Blockchain Papers

Zezheng Tong, John W. Goodell, Dehua Shen

No abstract is available for this record.

Jicheng Liu, Jiakang Sun, Hanying Yuan, Yihan Su · 6 authors

No abstract is available for this record.

Ruizhe Jia, Steven Yin

We study the competition between blockchains in a \emph{multi-chain} environment, where a dominant EVM-compatible blockchain (e.g., Ethereum) co-exists with an alternative EVM-compatible (e.g., Avalanche) and an EVM-incompatible (e.g., Algorand) blockchain. While EVM compatibility allows existing Ethereum users and developers to migrate more easily over to the alternative layer-1, EVM incompatibility might allow the firms to build more loyal and ``sticky'' user base, and in turn a more robust ecosystem. As such, the choice to be EVM-compatible is not merely a technological decision, but also an important strategic decision. In this paper, we develop a game theoretic model to study this competitive dynamic, and find that at equilibrium, new entrants/developers tend to adopt the dominant blockchain. To avoid adoption failure, the alternative blockchains have to either (1) directly subsidize the new entrant firms or (2) offer better features, which in practice can take form in lower transaction costs, faster finality, or larger network effects. We find that it is easier for EVM-compatible blockchains to attract users through direct subsidy, while it is more efficient for EVM-incompatible blockchains to attract users through offering better features/products.

Keiichiro Inaba

The Deepen understanding of why new technologies and innovative ideas that are the basis of innovation are difficult to understand and support from management and funders. In other words, although the Hype Cycle is actually multi-layered, the recognition will be clarified by considering the gap in recognition that occurs between the proposer/engineer and the entrepreneur. In this paper, taking blockchain and distributed ledger technology field (BC), and music contents service industry (using smart phone etc.), as examples as specific fields, if we consider in the context of this stratification, we will deepen our understanding of the current situation and future movements for innovation.

Se-Do Son, Heon-Sang Lee

글로벌 경기침체로 둔화된 경제성장과 갈 곳 잃은 현금성 자산은 새로운 투자처를 찾게 되었고, 기술의 발전을 이용한 암호화폐가 금융시장에서 상당한 위치를 차지하며 많은 사람들이 관심을 받고 있다.BR본 연구에서는 암호화폐에 대해 연구하고자 하며, TGARCH 모형을 활용하여 암호화폐와 기존 자산의 변동성을 분석하여 비교해보고자 한다.BRTGARCH 모형을 통한 비트코인과 나스닥, 금, 크루드오일, 코스피, 코스닥의 대칭적 변동성과, 비대칭변동성을 전체기간과 시장의 움직임에 따라 3개의 기간으로 구분하여 분석한 결과 비트코인의 대칭적 변동성은 기존 자산에 비해 높았지만 기간별 확인결과 점차 감소하여 주식시장과 같은 수준으로 감소하였다. 비대칭변동성은 다른 자산에 비해 높지 않았으며 오히려 국내 주식시장의 비대칭변동성이 더 큰 것으로 확인되었다. 알트코인의 경우 비트코인 및 기존 시장자산과 비교해 변동성이 큰 것으로 확인되었다.BR본 연구는 암호화폐와 기존에 시장에서 거래되는 자산의 변동성을 비교하였으나 일별 데이터를 활용하여 짧은 시간에 큰 폭으로 가격이 변동하는 비트코인의 특성을 파악하는데 한계가 있었으며 개선을 위해 더 짧은 주기의 자료를 활용할 필요가 있을 것이다.

Xiaoyu Wan, Jia Liu, Siqi Zhao

Changes in the online car-hailing industry have brought new challenges to government governance. Effectively enhancing governance efficiency has become the focus of academic research. Based on the technical governance perspective, this paper introduces the consortium blockchain to construct an evolutionary game model between the online car-hailing platform and the government under blockchain technology. By solving the replicated dynamic equations and the Jacobian matrix, the influences of the change in initial conditions and decision parameters on the evolutionary stability results are revealed, and numerical experiments are carried out by using the Python programming language. This paper claims that the system presents three evolutionary stable results and a periodic stochastic state when the key parameters are located in different thresholds. The additional cost of the platform's negative regulation and the government's punishment intensity have a positive effect on the evolution of the system to the ideal state (active regulation, active governance). Platform technology R&D cost and government innovation input have a negative effect on the evolution of the system to the ideal state. Therefore, using blockchain to increase the additional cost of the platform's negative regulation, appropriately increasing the government's punishment intensity, reasonably controlling the government's innovation input to the platform, and reducing the technology R&D cost of the platform will help the system evolve into an ideal state. This paper provides useful references to implement effective governance and the innovative and healthy development of the online car-hailing industry.

Pavel Baboshkin, Alexey Mikhaylov, Zaffar Ahmed Shaikh

Due to the youth of the cryptocurrency sphere, the logic of interaction between investors, users and protocols is not always precisely defined. Analysis of the impact of ESG on cryptocurrencies proves that the demand for bitcoin network capacity (occupies the main market share) is the main factor in predicting the price of this cryptocurrency and the cryptocurrency market as a whole. The choice of the statistical method of analysis is determined by the purpose of statistically justified determination of the relationship of the data under consideration, and the reliability of the analysis is checked using Fischer and Student tests. In this paper, several innovations are proposed to solve the problem of energy dependence of cryptocurrencies: firstly, the analysis of cryptocurrencies in the paradigm of sustainable development (taking into account the consumption of a huge amount of energy for the functioning of cryptocurrency systems); secondly, feedback logic to explain the interaction of subjects, including the following parties: users, developers, network infrastructure and their interaction; thirdly, statistical analysis with the creation of artificial variables from real data and iterative improvement of the model. This paper proves that sustainable cryptocurrency growth is impossible when viewed from the perspective of “Green Economics” by Molly Scott Cato. The author's approach is relevant compared to other methods of linear transformations for creating artificial variables by selecting data using the VIF test. As a result, several versions of models were obtained using various combinations of the initially proposed factors, on the basis of which the nature of the greatest influence on the price of bitcoin was established in the form of technical factors and energy infrastructure needs.

Kannan Govindan, Arash Khalili Nasr, Mohammad Saeed Heidary, Saeede Nosrati-Abarghooee · 5 authors

Since the advent of blockchain technology (BT), extensive research has explored using this technology in non-financial cases. The healthcare industry is one of the non-financial sectors that BT has significantly impacted. In this paper, for the first time, barriers to implement BT-based platforms from a balanced scorecard perspective in the healthcare sector are introduced, and these barriers are prioritized using a structural approach based on the weighted influence non-linear gauge system. Unlike other structural models such as decision-making trial and evaluation laboratory (DEMATEL), in this approach, both strength and influence intensity of components are considered in the ranking process. The proposed approach is applied in networks that have a hierarchical structure and intertwined components. The performance of the proposed approach is evaluated using the ranking of BT-based platform adoption barriers in the healthcare industry in Iran. The results show that financial issues, security issues, lack of expertise and knowledge, and uncertain government policies are the most important barriers to BT adoption in the healthcare industry.

Javed Bin Kamal, M. Kabir Hassan

No abstract is available for this record.

Alberto Partida, Saki Gerassis, Regino Criado, Miguel Romance · 6 authors

In this article, we model the two most market-capitalised public, open and permissionless blockchain implementations, Bitcoin (BTC) and Ethereum (ETH), as a System of Systems (SoS) of public blockchains. We study the concepts of blockchain, BTC, ETH, complex networks, SoS Engineering and intentional risk. We analyse BTC and ETH from an open SoS perspective through the main properties that seminal System of Systems Engineering (SoSE) references propose. This article demonstrates that these public blockchain implementations create networks that grow in complexity and connect with each other. We propose a methodology based on a complexity management lever such as SoSE to better understand public blockchains such as BTC and ETH and manage their evolution. Our ultimate objective is to improve the resilience of public blockchains against intentional risk: a key requirement for their mass adoption. We conclude with specific measures, based on this novel systems engineering approach, to effectively improve the resilience against intentional risk of the open SoS of public blockchains, composed of a non-inflationary money system, “sound money”, such as BTC, and of a world financial computer system, “a financial conduit”, such as ETH. The goal of this paper is to formulate a SoS that transfers digital value and aspires to position itself as a distributed alternative to the fiat currency-based financial system.

Elena Letiagina, Yuriy Trifonov, Alexander N. Vizgunov, Roman S. Tanchuk · 5 authors

No abstract is available for this record.

Volkan Oğhan

Cryptocurrencies have appeared as a decentralized virtual currency where all users can contribute to the system and special encryption technology is used. Technologies from which cryptocurrencies originate are also promising technologies. Cryptocurrency mining, one of these technologies, provides a consensus algorithm that ensures the processing and security of the unique ledger. However, this algorithm requires a large amount of processing power for proof of operation, resulting in high levels of electricity consumption. The heat generated by cryptocurrency mining and the carbon emission due to high electricity consumption from fossil fuels will harm national and global efforts on the environment. In this respect, it may be possible to introduce various solutions and suggestions, including government intervention and technological changes in cryptocurrency mining.

Farah Shishan, Hazar Hmoud, Hala Zaidan, Zainah Qasem

No abstract is available for this record.

Dongna Zhang, Xihui Haviour Chen, Chi Keung Marco Lau, Bing Xu

No abstract is available for this record.

Ewilly Jie Ying Liew, Wei Li Peh, Zhuan Kee Leong

This chapter seeks to examine the influence of public perceptions of trust in people and confidence in institutions on cryptocurrency adoption, taking into account the individual-level demographic factors and the regional-level contextual factors. Data is obtained from three large-scale international surveys and national databases and analyzed using R software. The multivariate results demonstrate that individuals' public perceptions of trust and confidence significantly contribute to cryptocurrency adoption. Lower perceived trust in people and higher perceived confidence in civil service and international regulatory bodies increase cryptocurrency adoption, while perceived confidence in political and financial institutions discourages cryptocurrency adoption. Additionally, the univariate results find significant comparisons of gender and perceived trust differences on the predictors of cryptocurrency adoption. This chapter discusses and provides insights on the social impact and future of cryptocurrency adoption, particularly among the upper- and lower-middle-income countries.

Hui Zhang, Jin-Biao Yi, Qian Wang

The formation of blockchain industrial ecology can help improve the open and efficient value synergy network, and this paper seeks to clarify the value relationship among industrial units and the trend of synergistic evolution of blockchain industrial ecosystem. Based on value co-creation theory, the blockchain industrial ecosystem synergy evolution process is analyzed, and the composite system synergy model is used to empirically investigate the evolution synergy of China’s blockchain industrial ecosystem from 2015 to 2020. The results show that: although the development level of China’s blockchain industry ecosystem continues to improve, it is still at a low level, and the policy-driven effect is obvious. There is a large disparity in the orderliness level of each subsystem of the blockchain industry ecosystem, and the industrial integration and application implementation are in a good situation, while the blockchain enterprises, located in the value pivot subsystem, are in a relatively tough position, and China’s blockchain industry ecosystem is overall in a state of reconciliation and has not yet formed a synergistic effect. Handling the synergistic relationship between the government, the market and other value-supporting units, and blockchain enterprises is the top priority for further promoting the synergistic evolution of the blockchain industry ecosystem.

Sinan Erdoğan, Maruf Yakubu Ahmed, Samuel Asumadu Sarkodie

Abstract When Bitcoin (BTC), the first pioneering cryptocurrency was released in 2009, it was considered as an apolitical currency. Besides, the possible effect of BTC and other cryptocurrencies on either financial markets or transactions has been widely discussed. However, the environmental effects of cryptocurrency demand have been ignored. Here, this study examines the nexus between cryptocurrencies and environmental degradation by employing standard and asymmetric causality methods. The Toda-Yamamoto and bootstrap-augmented Toda-Yamamoto test results reveal Bitcoin and Ethereum (ETH) excluding Ripple (XRP) have causal effects on environmental degradation. The Fourier-augmented Toda-Yamamoto test results show causal effects running from Bitcoin and Ripple to environmental degradation, whereas no causal effect runs from Ethereum to environmental degradation. The asymmetric causality shows causal effects from the positive shock of Bitcoin demand, negative shocks of Ripple and Ethereum demands to positive shocks of environmental degradation. Further discussions and policy implications are provided in the relevant sections of this study.

Ran Tao, Chi‐Wei Su, Bushra Naqvi, Syed Kumail Abbas Rizvi

No abstract is available for this record.

Kyungwon Kim, Minhyuk Lee

The global economy is under great shock again in 2020 due to the COVID-19 pandemic; it has not been long since the global financial crisis in 2008. Therefore, we investigate the evolution of the complexity of the cryptocurrency market and analyze the characteristics from the past bull market in 2017 to the present the COVID-19 pandemic. To confirm the evolutionary complexity of the cryptocurrency market, three general complexity analyses based on nonlinear measures were used: approximate entropy (ApEn), sample entropy (SampEn), and Lempel-Ziv complexity (LZ). We analyzed the market complexity/unpredictability for 43 cryptocurrency prices that have been trading until recently. In addition, three non-parametric tests suitable for non-normal distribution comparison were used to cross-check quantitatively. Finally, using the sliding time window analysis, we observed the change in the complexity of the cryptocurrency market according to events such as the COVID-19 pandemic and vaccination. This study is the first to confirm the complexity/unpredictability of the cryptocurrency market from the bull market to the COVID-19 pandemic outbreak. We find that ApEn, SampEn, and LZ complexity metrics of all markets could not generalize the COVID-19 effect of the complexity due to different patterns. However, market unpredictability is increasing by the ongoing health crisis.

Konstantinos Stylianou, Leonhard Spiegelberg, Maurice Herlihy, Nic Carter

When network products and services become more valuable as their userbase grows (network effects), this tendency can become a major determinant of how they compete with each other in the market and how the market is structured. Network effects are traditionally linked to high market concentration, early-mover advantages, and entry barriers, and in the market they have also been used as a valuation tool. The recent resurgence of Bitcoin has been partly attributed to network effects, too. We study the existence of network effects in six cryptocurrencies from their inception to obtain a high-level overview of the application of network effects in the cryptocurrency market. We show that, contrary to the usual implications of network effects, they do not serve to concentrate the cryptocurrency market, nor do they accord any one cryptocurrency a definitive competitive advantage, nor are they consistent enough to be reliable valuation tools. Therefore, while network effects do occur in cryptocurrency networks, they are not (yet) a defining feature of the cryptocurrency marketas a whole.

Ibrahim Almarashdeh, Kamal Eldin Hassan Ibrahim Eldaw, Mutasem K. Alsmadi, Fahad AlGhamdi · 8 authors

Bitcoin is a decentralized system that tries to become a solution to the shortcomings of fiat and gold-based currencies. Considering its newness, the adoption level of bitcoin is yet understood. Hence, several variables are proposed in this work in examining user perceptions regarding performance expectancy, effort expectancy, trust, adoption risk, decentralization and social influence interplay, with the context of user’s future expectation and behavioral intentions to use bitcoins. Data were gathered from 293 completed questionnaire and analised using AMOS 18. The outcomes prove the sound predictability of the proposed model regarding user’s future expectations and intentions toward bitcoins. All hypotheses were supported, they were significantly affecting the dependent variables. Social influence was found as the highest predictor of behavioral intention to negatively utilize bitcoins. The significant impact of social influence, adoption risk and effort expectancy which affect behavioral intention to use bitcoins the most, are demonstrated in this study. Bitcoins should thus, present an effective, feasible and personalized program which will assist efficient usage among users. Additionally, the impacts of social influence, adoption risk and perceived trust on behavioral intention to utilize new technology were compared, and their direct path was tested together, for the first time in this context.

Jake McMorrow, Mona Seyed Esfahani

Abstract The cryptocurrency market has been described as revolutionary due to the constant technological evolution and innovation that the blockchain technology provides. Leading many to believe that this could be the next step for the human race, just like how fiat currency replaced gold. Cryptocurrencies were originally created to be a form of savings or income for the unbanked, reduce costs and energy consumption, for a means of data transparency and to remove financial intermediaries. It is undeniable that the cryptocurrency market has created a divide of opinions, as some look to explore the market further while others reject the thought of adopting this innovative technology completely. This study focuses on the perception and intention to use cryptocurrencies. Diving into previous literature about the adoption of cryptocurrencies and new technologies. Highlighting key factors that can affect an individual’s perception and gaps in the literature that need to be explored further. A quantitative approach was used to gather data from 102 participants. The findings indicated that performance and effort expectancy as the most influential variables for cryptocurrency adoption, as people seek understanding as what benefits cryptocurrencies can provide for them when they feel incapable of using the innovative technology.

Rui Hou, Shanshan Li, Hongyan Chen, Guowen Ren · 6 authors

No abstract is available for this record.

Hyun-Sun Ryu

The purpose of this study is to examine users’ decision-making mechanism of Bitcoin investment behavior and its sequential consequences from a dual-systems perspective. Original data were collected via a survey of 334 participants with experience in Bitcoin investment. The partial least squares method was used to test the proposed model. The results of this study revealed that Bitcoin investment behavior is driven by strong impulse and weak self-control, leading to negative consequences. The extent of the imbalance between the two cognitive systems is greater with the subjective norm than without it, thus facilitating Bitcoin investment behavior. Noteworthy differences in the impulse and self-control effects on Bitcoin investment are found with differences in Bitcoin objective and subjective knowledge. This study is the first attempt to empirically investigate users’ decision-making mechanism used when investigating in Bitcoin.