Samuel Fosso Wamba, Jean Robert Kala Kamdjoug, Ransome Epie Bawack, John G. Keogh
This paper aims to bridge the knowledge gap in the existing literature on Bitcoin, Blockchain and Fintech. It begins by clarifying the definition of these concepts. Through a systematic review and case studies in the supply chain industry, this paper brings out the applications, the benefits/value, and the challenges/issues of Bitcoin, Blockchain and Fintech in several industries. It also presents the research methodologies/approaches used during such research. The classification framework developed and used to perform an analysis of 141 articles from five top academic databases serves as a baseline study. It offers the opportunity to evaluate the level of knowledge on Bitcoin, Blockchain and Fintech, and their evolution over time. The findings show that these technologies are evolving, and organizations are embracing them for competitive advantage. Thus, organizations need to leverage research on these technologies to better understand them, optimize their business strategies, and develop critical insights for decision-making.
The Bitcoin transaction graph is a public data structure organized as transactions between addresses, each associated with a logical entity. In this work, we introduce a complete probabilistic model of the Bitcoin Blockchain, setting the basis for follow-up AI applications on Bitcoin transactions. We first formulate a set of conditional dependencies induced by the Bitcoin protocol at the block level and derive a corresponding fully observed graphical model of a Bitcoin block. We then extend the model to include hidden entity attributes such as the functional category of the associated logical agent and derive asymptotic bounds on the privacy properties implied by this model. At the network level, we show evidence of complex transaction-to-transaction behavior and present a relevant discriminative model of the agent categories. Performance of both the block-based graphical model and the network-level discriminative model are evaluated on a subset of the public Bitcoin Blockchain.
It was analysed in a general way and the security problem of the public organizations of Ecuador was determined. The objective is to generate a prototype in a blockchain diagram, based on an algorithm using flowchart techniques to provide robustness against failures, third-party attacks and mitigate information vulnerabilities. The deductive and exploratory research method was used in order to analyse the information available in the medium and scientific articles. Resulted an algorithm developed through flow diagram techniques to improve the processing of information in a public organization in Ecuador from the use of the Blockchain technology and the use of the SHA 256 algorithm. It was concluded that access to the data to a generic public organization of Ecuador will have an alternative to improve the security of the information with the implementation of the blockchain.
Bitcoin is the world’s leading cryptocurrency, with a market capitalization briefly exceeding $300 billion. This hints at Bitcoin’s \namorphous nature: is this a monetary or a corporate measure? Hard values become explicit in the processing of transactions and \nthe digital mining of Bitcoins. Electricity is a primary input cost. Bitcoins earned are often used to circumvent local currency \ncontrols and acquire US dollars. For the period August 2010 to February 2018, we examine the components of Bitcoin mining \nrevenues, their statistical contribution to daily changes, and to its variance. We provide evidence that Bitcoin transaction processing \nis capacity constrained.
For the successful development of the astrophysics and, accordingly, for obtaining more complete knowledge of the Universe, it is extremely important to combine and comprehensively analyze information of various types (e.g., about charged cosmic particles, gamma rays, neutrinos, etc.) obtained by using divers large-scale experimental setups located throughout the world. It is obvious that all kinds of activities must be performed continually across all stages of the data life cycle to help support effective data management, in particular, the collection and storage of data, its processing and analysis, refining the physical model, making preparations for publication, and data reprocessing taking refinement into account. In this paper we present a general approach to construction and the architecture of a system to be able to collect, store, and provide users' access to astrophysical data. We also suggest a new approach to the construction of a metadata registry based on the blockchain technology.
In the Bitcoin system, miners are incentivized to join the system and validate transactions through fees paid by the users. A simple "pay your bid" auction has been employed to determine the transaction fees. Recently, Lavi, Sattath and Zohar [LSZ17] proposed an alternative fee design, called the monopolistic price (MP) mechanism, aimed at improving the revenue for the miners. Although MP is not strictly incentive compatible (IC), they studied how close to IC the mechanism is for iid distributions, and conjectured that it is nearly IC asymptotically based on extensive simulations and some analysis. In this paper, we prove that the MP mechanism is nearly incentive compatible for any iid distribution as the number of users grows large. This holds true with respect to other attacks such as splitting bids. We also prove a conjecture in [LSZ17] that MP dominates the RSOP auction in revenue (originally defined in Goldberg et al. [GHKSW06] for digital goods). These results lend support to MP as a Bitcoin fee design candidate. Additionally, we explore some possible intrinsic correlations between incentive compatibility and revenue in general.
Ahsan Manzoor, Madhusanka Liyanage, An Braeken, Salil S. Kanhere · 5 authors
Data is central to the Internet of Things (IoT) ecosystem. Most of the current IoT systems are using centralized cloud-based data sharing systems, which will be difficult to scale up to meet the demands of future IoT systems. Involvement of such third-party service provider requires also trust from both sensor owner and sensor data user. Moreover, the fees need to be paid for their services. To tackle both the scalability and trust issues and to automatize the payments, this paper presents a blockchain based proxy re-encryption scheme. The system stores the IoT data in a distributed cloud after encryption. To share the collected IoT data, the system establishes runtime dynamic smart contracts between the sensor and data user without the involvement of a trusted third party. It also uses a very efficient proxy re-encryption scheme which allows that the data is only visible by the owner and the person present in the smart contract. This novel combination of smart contracts with proxy re-encryption provides an efficient, fast and secure platform for storing, trading and managing of sensor data. The proposed system is implemented in an Ethereum based testbed to analyze the performance and the security properties.
We relate the concepts used in decentralized ledger technology to studies of episodic memory in the mammalian brain. Specifically, we introduce the standard concepts of linked list, hash functions, and sharding, from computer science. We argue that these concepts may be more relevant to studies of the neural mechanisms of memory than has been previously appreciated. In turn, we also highlight that certain phenomena studied in the brain, namely metacognition, reality monitoring, and how perceptual conscious experiences come about, may inspire development in blockchain technology too, specifically regarding probabilistic consensus protocols.
The paper analyzes the advantages of using the blockchain technology in the supply chain management. It is determined that the blockchain will simplify the procedure of the government control over the supply chain and contribute to the implementation of the state policy aiming to reduce the level of counterfeit products and improve the quality of goods entering the retail network, which will have a direct impact on the socio-economic development of the regions. The subject of research is the organizational and technological mechanism of the interaction between business entities in the process of introduction and application of the blockchain technology for supply chain management. The purpose of the paper was to find out how to use the blockchain in logistics in the most effective way. The paper presents the summary of works of Russian and foreign economists and identifies the main areas of existing and prospective blockchain studies, formulates the principles for the promotion of the blockchain technology in logistics and identifies factors that impede the active use of the blockchaining by Russian and foreign businessmen. The necessity of the DLT/blockchain legalization in economic activities and determining the responsibility for including incomplete and/or unreliable information in a distributed ledger is substantiated.
The subject of the research is the tax burden of organizations engaged in new types of activities using digital information and communication technologies. The purpose of the research was to determine the specific features of the crypto economy to be taken into account in the development of measures for the tax regulation of organizations in the digital economy. It was established that the transformation of approaches to information exchange allowing economic agents to make transactions on the basis of digital platforms not linked to the geographical borders of states makes legal entities and individuals more reluctant to delegate some of the powers to the state as an institution of power. The paper classifies foreign practices of direct taxation of incomes from purchase and sale of crypto-currency, which made it possible to identify prospects for the development of tax regulation in Russia. The conceptual scenarios of taxation of cryptoproducts are analyzed and it is concluded that in creating a cryptocurrency the deferred recognition of the object of taxation is advisable in order to reduce the tax risks of users.
Open access
Legal and Policy Issues
Economic and Technological Developments in Russia
Digitalization and Economic Development in Agriculture
The paper focuses on the definition of the legal status of the cryptocurrency in the framework of the current Russian legislation. The subject of the research is the principal scientific and practical approaches to determining the object of civil rights and the object of acquisitive crimes in terms of their adaptability to cryptocurrencies. The purposes of the work were the search for a universal algorithm for resolving civil disputes related to the turnover of the crypto currency, and the qualification of the virtual currency theft (fraud). By using historical, comparative legal and dialectical methods as well as the content analysis method parallels between cryptocurrencies and individual objects of civil rights (a thing, property rights, other property) were drawn, and a number of options for qualifying the actions related to the non-repayable withdrawal of the cryptocurrency were proposed. Finally, the paper analyzes the draft laws prepared by the RF Ministry of Finance and the Central Bank of the Russian Federation and presents the author’s vision of the prospects for legalizing the cryptocurrency as an object of civil rights.
Innovation in smart contract systems helps to create decentralized payment systems. These developing concepts will be a new perspective to solve transparency issues. Smart contracts can prove all transactions and flow of funds and money between parties. Business deals and financial payment methods are expected to be a hybrid approach in both traditional and smart contracts in the future. Empirical analysis of smart agreements among their emerged platforms, different applications, and design views will enlighten future needs of trade payment methods. This chapter investigates the concept of smart contracts and critical issues for developing on financial payments environment. This research also aims to examine possible advantages of the application of smart contracts as innovation, legal, and technical aspects of the emerging business environment. The analysis will compare new mechanisms securing a block-chain applied to financial payments. This chapter also reviews the mechanisms of smart contracts and block-chain and focus on predicted future areas on the financial system.
In the Bitcoin system, miners are incentivized to join the system and validate transactions through fees paid by the users. A simple "pay your bid" auction has been employed to determine the transaction fees. Recently, Lavi, Sattath and Zohar [Lavi et al., 2019] proposed an alternative fee design, called the monopolistic price (MP) mechanism, aimed at improving the revenue for the miners. Although MP is not strictly incentive compatible (IC), they studied how close to IC the mechanism is for iid distributions, and conjectured that it is nearly IC asymptotically based on extensive simulations and some analysis. In this paper, we prove that the MP mechanism is nearly incentive compatible for any iid distribution as the number of users grows large. This holds true with respect to other attacks such as splitting bids. We also prove a conjecture in [Lavi et al., 2019] that MP dominates the RSOP auction in revenue (originally defined in [Goldberg et al., 2006] for digital goods). These results lend support to MP as a Bitcoin fee design candidate. Additionally, we explore some possible intrinsic correlations between incentive compatibility and revenue in general.
This research aims to identify how Bitcoin-related news publications and\nonline discourse are expressed in Bitcoin exchange movements of price and\nvolume. Being inherently digital, all Bitcoin-related fundamental data (from\nexchanges, as well as transactional data directly from the blockchain) is\navailable online, something that is not true for traditional businesses or\ncurrencies traded on exchanges. This makes Bitcoin an interesting subject for\nsuch research, as it enables the mapping of sentiment to fundamental events\nthat might otherwise be inaccessible. Furthermore, Bitcoin discussion largely\ntakes place on online forums and chat channels. In stock trading, the value of\nsentiment data in trading decisions has been demonstrated numerous times [1]\n[2] [3], and this research aims to determine whether there is value in such\ndata for Bitcoin trading models. To achieve this, data over the year 2015 has\nbeen collected from Bitcointalk.org, (the biggest Bitcoin forum in post\nvolume), established news sources such as Bloomberg and the Wall Street\nJournal, the complete /r/btc and /r/Bitcoin subreddits, and the bitcoin-otc and\nbitcoin-dev IRC channels. By analyzing this data on sentiment and volume, we\nfind weak to moderate correlations between forum, news, and Reddit sentiment\nand movements in price and volume from 1 to 5 days after the sentiment was\nexpressed. A Granger causality test confirms the predictive causality of the\nsentiment on the daily percentage price and volume movements, and at the same\ntime underscores the predictive causality of market movements on sentiment\nexpressions in online communities\n
The rise of the Internet of Things (IoT) implies new technical challenges such as managing a universally vast number of IoT devices. Despite the fact that there are already a variety of secure management frameworks for IoT, they are based on centralized models, which limits their applicability in scenarios with a large number of IoT devices. In order to overcome those limitations, we have developed a distributed IoT management system based on blockchain. In this paper, we compare the performance of our solution with the existing access management solutions in IoT. We study the delays and the throughput rate associated with the systems and analyze different configurations of our solution to maximize its scalability. The objective of this paper is to find out whether our solution can scale as well as the existing management systems in IoT.
Energy storage units (ESUs) enable several attractive features of modern smart grids such as enhanced grid resilience, effective demand response, and reduced bills. However, uncoordinated charging of ESUs stresses the power system and can lead to a blackout. On the other hand, existing charging coordination mechanisms suffer from several limitations. First, the need for a central charging coordinator (CC) presents a single point of failure that jeopardizes the effectiveness of the charging coordination. Second, a transparent charging coordination mechanism does not exist where users are not aware whether the CC is honest or not in coordination charging requests among them in a fair way. Third, existing mechanisms overlook the privacy concerns of the involved customers. To address these limitations, in this paper, we leverage the blockchain and smart contracts to build a decentralized charging coordination mechanism without the need for a centralized charging coordinator. First ESUs should use tokens for anonymously authenticate themselves to the blockchain. Then each ESU sends a charging request that contains its State-of-Charge (SoC), Time-to-complete-charge (TCC) and amount of required charging to the smart contract address on the blockchain. The smart contract will then run the charging coordination mechanism in a self-executed manner such that ESUs with the highest priorities are charged in the present time slot while charging requests of lower priority ESUs are deferred to future time slots. In this way, each ESU can make sure that charging schedules are computed correctly. Finally, we have implemented the proposed mechanism on the Ethereum test-bed blockchain, and our analysis shows that execution cost can be acceptable in terms of gas consumption while enabling decentralized charging coordination with increased transparency, reliability, and privacy preserving.
Permissioned Blockchain (PBC) has become a prevalent data structure to ensure that the records are immutable and secure. However, PBC still has significant challenges before it can be realized in different applications. One of such challenges is the overhead of the communication which is required to execute the Byzantine Agreement (BA) protocol that is needed for consensus building. As such, it may not be feasible to implement PBC for resource constrained environments such as Internet-of-Things (IoT). In this paper, we assess the communication overhead of running BA in an IoT environment that consists of wireless nodes (e.g., Raspberry PIs) with meshing capabilities. As the the packet loss ratio is significant and makes BA unfeasible to scale, we propose a network coding based approach that will reduce the packet overhead and minimize the consensus completion time of the BA. Specifically, various network coding approaches are designed as a replacement to TCP protocol which relies on unicasting and acknowledgements. The evaluation on a network of Raspberry PIs demonstrates that our approach can significantly improve scalability making BA feasible for medium size IoT networks.
Blockchain-enabled Internet of Things (IoT) systems have received extensive attention from academia and industry. Most previous constructions face the risk of leaking sensitive information since the servers can obtain plaintext data from the devices. To address this issue, in this paper, we propose a decentralized outsourcing computation (DOC) scheme, where the servers can perform fully homomorphic computations on encrypted data from the data owner according to the request of the data owner. In this process, the servers cannot obtain any plaintext data, and dishonest servers can be detected by the data owner. Then, we apply the DOC scheme in the IoT scenario to achieve a confidential blockchain-enabled IoT system, called BeeKeeper 2.0. To the best of our knowledge, this is the first work in which servers of a blockchain-enabled IoT system can perform any-degree homomorphic multiplications and any number of additions on encrypted data from devices according to the requests of the devices without obtaining any plaintext data of the devices. Finally, we provide a detailed performance evaluation for the BeeKeeper 2.0 system by deploying it on Hyperledger Fabric and using Hyperledger Caliper for performance testing. According to our tests, the time consumed between the request stage and recover stage is no more than 3.3 s, which theoretically satisfies the production needs.