The mining work concentration problem, whereby machine power is monopolized when supporting its operation, is becoming a serious problem in virtual currency using the blockchain technology that has drawn significant attention in recent years. The paper presents a new solution to solve the problem by using a simple virtual currency service that allows a user to operate the service by giving the user a new incentive based on gamification, not traditional economic incentives. We conducted experiments that show the feasibility of adopting the alternative incentive.
Muhammad Umer Wasim, Abdallah Ali Zainelabden Abdallah Ibrahim, Pascal Bouvry, Tadas Limba
Breaches in online contracts (Service Level Agreements, SLAs) are usually compensated by gift vouchers at present, however as the online contracts emerge towards smart contracts, the breaches could potentially lead to court injunctions over blockchains. This research proposes Probability based Factor Model (PFM) that can be implemented over the blockchain to automatically identify breaches that can cause substantial damage and have high probability for recurrence. PFM can also issue court injunctions for the breaches. The underlying concept in PFM is built upon the notion of factor analysis and stochastic modeling from the discipline of Data Science. High performance computing (HPC) cluster at University of Luxembourg (HPC @ Uni.lu) and docker (a software container platform) were used to emulate contractual environment of three service providers: Redis, MongoDB, and Memcached Servers. The results showed that court injunction(s) was issued only for Redis and MongoDB Servers. Technically, this difference could be attributed to the fact that Memcached is simply used for caching and therefore, it is less prone to breach of contract. Whereas, Redis and MongoDB as databases and message brokers are performing more complex operations and are more likely to cause a breach. This research will benefit enterprises that view breach of contract as a limiting factor for implementation of smart contract in cyber-physical system or internet of things.
Among the smart cities applications, optimizing lottery games is one of the urgent needs to ensure their fairness and transparency. The emerging blockchain technology shows a glimpse of solutions to fairness and transparency issues faced by lottery industries. This paper presents the design of a blockchain-based lottery system for smart cities applications. We adopt the smart contracts of blockchain technology and the cryptograph blockchain model, Hawk [8], to design the blockchain-based lottery system, FairLotto, for future smart cities applications. Fairness, transparency, and privacy of the proposed blockchain-based lottery system are discussed and ensured.
Blockchain Technology Applications and Security
Advanced Steganography and Watermarking Techniques
With the promotion of electric power reform in China, distributed energy participating in power market transaction becomes possible. However, due to the characteristics of transaction decentralization, multiple energy synergies, information symmetry and the large quantity, the transaction cost and the risk of information leak increase significantly, which inhibits the enthusiasm of distributed energy to participate in electric power transaction. The block chain has been widely used in finance, logistics and other industries because of its decentralized data processing. In this paper, the characteristics and infrastructure of the block chain is analyzed and the distributed energy trading frame work based on the block chain is built. The result shows that block chain has significant effect on the information security of the energy transaction.
Jacob Wood, Haejin Jang, Artem Lenskiy, Gohar F. Khan
As an emerging form of cryptocurrency, Bitcoin has become increasingly prevalent in today’s financial marketplace. As a new technological instrument, this study examines Bitcoin by utilizing the technology adoption model and innovation diffusion theory. By utilizing such a framework, this study examines the factors that are associated with a decision to adopt Bitcoin as a means of financial exchange. By employing structural equation modeling and the partial least squares method, a research model was developed and tested using an international study that surveyed 121 global cryptocurrency community members. From our analysis we found that relative advantage and ease of use had a significant positive effect on bitcoin use intention while visibility and compatibility were also found to have a statistically positive impact. The results from this study have important implications to the finance and business sectors.
Abstract This paper argues that the practical implementation of blockchain technology can be considered an institution of property similar to legal institutions. Invoking Penner's theory of property and Hegel's system of property rights, and using the example of bitcoin, it is possible to demonstrate that blockchain effectively implements all necessary and sufficient criteria for property without reliance on legal means. Blockchains eliminate the need for a third‐party authority to enforce exclusion rights, and provide a system of universal access to knowledge and discoverability about the property rights of all participants and how the system functions. The implications of these findings are that traditional property relations in society could be replaced by or supplemented with blockchain models, and implemented in new domains.
Abstract This paper investigates ontological dimensions of the blockchain by asking what kind of socio‐technical object bitcoin is. It discusses both blockchain's political qualities and the political forms enabled by its emergence. It first observes recent approaches to the ontology of money and the political qualities of the ledgers used by the current fractional reserve banking model. It then directs the same questions at blockchain technology. The paper discusses an ontology proposed by Ole Bjerg ( 2016 ) and argues in favour of a mixed‐ontology approach to blockchains. It then questions the political qualities of the distributed ledger as a digital object and highlights the apparent absence of authority figures in the model. Finally, it argues that the political ontology of the blockchain can be framed as the displacement of authority from institutional actors into instrumental control of trust, in a dynamically distributed environment.
The recent growth of financial technology ventures involves several types of financial players, including stock exchanges. Many of them are exploring blockchain applications to their multiple business lines, focusing in particular on post trading activities. Potential benefits include the reduction in counterparty risk and post trading costs as well as the increase of liquidity and transparency. At current stage exchanges are mainly exploring the technology looking for proofs of concept, with the exception of some more advanced projects like at Nasdaq and ASX. The mass adoption will require longer efforts and is expected to come in a decade, at least. Fintech developments are receiving strong attention also by regulators and international organizations, given the potential of distributed ledger technology for both competition enhancement and cyber risk reduction. A coordination between market players and regulators is essential to guarantee the effective implementation of new technologies, as their benefits can be delivered only in presence of a common framework and a proper management of risks.
Elżbieta Jantoń-Drozdowska, Alicja Mikołajewicz-Woźniak
Research background: The year 2016 ended the period of the migration from national payment services to the SEPA instruments. At the same time, however, it has become apparent that some problems remained unresolved. Overcoming them requires finding suitable technological solutions. The potential of the distributed ledger technology (DLT) is currently being explored by the financial sector and its implementation may affect the SEPA schemes in a variety of dimensions. Purpose of the article: The aim of the article was to determine the potential impact that the DLT transfer to the banking sector may have on the functioning of the SEPA in the future. The paper presents SEPA?s assumptions and the current status of the project as well as the DTL?s concept. It describes the technology transfer implications for the banking industry and compares the SEPA schemes currently operating with those based on the DLT. It also indicates the opportunities and threats that are the consequence of the new technology implementation and examines their significance for the SEPA. Methods: In the article, a qualitative analysis is supplemented with a quantitative one. Elements of descriptive statistics have been used to characterize the functioning of the main pillars of the SEPA schemes. The final conclusions are based on the comparative analysis of the SEPA schemes and developed DLT applications. Findings & value added: The existing problems might be solved by supplementing the SEPA payment schemes currently operating with the applications based on the DLT. The systems that will be subsequently developed will provide the required real-time processing and a global reach. They will also extend the functionalities of the SEPA schemes with the ability to transfer other currencies. The implementation of this technology will result not only in new financial products but, first of all, in creating new business models. Consequently, we may expect a modification of the currently operating SEPA schemes, based on their supplementation rather than total replacement in a short time frame.
Henrique Rocha, Sté́phane Ducasse, Marcus Denker, Jason Lecerf
Solidity is a language used to implement smart contracts on a blockchain platform. Since its initial conception in 2014, Solidity has evolved into one of the major languages for the Ethereum platform as well as other blockchain technologies. Due to its popularity, there are many tools specifically designed to handle smart contracts written in Solidity. However, there is a lack of tools for Pharo to handle Solidity contracts. Therefore, we implemented a parser using SmaCC to serve as a base for further developing Solidity support in Pharo. In this paper, we describe the parser creation, the irregularities we found in the Solidity grammar specification, and common practices on how to adapt the grammar to an LR type parser. Our experiences with parsing the Solidity language using SmaCC may help other developers trying to convert similar grammars.
While much has already been written about blockchain applications and prospects in the FinTech industry, little research has been done to explore blockchain technology’s user-centric paradigm in enabling various applications beyond banking. This article is an effort to contribute to that body of scholarship by exploring blockchain technology’s potential applications, and their limits, in areas that intersect with social impact, including human rights. This article explores whether blockchain technology and its core operational principles – such as decentralisation, transparency, equality and accountability – could play a role in limiting undue online surveillance, censorship and human rights abuses that are facilitated by the increasing reliance on a few entities that control access to information online. By doing so, this article aims at initiating a scholarly curiosity to understand what is possible and what is to be concerned about when it comes to the potential impact of blockchain technology on society.
De bitcoin is sinds zijn inceptie paradoxaal genoeg zowel besmet als aansprekend geweest. De aanhangers ervan menen dat de bitcoin in een eerlijker, meer gedecentraliseerde vorm van financiering zal gaan voorzien. Tegenstanders wijzen er daarentegen op dat dubieuze klanten veel gebruik maken van bitcoin-betalingen. De traditionele regels voor klantidentificatie werken echter niet goed voor deze bedrijfstak. Het gebruik van financiële prikkels kan wel leiden om tot een identificatiesysteem te komen dat het nationale niveau overstijgt.
Token sales (also known as Initial Coin Offerings ('ICOs')) have made headlines this year as part of huge price increases in the cryptocurrency space. They bring a decentralised form of crowdfunding to the blockchain which is not managed by a third party (such as Kickstarter). The prices of popular cryptocurrencies such as Bitcoin and Ether skyrocketed during early 2017. Huge amounts of money have flowed into the sector, far exceeding the funds made available under traditional forms of fundraising for tech start-ups. This shift in the fundraising landscape has occurred just as the Australian government has finally regulated and permitted crowdfunding for public companies via the Corporations Amendment (Crowd-sourced Funding) Act 2017, with a potential extension to proprietary companies expected later this year.
Abstract Blockchain technology may have transformational potential for those music industries associated with recorded music, and for the sustainability of music careers. While predictions of widespread disintermediation may have been premature, blockchain technology does appear to have the potential to transform the role of third parties and to make musicians’ careers more sustainable. Blockchains could improve the accuracy and availability of copyright data, facilitate near‐instant micropayments for royalties, and significantly improve the transparency of the value chain.
Purwono Purwono, Alfian Ma’arif, Wahyu Rahmaniar, Qazi Mazhar ul Haq · 6 authors
Blockchain technology has a promising future in a number of industries and enterprises. Formerly connected to virtual currency like Bitcoin, blockchain has evolved into a versatile technology with many applications. In the upcoming years, it is predicted that blockchain will revolutionize a variety of industries, including banking, supply chain management, healthcare, voting systems, and more. The future of blockchain technology depends critically on its ability to increase security and transparency. By providing a decentralized and unchangeable record, eliminating the need for middlemen, and boosting participant confidence, blockchain promotes secure and traceable transactions. This transparency has the potential to transform whole industries by reducing fraud, streamlining processes, and increasing output. Blockchain also has the power to change financial systems. Blockchain-based smart contracts facilitate faster, more efficient transactions by automating and enforcing contractual agreements without the need for middlemen. By enabling speedier cross-border transactions, reducing costs, and boosting financial inclusion, tokenization and blockchain-based digital currencies have the potential to overturn conventional banking institutions. Blockchain’s key attributes, including decentralization, transparency, immutability, and security, make it a desirable choice for a range of organizations. Cross-border payments, trade finance, and smart contracts are just a few of the financial sector processes that blockchain technology has the potential to enhance and automate, lowering costs and increasing productivity. Additionally, the tamper-resistance of blockchain technology can boost transaction security and reliability, allowing for a wider use in traditional financial institutions. Outside of the financial industry, blockchain technology has a lot of promise, particularly in industries like supply chain management, healthcare, energy, intellectual property, and governance. By enabling transparent and traceable transactions, blockchain may improve supply chain efficiency, ensure product authenticity, and boost customer trust. By facilitating the secure exchange of patient data and research data, the decentralized nature of blockchain technology can enhance data security, interoperability, and privacy in the healthcare sector. A more decentralized and sustainable energy ecosystem may be supported by blockchain technology through peer-to-peer energy exchange, grid management, and monitoring of renewable energy certificates in the energy sector. Additionally, blockchain technology has the potential to transform decentralized governance structures, voting procedures, intellectual property rights, and digital identity management. By allowing people to own and manage their digital identities, blockchain can enhance privacy and reduce identity theft. Blockchain-based voting systems can offer transparency, security, and verifiability, thereby increasing voter turnout and public trust in democratic institutions. Blockchain can also enable the secure and transparent management of intellectual property rights, fostering author credit and just compensation.
Richard Adams, Glenn Parry, Phil Godsiff, Peter M. Ward
Abstract Blockchain technology provides an exciting application space for innovation in diverse domains but threatens disintermediation for organizations providing a trusted and auditable account of ownership and transactions. It needs, however, an appropriate regulation to keep pace with technological developments. Technology remains very young, akin to the Internet in the early 1990s. Use cases, practical demonstrators, standards, and lexical consistency are urgently required.
Blockchain is one of the most discussed disruptive technologies of recent times and for good reason; it has the potential of transforming how industries work into a more secure path. The technology can be applied in sectors that create value and where trust and security are of concern. In its early years, we have seen tremendous growth in Blockchain-based solutions for the financial sector with implementations in banking and cryptocurrencies and research of this technology in other sectors like IoT, Asset management etc. This paper discovers the possibility of exploring Blockchain in the telecom sector for a billing and charging solution which removes the industry's reliance on third party clearing houses by building in trust and security into the system thereby improving the speed and bringing down the costs of managing such large scale transactional data. Blockchain can be used to manage the CDR (Call Detail Records), fulfil roaming agreements between operators and even facilitate operator independent balance transfers between the users; all while maintaining state of the art cryptographic security of the system and drastically reducing the turnaround time of these transactions.
Abstract Blockchain technologies are reconfiguring the global economy, though often in contradictory ways. Blockchain technologies are disrupting key economic and financial sectors. Some blockchain applications allow for democratization of finance, services, agriculture, and governance, yet they may also deepen inequality and weaken democracy. We need new understandings of the countervailing tendencies of blockchain technologies and the contingencies that shape their deployment.
Abstract Blockchain technology is considered, in some quarters, to have outgrown its primary association with the Bitcoin payments ecosystem. This belief has fostered numerous predictions of blockchain futures, in which the Bitcoin ecosystem is largely absent. It is nevertheless wholly possible to imagine a future for blockchain in which Bitcoin plays a presiding role. In drawing attention to subtexts of this kind, expectations of the future can prove highly persuasive within the context of technology selection and adoption processes of the present, lending an invisible hand to the design of business models, while also guiding strategic choices and the purchasing decisions made by managers.
Bloekehain - software technology used for peer-to-peer transaction platforms - is being increasingly applied to alternative opportunities for a variety of industries and use cases such as also in the energy sector. As of now all energy related to blockchain applications are still in a concept stage. This paper aims to present the preliminary ideas of a research project that we have launched in collaboration with a small Fintech company: the Crypto-Trading project. From a research perspective we have explored how a blockchain-based system integrating smart contract functionality can be used to share energy in order to promote smart grids for the management of electricity in the Sardinia Region. From a technical perspective the project will implement a modular blockchain-based software platform for extending the features of cryptocurrency exchanges to the renewable Energy Market, including a robo-advisor which will suggest prosumers the best selling strategy. Blockchain technology shows a lot of promise. In our opinion this might boost the growth of renewable energy production and consequently also have a positive effect on the regional economy.