The notion of smart contracts in distributed ledger systems have been hailed as a safe way of enforcing contracts between participating parties. However, unlike legal contracts, which talk about ideal behaviour and consequences of not adhering to such behaviour, smart contracts are by their very nature executable code, giving explicit instructions on how to achieve compliance. Executable specification languages, particularly Turing complete ones, are notoriously known for the difficulty of ensuring correctness, and recent incidents which led to huge financial losses due to bugs in smart contracts, have highlighted this issue. In this paper we show how standard techniques from runtime verification can be used in the domain of smart contracts, including a novel stake-based instrumentation technique which ensures that the violating party provides insurance for correct behaviour. The techniques we describe have been partially implemented in a proof-of-concept tool ContractLarva, which we discuss in this paper.
This paper presents all studies, methodology, and results about Bitcoin forecasting with PROPHET and ARIMA methods using R analytics platform. To find the most accurate forecast model, the performance metrics of PROPHET and ARIMA methods are compared on the same dataset. The dataset selected for this study starts from May 2016 and ends in March 2018, which is the interval that Bitcoin values changing significantly against the other currencies. Data is prepared for time series analysis by performing data preprocessing steps such as time stamp conversion and feature selection. Although the time series analysis has a univariate characteristics, it is aimed to include some additional variables to each model to improve the forecasting accuracy. Those additional variables are selected based on different correlation studies between cryptocurrencies and real currencies. The model selection for both ARIMA and PROPHET is done by using threefold splitting technique considering the time series characteristics of the dataset. The threefold splitting technique gave the optimum ratios for training, validation, and test sets. Finally two different models are created and compared in terms of performance metrics. Based on the extensive testing we see that PROPHET outperforms ARIMA by 0.94 to 0.68 in R2values.
Libing Fang, Elie Bouri, Rangan Gupta, David Roubaud
We assess whether the long-run volatilities of Bitcoin, global equities, commodities, and bonds are affected by global economic policy uncertainty. Empirical results provide evidence supporting that, except for the case of bonds. We further examine whether the correlation between Bitcoin and global equities, commodities, and bonds are affected by global economic policy uncertainty and the results reveal that global economic policy uncertainty has a negative significant impact on the Bitcoin-bonds correlation, and a positive impact on both Bitcoin-equities and Bitcoin-commodities correlations, suggesting a possibility for Bitcoin to act as a hedge under specific economic uncertainty conditions. Interestingly, the hedging effectiveness of Bitcoin for both global equities and global bonds enhances slightly after considering the level of global economic policy uncertainty. Implications for investors and policy-makers are discussed.
Benjamin D. Trump, Marie‐Valentine Florin, H. Scott Matthews, Douglas Sicker · 5 authors
Blockchain and distributed ledger technologies (DLTs) have the capacity to improve how many companies and organizations conduct transactions or store information securely, among many other potential benefits. However, their development and implementation does not occur in a contextual vacuum and instead must adapt to the needs and requirements of their given user. As such, we argue that the governance of DLT and blockchain must be applied against two core questions: who should have access to information within a given DLT/blockchain, and should management of that system be open or restricted/permissioned? While the technology is still emerging, its application to and success within various organizations will be largely dependent upon these key governance concerns.
AI and blockchain are among the most disruptive technologies and will fundamentally reshape how we live, work, and interact. The authors summarize existing efforts and discuss the promising future of their integration, seeking to answer the question: What can smart, decentralized, and secure systems do for our society?
Bitcoin, merkezi otoriteye ihtiyaç duymayan, dağıtık ve dijital bir para birimi olarak, son yıllarda finans dünyasındaki popüler konuların başında gelmektedir. İlk dönemde Bitcoin’in finansal özelliklerine duyulan ilgi, zaman içerisinde Bitcoin’e hayat veren blok zinciri teknolojisine doğru kaymaya başlamıştır. Hemen her gün yeni bir uygulama alanını duymaya başladığımız blok zinciri teknolojisi alanındaki akademik araştırmalar sınırlı sayıdadır. Ülkemizde de gerek uygulama gerekse akademik anlamda yeterli sayıda çalışma olmadığını söyleyebiliriz. Bu inceleme, blok zinciri teknolojisini sistematik olarak gözden geçirerek, kullanım alanlarını, açık noktalarını ve gelecek beklentilerini tartışmaktadır.
We eliminate the primary source of uncompensated risk from trading in one of the largest sectors of the global financial markets. Market infrastructure enhancements are achieved in the foreign exchange (FX) forward contract market by integrating distributed ledger technology (DLT) into the creation of collateral-linked contracts for currency forwards (CLCF). Specifically, we deploy DLT with embedded automation as the shared platform for bilateral FX forward contracts, including operational provisions of International Swaps and Derivatives Association and Credit Support Annex agreements. Through automation, we link the economics of the currency forward contract and the price-volatility-induced counterparty exposures, bringing intraday counterparty risk to within mutually acceptable ranges. The essential benefits of the over-the-counter market structure are preserved because CLCF contracts remain bilateral to allow for customized terms and conditions between market participants. Reduced concentration risk is also preserved because there is no central counterparty or central clearing organization into which all risks are pooled. As a result, liquidity is enhanced and risk is reduced in the FX forward contract market. <b>TOPICS:</b>Futures and forward contracts, currency, performance measurement, risk management
The common signs of development and its financing of cryptocurrency, artificial intelligence and basic income were determined. The main tendencies and problems of the development of cryptocurrency and artificial intelligence from their appearance to the present time were considered. The combination of cryptocurrency, artificial intelligence and basic income in a unified system of innovative tools for the creation of a new global financial and technological system was substantiated. These three technologies have the features of combining into one innovative system of interaction at different levels from hardware and software to the level of ultimate practical implementation and application in the future. The perception and consideration of these technologies as a single system makes it possible to significantly simplify the approach to their study, design and implementation.
New York’s Reforming the Energy Vision is the nation’s leading attempt to realign the business and governance of structures of electrical utilities with the technological attributes of renewable energy resources. Under the traditional, centralized model, low-income households were the recipient of cross-class subsidies which preserved their access to heat and power while stabilizing utility revenues. As distributed energy resources decentralize the electrical system’s physical and governance structures, governments are presented with two general options. The first is energy apartheid, where the mass-affluent defect from the grid and leave low-income households exposed to a financially and physically destabilized grid. The second is energy democracy, where low-income households are allowed access to financing and governance structures which enable them to become owners of distributed energy resources. This chapter considers whether New York’s Reforming the Energy Vision is trending towards energy apartheid or energy democracy.
Abstract We introduce the distributed ledger (blockchain) technology of crypto‐currencies. We examine the ‘monetary’ attributes of crypto‐currencies, and describe some of the reasons they have been adopted. The paper discusses the mechanics of Bitcoin – the original crypto‐currency – to illustrate the fundamental elements of decentralized crypto‐currencies. We then provide a high‐level summary of the implications of crypto‐currencies for consumers, financial systems, and for monetary and regulatory authorities. We argue that crypto‐currencies are unlikely to supplant traditional fiat currencies and we anticipate an enduring role for financial intermediaries in facilitating credit.
Carpooling enables passengers to share a vehicle to reduce traveling time, vehicle carbon emissions, and traffic congestion. However, the majority of passengers lean to find local drivers, but querying a remote cloud server leads to an unnecessary communication overhead and an increased response delay. Recently, fog computing is introduced to provide local data processing with low latency, but it also raises new security and privacy concerns because users' private information (e.g., identity and location) could be disclosed when these information are shared during carpooling. While they can be encrypted before transmission, it makes user matching a challenging task and malicious users can upload false locations. Moreover, carpooling records should be kept in a distributed manner to guarantee reliable data auditability. To address these problems, we propose an efficient and privacy-preserving carpooling scheme using blockchain-assisted vehicular fog computing to support conditional privacy, one-to-many matching, destination matching, and data auditability. Specifically, we authenticate users in a conditionally anonymous way. Also, we adopt private proximity test to achieve one-to-many proximity matching and extend it to efficiently establish a secret communication key between a passenger and a driver. We store all location grids into a tree and achieve get-off location matching using a range query technique. A private blockchain is built to store carpooling records. Finally, we analyze the security and privacy properties of the proposed scheme, and evaluate its performance in terms of computational costs and communication overhead.
4차산업혁명 시대의 초연결 사회에서는 제3자의 중개를 거치지 않고 참여자 간 다양한 협업이 가능할 것으로 예상된다. 이를 위해 투명성과 신뢰성을 확보할 수 있는 새로운 형태의 플랫폼이 필요하며, 다양한 거래를 검증, 기록, 보관 할 수 있는 분산장부기술인 블록체인이 따라서 주목 받고 있다. 미술시장에서는 블록체인 기술의 장점을 활용하여 점점 심각해지는 저작권 및 지적 재산권, 작품의 출처(provenance), 위작 등의 문제 해결이 시도되고 있으며, 또한 작가들의 작품 활동 지원을 위한 크라우드 펀딩과 투자, 아트코인을 활용한 미술시장의 대중화 및 활성화 등도 도모되고 있다. 본 연구에서는 그러한 시도들의 사례를 살펴보고 각각의 의미와 한계를 분석해 보았다. 분석 결과, 블록체인 기술은 미술시장 발전을 위해 충분한 잠재력을 지닌 것으로 보이나, 국내 미술 시장에 적용하기 위해서는 블록체인 기술의 기술적, 비기술적 한계에 대한 극복 방안 및 제도적 규제 개선방안, 전문 인력 양성 등 국가적 지원에 대한 검토가 필요할 것으로 보인다.The 4th industrial revolution will enable hyper-connected society which can facilitate various collaborations among network members without the intervention of a third party. To this end, a new type of platform that can secure transparency and reliability is required. In this context, the block chain is drawing attention as a distributed ledger technology capable of verifying, recording and storing various transactions. In the art market, various attempts are being made to address the issues such as copyright and intellectual property rights, provenance, and forgery, taking advantage of the strengths of the block chain technology. Also, there are cases of using the technology for crowdfunding, investment, and art coins with the goal of promoting the art market. In this study, we examine such attempts and cases, and analyze their implications and limitations. As the result of the analysis, it was found that the block chain technology has enough potential to advance the art market. However, in order to adopt it for the Korean art market, considerations are needed for overcoming the technical and non-technical limitations of the current block chain technology, regulatory reforms, and fostering relevant talents in the area.
A Supply Chain Finance (SCF) system involving and a commercial bank and a capital-constrained retailer is designed in the imperfect capital market with non-zero bankruptcy costs. A decentralized borrower-lender game is analyzed, and the optimal centralized strategy is developed for SCF from the perspective of multi-attribute utility (MAU) maximization, including maximizing the expected profit and the service level, as well as minimizing the bankruptcy cost. Furthermore, we analytically and numerically explore the coordination condition for SCF and conclude that the bank financing scheme with a suitable combination of decision preferences can realize coordination, even super coordination. Through sensitivity analyses and numerical experiments, we discuss the impacts of the borrower's initial capitals on the upstream firm's pricing decision and dig out why he has incentives to support the retailer's choice of adopting SCF. The findings of this study reveal that the capital-constrained retailer would require more initial capital when maximizing MAU than maximizing the expected profit, and thus the equilibrium order quantity and the bankruptcy risk would also be higher. Moreover, based on a suitable combination of decision preferences, our proposed bank financing scheme can realize coordination, even super coordination.
Block Chain (BC), the technology behind the Bitcoin crypto-currency system. Blockchain helps Build Trusted, Powerful and Transparent Process with the potential to disrupt Intermediaries, Third parties & Expensive processes. Proof-of-Work (PoW), Proof of Stake (PoS), Proof of Authority (PoA), consensus algorithm plays a vital role in ensuring BC security by maintaining a digital ledger of transactions, which is considered to be incorruptible. Firstly, we explore top crypto currencies after that we will explore blockchain and mining concept. In further we will be exploring Ethereum blockchain solidity programming more and make DAPPs on Ethereum blockchain network.
Shaohan Feng, Wenbo Wang, Dusit Niyato, Dong In Kim · 5 authors
With the explosive growth of smart IoT devices at the edge of the Internet, embedding sensors on mobile devices for massive data collection and collective environment sensing has been envisioned as a cost-effective solution for IoT applications. However, existing IoT platforms and framework rely on dedicated middleware for (semi-) centralized task dispatching, data storage and incentive provision. Consequently, they are usually expensive to deploy, have limited adaptability to diverse requirements, and face a series of data security and privacy issues. In this paper, we employ permissionless blockchains to construct a purely decentralized platform for data storage and trading in a wireless-powered IoT crowdsensing system. In the system, IoT sensors use the power wirelessly transferred from RF-energy beacons for data sensing and transmission to an access point. The data is then forwarded to the blockchain for distributed ledger services, i.e., data/transaction verification, recording, and maintenance. Due to the coupled interference of wireless transmission and the transaction fee incurred by the blockchain's distributed ledger services, rational sensors have to decide on their transmission rates to maximize their individual payoff. Thus, we formulate a noncooperative game model to analyze this competitive situation among the sensors. We provide the analytical condition for the existence of the Nash equilibria as well as a series of insightful numerical results about the equilibrium strategies in the game.