Samar Alsulaimani, Yasmin Alamoudi, Ming Zhao, Farookh Hussain
Abstract With blockchain technology, digital asset ownership and governance paradigms have undergone profound changes. Decentralised Autonomous Organisations (DAOs) and fractional non-fungible tokens (F-NFTs) have emerged as pivotal mechanisms for managing shared digital assets that are secure, transparent, and participatory. In many existing F-NFT implementations, initial fractionalisation and trading are emphasised. However, subsequent lifecycle governance, including metadata evolution, share redistribution, and retirement, is handled off-chain or via ad-hoc arrangements, which creates operational and accountability gaps. Therefore, a governance framework based on DAO is proposed for F-NFT management in this paper. A fractionalized asset is governed by rules, quorum thresholds, and life-cycle transitions embedded in smart contracts on the blockchain. These contracts automatically execute token-weighted, proposal-driven outcomes without human intervention. In this paper, ‘intelligence’ refers to rule-based automation and verifiable state transitions encoded in smart contracts, rather than machine-learning-based decision-making. Digital assets are managed through a proposal-driven governance mechanism that decentralises authority, automates decision-making, and maintains transparency. There are three primary categories of proposals embedded in the system: (i) updating metadata to adapt to the underlying digital assets, (ii) redistributing fractional ownership in accordance with evolving stakeholder agreements, and (iii) retiring assets to dissolve ownership and legally distribute value. The DAO enforces ownership rules securely and verifiably through smart contracts and token-based governance, mitigating centralisation and fraud. The study provides empirical insights into the viability of the framework for co-owned digital asset ecosystems by evaluating its operational performance and scalability and discussing the implications for governance effectiveness. Based on our findings, DAO-enabled F-NFTs present an innovative mechanism for collaborative ownership in a transparent, democratic, and tamper-proof blockchain environment. As a result of the paper, a contribution is made to the governance and management of F-NFTs in digital asset ecosystems through presenting the framework conceptually and practically.
In this thesis, I investigate the existence, magnitude, and evolution of regional overnight return anomalies in Bitcoin. Using high-frequency BTC/USDT data spanning August 2017 to March 2026, I construct session and overnight return components for three regional pseudo-sessions, based on local stock exchange trading hours – Asia (TSE), Europe (Xetra/LSE), and the United States (NYSE/Nasdaq). I document that Bitcoin exhibits a significant overnight premium in the Asian pseudo-session over the full sample, which persists after controlling for realised volatility, trading volume, and illiquidity. No significant premium is found for Europe or the US over the full sample. Notably, holding Bitcoin exclusively during Asian trading hours would have produced a negative cumulative return over a period in which the price of Bitcoin appreciated significantly. Second, the premium is not constant over time; it is strongest during speculative, retail-dominated phases and compresses during bear markets, consistent with the Adaptive Markets Hypothesis. Third, I examine how the introduction of US spot Bitcoin ETFs affected the premium using a difference-in-differences analysis, finding that the overnight premium increases in the US region, while the Asian overnight premium collapses to statistical insignificance. Finally, I find that a simulated trading strategy based on the Asian overnight premium underperforms a passive buy-and-hold benchmark under standard retail fee structures, consistent with the limits-to-arbitrage hypothesis. The findings extend the overnight drift literature to a continuously traded asset and provide direct empirical evidence for geographically segmented price discovery in cryptocurrency markets.
State payment systems today play a central role in accelerating economic transactions, ensuring transparency in budget fund movements, and digitizing financial services provided to citizens. From this perspective, DeFi – decentralized finance—emerged as a new architecture compared to traditional banking infrastructure and belongs to the category of technological solutions applicable in state payment systems. The core idea of DeFi is to replace intermediaries with code, automate transactions through smart contracts, and operate on open blockchain infrastructure.[1]..
In this study, we propose a structured valuation framework for non-fungible tokens (NFTs), a distinct class of digital assets whose pricing mechanisms remain insufficiently understood. Based on previous empirical studies and illustrative case analyses of three major NFT collections, we synthesize insights from non-cash-flow asset theory, market microstructure, and behavioral finance to construct a four-layer valuation framework consisting of the Asset, Market, Technology, and Ecosystem layers. We identify three NFT-specific mechanisms—verified digital scarcity, pseudonymous signaling, and on-chain herding—that modify or extend traditional valuation paradigms. Empirical evidence from the literature suggests that rarity-driven asset features and social-influence dynamics are dominant price determinants, while wash trading, fragmented liquidity, and platform incentive structures generate persistent distortions in price discovery. Case analyses of CryptoPunks, Bored Ape Yacht Club, and Pudgy Penguins demonstrate how differing risk exposures across the four layers translate into distinct valuation trajectories. With this framework, we obtain a basis for improved risk assessment, regulatory oversight, and business model design in NFT markets.
Purpose This article examines the possible impact of blockchains on over-the-counter (OTC) derivatives markets. The article highlights the advantages as well as the risks and challenges of this technology, thereby contributing to the literature on blockchain adoption. Design/methodology/approach This article reviews existing innovation and financial literature, followed by a conceptual, theoretical part where the impact of the distributed ledger technology on OTC derivative markets is explained. Findings Blockchain technology and smart contracts enable process innovation for OTC derivatives markets, given that they could lead to enhanced automation and fewer manual errors. Yet, some barriers have to be overcome for DLT to be widely adopted. Research limitations/implications Because there has not been empirical data available regarding the usage of this technology, no empirical analyses could have been performed. Practical implications The paper provides a phased implementation framework for DLT adoption in OTC derivatives markets and identifies critical success factors at each stage of adoption. Originality/value This article makes a significant contribution to the literature by explaining the ways in which blockchain technology facilitates process innovation. Furthermore, it enhances the body of research on disruptive technologies and offers valuable insights into how regulatory frameworks can foster innovation.
S. Sridevi, RIYAZULLA RAHMAN J, Jobin Thomas, Komalavalli C · 6 authors
The rapidly evolving NFT (Non-Fungible Tokens) ecosystem has brought about a wealth of opportunities for investors and creators alike. However, the allure of this burgeoning market has also attracted a host of malicious actors, who have exploited vulnerabilities to perpetrate rug pull incidents, a form of exit scam where project developers abruptly abandon their project, absconding with investors' funds. To safeguard oneself against these pernicious schemes, it is crucial to understand the mechanisms underlying rug pulls, as well as the strategies for detecting and avoiding them. In this paper, we discuss the anatomy of an NFT rug-pull and a detailed investigation and study on how these rug-pulls are executed. In this study, we have made an attempt to investigate the common signs along with the cautionary steps to identify and avoid them. Finally, we have also designed and proposed an effective mitigation strategy for a rug pull with deterministic mathematical modelling.
In the zestful domain of blockchain technology, non-fungible tokens (NFTs) have embellished a seminal procedure for setting up digital asset holding. This paper proposes a novel framework for multi-chain NFTs, wherein a single smart contract is deployed across multiple blockchain networks, prolonging the alike contract address to clinch congruous and lone NFT adjuncts. The launching burn-and-mint contraption eases coherent NFT conducts beyond divergent chains, magnifying user trail while conserving safety, solidity, and derivation. By examining the effects of this scheme, the challenges of achieving interoperability among blockchain systems are identified, and potential solutions are proposed to facilitate ethical digital asset management. This work presents prospects of multi-chain NFTs to augment liquidity in the digital asset mart, presenting the latest opportunities for creators, collations, and capitalists. Furthermore, the approach of these NFTs in aiding upheld initiatives, like endowing climate projects and tokenizing actual assets, is inspected. The discovery grant to the proceeding discourse on blockchain upheaval, providing perceptions into the evolution of NFT technology and its pivotal role in elevating economic insertion and overseeing expedient usage.
Decentralized finance introduces new business models and use cases as part of digital finance. Restaking has recently emerged as a transformative mechanism in DeFi, promising extra yields but introducing complex and interconnected risks. The paper monitors the current restaking landscape, empirically analyzes the revenue drivers of a liquid restaking protocol, and conducts a technical investigation on the emitted risk arising from the interconnection between liquid restaking and other protocols. The revenue dynamics of Renzo Protocol are analyzed by employing an OLS regression model, Granger-causality and random forest feature importance tests. Our results identify that revenue is primarily predicted by the value locked in the underlying EigenLayer ecosystem, the yield of Renzo protocol's liquid restaking token and the multi-blockchain expansion of that token. The multi-blockchain expansion of the liquid restaking token presents a double-edged sword: bridging to other networks is crucial for user adoption, but it adds the bridge risks to the existing risks of restaking. We investigate the cross-contamination risk between different DeFi services and the liquid restaking protocol. By mapping the asset flow across the decentralized finance ecosystem, it is detected that the bridge risk of the current size of Renzo's liquid-restaking assets does not impose a systemic risk on the current restaking and staking ecosystem. To address the potential consequences of the emphasized interconnection risks, we introduce two hypothetical scenarios and a stress test, assuming a large number of compromised liquid restaking tokens and a smart contract logic failure in a DeFi protocol. Considering the overall liquid-restaking protocols and the growing interconnection, this analysis requires further work to explore the growing complexities.
Mbonigaba Celestin, Jerryson Ameworgbe Gidisu, M. Vasuki & A. Dinesh Kumar
We examine how legal governance structures influence the reliability of blockchain based commercial transactions within emerging digital markets. We develop and empirically evaluate the Blockchain Legal Transaction Integrity Model using the Global Blockchain Regulation and Smart Contract Adoption Dataset covering the period 2020 to 2025 across major blockchain adopting jurisdictions including the United States, the United Kingdom, Singapore, Estonia, and Ghana. The model links regulatory clarity, compliance enforcement mechanisms, and legal recognition of smart contracts with commercial transaction integrity while accounting for institutional legal capacity as a conditioning factor. Quantitative analysis shows that stronger regulatory clarity, active enforcement supervision, and legally recognized smart contracts significantly improve transaction transparency, contract execution reliability, fraud reduction, and business trust in blockchain systems. Institutional legal capacity amplifies these effects by strengthening regulatory interpretation and dispute resolution capability. The results demonstrate that blockchain markets achieve reliable digital commerce not only through technological design but through coordinated legal governance structures. The findings advance institutional governance theory and provide policy guidance for regulators seeking to strengthen digital financial ecosystems and cross border blockchain commerce.
The modern financial ecosystem is characterized by a "liquidity paradox": while digitization has accelerated transaction speeds, liquidity remains siloed across disparate asset classes such as equities, cryptocurrencies, and loyalty points. This fragmentation forces consumers to manually liquidate assets into fiat currency prior to transaction, creating friction, latency, and opportunity costs. This paper proposes the "Just-In-Time Liquidity Protocol" (JIT-LP), a novel neuro-symbolic architecture that decouples "value" from "currency" at the point of sale. By utilizing autonomous AI agents acting as fiduciaries for both payer and payee, the protocol negotiates the optimal composition of a payment in real-time, executing atomic swaps across ISO 20022 payment rails. I present the architectural design of the JIT-LP, detailing the interaction between edge-hosted Portfolio Agents and Treasury Agents. Furthermore, I introduce a Zero-Knowledge Proof (ZKP) mechanism for verifying solvency without compromising user asset privacy. Theoretical modeling suggests that JIT-LP can reduce consumer overdraft incidents by utilizing idle asset liquidity while offering merchants dynamic inventory-based discounting. This paradigm shift from static message exchange to agentic negotiation redefines the payment network as a real-time value optimization layer.
The global financial landscape is experiencing significant transformation driven by technological advancements and evolving market dynamics. Moreover, blockchain technology has become a pivotal platform with widespread applications, especially in finance. Cross-border payments have emerged as a key area of interest, with blockchain offering inherent benefits such as enhanced security, transparency, and efficiency compared to traditional banking systems. This paper presents a novel framework leveraging blockchain technology and smart contracts to emulate cross-border payments, ensuring interoperability and compliance with international standards such as ISO20022. Key contributions of this paper include a novel prototype framework for implementing smart contracts and web clients for streamlined transactions and a mechanism to translate ISO20022 standard messages. Our framework can provide a practical solution for secure, efficient, and transparent cross-border transactions, contributing to the ongoing evolution of global finance and the emerging landscape of decentralized finance.
The classic digital divide theory asserts that unequal access to and unequal experience with information technologies may lead to unequal user outcomes. This paper introduces a new perspective to extend this theory: outcome divides can persist despite equal access and equal experience if users differ in their analytical ability to analyze and interpret available data for decision-making. We term this new data-to-decision skill as analytical ability and integrate it into the classic digital divide framework. We develop a new approach to operationalize analytical ability by contrasting humans’ actual performance against that of a standard machine learning model that makes similar analytical decisions based on the same information available to humans, essentially emulating a quasi-random counterfactual setting. To minimize the confounding impact of other divides, we validate the role of analytical ability in information-transparent environments like the blockchain-based trading markets, where all historical trading data is equally available to all users on the blockchain. We leverage data from EnjinX, a blockchain-enabled non-fungible token (NFT) marketplace that records all historical NFT transactions. We measure user outcomes by their flip trading performance, a standard metric captured via the percentage of exploited flipping opportunities. Our empirical analysis reveals that disparities in analytical ability may become the new bottleneck for outcome equity: flip trading performance could decrease by 66.86% when traders are incapable of analyzing the available blockchain information effectively. Our study contributes to the literature by extending the digital divide theory with the notion of the analytical ability divide. Moreover, we are among the first to rigorously quantify analytical ability and empirically test its impact based on the extended digital divide framework. Our study also offers important practical implications for platforms and policymakers to bridge this new divide in order to foster outcome equity.
This paper presents a novel architecture for secure, high-throughput digital token management and transaction systems tailored for closed institutional environments, specifically corporate and university cafeterias. Traditional centralized Point-of-Sale (POS) systems exhibit significant vulnerabilities, including single points of failure, limited transparency, and cumbersome auditing processes. The proposed solution implements a Permissioned Distributed Ledger Technology (DLT) framework utilizing a modified ERC-20 utility token standard and the Delegated Proof-of-Stake (DPoS) consensus mechanism. This architecture is explicitly engineered to handle high volumes of rapid micro- transactions characteristic of peak institutional demand periods. Security is reinforced through cryptographic data linkage via SHA-256 hashing and smart contracts that enforce institutional policies and prevent fraud. Empirical results from simulation demonstrate that the system achieves transaction throughput exceeding 300 transactions per second (TPS) and maintains average transaction latency below 450 milliseconds under stress testing, confirming the system's viability for real-world deployment where swift transaction finality is essential. This research establishes a validated, secure, and scalable framework for institutional automation using DLT.
Tourism transactions face persistent challenges related to transparency, security, and dependence on online travel agents (OTAs), which reduce local providers' margins and limit direct customer engagement. Existing blockchain-based tourism solutions remain fragmented and often lack modularity and platform-agnostic integration. This study proposes SmartTourismChain (STC), a modular smart contract architecture deployed on the Ethereum Sepolia test network. STC is designed as a plug-in framework supporting cross-platform adoption through interoperable APIs and SDKs, with backend services for reservation, verification, and nonce management, and frontend integration via wallet connection or Sign-In with Ethereum (SIWE). The architecture supports dual transaction modes, enabling fast off-chain operations while maintaining auditable on-chain records. Functional validation demonstrates a 100% success rate for booking execution, token transfer, and QR-based verification. On-chain deployment records a gas consumption of 175,550 gas ($\approx 0.00026$ETH), indicating technical and economic feasibility. Security analysis confirms resistance to common smart contract vulnerabilities, including reentrancy and unauthorized state manipulation. Overall, STC reduces OTA dependency and supports the development of decentralized, IoT-ready digital tourism ecosystems.
This research demonstrates the environmental impacts of Digital Currencies (DC), particularly focusing on Bitcoin's (BTC) energy-intensive Proof-of-Work (PoW) process as well as a fundamental expectation for sustainable alternatives, which can be termed as Green Coins (GC) which are expected to be able to maintain the benefits of BTC, while generating little to no negative impacts on the environment. Bitcoin is estimated to consume about 150 TWh annually, a measure comparable to that of a mid-sized country, while also generating 60 to 90 million metric tons of$\text{CO}_{2}$emissions and about 30,000 metric tons of electronic waste (e-waste) through deliberate accelerated hardware obsolescence. On the other hand, GC tends to use more efficient proofs such as Proof of Stake (PoS) and Proof of Space-time (PoST) and examples include Ethereum following its 'Merge' estimated a reduction of over 99 % of energy use and Dogecoin has and even lower environmental impact compared to BTC. Using data sets from the Cambridge Bitcoin Electricity Consumption Index (CBECI) and Digiconomist, this study quantifies Bitcoin's carbon footprint and tracks the trends from 2017 to 2025, through more extensively investigating its sustainability profile relative to its GC counterparts. Findings reveal Bitcoin continues to have high energy use and e-waste, peaking in 2021, while both Ethereum (ETH) and Dogecoin (DG) had significant gains in sustainability improvements. Addressing scaling, security, and regulatory issues, the paper highlights the potential of sustainable financing within the digital financial markets to drive Green technologies, which is increasingly important for aligning cryptocurrency financing with Environmental, Social, and Governance (ESG) parameters, providing a way to continue to innovate while decarbonizing digital financing.
Blockchain technology rests upon distributed-ledger principles, offering a decentralised, tamper-evident method of recording transactions across networks. The discussion begins with an analysis of network topologies –centralised, decentralised, distributed, and hybrid – each with distinct implications for resilience, control, and scalability. Distributed-Ledger Technology (DLT) is defined as a class of decentralised systems enabling peer-to-peer consensus without central authority, with blockchain as a linear, cryptographically chained variant . Key architectural elements are examined, including node types, data structures, and consensus mechanisms such as Proof-of-Work, Proof-of-Stake, and Byzantine Fault Tolerance, each with distinct trade-offs between security, performance, and energy efficiency. The emergence of smart contracts and tokenisation is presented as transformative: enabling programmable, trust-minimised interactions and asset digitisation, while simultaneously introducing regulatory, legal, and technical challenges . The chapter critically distinguishes blockchain from broader DLTs, highlighting alternative models such as DAG-based systems (e.g., IOTA, Hashgraph) and permissioned frameworks (e.g., Corda). Foundational applications across financial services, supply chains, and digital identity are introduced, setting the stage for industry-specific use cases. Finally, implications for the built environment – including the “Golden Thread” of building lifecycle information – are briefly explored, identifying the potential of blockchain to enhance data integrity, accountability, and compliance in complex asset ecosystems .
K. R. Mahesh Kumar, Sujay Mugaloremutt Jayadeva, P. Selvakumar, Raj Kumar Mishra · 6 authors
Digital currencies, also referred to as cryptocurrencies or virtual currencies, represent one of the most transformative developments in the financial and technological landscapes over the past decade. Unlike traditional fiat money issued and regulated by centralized governments and central banks, digital currencies operate on decentralized networks using blockchain technology—a distributed ledger system that ensures transparency, security, and immutability of transactions. This fundamental shift from physical cash and conventional banking systems to digital, cryptographically secured money has profound implications not only for economics and finance but also for marketing, commerce, and consumer behavior. The concept of digital currency first gained widespread attention with the introduction of Bitcoin in 2009, created by an anonymous entity known as Satoshi Nakamoto. Bitcoin's revolutionary design combined peer-to-peer networking and cryptographic proof to enable trustless digital transactions without the need for intermediaries.
Autonomous platforms for fintech, decentralized finance, and digital civil infrastructures are at the research frontier. Delivering on their promise requires a foundational approach. Future research and development directions are organised by core architectural principles, enabling technologies, major challenges and risks, methods for development and evaluation, and governance models. Autonomous economic interaction and decision-making are principally guided by policy goals. Independence from human involvement cannot be guaranteed, especially when external agents fulfil custodial roles, but risk can be mitigated by solidifying the foundations. The term “autonomous platform” constitutes a composite of economic theory and systems design. Platforms support economic interactions enabled by information and communication technology—in particular, the Internet. Their distinctive feature is an architecture composed of services provided by multiple stakeholders. Platform engineering is a design discipline that seeks to deliver the hoped-for benefits, including lower costs, greater selection, and novel business models, while mitigating risks such as fraud and the abuse of market power. The promise of autonomy stems from the deployment of becoming-type, human-compliant purpose design in an effective oversized-modular architecture and begins with the fulfilment of core architectural principles—an autonomous, modular, and composable layer for economic interaction and decision-making.
This working paper introduces the Blockchain First-Principles Analysis (BFPA) framework, a novel methodology for evaluating distributed ledger systems by constructing explicit derivation chains from physical laws and cryptographic assumptions through a praxeological action axiom to concrete protocol design decisions. The framework features a four-level axiom hierarchy (physics, cryptography, praxeology, social consensus), a Nash equilibrium gate for social layer stability, a four-stage stability profile, a lock-in typology distinguishing design-emergent, ecosystem-emergent, corporate-imposed, and regulatory-granted lock-in, and a network effect genesis model identifying five necessary conditions for spontaneous adoption. Systematic application to eight major blockchain systems (Bitcoin, Ethereum, Solana, Monero, XRP, Polkadot, Tezos, BNB Chain) reveals that epistemic design quality correlates weakly with market outcomes, while lock-in type and network effect genesis conditions are substantially stronger predictors. The analysis provides principled explanations for the Tezos Paradox and the Monero Paradox. Comments welcome.
Essais sur le crédit, la découverte des taux et les facteurs déterminants du prix des jetons en finance décentralisée Cette thèse explore les fondements économiques et comportementaux de la finance décentralisée (DeFi), un champ en pleine expansion où les fonctions de prêt, d'emprunt et de fixation des taux d'intérêt sont assurées par des contrats intelligents plutôt que par des institutions financières. À travers trois essais complémentaires, ce travail analyse la conception des protocoles de crédit décentralisés, la formation des taux d'intérêt dans des marchés automatisés et les déterminants fondamentaux et comportementaux de la valorisation des tokens DeFi.Le premier essai examine l'architecture du protocole Atlendis, qui permet des prêts non ou partiellement collatéralisés grâce à l'articulation entre souscription off-chain et exécution on-chain. Le deuxième propose un modèle théorique de découverte de taux basé sur une approche de jeu multi-unités, identifiant les conditions d'efficience et les frictions propres aux marchés décentralisés. Le troisième évalue empiriquement les facteurs économiques et comportementaux influençant les rendements des tokens, révélant le rôle central du sentiment des investisseurs et de la liquidité on-chain dans la dynamique des prix. En combinant ingénierie financière, modélisation théorique et analyse empirique, cette recherche met en lumière les mécanismes par lesquels la DeFi redéfinit l'intermédiation, la formation des prix et la gouvernance financière dans un environnement transparent et programmable.
DELTA is a project funded by the Valencian Institute for Business Competitiveness (IVACE) and the European Union through the European Regional Development Fund (FEDER). DELTA project is aimed at bringing companies closer to the use of different disruptive technologies such as Blockchain / Distributed Ledger Technologies (DLT). To achieve its goal, DELTA will provide: A software tool for automating the deployment of DLT networks, regardless of the number of required nodes, or the process of joining an existing network. A modular mechanism that allows the synchronization of DLTs with databases. The goal of this mechanism is to ease and improve the way data is retrieved from a DLT ledger. An accountability tool for shared environments for the exchange of services that brings in some of the most important characteristics of blockchain/DLTs: facilitating auditing and accountability by each participant, use of tokens, etc.
Paul van Vulpen, Sub Software Production, Slinger Jansen, Sjaak Brinkkemper
The rise of Big Tech has created unprecedented concentrations of power. The scaling potential of the modern IT industry is leading to widespread monopolies. For technologies that serve society, a monopoly brings structural dependence, and gives their owners an almost unchallengeable power. To counteract this societal dependence, academia, industry, and society at large proposed various countermeasures to limit the power of technology providers. In this thesis, Paul van Vulpen compares these approaches. The goal is to maintain the benefits of technology while reducing societal dependence on a few powerful actors. This book investigates three approaches. First, software ecosystems outline the collaboration between various interrelated software actors. Second, blockchain and decentralized autonomous organizations offer radical approaches to rethink and decentralize IT governance structures. Finally, digital platform regulations address urgent societal issues that arise from concentrated platform power. The final section concludes that a delicate and organic approach is needed to IT governance. Excessive centralization creates structural risks, but full decentralization is neither practical nor beneficial. The thesis proposes a middle road: Federated Technology Governance (FTG). In FTG, central authority defines architecture, interoperability standards, and maintains the long-term vision. A wide variety of actors handle user interaction, implementation, and collaboration. This framework helps technology providers to create software ecosystems and safeguard the provision of societal benefit for public digital infrastructure. FTG supports the creation of sovereign cloud services, secure operating systems, and public large language models. Could it also be a road to enable technology to serve society and the common good?