This chapter examines the dual nature of virtual currencies. It mainly focuses on Bitcoin’s role in both financial innovation and illicit finance. This chapter analyzes the core mechanisms of anonymity and decentralization that make cryptocurrencies attractive to criminal activity. It was exemplified in the landmark Silk Road darknet marketplace case. The discussion traces the evolving regulatory response, from initial enforcement actions to the development of structured frameworks such as the GENIUS Act for stablecoins and the CLARITY Act for digital asset market classification. Further analysis covers the application of traditional securities and commodities laws to decentralized finance (DeFi). The MNGO Markets illustrated its exploitation case. The discussion centers around two blockchain applications: cross-border payments and the creation of immutable smart contracts to comply with General Data Protection Regulation (GDPR). This chapter concludes that cryptocurrencies exist as a dual-purpose technology. The system requires a sophisticated regulatory approach that lowers both financial crime risks and market integrity threats while preserving the potential for technological innovation.
Sai Srikanth Madugula, Peplluis Esteva De La Rosa, Daya Shankar
The rapid proliferation of Agentic Artificial Intelligence fundamentally disrupts traditional customer loyalty paradigms. As AI evolves from passive recommendation algorithms to autonomous, goal-directed agents capable of executing purchasing decisions, the conventional understanding of consumer-brand relationships requires a structural reevaluation. By synthesizing extant literature across human-machine teaming, consumer decision-making, and algorithmic trust dynamics, we demonstrate that traditional loyalty models fail to account for algorithmic bounded rationality and constructed autonomy. To address this, we introduce the Dynamic Verifiable Multi-Agent Human Agentic Loyalty Loop (DVM-HALL) model. We formalize brand choice via a softmax probability formulation where human emotional equity, agentic machine-experience utility, calibrated trust, delegated authority, and verifiable execution jointly determine selection. The model features recursive updating mechanisms to dynamically calibrate trust and delegation after each interaction. Crucially, the framework integrates a verifiable execution layer for Decentralized Finance (DeFi) and tokenized loyalty settings, incorporating execution risks -- such as gas costs, slippage, MEV exposure, and smart-contract vulnerabilities -- as core predictors of agentic brand preference. Furthermore, we introduce the Net Human-Agent Score (NHAS), an auditable, risk-weighted metric designed to measure human-agent alignment using human feedback, execution logs, benchmark comparisons, and verifiable receipts. Finally, we propose a comprehensive three-stage empirical validation plan spanning controlled shopping experiments, multi-agent market simulations, and DeFi testbeds. This framework provides the foundational theory required for brands to navigate the impending transition toward machine customers.
Yongqiang Du, Chen-Xun Weng, Feng Xie, Ming-Yang Li · 13 authors
Popularized by the Bitcoin cryptocurrency, blockchain technology establishes a decentralized digital framework that utilizes cryptographic and consensus protocols to secure data against unauthorized modification. Consequently, blockchain has found broad adoption across diverse fields, including finance, data management, healthcare, and digital asset governance. In the quantum computing era, a paramount objective for blockchain is to preserve its foundational advantages of cryptographic integrity and decentralized fault-tolerant resilience. In principle, quantum digital signatures and quantum Byzantine agreement protocols offer foundational security guarantees and tolerate up to one-half of malicious nodes for blockchain. However, the practical realization of such a quantum-enhanced blockchain remains a significant and multifaceted challenge. Here, we propose and experimentally demonstrate a fully operational hybrid quantum blockchain architecture built on photonic integrated circuits and deployed over commercially available classical telecommunications infrastructure. The system achieves a fault tolerance of nearly one-half, surpassing the classical limit, while reaching consensus on a timescale of seconds. A deployed food traceability application validates the practicality of the proposed architecture, achieving a throughput of approximately 500 transactions per second. This work establishes a foundation for practical quantum blockchains, enabling secure, scalable, and decentralized information processing in the emerging quantum era.
Climate change presents complex challenges requiring transparent, efficient, and verifiable mechanisms for monitoring, reporting, and managing environmental impacts. Blockchain technology, with its decentralized, immutable, and transparent ledger system, offers innovative solutions to enhance climate action and sustainability initiatives. This chapter explores the application of blockchain in addressing climate change, including carbon credit tracking, renewable energy trading, climate finance, supply chain emissions monitoring, and decentralized environmental governance. Case studies and pilot projects are examined to illustrate how blockchain enables secure, real-time data sharing, improves accountability, and fosters stakeholder collaboration in climate mitigation and adaptation strategies. The chapter also discusses challenges such as scalability, energy consumption, regulatory compliance, and integration with existing environmental frameworks. By bridging the fields of digital technology and climate action, this chapter provides insights into how blockchain can support transparent, resilient, and efficient climate solutions.
Mohammad Karrabi, Farkhondeh Jabari, Asghar Akbari Foroud
The rapid expansion of blockchain technology has led to a surge in patent filings, reflecting intense innovation and competition in this emerging frontier. This chapter examines the “patent boom” in blockchain, analyzing trends, drivers, and implications for technology development, commercialization, and intellectual property management. Key areas of blockchain innovation, such as consensus mechanisms, smart contracts, cryptographic methods, decentralized finance (DeFi), supply chain solutions, and digital identity, are explored in the context of patent activity. The chapter also discusses the geographic and institutional distribution of blockchain patents, highlighting leading countries, companies, and research organizations. Additionally, legal, strategic, and technological challenges associated with patenting in the blockchain space, including overlaps, standardization issues, and open-source tensions, are considered. By systematically reviewing the patent landscape, this chapter provides insights into the dynamics of blockchain innovation, potential barriers to adoption, and opportunities for researchers, developers, and policymakers.
This study investigates the growing role of stablecoins within the global financial system and examines their potential integration into traditional foreign exchange markets. Despite the rapid expansion of stablecoins, empirical evidence comparing their market dynamics with those of non-stable cryptocurrencies remains limited. To address this gap, the study adopts a descriptive case study design based on documentary analysis and secondary quantitative market data. The documentary review establishes the theoretical foundations of stablecoins and their relevance to foreign exchange markets, while the quantitative analysis relies on market data collected from CCData, DefiLlama, and Statista. Weekly market observations covering the period from April 2019 to May 2024 were analyzed using descriptive statistics, comparative analysis, volatility measures, Pearson correlation analysis, and one-way ANOVA. The findings reveal that stablecoins exhibit significantly lower price volatility than Bitcoin while maintaining high levels of market liquidity and trading activity. Among the analyzed assets, Tether (USDT) remains the dominant stablecoin, followed by USD Coin (USDC) and Binance USD (BUSD). The statistical analysis confirms significant differences between stablecoins and Bitcoin, highlighting the distinct market behavior of reserve-backed digital assets. These findings suggest that stablecoins have evolved beyond their traditional role as cryptocurrency trading instruments and are increasingly functioning as efficient mechanisms for cross-border payments, liquidity management, and decentralized finance applications. This study contributes to the literature by providing an integrated empirical comparison of stablecoins and non-stable cryptocurrencies while demonstrating how the stability, liquidity, and operational characteristics of reserve-backed digital assets may facilitate their future integration into traditional foreign exchange markets. The findings also provide practical implications for policymakers, financial institutions, and regulators seeking to develop secure and efficient digital payment infrastructures supported by appropriate regulatory frameworks.
This study examines, within an interdisciplinary framework, how digital technologies are transforming international relations in the domains of security, economics, and diplomacy. It treats developments in artificial intelligence, blockchain, quantum computing, and cybersecurity not as separate technical innovations but as interconnected processes that reconfigure states’ power capacities and their relations of interdependence. A qualitative and interpretive method is adopted, combining a review of the literature, content and discourse analysis, and a comparative examination of the digitalization strategies of the United States, China, the European Union, and Russia. The findings show that cyber conflict opens an enduring arena of contestation that complements rather than replaces traditional military force; that AI-enabled systems accelerate defense and intelligence processes while deepening problems of oversight and accountability; and that quantum computing is fundamentally altering the encryption order and approaches to national security. On the economic plane, the competition between central bank digital currencies and decentralized finance is redefining the notions of monetary sovereignty and financial control. The growing power of large technology companies calls state sovereignty into question, while disinformation and algorithmic targeting create new risks for democratic processes. The study concludes that digitalization is a multilayered process whose outcome is not predetermined, and that grasping this transformation requires extending the classical approaches to power and interdependence so as to encompass the command of data, algorithms, and networks.
G. Suresh, S. Manimegalai, M. Amsaveni, R. Shankar · 5 authors
Embedded finance blended with decentralized finance (DeFi) and generative AI (GenAI) is reinventing financial services, but the impact of this phenomenon on consumer trust and emotional resiliency is poorly studied. This research has generated and tested the FINTRUST 2.0 framework based on a cross-sectional survey of 384 adults (18-45 years) in major Indian cities where Fintech is already used. The analysis of data was done through EFA, CFA and SEM. It has been found that consumer trust is multidimensional based on security, transparency, autonomy, reliability, ethics, and empowerment and serves as an effective intervening variable between the adoption of Fintech and emotional resilience. The impact was probably the strongest in the case of GenAI, then embedded finance, then DeFi. The results elevate the state of Fintech psychology and provide coverage of a policy and design implications of trust-based, emotionally sustainable digital finance systems.
Blockchain technology has profoundly revolutionized decentralized applications across financial systems, global supply chains, and applied informatics. However, it remains susceptible to systemic security hazards. This systematic review comprehensively evaluates core architectural vulnerabilities within blockchain infrastructures, consensus mechanisms, and peer-to-peer (P2P) network layers spanning the decade from 2015 to 2025. We focus primarily on the mechanics, operational taxonomy, and evolutionary trajectories of Sybil attacks, wherein malicious actors forge multiple pseudonymous identities to gain disproportionate systemic influence. By synthesizing the foundational academic literature with real-world empirical case studies, such as automated airdrop farming exploits in Layer-2 ecosystems (e.g., Arbitrum, zkSync) and decentralized finance (DeFi) governance manipulations, we analyze attack mechanisms, quantifiable impacts, and mitigation vectors. Our findings chart the structural evolution of Sybil strategies from rudimentary P2P routing disruptions to complex, economically driven application-layer interventions. Finally, we evaluate contemporary defenses, such as Proof-of-Personhood (PoP) systems and zero-knowledge (ZK) cryptography, offering actionable recommendations for the integration of W3C-compliant decentralized identity (DID) frameworks and behavioral analytics to enhance systemic fault tolerance.
Discover how Tokemak is revolutionizing decentralized finance through its advanced liquidity management solution. Get insight into the protocol's mechanism, governance structure, token purpose, and the significance of its emergence in the DeFi world.
The rapid evolution of financial technology has transformed the global financial landscape, creating opportunities for innovation, inclusion, and efficiency while introducing systemic risks, regulatory uncertainties, and challenges to financial stability. This study presents a bibliometric review of global research trends at the intersection of financial technology and financial stability from 2000 to 2025, mapping the intellectual structure, identifying emerging themes, and highlighting influential contributions. Using Scopus data, the analysis examines 339 peer-reviewed documents across 242 sources. Bibliometric techniques were applied through VOSviewer, Bibliometrix (R), and Biblioshiny to evaluate publication trends, influential authors, thematic clusters, co-authorship networks, and keyword co-occurrences. The results show an average annual growth rate of 21.46 percent, with a marked increase in publications after 2017 coinciding with the mainstream adoption of digital finance and heightened policy focus on financial resilience. Findings indicate that financial technology promotes financial inclusion, banking efficiency, and economic empowerment, yet also introduces cybersecurity threats, regulatory gaps, and systemic vulnerabilities, particularly in emerging markets. Dominant themes include blockchain, digital payments, financial literacy, and central bank digital currencies, with decentralized finance and artificial intelligence emerging as fast-growing areas of scholarly interest. Geographically, China leads in publication volume, while the United Kingdom and the United States dominate in scholarly influence. This review provides a strategic roadmap for researchers and policymakers to navigate the evolving financial technology landscape and emphasizes the need for future research to integrate ethical governance, artificial intelligence risk management, and inclusive financial innovation frameworks.
Fahd Ghalib Basheikh, Ida Widianingsih, Ahmad Zaini Miftah
Decentralized government units in the Global South frequently experience ineffective service delivery because of inadequate funding and weak administrative structures. Using Lamu County Government that allocates bursary funds yet continues to experience operational inefficiencies, this study examines how administrative capacity influences the governance effectiveness of the Lamu County Bursary Programme (LCBP). Guided by Administrative Capacity Theory, the study uses an explanatory sequential mixed methods design using quantitative data from 350 beneficiaries and qualitative data from key informant interviews and focus group discussions. Linear regression results show that administrative capacity is a statistically significant predictor of governance effectiveness (β = 0.627, p < 0.001). Thematic analysis from qualitative data shows three constraints: verification problems, aggravated by geographic dispersion and staffing problems; procedural uncertainty and communication problems, that erode the trust of applicants; and a structural timing penalty, where administrative delays reduce the timeliness and reliability of bursary support, sometimes resulting in temporary school exclusion. The results indicate that the LCBP experiences a capability trap, formal structures are in place but service delivery is weak. Therefore, decentralized units require both financial allocations and effective administrative capabilities. To improve policy outcomes, findings suggest the importance of digitization, staffing at ward level and synchronization of the disbursement calendar with academic cycles.
Artificial intelligence (AI) and blockchain are two of the most transformative technologies of our time, each facing distinct challenges. Blockchain struggles with scalability and efficiency, while AI depends on the integrity of the data it consumes. Yet their proximity in the data value chain enables them to complement one another: AI can optimize blockchain systems through fraud detection, smart contract auditing, or enhanced analytics, while blockchain provides AI with secure, verifiable data crucial for accuracy. The technological convergence of AI and blockchain already reshapes industries such as supply chain management, finance, healthcare, energy, and intellectual property. Emerging solutions—ranging from decentralized data infrastructures to autonomous AI agents—illustrate the growing importance of this technological synergy. Companies implementing AI–blockchain solutions demonstrate enhanced performance, new data monetization opportunities, and even revenue growth. However, convergence raises challenges such as interoperability, reliance on trusted oracles, decentralized data inefficiencies, or regulatory uncertainty. This chapter builds on theories of technological convergence and disruptive innovation to assess the potential of AI–blockchain integration. Drawing on case studies and expert insights, it provides practical frameworks and roadmaps for decision-makers aiming to leverage this convergence as a driver of the next wave of digital transformation.
This paper introduces Mirror Protocol as an implementation layer for the Conditions of Understanding. Rather than proposing another theory of understanding, the paper describes a practical method for protecting the conditions under which understanding can emerge. It argues that genuine understanding is often disrupted not by lack of information but by premature evaluation, guidance, intervention, or meaning fixation. Building upon The Conditions of Understanding, the paper presents a five-stage protocol consisting of Reality / Sensation / State, Project Mirror, Friction Detection Point, Meaning Non-Capture Protocol, and Leave to the World. Together these stages describe how one can remain engaged with another person’s process without prematurely directing or completing it. The paper further distinguishes reflecting from indifference, and non-capture from non-response, arguing that restraint is an active practice rather than passive inaction. Friction is interpreted not as failure but as evidence that the protocol is functioning, provided the impulse to intervene is recognized without being acted upon. Mirror Protocol is proposed not as a communication technique but as a general implementation framework for preserving the conditions in which observation, discovery, and understanding are allowed to arise naturally. It concludes by positioning the protocol as a bridge between theoretical principles and future organizational or institutional applications. This paper is part of a four-part series on the conditions and infrastructure of human understanding: This paper uses "Mirror Protocol" as a concept within Maura Theory, an independent theoretical framework concerning the conditions of human understanding. It is unrelated to the decentralized finance (DeFi) protocol of the same name operating on the Terra blockchain. (1) From Information Access to Meaning Recognition: Professional Expertise After the Cost of Information Collapses https://doi.org/10.5281/zenodo.21230076 (2) The Conditions of Understanding: Protecting the Conditions Under Which Understanding Emerges https://doi.org/10.5281/zenodo.21251927 (3) Mirror Protocol: An Implementation Layer for the Conditions of Understanding https://doi.org/10.5281/zenodo.21252084 (4) Understanding Infrastructure: Scaling the Conditions of Understanding to Organizations and Institutions https://doi.org/10.5281/zenodo.21252316
Aleksandar Stojkov, A. Maksimovska Stojkova, Elena Neshovska Kjoseva, Jovan Zafiroski
This study investigates how a territorially uneven distribution of informal economic activity affects subnational fiscal capacity and potentially distorts fiscal equalization systems. Using a Multiple Indicators, Multiple Causes (MIMIC) model, we estimate the size of the informal economy across the eight statistical regions of North Macedonia over the 2008–2023 period. The estimated shares of regional informality are subsequently linked to indicators of fiscal dependence and local revenue performance. The findings suggest that regions characterized by larger informal economies tend to exhibit greater dependence on intergovernmental transfers and weaker effective fiscal autonomy. The analysis further indicates that intergovernmental transfer systems relying primarily on regional gross domestic product and realized tax collections may systematically underestimate the true economic potential of highly informal jurisdictions. The paper contributes to the literature by conceptualizing informality not merely as an informal economic activity, but as a structural distortion affecting the measurement of fiscal capacity and the functioning of decentralized public finance systems.
Autonomous AI agents capable of holding digital assets, signing transactions, and executing smart contracts on public blockchain networks have moved from research prototypes to active deployment over the past two years. Despite this pace of adoption, no systematic treatment of their architecture, coordination protocols, and governance structures exists that spans the full design space. This survey addresses that gap through a systematic review of the literature from 2019 to 2026, covering 177 peer-reviewed publications and 14 system documentation sources, identified through a structured search of IEEE Xplore, the ACM Digital Library, Scopus, and arXiv. We classify deployed and proposed systems along four architectural dimensions: on-chain execution, off-chain agents with on-chain settlement, verifiable off-chain computation, and multi-agent on-chain interaction. Then, we examine the coordination mechanisms through which agents reach collective decisions, covering auction-based protocols, cooperative multi-agent reinforcement learning, token-incentive structures, and gossip-based peer-to-peer coordination. Governance is treated as a distinct dimension, analysed through a technical lens, covering on-chain parameter control, dispute resolution, and DAO structures, and an organizational one, covering accountability, incentive alignment, principal–agent dynamics, and regulatory compatibility. We survey applications across decentralized finance, supply chain, IoT, and agent marketplace domains, and identify six open research problems whose resolution is a prerequisite for broader deployment. The convergence of mechanism design and multi-agent reinforcement learning in asynchronous blockchain environments is identified as the direction of greatest near-term research value.
Zero-knowledge privacy protocols let users hide transaction details on public blockchains. Systems like Tornado Cash, FixedFloat, and the Houdini Private Swap feature recently added to Jumper rely on cryptographic techniques that unlink sender and receiver addresses. These constructions give legitimate users meaningful protection for their financial activity. They also create a straightforward dual-use dilemma. The February 2025 Bybit incident supplies a clear example. Thieves stole $1.5 billion in ETH, the largest cryptocurrency theft on record. The FBI linked the attack to North Korea’s Lazarus Group. The stolen funds moved quickly through Tornado Cash. The resulting lack of transparency triggered a wave of customer withdrawals. Bybit responded by securing loans of several hundred million dollars from other institutions to keep its operations running. Cases like this demonstrate that zk-based privacy tools, when used at large scale for illicit purposes, can accelerate liquidity crises and place costs on market participants who had no involvement in the original theft. The real problem is not the underlying mathematics that delivers privacy. It lies in the missing mechanisms that could impose accountability on criminal actors while leaving the privacy protections for everyone else intact.
Blockchains have evolved from simple distributed ledgers into programmable platforms that process complex application logic and carry significant financial value. All modern Web3 systems share a common goal: providing secure, decentralized, and trustworthy execution in an increasingly interconnected environment. However, this evolution has shifted the attack surface from isolated infrastructure disruptions to programmable economic abuse and cross-domain exploits. In this article, we focus on the research of blockchain attacks and defenses. In particular, we categorize the threat landscape and corresponding mitigation strategies according to both a four-tier layered architecture (network, cryptographic, consensus, and application) and cross-domain trust boundaries. We seek to answer these important questions: How has the research in blockchain security evolved over the past decade, especially with the rise of decentralized finance (DeFi) and cross-chain interoperability? How do local security assumptions fail when protocols are composed, and what are the driving needs for Web3 security research in the future?
The article examines the decentralized finances of some organizations that are an independent part of the financial system of the Russian Federation. The question of their place in the system of the branch of financial law is analyzed. Based on the study of the works of a number of well-known scientists of Soviet as well as Russian financial law, it is concluded that the idea of separating the finances of some organizations into an independent legal institution was put forward during the Soviet period. Such an independent institute of the branch of financial law was the Institute of Finance of state-owned enterprises (associations) and branches of the national economy. At the present stage, these ideas are expanding due to the justification of the include new legal institutions in the system of financial law, for example, organizations such as state corporations, public law companies, state and municipal institutions.
The present study analyzed the utilization of the CDF for climate resilience projects in vulnerable communities of Sinazongwe District, Southern Province. It was observed that vulnerable communities in Sinazongwe continue to experience water scarcity, reduced agricultural output, and livelihood insecurity, despite the availability of expanded CDF resources meant to address these climate stresses. The study adopted a descriptive case study design with a mixed-methods approach, and sampled 120 respondents using both random and non-random (purposive or non-probability) sampling procedures. The study then employed the semi-structured questionnaires to community members/beneficiaries, to gather quantitative data; as well as the conduction of interviews using the semi-structured interview guide on the CDF committee members, WDCs, and government officials, to gather in-depth qualitative insights; and FGD held with community groups to understand collective perceptions, and challenges. The findings revealed that major CDF-funded climate resilience interventions included borehole drilling and rehabilitation, irrigation projects, conservation farming, tree planting, and water supply systems. Water-related projects were identified as the most significant interventions because they improved access to water, household food security, irrigation activities, and community coping capacity during drought periods. The study further established that community participation mainly occurred through community meetings and Ward Development Committees, although participation remained largely consultative rather than fully empowering. The findings also revealed that political influence, inadequate funding, delayed disbursement of funds, limited technical expertise, weak monitoring systems, and poor integration of DRR affected effectiveness and sustainability of climate resilience interventions. The study concluded that CDF has significant potential to support local climate resilience and livelihood improvement through decentralized financing. However, climate resilience interventions remained inadequate relative to increasing climate-related risks affecting vulnerable communities in Sinazongwe District. The study recommends increased climate-focused funding under CDF, stronger integration of Disaster Risk Reduction into local development planning, improved community participation, strengthened governance and accountability systems, enhanced technical capacity, and greater investment in early warning systems, environmental conservation, and sustainable livelihood diversification.
Purpose This study develops a pricing and contract design framework for cryptocurrency catastrophe (CAT) bonds to transfer extreme crypto-native risks, including protocol exploits, exchange breaches and decentralized finance (DeFi) failures, to capital markets. The paper aims to address arbitrage-free valuation, sponsor-optimal contract design and trustless settlement under the unique informational and operational features of blockchain systems. Design/methodology/approach We propose a multi-trigger crypto CAT bond structure that jointly captures short-term catastrophic shocks and long-term systemic deterioration through oracle-reported loss metrics. An arbitrage-free valuation framework is developed under an incomplete market setting using the minimal martingale measure, while sponsor-optimal contract design is formulated under a dual-measure framework. Empirically, crypto loss dynamics are modeled using generalized extreme value distributions and copula-based dependence structures, whereas financial risk factors are modeled through ARIMA–GARCH and vine copulas. A smart-contract-enabled on-chain settlement architecture is further introduced to automate trigger evaluation and cash-flow execution. Findings Empirical results based on REKT crypto incident data demonstrate strong dependence between monthly extreme and aggregate losses, with heterogeneous dependence structures across blockchain ecosystems. Simulation studies show that trigger and principal repayment designs substantially affect bond price distributions and tail risk exposures. Conservative trigger structures generate more stable bond valuations, whereas aggressive structures exhibit greater downside dispersion. The proposed framework supports economically viable risk transfer while enabling transparent and timely settlement through blockchain-based execution. Originality/value This study develops, to the best of our knowledge, the first integrated framework for crypto native catastrophe bonds that combines arbitrage-free pricing, sponsor optimal contract design and smart contract-based on-chain settlement. Unlike traditional CAT bonds or cyber insurance-linked securities the proposed framework explicitly incorporates oracle-based observability, crypto-specific dependence structures and automated settlement, providing a novel mechanism for transferring systemic digital asset risks to capital markets.
Sai Srikanth Madugula, Peplluis Esteva De La Rosa, Daya Shankar
Decentralized Finance (DeFi) lending protocols currently rely on heuristic, utilization-based bonding curves that mandate severe over-collateralization, systematically excluding under-collateralized assets like corporate invoices. This paper introduces a mathematically optimal pricing mechanism for decentralized credit: the Reverse Kelly Automated Market Maker (rkAMM), the core engine of our proposed lending framework. By inverting the Kelly Criterion, traditionally used for optimal bet sizing, we construct a dynamic interest rate discovery protocol that explicitly prices individual loan risk. The rkAMM ingests real-time Probability of Default (PD) streams from an off-chain Explainable AI oracle and dynamically calculates the exact interest rate required to sustain target liquidity provider (LP) yields. We mathematically derive the Reverse Kelly pricing function ($r = \frac{y + PD}{1 - PD}$), proving its strictly convex superiority over Aave and Compound's static utilization curves in managing capital efficiency. Furthermore, we deploy the rkAMM architecture via Solidity smart contracts, optimizing for gas-efficient 1e18 (WAD) floating-point arithmetic. To ensure decentralized transparency, our simulation infrastructure leverages MLflow for tracking yield hyperparameters, Data Version Control (DVC) linked to DagsHub for versioning Real-World Asset (RWA) data arrays, and localized edge-inference via Ollama (Llama-3) and Hugging Face (FinBERT) for zero-cost predictive modeling. Monte Carlo simulations across 10,000 macroeconomic stress scenarios confirm that the rkAMM maintains protocol solvency and stabilizes LP yields at 12-15\% net of expected credit losses. This work provides the foundational financial engineering required to bridge the \$2 trillion global supply chain finance gap using permissionless blockchain infrastructure.
Regional decentralization within the framework of regional autonomy in Indonesia often creates a regulatory vacuum regarding the ownership and management of assets resulting from cooperation between the central and regional governments. This study aims to analyze the provisions of Law No. 23 of 2014 on Regional Government and to identify regulatory gaps and models for resolving conflicts over public assets following decentralization. The research method employed is a normative legal approach using legislative, conceptual, case-based, and comparative analyses. The findings reveal that Law No. 23/2014 does not explicitly regulate the status of assets during the agreement period, mechanisms for the transfer of rights and obligations, ownership proportions from multi-source financing, or compensation for the parent region. Consequently, legal uncertainty arises regarding large-scale strategic assets involving third parties. This study also found that multi-party mediation involving the governor and the prosecutor’s office proved more effective in resolving public asset disputes than litigation, as demonstrated in the Tasikmalaya case. This study recommends revising Law No. 23/2014 by adding a special chapter on the transfer of assets resulting from post-decentralization cooperation and formalizing the involvement of the prosecutor’s office in the mediation of public asset disputes.