Blockchain Papers

Paolo Tasca

No abstract is available for this record.

Pu Yuan, Xiong Xiong, Lei Lei, Kan Zheng

Emission trading policy provides a new approach using economic incentives to control the environmental pollution efficiently. Legal polluters can trade emission permits with each other through a trusted trading system that lacks security and credibility due to its centralization nowadays. Permissioned blockchain utilize a decentralized way to store private data immutably, providing new approaches to solve those defects of the existing centralized systems. In this paper, we propose a Hyperledger-based Emission Trading System (HyperETS) on the permissioned blockchain. Using Hyperledger Fabric as the implementation platform, HyperETS integrates the fine-grained access control, distributed ledger, and consensus protocol, aiming to provide credible trading service for polluters. We achieve the business logic by designing the particular ledger structures and smart contract in blockchain. HyperETS stores all transactions immutably in a chain and makes it easy to share the data between organizations. Finally, several experiments are conducted to evaluate the performances of the proposed demonstration system.

Trevor Clohessy, Thomas Acton, Nichola Rogers

No abstract is available for this record.

Yingli Wang, Jeong Hugh Han, Paul Beynon‐Davies

Purpose This paper aims to investigate the way in which blockchain technology is likely to influence future supply chain practices and policies. Design/methodology/approach A systematic review of both academic and practitioner literature was conducted. Multiple accounts of blockchain adoption within industry were also consulted to gain further insight. Findings While blockchain technologies remain in their infancy, they are gaining momentum within supply chains, trust being the predominant factor driving their adoption. The value of such technologies for supply chain management lies in four areas: extended visibility and traceability, supply chain digitalisation and disintermediation, improved data security and smart contracts. Several challenges and gaps in understanding and opportunities for further research are identified by this research. How a blockchain-enabled supply chain should be configured has also been explored from a design perspective. Research limitations/implications This systematic review focuses on the diffusion of blockchain technology within supply chains, and great care was taken in selecting search terms. However, the authors acknowledge that their choice of terms may have excluded certain blockchain articles from this review. Practical implications This paper offers valuable insight for supply chain practitioners into how blockchain technology has the potential to disrupt existing supply chain provisions as well as a number of challenges to its successful diffusion. Social implications The paper debates the poential social and economic impact brought by blockchain. Originality/value This paper is one of the first studies to examine the current state of blockchain diffusion within supply chains. It lays a firm foundation for future research.

Rafael Ziolkowski, Gianluca Miscione, Gerhard Schwabe

The blockchain technology challenges the view on established modes of governance by offering distributed authentication without the need for a central authority, which is well-exemplified by Bitcoin. While the governance of and through Bitcoin is well- accentuated in research, we spotlight impacts on governance which blockchain-based systems bring to inter-organizational settings as well as their purpose. To build our arguments, we explore those impacts on two contrasting cases from the domains of automotive and public administration and relate them to cryptocurrencies. Relying on interviews with experts from said organizations utilizing blockchain technology, and a content analysis of related grey literature, we discuss established forms of governance as well as platforms and infrastructures against the impacts which blockchain-based systems cause. After referring those to the concepts of markets, hierarchies, networks, and tribes, we critically reflect on their purpose by utilizing the notions of infrastructures and platforms, and conclude blockchain-based systems to possibly alter the way established modes of governance are enacted.

Zhao Cai, Fei Liu, Eric T.K. Lim, Chee‐Wee Tan · 5 authors

Although cryptocurrencies have garnered enormous public attention in recent times, extensive fluctuations in their prices have deterred prospective investors. Due to the
\n absence of a centralized valuation authority, the credibility of cryptocurrencies as a viable investment vehicle remains elusive. Building on attention theory, this study posits that prospective investors of cryptocurrencies are likely to search online for information before deciding whether to make a commitment. We hence investigate the effects of Google search on the return and risk of 268 cryptocurrencies over 181 trading days.
\n Results indicate that the Google Search Volume Index (SVI) of a given cryptocurrency
\n exerts significant and positive impact on its price and turnover.

Doug McDavid

This chapter discusses the form of autonomous decentralized software known as the blockchain. It covers the original usage ofblockchain distributed ledger technology, a part of the Bitcoin cryptocurrency. It summarizes the functional software architecture ofblockchain that provides secure and uninterruptible service. It briefly discusses the growth and proliferation of cryptocurrencies throughout the economy. The main focus of the section is the application of blockchain technology beyond currencies, as a disintermediating force in various industries, such as finance, healthcare, publishing, and software, including the potential for widespread distributed, autonomous organizations, based on smart contracts built on the blockchain technology. While the technology is complicated and the word blockchain isn't exactly sonorous, the main idea is simple. Blockchains enable us to send money directly and safely from me to you, without going through a bank, a credit card company, or PayPal. Rather than the Internet of Information, it's the Internet of Value or of Money. It's also a platform for everyone to know what is true-at least with regard to structured recorded information [1].

Muhammad Tahrizul Amin

ENGLISH:
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\nBitcoin is one of digital currencies by cryptography as the basic system with the highest price in digital marketplace until 2018, so it becomes one of digital asset used to invest and becomes one of the most popular investment tools in society. But this phenomenon still become polemic because it has no explicit regulations yet. So, this research objectives are to know the mechanism of Bitcoin investment in society and the legal expert opinion towards it.
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\nThis research used empirical juridical method with sociological juridical approach. The analytical method is descriptive and concluded in inductive way that explained the result from specific to general.
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\nThis research results are the Bitcoin investment mechanism in society divided into mining and trading activity. In Islamic views, the legal expert opines that mining activity is allowed to do because there are two kinds of akad did in it and has no element of maysîr at all. Whereas, if does not be incompatible with sharia principal, Bitcoin trading is allowed to do. In positive law views, these two types of investment activity still had no explicit regulation yet. Although it can to be associated with some regulations such as Civil Code, The Currency Law, Electronic Information and Transaction Law, and Bank of Indonesia Regulation, it still need to regulate explicitly and written in specific role, either in regulation or fatwa forms, so it gives the legal certainty to society. Hopefully, this research provides the suggestion to government to law the vacuum of norm of Bitcoin.
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\nINDONESIA:
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\nBitcoin merupakan salah satu mata uang digital yang berbasis program kriptografi dengan harga tertinggi hingga tahun 2018 sehingga menjadi salah satu aset digital untuk berinvestasi dan menjadi salah satu sarana investasi paling popular di masyarakat. Namun, fenomena tersebut masih menjadi polemik karena tidak dinaungi oleh payung hukum yang jelas. Penelitian ini bertujuan untuk mengetahui mekanisme investasi Bitcoin yang dilakukan serta pandangan pakar hukum terhadap fenomena tersebut. 
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\nPenelitian ini menggunakan metode yuridis empiris, dengan pendekatan yuridis sosiologis. Analisis yang digunakan bersifat deskriptif dan disimpulkan secara induktif yaitu dengan menguraikan kasus yang bersifat khusus dan disimpulkan secara umum. 
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\nHasil penelitian yang diperoleh adalah mekanisme investasi Bitcoin yang dilakukan dapat berupa mining, dan trading. Dalam perspektif Islam, pakar hukum berpendapat bahwa aktivitas mining boleh untuk dilakukan karena terdapat dua akad yang berbeda selama melakukan prosesnya, dan tidak mengandung unsur maysîr. Sedangkan, trading Bitcoin boleh untuk dilakukan selama tidak bertentangan dengan prinsip syariah. Secara hukum positif, kedua aktivitas tersebut belum memiliki payung hukum yang jelas. Meskipun dapat dikaitkan dengan beberapa peraturan, seperti KUH Perdata, Undang-Undang Mata Uang, Undang-Undang ITE, serta Peraturan Bank Indonesia, investasi Bitcoin perlu untuk diatur secara tertulis dalam peraturan khusus yang berbeda, baik dalam bentuk peraturan perundang-undangan ataupun fatwa. Sehingga akan memberikan kepastian hukum terhadap masyarakat. Dengan adanya penelitian ini diharapkan dapat memberikan masukan pada pemerintah untuk menyikapi kekosongan hukum Bitcoin.

Jan Heinrich Beinke, Duc Thanh Nguyen, Frank Teuteberg

In recent years, the blockchain technology has aroused growing interest in science and practice. Particularly the financial sector has high expectations of this technology, as is evidenced by numerous established start-ups and large amounts of venture cap

Neha Parashar, Farida Rasiwala

No abstract is available for this record.

Asheer Jaywant Ram

Purpose Bitcoin is the best-known cryptocurrency which currently holds the largest market capitalisation and is regarded as a standard example of a cryptocurrency. There is, however, no consensus as to the nature of the Bitcoin. The purpose of this paper is to determine whether Bitcoin represents a new asset class by building on prior research. Design/methodology/approach The prior literature on asset classes is explored in detail and then applied to the Bitcoin. Four key criteria of asset classes are discussed, namely, investability, politico-economic profile, correlation of returns and risk-reward profile. Statistical techniques are used to inform the conclusions for the third and fourth criteria. Findings This research finds that the Bitcoin represents a distinct alternative investment and asset class. There are significant opportunities for investment. The politico-economic profile of the decentralised and consensus-based Bitcoin is dissimilar to other asset classes. The Bitcoin shares little or no correlation with other asset classes. Using Sharpe Ratios, it is shown that the Bitcoin provides risk-adjusted returns over and above most asset classes. Research limitations/implications The aim of this research is to present a normative exploration into the asset class nature of the Bitcoin and, as a result, the aim is not to create positivist generalisable conclusions. This paper does not address cryptocurrencies, other than Bitcoin and does not constitute a detailed manual on modern portfolio theory. Originality/value This research adds to finance paradigm research on the Bitcoin by including a developing country perspective on Bitcoin as an asset class as prior studies have concentrated on developed country settings. Further, this research introduces recent economic data (2014 to 2017) in the form of daily observations to enhance prior understanding. It is important to understand if the Bitcoin represents an alternative investment and new asset class as this may affect investment decisions.

Naseem Naqvi, Mureed Hussain

The traditional Medical Education ecosystems are largely centralised and confined to the boundaries of academic institutions. Rather than promoting efficiency and global forward thinking, a number of medical institutions have become inwardly focused, confining themselves to their own institutional rules and frameworks. In the past two years, the utility of blockchain in the higher education setting has been extensively studied. A blockchain is essentially a distributed, immutable, trustworthy, decentralised database that keeps an irreversible, time-stamped record of transfer of value between users for every operation that has ever been carried out on its network. This has traditionally been used in cryptocurrency transactions, however, with the rise of blockchain based Decentralised Applications (DApps), the potential benefits of this ground-breaking technology in higher education are now being explored. Although still in the early developmental stages, blockchain holds promising potential for use in medical education. Some of these are budding hypothesis while in other areas, we have witnessed real, tangible progress. This article analyses the potential use cases for blockchain deployment in medical education ecosystems, to improve the efficiency, security, functionality and effectiveness of existing infrastructures. We conclude the essay by proposing how blockchain can eliminate the growing problem of fraudulent academic accreditations

Erik P. M. Vermeulen, Mark Fenwick, Wulf A. Kaal

We live in a world that has historically been dominated by centralized, hierarchical organizations. Such organizations are characterized by (i) a centralized source of authority; (ii) a formal hierarchy with clearly defined “roles”; and, (iii) standardized operational systems and procedures dictated by that centralized authority/hierarchy. This type of organization has exerted an enormous influence on modern political, economic and social life, particularly in a business context. Regulatory models have been designed to support and sustain businesses organized in this way. Today, however, new digital technologies are disrupting this “old world” and introducing a shift in the practices and mindset of our society. New technologies are driving the emergence of “flatter”, more decentralized forms of organization. In this paper, we offer an analysis of how blockchain and related distributed ledger technologies are disrupting corporate organizations as an illustration of this broader “digital transformation.” The paper briefly introduces the digital transformation and main argument (Section 1); then considers how the digital transformation has led to the emergence of “platform” companies (Section 2). Since blockchain technology can be viewed as a next step in the “digital development” of a corporate organization, the paper then discusses the main features of blockchain technologies and smart contracts (Sections 3 & 4) and examines the often-made claim that these technologies are all just hype / a fad (Section 5). Section 6 explores why these technologies are so potentially disruptive in a business context and then introduces several examples of such blockchain-based business organizations, as well as possible future developments (Sections 7 and 8). Section 9 concludes.

Wai Wai Wong, Chin Lay Gan

In this era of increasing cyber dependency in business dealings there is huge potential in the adoption of Distributed Ledger Technologies (DLT) particularly in the context of smart contract in the commercial world. The phenomenon of smart contract operates independently without the cumbersome need to engage any intermediary and is capable of executing specific task.(Thake, 2018) People relates it more to a piece of code (known as a software agent) that is designed to execute certain tasks if pre-defined conditions are met. Such tasks are often embedded within, and performed on a distributed ledger.”(Stark, 2016) However, if one accepts the contention that smart contract is not merely as a set of computer code but a smart legal contract which contains obligations and legal terms that are enforceable, hence, in programming or writing smart contract, one must ensure that the software developers who design smart contract take note of the legal rules and principles behind the specific type of contract in question. It has been argued that there is too much dependency on the programming aspect in the creation of smart contracts by programmers and computer scientists. (Khalil et al., 2017)

Raghava Rao Mukkamala, Ravi Vatrapu, Pradeep Ray, Gora Sengupta · 5 authors

In recent years, there has been a growing research attention and practitioner interest in exploring the suitability of Blockchain technology for decentralised applications in multiple domains. This paper investigates the application of Blockchain technology to address some of the key challenges faced by the domain of Social Business (SB). SB is a business model for investments in social causes for the socio-economic development of under-privileged communities. We have modelled a small example of micro-credit use-case from microfinance activities of SB using a semi-formal modelling approach using Blockchain technology. We identified that the Blockchain technology provide solutions that enhance trust, transparency and auditability in SB activities. However, we have also identified challenges related to creating a native cryptocurrency for SB, and barriers to infrastructure and technology adoption by the different stakeholders in SB.

Udo Milkau

As the Internet of Things and distributed ledger technology (DLT) continue to evolve, so do questions regarding the future of ‘autonomous’ machine-to-machine (M2M) payments. For example, whether machines can carry out autonomous payments, how they could carry out such payments, and indeed whether they should are all points worth consideration. While autonomous machines are often depicted as frightening images of a dystopian future, it is worth noting that M2M payments are already being implemented in closed-loop systems where payments such as road tolls are made ‘on behalf’ of the consumer. DLT-based approaches, however, remain proprietary and without any proven realworld use case, while genuinely autonomous M2M payments still belong to the world of science fiction. This opinion piece discusses M2M payments from three perspectives: the legal point of view, the functional implementation of payment systems, and the social context. Specifically, it considers the declaration of will, DLT-based proprietary M2M payments, and whether people will be willing to let robots make autonomous decisions, including payments.

R. Vedapradha, Hariharan Ravi

Abstract Banks are automating their processes, migrating their infrastructure and applications to the cloud to create a seamless customer journey. Transformative technology has enabled banks and financial institutions to automate their operations based on advanced data-driven. Banks are adopting AI based anti-money-laundering, anti-fraud, compliance, credit-underwriting and smart contracts technology in their operations. These applications have been embraced by the investment banks as regulatory framework are failing to combat conventional way in combating against money laundering. Artificial Intelligence will focus on cognitive application in functional areas of business along with investment and compliance sectors of financial services industry. Adopting AI based anti-money-laundering, anti-fraud, compliance, credit-underwriting and smart contracts technology in their operations.

Chaitanya Kaligotla, Charles M. Macal

We describe an agent-based conceptual model of a Blockchain system. Blockchain technology enables distributed, encrypted and secure logging of digital transactions in an add-only ledger record. We model and simulate an expanding Blockchain network, describing the participating agents, the transactions, and the verified add-only public ledger record achieving decentralized consensus. All of the essential details of the functioning of the Blockchain including the behaviors and decisions made by agents deciding to join as well as participate in the market are detailed in the prototype model. The aim of this paper is to illustrate the essential elements and functioning of a Blockchain system, implement a generalized simulation and a measure of Blockchain efficiency from an agent choice and energy cost perspective. Our preliminary results indicate that mining choice (transaction block to verify) coupled with proof of work incentives are critical for energy efficiency.

Romulo Benites de Souza Luciano

Resumo Este artigo apresenta uma nova tecnologia de informação chamada Smart Contract (SC) como proposta para automação da gestão de contratos no processo de comercialização do gás natural. O centro decisor, ao avaliar essa opção, deve estimar com antecedência seu impacto para o futuro. A proposta de utilização da SC encontra fundamentos para implementação no contexto atual do mercado de gás natural brasileiro, englobando os principais players desse comércio, isto é, governo, organização e consumidor. Este artigo propõe uma abordagem exploratória sobre a SC, pois busca-se um melhor entendimento sobre seus atributos, haja vista que não há estudos anteriores com aplicação do SC ao peculiar mercado de gás brasileiro. A metodologia é qualitativa porque trata-se de aspectos subjetivos na utilização da tecnologia de informação. Foi com auxílio de questionário satisfatoriamente respondido por dois especialistas que contribuíram para o processo de compreensão da viabilidade do uso do SC. Apresento dois possíveis cenários na utilização da SC para fomentar a discussão considerando o status quo do mercado de gás brasileiro. A técnica de coleta de dados sobre os construtos foi feita através da pesquisa documental da emergente literatura sobre Smart Contract, Blockchain e o atual mercado de gás natural no Brasil.

Ku Ruhana Ku‐Mahamud, Nur Azzah Abu Bakar, Mazni Omar

Blockchain has emerged as a popular digital technology aimed at ensuring that financial transactions can be secured and trusted. The expansion of FinTech industry has encouraged the use of blockchain technology and cryptocurrencies. A study has been conducted to assess the blockchain, cryptocurrency and FinTech market growth. This paper provides empirical evidence on the factors influencing the market growth in Malaysia and highlights the factors that could spur and hinder its future use. A survey of 304 blockchain users and industry players in Malaysia was conducted and quantitative results revealed that privacy is the most significant barrier to the adoption of blockchain technology and cryptocurrency ecosystem. Other barriers include those related to legality, cost, security, and stability, as well as difficulties in switching to a new technology. Thus, government regulation is needed to provide guidelines for ensuring the sustainability and growth of this technology in the near future. In addition, results demonstrate that the banking sector is going to be the most affected by the FinTech industry. This current trend may assist the decision makers in evaluating the potential usage of this technology, allowing them to make strategic decisions to improve business and services.

Anı Bulut

Developments in internet-based payment platforms employing the blockchain technology known as “cryptocurrencies” contributed their integration in the official payment systems. Because of the growing interest in cryptocurrencies, it is necessary to review existing cryptocurrency research literature and determine areas for future studies. This study gives an up to date summary of accessible literature on cryptocurrencies according to their subject of issues, theories, methods, and findings and provides direction for future research. A systematic literature review was carried out to examine accessible academic and reliable publications between 2010 and 2018. Based on results research limitations for individual, organizational, ecosystemic and discourse approaches are identified and the study concluded that there are still insufficient and uncovered issues related to the cryptocurrencies notably from a legal and regulatory point of view.

Cristina Poncibò, Larry A. DiMatteo

Abstract: Smart contracts provide a quandary for contract law remedies. The self-enforcing nature of smart contracts implies that there is little possibility for breach and thus, little need or opportunity to apply contract law remedies. This article explores if this is really the case. It concludes that contract law remains applicable to smart contracts relating to the enforceability of its terms based on legality, public policy, and contracts policing doctrines. In such cases, post hoc judicial or arbitral claims remain likely and the dispute resolution bodies would seek to apply contract remedies. In order to diminish instances of litigation or arbitration the smart contract should include self-remedying or internal measures (remedies). The article divides internal measures into proactive and reactive measures. These measures should be considered in the drafting of a smart contract in order to diminish resort to contract remedies. In the end, contract law and contract remedies will remain important as default law. In addition, like smart contracts, some of contract law rules are immutable and cannot be made obsolete by blockchain technology.

Michel Cannarsa

Abstract: The computer language (computer code) on the basis of which smart contracts are written is different from the natural (Human) language. Computer language is a ‘dry’ language, whereas natural language is ‘wet’. In other words, it means that computer language is deterministic (just one meaning and one result are conceivable), when natural language is open to more and potential different meanings. Natural language requires therefore in itself interpretation, at least more than computer language. Computer language in theory doesn’t require and possibly doesn’t leave room for interpretation. If this assumption is accurate, what are the consequences of it (on the intention of the parties, on contract drafting, on courts’ intervention…)? Building on that assumption, this article explores, from a comparative perspective, the impact of the blockchain-based smart contract technology, especially regarding contract drafting techniques. Contract drafting style in common law (long contracts, based on a ‘if …, then ….’ approach, quite similar to the coding approach) is in part based on the idea of preventing courts’ interpretation and intervention. In civil law countries instead, contracts are generally shorter, for several reasons but partly because drafters tend to rely on more general legal concepts, external to the contract, and know that courts will play an important role, through interpretation, in disclosing the ‘true meaning’ of a contract. Coding contracts and relying on computer-code language can hence have a significant impact on the civil law approach and bring the two legal systems closer as far as contract drafting and contract interpretation are concerned.

Jack Gilcrest, Arthur Carvalho

In this paper, we analyze the value of smart contracts and blockchains as an alternative to traditional contractual obligations. In particular, we start by exploring some of the advantages of these technologies, specifically the immutability of blockchains and automated contract remittance. We also discuss two critical shortcomings of decentralized smart contracts, namely regulatory uncertainty and a lack of confidential execution. With these issues in mind, we next explore how American legislators have begun to address smart contracts and blockchains. Though quite limited, there have been a few provisions clarifying the status of these technologies. We break down some of the language expressed in these bills so as to understand the current legal status of smart contracts and blockchains. Given this foundation, we consider the next steps that should be taken as smart contracts mature. This pertains to both the continued improvement of the underlying technology as well as the progress taken by regulators. Finally, assuming a futuristic scenario where there are no technological or regulatory barriers to smart contract adoption, we discuss how the process of contract remittance can be expedited in a world fully committed to the use of smart contracts.