery has become a major problem in now a days and the lack of effective anti-forge mechanism, In order to solve the problem of counterfeiting certificates, the digital certificate system based on blockchain technology would be introduced. The system generate the electronic file of a paper certificate accompanying other related data into the database and calculates its hash value. It then store the hash value into the block in the chain system. The system will create a related QR-code and inquiry string code to affix to the paper certificate, this will verify the authenticity of the paper certificate through mobile phone scanning or website inquiries. By integrating the features of blockchain, the system improves the efficiency operations at each stage.

Juvvadi

This paper examines how smart contracts can enhance accounts payable in supply chain finance by automating the three-way match.The conventional system relies on the manual verification of purchase orders, goods receipts, and invoices; hence, it usually causes delays and errors and is expensive.This paper has created a set of conceptual frameworks where blockchain technology is used to automate such processes.The outcomes are great improvements.The processing time is also cut down to approximately 1.5 or 2 days using smart contracts, compared with the manual systems of about 8-14 days.The per 1000 transactions cost is reduced to approximately 650 from 2000 by a wide margin of almost 40-70%.The error rate also reduces drastically from 9.5% to 1.3%, which is primarily through automated validation and elimination of manual data entry.Real-time data capture enhances transparency and accelerates reporting on finances.Certain issues are still there, including the reliability of the data, scaling of the system, and absence of clear legal and accounting standards.The analysis demonstrates that smart contracts can benefit the efficiency, accuracy, and control in the accounts payable process significantly.

Shuai Wang, Liwei Ouyang, Yong Yuan, Xiaochun Ni · 6 authors

In recent years, the rapid development of cryptocurrencies and their underlying blockchain technology has revived Szabo’s original idea of smart contracts, i.e., computer protocols that are designed to automatically facilitate, verify, and enforce the negotiation and implementation of digital contracts without central authorities. Smart contracts can find a wide spectrum of potential application scenarios in the digital economy and intelligent industries, including financial services, management, healthcare, and Internet of Things, among others, and also have been integrated into the mainstream blockchain-based development platforms, such as Ethereum and Hyperledger. However, smart contracts are still far from mature, and major technical challenges such as security and privacy issues are still awaiting further research efforts. For instance, the most notorious case might be “The DAO Attack” in June 2016, which led to more than $50 million Ether transferred into an adversary’s account. In this paper, we strive to present a systematic and comprehensive overview of blockchain-enabled smart contracts, aiming at stimulating further research toward this emerging research area. We first introduced the operating mechanism and mainstream platforms of blockchain-enabled smart contracts, and proposed a research framework for smart contracts based on a novel six-layer architecture. Second, both the technical and legal challenges, as well as the recent research progresses, are listed. Third, we presented several typical application scenarios. Toward the end, we discussed the future development trends of smart contracts. This paper is aimed at providing helpful guidance and reference for future research efforts.

Jayesh Arun Bordekar, Shubham Gupta, V S Narayana Tinnaluri, Aditya Sinha

In modern society, blockchain technology is used to improve traditional companies. One type of traditional companies are insurance companies. These companies suffer several problems that are leading to decrease their efficiency in modern societies. The insurance industry is heavily dependent on multiple processes between transacting parties for initiating, maintaining and closing a different kind of policies. The main problems of these companies are that their operations are not transparent. In addition, considering the potential of the smart contract of the blockchain, determining insurance rates must be transparent. The application of blockchain in FinTech processing requires a deep understanding of the underlying business processes. In this study, we focus on the design of an efficient approach for processing insurance related transactions based on a blockchain-enabled platform.