As an important part of the national economy, (Small and Medium Industrial Enterprise)SMIE are an important factor that promotes China’s economic growth, but financing is still a difficult problem that restricts their development. Dependent on its intelligent protocols, distributed features and consensus mechanism, blockchain has broad prospects in the field of enterprise credit reporting, but the previous credit evaluation system had problems such as forgery of corporate credit records and imperfect evaluation indicators. This paper studied the SMIE credit evaluation model and analyzed the evaluation indicators, and based on blockchain technology, it realized data sharing and eliminated the impact of false data on the model. Finally, it proposed the construction of an SMIE credit evaluation model with complete evaluation indicators so as to improve related research on credit evaluation system.
Blockchain is considered to be a technology that has the potential to bring major political, social and economic benefits to developing economies such as India (Kshetri, 2017a). According to the National Association of Software and Services Companies (NASSCOM), blockchain-led increase in productivity and cost reduction can create value of up to US$5 billion in the Indian economy by 2023 (IANS, 2018). The research company ResearchAndMarkets.com's study indicated that the banking and financial services sector is expected to the leading sector to benefit from this technology (Business Wire, 2018).
Salvatore Esposito De Falco, Nicola Cucari, Emanuele Canuti, Stefano Modena
Blockchain technology can influence various aspects of the business even if empirical studies are still lacking to estimate the effective application of technology on corporate governance. Beyond its scientific-practical trendiness, blockchain should not be a matter of “if”, but a matter of “how” organizations are willing and able to integrate blockchain practices into their vision of the future, with ways to manage shareholders issues down to regular operations reaching and managing different levels of activism. It seems almost paradoxical that still not all companies subscribe to the “next best practice”. Therefore, this paper aims to answer the following research question: What is the expected impact of blockchain technology on corporate governance? The purpose of this study is to provide a starting point for research that can be used for further examination of these aspects
M. Abdeen, Salman Jan, Sohail Khan, Toqeer Ali Syed
Takaful – an Islamic alternative to conventional in-surance – is fast becoming one of the most important constituents of modern Islamic financial market. The fundamental difference between the two forms of risk mitigation is entrenched from the type of contract selected. The conventional insurance work on the principle of bilateral contracts between the customer (insured) and insurance provider where the insured pay regular premium in return for payment of compensation, in case of a predefined event occurs. On the other hand, Takaful works on the principle of mutual guarantee, cooperation and indemnity where the participants in the scheme mutually insure each other. The Takaful providers are mainly responsible for managing, administering and investigating the Takaful funds according to Islamic laws. This studies provides a decentralized architecture that securely implements Takaful risk mitigation system accord-ing to its principles. Since all major banking sectors are shifting towards Blockchain technology, as it is currently the only viable solution to offers security, transparency, integrity of resources and ensure trustworthiness among customers. The proposed studies offer state-of-the-art Blockchain technology and focus provide a Takaful system that strictly follows the underlying Islamic laws for this risk mitigation system. Moreover, the proposed platform provides all Takaful transactions over Blockchain that brings confidence and transparency to the community involved in the process.
Robyn Owen, Ciarán Mac an Bhaird, Javed Hussain, Tiago Botelho
More than a decade after the Global Financial Crisis (GFC) of 2007-08, entrepreneurial finance has exhibited enormous changes, notably in the rise of alternative non-bank financing (Owen et al, 2018; Cumming and Johan, 2017; Kraemer-Eis et al, 2017; Bruton et al, 2015; Moenninghoff and Wieandt, 2013). This has been most acutely experienced in the provision and delivery of early stage and innovative business finance – the focus of this special issue. The ensuing innovations in entrepreneurial finance have taken place in developed and developing economies, presenting considerable challenges to policymakers (Mason, 2018). \n \n \nThe problems associated with early stage innovation finance leading to funding gaps are long recognised (MacMillan, 1931), notably due to information asymmetries, lack of collateral, lack of market traction, large amounts of patient capital required, and high proportions of failure rates (North et al, 2013; Lee et al, 2015). These have been exacerbated through post GFC credit rationing (Cowling et al 2012; Lee et al 2015) and re-positioning of established forms of debt and equity risk finance to later stage investment (Baldock and Mason, 2015). Given the rationale for encouraging innovative SME start-up and growth as a driver for economic recovery and growth (Nesta, 2009; Lerner, 2010), policymakers across the globe have sought to encourage new forms of early stage finance for innovative SMEs (Wilson and Silver, 2013). Whilst there have been a host of journal special issues examining specific new forms of entrepreneurial finance (Bonini et al, 2019); Cumming and Groh, 2018; Bruton et al, 2015; Harrison, and Baldock, 2015) such as crowdfunding, peer to peer (P2P) and more latterly blockchain tokenization (O’Dair, 2017) and the reasons for the emergence and roles of new players in the entrepreneurial finance market (Block et al, 2017), such as crowd funding platforms, accelerators, angel networks, seed venture capital (VCs), asset based financiers, challenger banks and new forms of early stage public investment feeder markets (Baldock, 2015), considerably less has been written about the public policy challenges this presents. \n \n \nThe focus of this Special Issue is a contemporary examination of the new forms of entrepreneurial finance evolving for innovative early stage SMEs which are often pre or early trading and do not have sufficient track record to attract more traditional bank debt and venture capital risk finance. As Lerner (2010) and Mazzucato and Penna (2016) recognize, the creation of a flourishing and sustainable early stage innovation finance market in any economy (developed or developing) requires favorable institutional and regulatory frameworks, suggesting the need for holistic policy approaches to stimulate both the demand and supply-sides of the entrepreneurial finance market or ecosystem (Hwang and Horowitt, 2012; Brown and Mason, 2014). \n \n \nStrategic Change has been at the forefront of publishing cutting-edge contemporary research examining these changes, notably featuring new forms of crowdfunding and blockchain finance and emerging market developments in China and India. It is therefore a natural home for the dissemination of the pioneering research papers presented in this issue. These were drawn from an initial call for papers at the annual Institute for Small Business and Entrepreneurship (ISBE) conference in Belfast, November, 2017 and one day conference held by the ISBE Entrepreneurial Finance Special Interest Group at Birmingham City University in March, 2018. This resulted in the eight peer reviewed papers presented. The special issue editorial team are particularly grateful to the Strategic Change Chief Editor Professor Carlo Milana and the anonymous expert peer reviewers for their guidance in the development of these papers.
Abstract To date, the insurance industry’s interest in the blockchain has focused largely on the possibility of recording insurance entitlements in a transparent way. While the blockchain may produce significant efficiencies of this sort, it has considerably greater transformative potential. Smart contracts could serve as a substitute for insurance companies, conventionally conceived. Such contracts could perform the function of deciding whether claims should be paid, without the need for or possibility of judicial intervention. The blockchain and smart contracts are difficult to regulate, because ownership and decision making can be decentralized. Blockchain-based insurance may successfully provide a means of avoiding expensive regulation and could have a competitive advantage over regulated insurance. This chapter discusses how blockchain-based insurance might work and identifies some technical challenges and other obstacles that it may face.
A peer-to-peer network for conducting encrypted digital trade called cryptocurrency was created eight years ago. The first and most well-known cryptocurrency, Bitcoin, is leading the charge as a disruptive technology to decades-old, largely unaltered financial payment infrastructure. Although cryptocurrencies are unlikely to displace traditional fiat money, they might alter how Internet-connected global markets communicate with one another by removing restrictions imposed by conventional national currencies and exchange rates. Technology develops quickly, and the success of a particular technology is almost entirely determined by the market it attempts to better.
Virtual Currencies are becoming popular these days in Pakistan like other countries. These currencies have no physical value, no intrinsic value & no central control. It has only the unique feature is easy to use, control by block chain network. It is not common in Pakistan due to less publicity. This research paper discusses the popularity of Bitcoin in Pakistan and its impact on Economy. Risk and Return related to virtual currency. The price determinants of Bitcoin and exchange rate. Key w ords : Bitcoin, Risk & Return, Virtual Currency. DOI : 10.7176/RJFA/10-7-02 Publication date : April 30 th 2019
Security Token Offerings (STOs) are a very recent phenomenon that has started to replace the Initial Coin Offering (ICO) one for financing companies through blockchain networks. Contrary to ICOs, which are based on “utility tokens”, STOs issue “security tokens” that are likely to achieve revenues in the same way that bonds or shares do. However, because they utilize the blockchain network, they are expected to benefit from lower intermediary and transaction costs. The objective of this paper is to examine, for the first time in financial research, to what extent this nascent market can become a liquid one, adapted for small and medium-sized enterprises (SMEs). To address this still unexplored issue, we proceed in two stages. First, we develop the technical characteristics of security tokens. Then, we analyze the trading volumes of a very few ones, although it has proved difficult to conduct a relevant empirical analysis. Our results are that, as for ICOs, the technical nature of security tokens can greatly facilitate their listing and exchange. However, there are significant disparities in their use and, for the moment, most of them remain locked in the wallet of so-called accredited investors. As a result, the potential of the blockchain-based equity market is still uncertain: STOs are likely to represent a growing and liquid alternative to IPOs, private equity and crowd funding to finance SMEs. Nevertheless, the liquidity of their digital assets strongly depends on the quality of their issuers and on the existence of specialized trading platforms.
The inception of blockchain catapulted the development of innovative use cases utilizing the trustless, decentralized environment, empowered by cryptocurrencies. The envisaged benefits of the technology includes the divisible nature of a cryptocurrency, that can facilitate payments in fractions of a cent, enabling micropayments through the blockchain. Micropayments are a critical tool to enable financial inclusion and to aid in global poverty alleviation. The paper conducts a study on the economic impact of blockchain-based micropayment systems, emphasizing their significance for socioeconomic benefit and financial inclusion. The paper also highlights the contribution of blockchain-based micropayments to the cybercrime economy, indicating the critical need of economic regulations to curtail the growing threat posed by the digital payment mechanism.
Das Phanomen der Kryptowahrungen und der Distributed-Ledger-Technologie (DLT) ist gekommen, um zu bleiben. Neben vielversprechenden, bereits implementierten Anwendungen wandelt sich auch die anfangliche Skepsis ihrer Kritiker zunehmend in ein vorsichtiges Abtasten potenzieller Nutzungsmoglichkeiten. Die damit einhergehenden Geschaftsvorfalle und Bestande mussen entsprechend auch in der Buchhaltung und der Jahresrechnung erfasst werden. Seit 2016 beschaftigt sich die Rechnungslegung zunehmend mit der Thematik. In den fur die Schweiz relevanten Regelwerken des OR, Swiss GAAP FER und IFRS gibt es noch keine expliziten Vorschriften zur Bilanzierung von Kryptowahrungen, weshalb insbesondere unter IFRS ein Pluralismus an Positionen zur sachgerechten Bilanzierung besteht. Dieser Beitrag hat das Ziel, die bestehenden Standpunkte zusammenzufassen, gegenuberzustellen sowie aus einer bilanztheoretischen Perspektive zu wurdigen.
Abstract How do applications of emergent technologies contribute to the social legitimacy of finance? To address this question, we examine a set of technologies that have received increasing industry, media, and scholarly attention over the past decade: blockchains. Harnessing the concepts of ‘moral economy’ and ‘scandal’, we identify both possibilities and limits for blockchain applications to legitimate a range of monetary and investment activities. However, we also find that a persistent individualisation of responsibility for failures and shortcomings with ‘live’ blockchain experimentation has undermined the potentially legitimating aspects of this technology. Combining a reliance on technological fixes with a persistent individualist moral economy, we conclude, works against efforts to confront head-on the tensions underpinning the on-going legitimacy crises facing finance.
The mortgage industry is the largest debt market in the U.S. entailing ~$10 trillion'.The average processing time from mortgage application to closing is 45 days 2 .More than 10 different stakeholders contribute to the process of mortgage origination, and they all use different types of technology to perform their parts.As such, coordinating and syncing all stakeholders is a complicated task, and therefore stakeholders revert to personalized yet inefficient communication channels, such as emails and phone calls.We offer a potential solution for this communication problem, leveraging DLT (Distributed Ledger Technology) to create pre-set channels for those stakeholders to communicate and reconcile transactions instantly.We argue that by leveraging DLT to this use case, the process of mortgage origination could go drop to 15 days, saving billions of dollars for all stakeholders.
Blockchain has become an epidemic and significant decision that organizations may make in the next few years, enabling institutions to integrate business functions, operations, and processes in a decentralized distributed ledger technology. This technology will transform the business world and economy in solving the limitations created by centralization and system inefficiency. Accordingly, with the high demand and complexity of growing economies such as the Gulf Cooperation Council GCC countries, the need for a typical solution technology is a game changer. This will lead GCC to a solid economic base. Blockchain technology can be applicable in many different fields such as Banking, education, Health, finance, government and trade. This article will address the literature review and methodology of Blockchain technology and innovation at the GCC, particularly in Saudi Arabia. Also, more research can be conducted in the future as the system may be integrated in these countries.
FinTech and blockchain: directions of development of digital economy: The paper looks at the selected issues connected with the digital economy, namely innovations such as FinTech and blockchain, as a possible direction of its development. First, the author discusses FinTech, a technology that aims to compete with traditional methods of delivery of financial services. Next, he raises the question of blockchain that records and maintains transactions made in cryptocurrency in a peer-to-peer network. The relevant definitions, key areas, regulatory framework, benefits and challenges related to both innovations are also presented.
Zuzana Rakovská – Masaryk University, Faculty of Economics and Administration, Lipova 41a, 602 00 Brno, Czech Republic DOI: https://doi.org/10.31410/ITEMA.2019.241 3rd International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2019 – Bratislava, Slovakia, October 24, 2019, CONFERENCE PROCEEDINGS published by the Association of Economists and Managers […]