Ingolf Gunnar Anton Pernice, Georg Gentzen, Hermann Elendner
The velocity of money is central to the quantity theory of money, which relates it to the general price level. While the theory motivated countless empirical studies to include velocity as price determinant, few find a significant relationship in the short or medium run. Since the velocity of money is generally unobservable, these studies were limited to using proxy variables, leaving it unclear whether the lacking relationship refutes the theory or the proxies. Cryptocurrencies on public blockchains, however, visibly record all transactions, and thus allow one to measure-rather than approximate -velocity. This paper evaluates most suggested proxies for velocity and also proposes a novel measurement approach. We introduce velocity measures for UTXO-based cryptocurrencies, focused on the subset of the money supply effectively in use for the processing of transactions. Our approach thus explicitly addresses the hybrid use of cryptocurrencies as media of exchange and as stores of value, a major distinction in recently-proposed theoretical pricing models. We show that each of the velocity estimators is approximated best by the simple ratio of on-chain transaction volume to total coin supply. Moreover, "coin days destroyed," if used as an approximation for velocity, shows considerable discrepancy from the other approaches.
Bitcoin is a digital currency proposed by a developer hided under the pseudonym Satoshi \nNakamoto in 2009, and it is relied on a peer-to-peer payment system created as an open \nsource software. It is relied on blockchain a distributed and democratically-sustained public \nregister of the transactions. Bitcoin, as well as other digital currencies, has a lower \ntransaction cost and greater security and scalability than fiat money and no need of a central \nbank. However, in the last years several researchers have relived environmental issues \nrelated to the use of this money. On the contrary, the relate technology of blockchain is \nrecognizing as a significant tool contributing to create a more sustainable world. In this \ncontext, the purpose of this paper is to describe and evaluate the sustainability of the Bitcoin \ncurrency and the blockchain technology considering the environmental and social impacts \ndue to energy consumption, market diffusion compared to fiat currency. Blockchain can \nreduce and accelerate bureaucracy processes as well as incentivize environmentally friendly \nbehaviour. Under these perspectives, blockchain may show the full applicability of \nsustainability in the economic, environmental and social sectors.
Hai Trieu Le, Ngoc Tien, Nguyen Ngoc, Nghia Duong‐Trung · 7 authors
One of the major problems of e-commerce globally is the selling and buying of goods among the parties over the Internet in which the traders may not trust their partners. Cash on delivery allows customers to pay in cash when the product is delivered to their home or a location they choose. This is sometimes called a payment system because customers receive goods before making a payment. This paper investigates a critical verification process issue in the cash on delivery system. In particular, we propose a multi shippers mechanism, which consists of blockchain technology, smart contracts and hyper-ledger fabric platform to achieve distributed and trustworthy verification across participants in the decentralized markets. Our proposed mechanism is given to not only ensure the benefits of the seller but also prevent shipper’s fraudulent. The solution leverages the consistency and robustness of decentralized markets where trust is flexible and effectively controlled. To demonstrate the application and implementation of the proposed framework, we conduct several case studies on real-world transaction datasets from a local computer retailer. We also provide our sources codes for further reproducibility and development. Our conclusion is that the continued integration of multi-shipper mechanism and blockchain technology in the decentralized markets will cause significant transformations across several disciplines.
Jan 1, 2019·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
This paper explores the emergence of ecosystems in the context of Fintechs infusing digital technology into financial services. The rapid rise of Fintechs has changed the business landscape, challenging the established firms with novel solutions and services. As a result, the established firms are turning to new models of cooperation, replacing the hierarchically managed value chains with ecosystems that are modular and decentralized in their architecture. First, a bibliometric analysis was conducted to present the content and relationships in Fintech research in general. Then, a case study on two of the biggest retail banks in Finland and their innovation relationships in developing Distributed Ledger Technologies and related services was conducted. The results show how established players have established multiple innovation relationships, in different ecosystems as well as between them. These can be seen to demonstrate the emergence of Fintech ecosystems. The study contributes to previous literature by making the linkages explicit, particularly by examining the contextual elements that are crucial enablers or hindering factors in such relationships.
Currently the search for a decentralized data model in companies for its big advantage in removing the middleman has been increasing. For that reason, DLT (Distributed Ledger Technology) technologies have gained a lot of visibility in the business world, the most well-known being Blockchain and its emerging Smart Contracts. The identified problem is the lack of knowledge and skill of companies in the domain of the rising Smart Contracts. In this paper, we propose a generic model that could increase the competence of companies in this field by creating a step-by-step tutorial on how to set up the development environment of Smart Contracts.
João Pedro Quintais, Balázs Bodó, Αλεξάνδρα Γιαννοπούλου, Valeria Ferrari
It is a high-risk, high-reward enterprise to write a scholarly monograph on an emerging technology when its societal use, economic worth, and even its technical design are still in flux. With little empirical material with which to work, one often has to resort to extrapolating the future developments from the myriad seed of possibilities of the present. Yet, there are moments in time when undertaking such an enterprise seems inevitable, because there is a rough consensus that the emerging technology represents more than just an incremental improvement of already existing routines, and promises—or threatens—a disruption of the status quo. Such is the case of blockchain or distributed ledger technologies. In that light, Primavera De Filippi’s and Aaron Wright’s Blockchain and the Law is a timely and valuable contribution.
Jan 1, 2019·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Benedikt Notheisen, Sven Willrich, Maximilian Diez, Christof Weinhardt
In recent years, blockchain and distributed ledger technology (DLT) and its disruptive potential has been one of the most discussed topics in the field of information systems. Driven by the prospect of cost savings and efficiency gains, financial markets are at the core of these discussions. However, in the increasingly convoluted and constantly evolving market of technology providers and platforms, organizations struggle to find a solution that fulfills the specific requirements of their application scenario. To evaluate the suitability of different blockchain-based platforms for securities post-trading, we develop a new methodology to create a technology classification that takes the demands of a specific application context into account. The resulting requirement-based taxonomy sheds light on factors that impede the adoption of blockchain- and DLT-based post-trading, highlights future research challenges, and offers a valuable tool to induce communication between involved stakeholders.
أهداف البحث: يهدف البحث إلى التوصل لحكم العملات المشفرة في ضوء المقاصد الشرعية، وهناك أسئلة كثيرة حول العملات المشفرة، وحكم الاشتراك في مجمعات تعدينها، وحكم تداولها في عقود البيع والشراء والصرف؛ فجاء البحث ليجيب عنها في ضوء مقاصد الشريعة الإسلامية. منهج الدراسة: تم استخدام المنهج الوصفي مع الاستعانة بالمنهجين الاستنباطي والتحليلي، كما تم دراسة المسألة وفق الأسس العلمية لبحث فقه النوازل المعاصرة، واستشارة عدد من الخبراء؛ لفهم المسألة فهمًا صحيحًا مطابقًا للواقع. النتائج: تم التوصل إلى أن العملات المشفرة لا تتوافر فيها شروط النقد الشرعي؛ حيث تفتقد القبول العام والرواج بين الناس، ولا تصلح أن تكون مقياسًا للسلع والخدمات بشكل عام، فلا تعتبر مستودعًا للقيمة، ولا معيارًا للمدفوعات الآجلة، ولا يوجد دولة أو سلطة تتبناها وتقدر على ضمانها. أصالة البحث: إن حجم المشاكل الاقتصادية والنقدية التي يمكن أن تنشأ كنتيجة لتداول العملات المشفرة، يوجب أن تكون تلك العملات محل بحث فقهي؛ فجاء هذا البحث ليتناول حكم تلك العملات في ضوء المقاصد المتعلقة بالتصرفات المالية، مع التوصية بعرض المسألة على المجامع الفقهية؛ للتوصل إلى كل ما يتعلق بها من أحكام شرعية.
Blockchain is a distributed network based ledger that is secured by the methods of cryptographic proof. It enables the creation of self-executable digital contracts i.e. smart contracts. This technology is working in collaboration with major areas of research including governance, IoT, health, banking and education. It has anticipated revolutionary ways, which helps us to overcome the problems of governance such as human error, voting, privacy of data, security and food safety. In governance, there is a need to ameliorate the services and facilities with the assistance of blockchain technology. This paper aims to explore the issues of governance which can be resolved with the assistance of Blockchain features. Furthermore this paper also provides the future work directions.
Disparate aspects of the emerging Blockchain Economics paradigm have been discussed, particularly cryptotokens and Initial Coin Offerings (ICOs), however, a comprehensive picture of the greater economic transformation unfolding with blockchain technology has not yet been articulated. This chapter proposes a Blockchain Economic Theory of Digital Asset Contracting as an explanatory model. The central argument is that blockchain-registered digital assets can be transacted instantaneously and pledged in new ways. This advance is leading to new modes of contracting (smart contracts) and new forms of money (cryptotokens), which in turn facilitate new structures of financial interaction. Distributed ledgers and blockchain-based structures might be applied to structural economic problems such as debt, systemic risk, technological job outsourcing, entitlements overhang, healthcare cost-outcome disconnects, and financial inclusion. A key innovation is Payment Channels, which enable the use of capital on a net rather than a gross basis, which might eventually lead to a restructuring of debt burdens.
Christian Fries, Peter Kohl-Landgraf, Björn Paffen, Stefanie Weddigen · 11 authors
In this note we describe the application of existing smart contract technologies with the aim to construct a new digital representation of a financial derivative contract. We compare several existing DLT based technologies. We provide a detailed description of two separate prototypes which are able to be executed on a centralized and on a DLT platform respectively. Beyond that we highlight some insights on legal aspects as well as on common integration challenges regarding existing process and system landscapes. For a further introductory note and motivation on the theoretical concept we refer to https://www.law.ox.ac.uk/business-law-blog/blog/2018/12/smart-derivative-contract-constructing-digital-financial-derivative . A very detailed methodological overview of the concept of a smart derivative contract can be found in doi:10.2139/ssrn.3163074.