Carlos Molina-Jiménez, Ioannis Sfyrakis, Ellis Solaiman, Irene C. L. Ng · 7 authors
Decentralised (on-blockchain) and centralised (off–blockchain) platforms are available for the implementation of smart contracts. However, none of the two alternatives can individually provide the services and quality of services (QoS) imposed on smart contracts involved in a large class of applications. The reason is that blockchain platforms suffer from scalability, performance, transaction costs and other limitations. Likewise, off–blockchain platforms are afflicted by drawbacks emerging from their dependence on single trusted third parties. We argue that in several applications, hybrid platforms composed from the integration of on and off–blockchain platforms are more adequate. Developers that informatively choose between the three alternatives are likely to implement smart contracts that deliver the expected QoS. Hybrid architectures are largely unexplored. To help cover the gap and as a proof of concept, in this paper we discuss the implementation of smart contracts on hybrid architectures. We show how a smart contract can be split and executed partially on an off–blockchain contract compliance checker and partially on the rinkeby ethereum network. To test the solution, we expose it to sequences of contractual operations generated mechanically by a contract validator tool.
Recent developments in the field of electronic documents have given signs that the use of paper will completely eliminated after a period of time in all business processes. As a result of the developments in information systems, the use of electronic documents has become widespread and even become mandatory in some areas. Foreign trade financing is one of the areas where electronic documents are useful. But use of electronic documents has not yet become widespread in this area. The continuation of paper-based processes shows that this area needs radical and comprehensive changes such as infrastructure, legal compliance, innovative products and investments. Foreign trade requires the creation of common platforms that bring together all parties involved in the transaction so that paper documents can be completely removed. In this case, legal integration from one country to another is required in many areas from electronic signature to foreign trade. The emergence of blockchain technology, which has the ability to provide document integrity without the need for a third party to act as a trusted third party, has created a new hope for this integration. This study approached to the electronic documents in foreign trade and finance in the perspective of blockchain technology
Aishath Muneeza, Nur Aishah Arshad, Asma’ Tajul Arifin
The emergence of innovative digital financial technologies, namely blockchain and crowdfunding, indicates new ways to reach the poor and economically vulnerable groups. This paper contributes to the emerging literature on financial technology by presenting the case of crowdfunding in financial inclusion. The rationale behind this inquiry is to demonstrate the relevance of crowdfunding to financial inclusion, and how might blockchain technology fuel the development of crowdfunding. This paper also constitutes one of the first attempts to analyse crowdfunding in Malaysia and Shariah-compliant crowdfunding. In this paper, a desk research is conducted where journal articles, books, magazines, newspapers, industry reports published on the subject matter are reviewed critically. To analyse the development of crowdfunding in Malaysia, 6 crowdfunding platforms are examined. The outcome of this research suggests that crowdfunding is a viable means to promote financial inclusion, and blockchain technology could help mitigate the current issues faced by platform operators.
In the era of the Internet of Things (IoT), smart connected devices have the ability to generate data that could be of interest to the public. This paves the way for an emerging market for monetized data exchanges, where IoT device owners can sell access to live data generated by their connected devices to interested users. Implementing a trusted, cost‐efficient, automatic monetization solution of IoT data can be a challenging problem and usually involves intermediaries and centralised governance and management. Blockchain and smart contracts introduce a secure and trusted platform to carry out transactions in a highly trusted, secure, decentralised manner. In this study, they present a blockchain‐solution and implementation using Ethereum smart contracts for monetizing IoT data with automated payment involving no intermediary. The authors discuss key aspects related to architectural design, entity relations, interactions among participants, logic flow, implementation and testing of the overall system functionality.
The paper presents the blockchain crowdfunding technology and its economic implications. It is a separate, decentralized model of social funding, based on “block chains”, growing in response to technological progress, as well as to expectations of IT users with respect to the increasing popularity of cryptocurrencies and the demand for new categories of systems. The essence of the blockchain technology is presented, along with the potential benefits and the variety of applications, especially in the field of banking and finance. The blockchain crowdfunding model and the Initial Coin Offering process are described. Furthermore, the global blockchain crowdfunding market segment is estimated and analyzed. The main benefits and factors (risks) of the model are identified, as well as its growth prospects.
The advent of crypto currencies like bitcoins has raised questions about the continuing relevance of fiat money and centralized financial institutions run by Leviathan States. Bitcoin is a crypto-currency engendered by new computation technology which relies on a distributed network of peer-to-peer computing agents referred to as ‘miners’. These agents earn bitcoins by successfully settling and securing economic transactions in electronic ledgers called blocks. Successive blocks are stringed together to form blockchains. This radically different world of alternative currencies heralds a change that leaves Leviathans nonplussed for four reasons. First, bitcoin miners, who function as neo-Spinozian multitudes, squarely challenge the prerogative of the State to issue fiat money. Second, these distributed communities usher in a new philosophy of time in order to measure their mining efforts objectively. Third, these communities change the existing state of affairs by linking bitcoin earnings to ‘proof of work’. The fourth contribution of this unique community lies in the ideas of consensus they embrace. However, in recent times, crypto currency miners, who are forced to ramp up their mining operations, are constrained to depend on the world of fiat money in order to mobilize resources. What was primarily designed as a digital means of payment has turned into a speculative asset undermining its ability to replace fiat money. This paper argues that the future of distributed networks will depend on whether they can obviate their pernicious dependence on the Leviathan by adopting rigorous codes of conduct for conducting their operations both autonomously and more sustainably.
Blockchain does appear to have a transformative potential for creativity industries. Mougayar (2016) states that blockchain technology is as important as the World Wide Web. Although this technology is in its early days, it holds the potential to drastically change the supply chain. Organizations such as Open Music Initiative have already started to explore these possibilities. This article aims to analyze how might blockchain technology emerges as a disruptive force on the music industry.
The ultimate development of a disruptive and innovative contractual form has been imposing new challenges and the need of a proper regulatory framework in the legal field. Smart contracts consist on an internet protocol in which programming language and digital codes are used to input clauses that had already been agreed by the parties and that, upon the fulfillment of a determined condition previously established, shall be automatically self-executed. This new way of creating, transferring and extinguishing patrimonial rights and duties has been playing a major role in the context of the Creative Economy, in which intellectual capital, agility and the automatization of operations constitute fundamental factors. In order to investigate the characteristics and possibilities of adopting smart contracts under the perspective of the Brazilian legal order and its insertion in the Creative Economy, this paper has applied the theoretical and methodological framework of the Economic Analysis of Law so as to pursue the analytical exercise that it is committed to perform.
Regulators in many countries, including India, view cryptocurrencies as a combination of a bubble and a Ponzi scheme. The Reserve Bank of India has taken steps to dissuade Indian citizens from dealing in cryptocurrencies. However, last year’s surge in the price of cryptocurrencies has lured many taxpayers into investing or trading in it. Not only is a tussle relating to the fate of cryptocurrencies in India pending before the Indian Supreme Court, the income tax implications of cryptocurrencies are also looming. This article analyses the plausible income tax implications of dealing in cryptocurrencies in India.
Blockchain Report 2018 Blockchain Report UG/Campus Fryslân, Data Research Centre and Globalisation Studies Groningen organised a Blockchain4SDGs interdisciplinary workshop that brought together experts from the development and humanitarian sectors with experts on blockchain technology. Participants jointly explored the implications of blockchain – both its possibilities and limitations – in the field of development and humanitarian action and discussed how the technology could be used to address the United Nations’ Sustainable Development Goals (UN SDGs). This report presents the results of those discussions. After an introduction to blockchain technology in the fields of humanitarian and development aid, the report summarizes the individual participants’ contributions to the Blockchain4SDGs workshop. These contributions range from practise examples to theoretical and technological developments. The report also includes summaries of the themes raised during the roundtable discussions and final remarks.
The appearance and rapid development of cryptocurrencies put into operation new terms such us "blockchain", "distributed ledger" and "smart contract". The possibilities for application of blockchain technology are stretching far beyond the territory of the cryptocurrencies. The financial industry is among the sectors where the new technology is expected to cause dramatic changes. The focus of the analysis of this paper is on the following issues: what blockchain technology and smart contracts are, and in which segments of the financial markets could they find a favorable ground for application and development? The research methodology is based on literature review and secondary data which present the foundation for answering the following questions: how realistic the boom forecasts are in the blockchain application and what is the nature of the expected changes - will they lead to the end of the domination of the financial institutions-mastodons or there will be a new evolutionary phase in their development?
최근에 ICO(Initial Coin Offering)가 활성화되면서 이더리움 네트워크에 트랜잭션 발생이 짧은 시간에 급증하였고, 그 결과 이더리움의 시간당 거래 처리량이 현저하게 떨어지는 현상이 나타났었다. 본 논문에서는 이러한 현상을 사설 블록체인 환경에서 서로 다른 복잡도를 가진 3가지의 스마트 컨트랙트로 실험하였다. 그 결과, 블록당 트랜잭션의 수가 감소하는 현상을 보이면서 수행속도가 크게 떨어지는 현상이 나타났다. 결과 분석 및 결론에서 성능 저하의 이유를 분석하고, 어떤 스마트 컨트랙트의 특징이 실험 결과에 어떻게 영향을 주었는지 설명한다.
Digital currency became a relevant topic lately, with the central banks contemplating the idea of issuing their own virtual currencies. Central banks may issue their virtual currencies to simplify interbank cross-border settlements and make them cheaper. In order to achieve this, both commercial and central banks recognize these virtual currencies as means of payments. In these projects blockchain could be used to store information about the digital currencies, instead of fiat money. We have identified the risks associated with the virtual currencies issued by the central banks: conversion and volatility risks. We have looked at different approaches to the distributed ledger, principles for decentralized virtual currencies, possibility of these technologies being used by the central banks, various risks and their mitigation strategies. We also formulated the technological and legal principles that may guide the issuance of the digital currency by the central banks. And reviewed the practicability of issuing virtual currencies by the central banks, based on exogenous and endogenous factors.
Kriptovalute su vrsta digitalnog novca koji ima sve osobine prave valute, osim što iza njih ne stoji država i središnja banka neke zemlje. Djeluje na osnovi kriptografskih algoritama i postoji samo u elektronskom obliku. Koristeći kriptografiju osigurava sigurnost transakcija, kontrole stvaranja dodatnih novčanih jedinica i potvrđuje transfer valute. Koriste se zbog sigurnosti i privatnosti podataka. Imaju potencijal da zamjene trenutni novčani sustav u svijetu, jer broj korisnika kriptovaluta naglo raste, hakiranje računa je teško, nitko ne može promjeniti količinu novčića koji se koriste, ne plaća se održavanje računa, te nije kontroliran od nikoga, odnosno koristi princip decentralizacije. Postoje i rizici koje nose kriptovalute i nisu još uvijek podobni za korištenje poduzetnicima. Kriptovalute mogu se koristiti i u Turizmu i to u svakom području turističkog tržišta.
Subscribing to a techno-utopian discourse replacing institutions and experts with “trust in code,” digital alternative currency Bitcoin is pitched as a “math-based money” governed by incorruptible code rather than human regulators. In three cases, which occurred between 2013 and 2015, we examine this system at moments of breakdown. In contrast to the discourse, we find that power is concentrated to critical sites and individuals who manage the system through ad hoc negotiations, and who users must therefore implicitly trust—a contrast we call Bitcoin’s “promissory gap.” But even in the face of such contradictions between premise and reality, the discourse is maintained. We identify four authorizing strategies used in this work: conflating people with devices, assuming actors conform to notions of economic rationality, appealing to technical expertise, and explaining contradictions as temporary bugs. We contend that these strategies are mobilized widely to legitimize a variety of applications of algorithmic regulation and peer production projects.
We study and develop an automated platform for shareholder rights management using Distributed Ledger Technology (DLT), in collaboration with an equity crowdfunding company. DLT has high impact potential for the multi-agent systems domain, as it allows participants to agree on the values of shared variables and keep a history of how the values change over time. DLT also enables participants to know that the shared values are common knowledge. In our application, the shared variables that the agents agree on are the shareholder rights. Knowing that there is common agreement on these rights allows us to develop related applications, such as a shareholder voting system. In this paper, we discuss the shareholder rights management platform and briefly mention a related shareholder voting system, both currently under development.
Kampanje javnog prikupljanja sredstava sve su češći način financiranja novih projekata, no dolaze uz otvorena pitanja oko pouzdanosti sudionika i sigurnosti prikupljenih sredstava. Postojanje okruženja u kojem bi ispravno i sigurno funkcioniranje prikupljanja i povrata sredstava bilo garantirano, pogodovalo bi povećanju popularnosti ovog načina financiranja, povećalo interes potencijalnih donatora i ohrabrilo pokretače novih projekata. Tehnologija blok-lanca stvorila je okruženje za nastanak decentraliziranih kriptovaluta, omogućivši obavljanje transakcija bez uključivanja treće strane kao centralnog autoriteta kojemu se vjeruje. Platforma Ethereum, bazirana na tehnologiji blok-lanca, u takvom okruženju u kojem nema potrebe za vjerovanjem trećoj strani, omogućuje definiranje pametnih ugovora koji mogu sadržavati proizvoljnu logiku i pravila za vlasništvo, transakcije i ostalo. Korištenjem pametnih ugovora platforme Ethereum, razvijeno je rješenje za decentralizirano prikupljanje sredstava, uz proširenja koja donatorima pružaju određenu kontrolu nad trošenjem prikupljenih sredstava, kao i mogućnost prekida projekta uz osiguran povratak preostalih sredstava.
With their innovative and fundamentally liberalising approach to data storage, distributive ledger technologies (DLTs) like blockchain—and other associated technologies offer immense benefits to both the public and private sectors, not least in terms of upping efficiency. Lovers of freedom should also note, however, that they offer an important chance to empower individuals in their necessary engagements with the state, and to rebuild societal trust for the common good. In this paper, we propose the establishment of a UK-based international blockchain competition, and a public-facing **‘Chief Blockchain Officer.’** We also propose a UK **‘blockchain departmental target’**: a long-term aim for government departments to make a 1% efficiency saving by embracing blockchain and other associated innovative technologies. A renewed UK focus on efficiency and the opportunities of new technology would be inspirational, and we look forward to discussing these proposals, and carrying out further research into Distributed Ledger Technologies.
This paper examines how circular economics addresses and uses smart technology, and demonstrates the lack of consideration given to ownership issues in such contexts. The extent to which circular economic ideals require controlling goods down-stream will be exposed. Following this is an analysis of the ramifications of smart technology, illustrated with recent examples of control through smart technology. This leads to a critique of the US Supreme Court’s recent decision on patent exhaustion Impression Products v Lexmark alongside the CJEU’s decision in UsedSoft on copyright, addressing implications for contracting practices. The article concludes by urging close comparison of claimed benefits arising from circular economic approaches to smart technology with the potential costs of control (or lack thereof) of novel technologies.