Spanish Abstract: Los Smarts Contract son en terminos muy generales un conjunto de protocolos informaticos, que permite a un dispositivo procesarlos por si mismo y ejecutarlos de forma autonoma, sin necesidad de intervencion humana. La ausencia de intervencion humana y su sustitucion por un proceso (conjunto de protocolos) que permite la automatizacion de operaciones; la concrecion automatica de las prestaciones en las transacciones; el cumplimiento automatico de las mismas; y la utilizacion de otras tecnologias que permiten la verificacion de la informacion y de la identidad de los sujetos implicados en la transaccion, conduce a un elevado ahorro de costes, y las expectativas de las partes para la satisfaccion de sus intereses conforme a lo establecido en el contrato se verian ampliamente protegidas. Rapidez, previsibilidad y automatizacion marcarian las coordenadas del ejercicio de la autonomia de la voluntad y facilitarian una creciente y efectiva autotutela. No obstante estas evidentes ventajas, esta figura presenta limitaciones y desventajas y plantea posibles problemas a los que el Derecho debe hacer frente. En este trabajo explicaremos primero brevemente el fenomeno de los Smart Contracts, y los enmarcaremos en su particular ecosistema, para, a continuacion, abordar algunas de las cuestiones juridicas que los Smart Contracts plantean.
English Abstract: Smart Contracts can be defined very generally as a set of protocols enabling a computing device to autonomously process and execute them without human intervention. That replacement of human intervention by a set of protocols enabling the automation of operations, the automatic assessment of performance in a transaction, the autonomous and automatic fulfilment of obligations, and the combined use of other technologies facilitating the verification of data and parties’ identity entail a significant reduction of transaction costs, as well as a high satisfaction of parties’ expectations in conformity with the contract. Celerity, predictability, and automation would represent the coordinates for the exercise of private autonomy and an increasing resort to effective self-help. Notwithstanding such evident advantages, Smart Contracts do also reveal limitations, drawbacks, and legal concerns that should be considered and faced. This aim of this Paper is first to explain the phenomenon of Smart Contracts from a legal perspective and to frame them into their particular ecosystem, and, subsequently, to tackle some main legal issues pertaining to Smart Contracts.
Rohit Mital, Jack de La Beaujardiere, Rohan Mital, Marge Cole · 5 authors
With the thrust towards multi-sensor satellite architectures for earth and space exploration, such as constellations and swarms, new technologies are required to enable the transition to this future capability. One of the areas of interest is establishing secure, efficient and prioritized data and command communication pathways among ground and space-based sources for such systems. This paper presents early research results on the potential role, capabilities and value of blockchain usage within constellation and swarm satellite architectures. It demonstrates the use of blockchain's smart contract and distributed ledger capabilities for secure and prioritized multi-sensor satellite collaborative data exchanges, as well as the logging and tracking of command and control events. Adapting and utilizing this emerging technology will aid in addressing technology gaps expected from future constellation flight architectures, such as managing collective computational operations (correlation), dynamic and autonomous observation planning, time-critical events, and provenance tied to ground and space-based autonomous operations and control recordkeeping. In this scenario blockchain is applied in encrypted command transmittal to multiple, yet specific, entities enabling acknowledgement transmittals, performance scalability, and automatic event-based triggering.
By 2022, a change in the form of government from unitary to federal will likely happen in the Philippines, a nation of 104 million. Although decentralization is not new to the country owing to the passage of the Local Government Code of 1991, the transition will have major policy implications on the assignment of expenditure and revenue (taxation) responsibilities for government functions. This study focuses on the technical and vocational education and training (TVET), an important component of the Philippine Government’s national strategy for economic development and poverty alleviation. TVET governance in the Philippines is placed under the authority of the Technical Education and Skills Development Authority (TESDA), an agency attached to the national government which operates a network of over a hundred TVET training schools and institutes. With the impending shift to a federal system, TESDA needs to formulate a decentralization strategy, determining which sub-functions of TVET governance should be retained at the national level, devolved/transferred to subnational governments, and shared between the two levels government. This paper maintains that in addressing these policy issues, the Philippine Government should be guided by the principles of fiscal federalism and informed by existing TVET vi decentralization models in federal countries worldwide. This paper utilizes comparative institutional analysis, an analytical framework that examines existing institutional arrangements in some jurisdictions to inform policy formulation elsewhere. TVET governance in eight federal countries are analyzed by answering this question: Which sub-functions are assigned to what level of government? The sub-functions of the TVET system are: a) policy formulation and planning, b) standard-setting and regulatory, c) financing/contracting and d) provision of TVET services to clients. Based on the findings of the study, policy makers in the Philippines are enjoined to consider the following policy recommendations on decentralizing TVET under the proposed federal system: a. TVET policy formulation, planning, standard-setting and regulatory functions should be assigned solely to the national government so that TVET governance is harmonized across jurisdictions, and to be consistent with the national government’s equity goals; b. Financing/contracting for TVET can initially be assigned as a “shared function” between the national and subnational governments; however, in the long term, the subnational governments should develop their local revenue generation capacity and eventually be responsible for TVET financing/ contracting in their jurisdictions. Policy makers should also explore alternative models for TVET financing such as inclusion of TVET in the existing Special Education Fund (SEF) and establishing a TVET Training Fund; vii c. Provision of TVET training services can initially be a “shared function” between the two levels of government; however, as experiences of federal countries clearly show, the primary responsibility of providing TVET services to clients should rest with the subnational governments.
In the context of logistics, blockchain can help to increase end-to-end visibility along global supply chains. Thus, it can lead to improved tracking of goods and offer tamper-proof data to build trust among parties. Although a variety of blockchain use cases already exists, not all of them seem to rely on blockchain-specific features, but could rather be solved with traditional technologies. The purpose of this paper is, therefore, to identify characteristic use cases described for blockchain in the field of LSCM and to analyze them regarding their mindful technology use based on five mindful technology adoption principles: engagement with the technology; Technological novelty seeking; awareness of local context; cognizance of alternative technologies; and anticipation of technology alteration. The authors identified five blockchain case clusters and chose one case for each category to be analyzed in detail. Most cases demonstrate high engagement with the technology, but there are significant differences when it comes to the other mindful use principles. This paper highlights the need to understand the problem and to apply the right technology in order to solve it. When solving a problem, care should be taken to address a technology’s unique features to ensure effectiveness and cost-efficiency.
Lexi Brent, Anton Jurisevic, Michael Kong, Eric Liu · 8 authors
The rise of modern blockchains has facilitated the emergence of smart contracts: autonomous programs that live and run on the blockchain. Smart contracts have seen a rapid climb to prominence, with applications predicted in law, business, commerce, and governance. Smart contracts are commonly written in a high-level language such as Ethereum's Solidity, and translated to compact low-level bytecode for deployment on the blockchain. Once deployed, the bytecode is autonomously executed, usually by a %Turing-complete virtual machine. As with all programs, smart contracts can be highly vulnerable to malicious attacks due to deficient programming methodologies, languages, and toolchains, including buggy compilers. At the same time, smart contracts are also high-value targets, often commanding large amounts of cryptocurrency. Hence, developers and auditors need security frameworks capable of analysing low-level bytecode to detect potential security vulnerabilities. In this paper, we present Vandal: a security analysis framework for Ethereum smart contracts. Vandal consists of an analysis pipeline that converts low-level Ethereum Virtual Machine (EVM) bytecode to semantic logic relations. Users of the framework can express security analyses in a declarative fashion: a security analysis is expressed in a logic specification written in the \souffle language. We conduct a large-scale empirical study for a set of common smart contract security vulnerabilities, and show the effectiveness and efficiency of Vandal. Vandal is both fast and robust, successfully analysing over 95\% of all 141k unique contracts with an average runtime of 4.15 seconds; outperforming the current state of the art tools---Oyente, EthIR, Mythril, and Rattle---under equivalent conditions.
We study a stochastic game framework with dynamic set of players, for modeling and analyzing their computational investment strategies in distributed computing. Players obtain a certain reward for solving the problem or for providing their computational resources, while incur a certain cost based on the invested time and computational power. We first study a scenario where the reward is offered for solving the problem, such as in blockchain mining. We show that, in Markov perfect equilibrium, players with cost parameters exceeding a certain threshold, do not invest; while those with cost parameters less than this threshold, invest maximal power. Here, players need not know the system state. We then consider a scenario where the reward is offered for contributing to the computational power of a common central entity, such as in volunteer computing. Here, in Markov perfect equilibrium, only players with cost parameters in a relatively low range in a given state, invest. For the case where players are homogeneous, they invest proportionally to the 'reward to cost' ratio. For both the scenarios, we study the effects of players' arrival and departure rates on their utilities using simulations and provide additional insights.
We investigate connectedness within and across two major groups or assets: i) five popular cryptocurrencies, and ii) six major asset classes plus two commonly employed risk factors. Granger-causality tests uncover six direct channels of causality from the elements of the mainstream assets/risk factors group to digital assets. On the other hand there are two statistically significant causal links going in the other direction. In order to provide some perspective on the magnitude of the uncovered linkages we supplement the analysis by estimating networks from forecast error variance decompositions. The estimated connectedness within the groups is relatively large, whereas the linkages across the two groups are small in comparison. Namely, less than 2.2 percent of future uncertainty of any cryptocurrency is sourced from all non-crypto assets combined, while the joint contribution of all digital assets to non-crypto uncertainty does not exceed 1.5 percent.
The issues of trust in the area of supply chain management are an immense concern among the stakeholders cooperating in the supply chain. For a sustainable process of transportation, efficient information sharing is considered crucial. The models that serve as a base for the current operations have several drawbacks in terms of data security and trust among stakeholders, who share information as part of their cooperation. Information is shared in a paper-based or semi-digitalized way due to the lack of trust or risk of competitive disadvantages in the current systems. This paper aims to analyze the trust issues in supply chain management and propose new ways of improving trust by considering these issues at the design level.
Philipp Hacker, Ioannis Lianos, Georgios Dimitropoulos, Stefan Eich
This introductory chapter provides an overview of the main legal and policy implications of blockchain technology. It proceeds in four steps. First, the chapter traces the technical and legal evolution of blockchain applications since the early days of bitcoin, highlighting in particular the political ambitions and tensions that have marked many of these projects from the start. Second, it shows how blockchain applications have created new calculative spaces of financial markets that seek to challenge existing forms of money. Third, it discusses the core points of friction with incumbent legal systems, with a particular focus on the regulability of decentralized systems in general and data protection concerns in particular. Fourth, the chapter provides an outline to the contributions to the volume, which span a wide array of topics at the intersection of blockchain, law, and politics.
The authors’ first challenge is to decipher the complexity of Islamic banking despite the enigmatic aspects of the sector. A second focal point is the agent’s agenda; in the Islamic banking industry, contributors mandate intermediaries (agents) to transfer their contributions to socio-economic causes according to the Shariah; in principle, Islamic financial institutions must create value for their stakeholders by offering Shariah-compliant products and services. An underlying assumption of the agency theory is that agents attempt to maximize their personal welfare and compensation, but such behaviour may not always be in the best interests of other stakeholders. One objective of the article is to identify tools monitoring whether agents act in the best interests of stakeholders and consider if smart contracts are usable for all financial dealings between agents and stakeholders. A qualitative research framework was adopted because of the constraints of the enigmatic, secretive Islamic banking culture. A case study of the debacle of an award winning Islamic bank and the analysis of the 2017 International Monetary Fund Report on Islamic banking shed new light on the sector.
Sep 10, 2018·Volume 1: Development and Characterization of Multifunctional Materials; Modeling, Simulation, and Control of Adaptive Systems; Integrated System Design and Implementation
Kevin Eschen, Julianna Abel, Rachael Granberry, Brad Holschuh
Self-fitting is the ability of a wearable, garment or body-mounted object to recover the exact shape and size of the human body. Self-fitting is highly desirable for wearable applications, ranging from medical and recreational health monitoring to wearable robotics and haptic feedback, because it enables complex devices to achieve accurate body proximity, which is often required for functionality. While garments designed with compliant fabrics can easily accomplish accurate fit for a range of body shapes and sizes, integrated actuators and sensors require fabric stiffness to prevent drift and deflection from the body surface. This paper merges smart materials and structures research with anthropometric analysis and functional apparel methodologies to present a novel, functionally gradient self-fitting garment designed to address the challenge of achieving accurate individual and population fit. This fully functional garment, constructed with contractile SMA knitted actuator fabrics, exhibits tunable %-actuation contractions between 4-50%, exerts minimal on-body pressure (≤1333 Pa or 10 mmHg), and can be designed to actuate fully self-powered with body heat. The primary challenge in the development of the proposed garment is to design a functionally gradient system that does not exert significant pressure on part of the leg and/or remain oversized in others. Our research presents a new methodology for the design of contractile SMA knitted actuator garments, describes the manufacture of such self-fitting garments, and concludes with an experimental analysis of the garment performance evaluated through three-dimensional marker tracking.
Current electronic voting protocol require a centralized system to control the whole procedure from ballot inputs to result outputs and election monitoring. Meanwhile, blockchain technology provide a decentralized system which open across the whole network of untrusted participants. Applying blockchain technology into electronic voting protocol through a proper architecture can instil characteristic such as data confidentiality, data integrity and data authenticity. In this paper, we going to discuss a proposed method on how to leverage the advantages from blockchain into electronic voting protocol. This blockchain-based electronic voting protocol promise to provide a secure electronic election process given the proposed system works. We implement a protocol using blockchain to turn election protocol into an automated control system without relying any single point of entity. Lastly, we discuss the characteristics of our proposed blockchain-based electronic voting protocol in this paper. However, there are also emerging challenges and limitations awaiting to overcome. This paper gives a comprehensive overview of our proposed protocol.
Open access
Internet Traffic Analysis and Secure E-voting
Blockchain Technology Applications and Security
Advanced Steganography and Watermarking Techniques
This article deals with the concepts of social currencies and cryptocurrencies. The objective of the present paper is to identify similarities and differences between to two currency systems which represent a new generation of money that exists alongside the official and legal money system. The paper includes an analysis of the major characteristics of both currencies, their operating mechanisms in global and local contexts, as well as their risks and challenges for the financial markets. The article uses a mainly documentary research method and presents selected contributions of experts on the topics of social currencies and cryptocurrencies. Furthermore, empirical evidence is presented to highlight some important characteristics of the Bitcoin currency. The principal result of the paper is that, indeed there exist similarities between social currencies and cryptocurrencies, as for example the absence of a central bank, a lack of regulation and a limited minting process. However, because of aspects like their different origins, their local vs. global character and their inherent financial risks, the two money systems need to be interpreted as fundamentally different. Especially with reference to globally operating cryptocurrencies, given that there does not exist any public cover of the currency nor sufficient regulation, risk management mechanisms need to be improved in order to diminish the speculative tendencies inherent to this currency.
In this work, we propose an order book model with herd behavior. The proposed model is built upon two distinct approaches: a recent empirical study of the detailed order book records by Kanazawa et al. [Phys. Rev. Lett. 120, 138301] and financial herd behavior model. Combining these approaches allows us to propose a model that replicates the long-range memory of absolute returns and trading activity. We compare the statistical properties of the model against the empirical statistical properties of the Bitcoin exchange rates and New York stock exchange tickers. We also show that the fracture in the spectral density of the high-frequency absolute return time series might be related to the mechanism of convergence towards the equilibrium price.
Blockchain's vast applications in different industries have drawn several researchers to pursue extensive research in securing blockchain technologies. In recent times we could see several institutions coming together to create consortium based blockchain networks such as Hyperledger. Although for applications of blockchain such as Bitcoin, Litcoin, etc. the majority-attack might not be a great threat but for consortium based blockchain networks where we could see several institutions such as public, private, government, etc. are collaborating, the majority-attack might just prove to be a prevalent threat if collusion among these institutions takes place. This paper proposes a methodology where we can use intelligent software agents to monitor the activity of stakeholders in the blockchain networks to detect anomaly such as collusion, using supervised machine learning algorithm and algorithmic game theory and stop the majority attack from taking place.
Open access
Blockchain Technology Applications and Security
Advanced Steganography and Watermarking Techniques
The world of cryptocurrency is not transparent enough though it was established for innate transparent tracking of capital flows. The most contributing factor is the violation of securities laws and scam in Initial Coin Offering (ICO) which is used to raise capital through crowdfunding. There is a lack of proper regularization and appreciation from governments around the world which is a serious problem for the integrity of cryptocurrency market. We present a hypothetical case study of a new cryptocurrency to establish the transparency and equal right for every citizen to be part of a global system through the collaboration between people and government. The possible outcome is a model of a regulated and trusted cryptocurrency infrastructure that can be further tailored to different sectors with a different scheme.
Blockchain technology (BT) is expected to bring a revolutionary paradigm shift in the manner the transactions are carried in the supply chains. BT provides better visibility and transparency by removing the disadvantages of trust related issues in a supply chain. In this paper, we advance the literature on BT and its adoption in the supply chain by developing, and statistically validating a model for understanding the user perceptions on BT adoption. The model is based on the integration of three adoption theories- technology acceptance model (TAM), technology readiness index (TRI) and the theory of planned behaviour (TPB). Based on a survey of 181 supply chain practitioners in India the proposed model was tested using structural equation modelling. The study found that the TRI constructs- Insecurity and discomfort have an insignificant effect on the perceived ease of use and usefulness. Perceived usefulness, attitude, and perceived behavioural control affect the behavioural intention. Subjective norm has a negligible impact on behavioural intention. This is one of the preliminary studies on BT adoption in supply chain and the findings imply that the supply chain practitioners perceive BT adoption free of efforts and would help them to derive maximum benefits for improving the supply chain effectiveness.
Este trabajo ha obtenido el 1.er Premio «Estudios Financieros» 2018 en la modalidad de Tributación. La tecnología de los mayores distribuidos está apenas en su infancia, pero como evidencia la inclusión de los criptoactivos en el último comunicado del G20, estamos entrando en la era Blockchain, una tecnología para el intercambio de valor en red sin mediación de intermediarios que es lo más disruptivo desde de la aparición de internet. Blockchain, que forma parte ya del sistema de pagos, tiene un alto potencial para transformar los servicios privados y públicos. A medida que las monedas virtuales ganan terreno, se acrecienta la conveniencia de que los hechos imponibles a que da lugar su acuñación, intermediación o utilización como resguardo de valor o medio de pago gocen de regulación específica o, cuando menos, de criterios interpretativos claros. Estos, a su vez, precisan de una especificación por parte del regulador internacional de la naturaleza contable de las criptomonedas, algo improbable a corto plazo. En su ausencia, el tratamiento fiscal que emerge en derecho comparado es el de activos en impuestos directos y el de dinero en IVA, calificación que es, como mínimo, inconsistente. Más allá de las preocupaciones por la seguridad jurídica y la integridad del sistema financiero y tributario, debido a la pseudopacidad que garantizan, la aplicación de la nueva tecnología a los servicios públicos es un vasto campo que roturar, con prometedoras experiencias comparadas en lugares como Estonia, Dinamarca o Australia.
The aim of the article. The purpose of the article is the theoretical substantiation of issues related to the system of strategic planning of economic development of industrial enterprises and marketing at the regional level in order to determine the interaction between them. The results of the analyses. The most characteristic features of modern strategic planning of the development of a production enterprise are considered: several strategic problems of the enterprise are solved; has a creative and iterative character; aimed at finding new business opportunities; It requires significant information, intellectual, as well as time costs; the basis of planning is the approach «from the future to the present»; differs stochastic approach and flexibility; strategic plans are conceptual and descriptive, which contain mainly qualitative and interval quantitative indicators; strategy development is based on the principle of alternatives; the system of strategic planning determines the potential of the company's success and creates the prerequisites for the effective operation of the enterprise; The subject of formation of the main strategic idea is the higher strategic level of enterprise management. Therefore, for business, the importance of the strategy is explained by the fact that clearly defined goals and guidelines for the development of the territory allow business entities to see the prospects of the economy, the prospects for development and state support of the industries, and, in accordance with new approaches and goals, declared by the local authorities in the planning documents, to build their own Plans for the future. In the conditions of objective incompleteness of information, the effect of external «deterrent factors» is multiplied, and therefore the mechanisms necessary to overcome them, which ensure the constructive nature of the processes of the flow of resources and capital in the economic space. One such mechanism is regional marketing. Some aspects of the interaction of the elements of the toolkit, which are fundamental in the formation of the system of strategic planning of the development of production enterprises and socio-economic development of the region, taking into account the marketing approach, are explored. Information interaction – the basis of the process of management of socio-economic development of the region, the mechanism for the development and implementation of both territorial strategies and strategies of production enterprises. Interaction through methods of managerial influence. Methods of economic interaction are a motivational component of the regional strategies of the region and the strategies of production enterprises. Methods of socio-psychological interaction. Interaction through project management and clustering. Interaction through the demand management system. Consequently, the main objective of marketing strategic planning is to build the activity of the territory and production enterprises in such a way that the organic and most efficient combination of production, satisfaction of the needs of consumers, profit and development of the region. The principles of marketing strategic planning are: coherence with overall strategic planning; based on the research of the marketing environment; cyclicity is a continuous process; flexibility – the ability to adapt the strategy to changes in the environment; multivariateness – taking into account possible changes of the environment at the stage of forming the plan. Conclusions and directions for further research. Thus, strategic planning of enterprise development in conditions of decentralization should be perceived as a powerful tool of state policy to ensure the balanced development of territorial communities. Consequently, three subjects of the national economy – government, business and the public, together, by consensus, create a joint strategy for the socio-economic development of the territory as a set of strategic goals, combined in the program of action based on the identified internal advantages and disadvantages of the socio-economic economic system, available resources, opportunities and threats to the environment. Keywords: strategic planning, economic development, manufacturing enterprises, regional marketing, methods of strategic planning. DOI: 10.15276/mdt.2.3.2018.7 Formuvannia obiednanykh terytorialnykh hromad: stan, problemni pytannia ta shliakhy yikh vyrishennia. Analitychna zapyska [Formation of united territorial communities: state, problem issues and ways of their solution. Analytical note]. www.niss.gov.ua Retrieved from http://www.niss. gov.ua/articles/2642/ [in Ukrainian]. Mischenko, A.P. (2007). Stratehichne upravlinnia [Strategic Management]. 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Abstract Blockchains combine digital encryption and time stamping technologies to enable digital exchange to occur in manners celebrated by proponents as ‘trust‐free’. Yet, an increasing range of scholars argue that actual applications of the peer‐to‐peer technology shifts, rather than eliminates, trust. In this article, we draw on organizational theory to argue that efforts to remove trust reorganize the action nets that underpin payment systems in manners that extend rather than eliminate longstanding pathologies afflicting financial globalization. Our analysis supports and extends the critiques that blockchain applications are far from ‘trust‐free’. By tracing how efforts to reconfigure the socio‐technical composition of the humans and objects that underpin payment systems, we illustrate how blockchain applications shift the location and character of the technical vulnerabilities that create market instabilities and concentration, as well as elite‐led governance.