Blockchain Papers

Dmitrii Kopeikin

No abstract is available for this record.

David Krause

This paper explores Web3, the next phase of internet evolution driven by decentralization and blockchain technology, contrasting it with Web1 and Web2.It examines Web3's transformative potential in industries such as finance, art, gaming, and governance, with a focus on Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), Metaverses, and Decentralized Autonomous Organizations (DAOs).While Web3 offers significant promise, it faces challenges like scalability, security, regulatory uncertainty, and user experience issues.The paper also addresses the SEC's investigation of OpenSea, the largest NFT marketplace, as a critical obstacle for Web3's future.Finally, it discusses Web3's trajectory and highlights areas for future research.

D. Larry Crumbley, Donald L. Ariail, Amine Khayati

Crypto assets have upset the pillars of regulatory and centralized monetary policy, and the Financial Accounting Standards Board (FASB) has been slow in developing a position on how to account for cryptocurrencies. Currently, there are many accounting, finance, and tax meanings of cryptocurrencies. The purpose of this study is to show the path FASB has taken to develop accounting standards for more than 20,000 crypto assets, outline the positions other authorities and agencies have taken, and discuss Central Bank Digital Currencies since the United States and other countries are considering replacing their fiat currency with a digital currency. Furthermore, the study presents insights from an exploratory survey of accounting faculty opinions on cryptocurrencies. The discussion of virtual currency regulatory and accounting treatments informs the development of a regulatory framework.

Philipp Maume, Finn Kesper

On 23 March 2023, the DLT-Pilot-Regime came into force. It provides market operators the opportunity to offer blockchain-/DLT-based securities trading subject to full EU financial markets regulation. Although this piece of legislation has not attracted as much attention as the Regulation on markets in crypto-assets (MiCAR), the impact of the DLT-Pilot might be signification. In this article, we outline how the EU legislators have identified the shortcomings of current EU market regulation when applied to DLT-based trading, and addressed them one by one. If successful, the DLT-Pilot could become a ‘test kitchen’ for the development of DLT-based securities and crypto-asset trading in the EU. distributed ledger technology, DLT Pilot, financial instrument, MiCAR, regulatory sandbox, settlement system, multilateral trading facility

Lucian Trestioreanu, Wazen M. Shbair, Flaviene Scheidt de Cristo, Radu State

Recent technologies such as inter-ledger payments, non-fungible tokens, and smart contracts are all fruited from the ongoing development of Distributed Ledger Technologies. The foreseen trend is that they will play an increasingly visible role in daily life, which will have to be backed by appropriate operational resources. For example, due to increasing demand, smart contracts could soon face a shortage of knowledgeable users and tools to handle them in practice. Widespread smart contract adoption is currently limited by security, usability and costs aspects. Because of a steep learning curve, the handling of smart contracts is currently performed by specialised developers mainly, and most of the research effort is focusing on smart contract security, while other aspects like usability being somewhat neglected. Specific tools would lower the entry barrier, enabling interested non-experts to create smart contracts. In this paper we designed, developed and tested Blockly2Hooks, a solution towards filling this gap even in challenging scenarios such as when the smart contracts are written in an advanced language like C. With the XRP Ledger as a concrete working case, Blockly2Hooks helps interested non-experts from the community to learn smart contracts easily and adopt the technology, through leveraging well-proven teaching methodologies like Visual Programming Languages, and more specifically, the Blockly Visual Programming library from Google. The platform was developed and tested and the results are promising to make learning smart contract development smoother.

Lončarević, Miloš

Internal Auditing (IA) as a profession has reshaped over decades in order to adapt to the constantly changing environment surrounding it. Internal auditors are ongoingly confronted with new technologies and need to be aware of complex digital risks, new fraud schemes, but also hot topics like Internet of Things, Artificial Intelligence and Blockchain. For blockchain a lot of the spotlight was historically on the investment and capitalization aspects of cryptocurrencies whereas the technology itself has evolved from a mere means of payment and value storage to more complex business constructs managed by self-enforcing smart contracts and oracles. In this dissertation the established and internationally recognized standards of internal auditing are applied to the context of newly popping up blockchain-based Decentralized Autonomous Organizations (DAOs) that operate on a series of smart contracts. The tokenized nature of ownership of these distributed ledgers as well as some law experts' assessments imply that they may have to be classified as public capital corporations and therefore be subjected to stricter rules and standards. Not only are internal audit functions highly recommended for large organizations but depending on the corporate laws of a country and the industry they are likely to be mandatory. While DAO-enthusiasts imply that the immutable nature of the blockchain, the recognized consensus mechanism, and strong preventive and automated controls will make internal auditing obsolete, this research sheds light on whether there are conceptual obstacles for IA in DAOs regarding compliance with internationally recognized internal auditing standards and therefore question the overall legality of this type of organization. After an initial analysis of professional and scientific publications as a basis, each IA standard is reviewed for obstacles, benefits, and challenges regarding the respective compliance in a DAO context utilizing an exploratory research method. Because it appears that there may be governance and operational collisions with regard to the strict standards of the Institute of Internal Auditors on the one hand and the conceptual unique setup of blockchain-based DAOs on the other, we evaluate the hypothesis by which standard compliance is impossible and therefore the legality of a DAO in itself may be in question. In addition, we analyze whether and how the use of a DAO can benefit and/or complicate the compliance with each internal auditing standard. This foundational research dissertation may offer guidance on what safeguards DAOs need to implement to comply with certain laws and standards but also addresses policy and standard makers with the assignment to update their rules and offer guidance for implementation. The dissertation may also offer guidance for the mandatory external and internal quality assessments (IIA Standards 1311 and 1312) of internal audit functions in DAOs. Overall, it presents additional insights to related professions like accountants, compliance officers, external auditors, anti-fraud professionals, IT auditors and others while offering a glimpse into what the role of an internal auditor of the future might realistically look like.

رانا محمود عبده, محمد شعبان ابراهيم

Abstract: This research aims to examine the current practices of accounting for bitcoins by reviewing some studies which related to this topic, and thus for achieving the main objective of the study, which is to develop a proposed model to account for bitcoins that unifies accounting practices of bitcoins. The main objective of the study is to develop a proposed model to account for bitcoins that unifies accounting practices of bitcoins. To achieve this objective, the researchers divided the research to include the following: “Introduction” which aimed to gain a holistic view for the research, and then " Literature Review." In this part the researchers clarify the nature, characteristics, pros and cons, and also how the bitcoin system works, through reviewing number of papers, accounting academic journals, professional publications. After that, the researchers reviewed the different current accounting practices for bitcoins, and the efforts of some formal organizations in accounting for bitcoins.Finally, the researchers introduced A proposed framework for unifying the accounting practices for bitcoins; the proposed framework consisted of five main pillars, recognition and classification of bitcoins, measurement of bitcoins and disclosures for bitcoins. The researchers represented a case of financial statements to apply the proposed framework for accounting for bitcoins, and show the effect of the proposed accounting model on the financial statements.

Jingyi Qian

This study examines the value of System and Organization Controls 2 (SOC 2) audits to customers. A SOC 2 audit is a voluntary assurance service provided by an independent CPA over a firm's internal controls relevant to information system security. I use cryptocurrency exchanges, a setting where the lack of customer trust can be particularly acute, to examine whether SOC 2 audits increase customer demand. I find a substantial increase in liquidity following the disclosure of initial SOC 2 audit completion: the trading volume of cryptocurrencies listed on audited exchanges increases by more than 60 percent, and the price impact decreases by approximately 40 percent in the three months after SOC 2 audit disclosure. Exploring the channels through which SOC 2 audits provide value to customers, I find that exchanges with high-quality security measures are more likely to initiate SOC 2 audits, and that continued audits ensure that the quality of security measures remains high. Overall, this study provides novel evidence that SOC 2 audits provide value to customers by sending a credible and positive signal of exchange security, and thus significantly increase customer demand.

Serhii Hrytsai

Adnotacja.Nowe cyfrowe formy pieniędzy mogą umożliwić tańsze i szybsze płatności, zwiększyć dostępność finansową, zwiększyć odporność i konkurencję wśród dostawców usług płatniczych oraz ułatwić przelewy transgraniczne.W tym celu należy podjąć trudne decyzje polityczne: wyjaśnić role sektora publicznego i prywatnego w zapewnianiu bezpieczeństwa i regulowaniu cyfrowych form pieniądza.Cel badania: ewolucyjny wybór banków centralnych do digitalizacji swoich walut fiducjarnych na tle rozwoju aktywów kryptograficznych.Cel artykułu określa metody badawcze: stosowane są ogólne naukowe metody badawcze i specjalnie prawne metody poznania.Co ogólnie pozwoliło na wyciągnięcie właściwych wniosków.Zrównoważone podejście do wywrotowych technologii FinTech polega na wyeliminowaniu ich szkodliwych skutków

Rubens Moura de Carvalho, Helena Inácio, Rui Pedro Marques

No abstract is available for this record.

А.С. Басова, Д.Б. Владимирова

В ходе исследования проведен анализ рынка криптовалют для выбора более актуальной монеты с большой капитализацией. Благодаря своей набирающей популярности для исследования была выбрана криптовалюта ETH. Литературный обзор подтвердил актуальность и показал невысокий уровень изученности этой криптовалюты в рамках темы. Рассмотрены значения ряда за период с 14.03.2020 по 30.06.2020. Проведены тесты стационарности с помощью анализа графиков АКФ и ЧАКФ выбранного ряда криптовалюты, а также расширенные тесты Дики-Фуллера. Преобразованы исходные данные для уменьшения разброса дисперсии (логарифмирование) и исключение сезонности и тренда (взятие второй разности). Выполнено построение моделей прогноза с помощью модели авторегрессии — проинтегрированного скользящего среднего ARIMA (p, d, q) и с помощью статистических методов (анализ обычного и скорректированного коэффициентов детерминации) и информационных критериев Акайке и Швардца была выбрана единственная подходящая модель. Для того, чтобы можно было прогнозировать значения, была проведена диагностика модели по трем параметрам (остатки белый шум; модель стационарна и обратима) с помощью анализа остатков и теста единичного корня, и после получения успешного результата, спрогнозированы 2 значения за период с 01.07.2020 по 02.07.2020. Сравнение реальных и прогнозных значений цены криптовалюты показало, что сумма квадратов отклонений существенно ниже от выбранной точности результатов. Визуальный анализ графика также показал: модель способна формировать пики и спады цены. Был сделан вывод об эффективности данного метода в краткосрочных прогнозах криптовалюты. The study conducts an analysis of the cryptocurrency market to select a more relevant coin with a large capitalization. Due to its gaining popularity, the cryptocurrency ETH was chosen for the study. Literature review confirms the relevance and shows a low level of study of this cryptocurrency within the topic. The values of the series for the period from 14.03.2020 to 30.06.2020 are considered. The stationarity tests with the analysis of ACF and ChakF charts of the selected cryptocurrency series, as well as the extended Dickey-Fuller tests are carried out. The initial data were transformed to reduce dispersion (logarithm) and to exclude seasonality and trend (taking the second difference). Forecasting models were built by means of autoregressive model — ARIMA (p, d, q) integrated moving average and by means of statistical methods (analysis of ordinary and adjusted coefficients of determination) and Akaike and Schwartz information criteria the only appropriate model was selected. In order to be able to predict values, the model was diagnosed by three parameters (residuals white noise; the model is stationary and reversible) using residuals analysis and unit root test, and after obtaining a successful result, 2 values were predicted for the period from 01.07.2020 to 02.07.2020. A comparison of the real and predicted cryptocurrency price values shows that the sum of squares of deviation is significantly lower than the selected accuracy of the results. Visual analysis of the chart also shows that the model is able to form price peaks and declines. It is concluded that this method is effective in short-term cryptocurrency forecasts.

Cristóbal Marinkovic, Julio López Fenner, Óscar Ancán, Carlos Cares

A smart contract is an agreement whose execution is automated or semi-automated. DasContract was introduced in 2019-2021 as a domain-specific language for smart-contract modeling, with the ability to generate code in a programming language. DasContract’s former modeling environment had various limitations, both technical and design related. Some of these limitations have previously been recognized in the literature in several dimensions. In this study, we propose further guidelines for contract modeling to address error prevention in the modeling environment, thus contributing to improved smart-contract specifications.

L. Grassi, Davide Lanfranchi

Abstract Higher regulatory compliance requirements, fast and continuous changes in regulations and high digital dynamics in the financial markets are powering RegTech (regulatory technology), defined as technology‐enabled innovation applied to the world of regulation, compliance, risk management, reporting and supervision. This work builds on a systematic literature review and a bibliometric analysis of the literature on RegTech, its influential papers and authors, its main areas of research, its past and its future. The resulting multi-dimensional framework bridges across four main dimensions, starting with regulation and technology, where one or more regulations, not necessarily financial ones, are addressed with the support of technologies (e.g. artificial intelligence, DLT, blockchain, smart contracts, API). Data play a central role, as sharing them enables data ecosystems, where additional value can be attained by each market participant, while data automation and machine-readable regulations empower regulators to pull data directly from the banks’ systems and combine these data with data obtained directly from customers or other external sources. Several applications emerge, both for regulated entities, covering matters of compliance, monitoring, risk management, reporting and operations, as well as for authorities, which can leverage on RegTech (SupTech) solutions to make policies, to undertake their authorising, supervising and enforcement operations, for monitoring and controlling purposes, and even to issue fines automatically. As a consequence, stakeholders can reap a series of benefits, such as higher efficiency and effectiveness, accuracy, transparency and lower compliance costs but also risks, such as cyber risk, algorithmic biases, and dehumanization.

Reuven S. Avi-Yonah, Mohanad Salaimi

No abstract is available for this record.

Asmaa Serag

The research aims to use the blockchain technology to ensure the distribution of XBRL content to a decentralized peer- to-peer network  while maintaining the authority of the government toward the whole data. The topic of combination XBRL and blockchain is scarcely discussed in academic journal due to the very early stage of technology development. This paper explains how to build a distributed ledger platform prototype that designed to improve financial reports transparency and integrity by using blockchain technology in line with XBRL to form XBRL chain. XBRL chain helps in developing smart contracts that more business rules encoded in software, why are as good as the person or team devising the rules and the developer turning those rules into code. These smart contracts with newest encoded accounting rules could effectively control the recording of accounting activities. Therefore, these contracts would provide automatic assurance on processes, such as posting, classification and cutoff. The proposed framework of XBRL chain makes the quality of information in the financial reporting more interoperability and comparability. This framework should subject to six situational conditions are: multi party, trusted authority, decentralization, smart contract, data confusability, and type of blockchain. A case study is implemented on Egyptian company (EDITA ) Food Company that publishes its financial statements under IFRS. The case explained how the integration between XBRL and blockchain can be built to implement XBRL mapping for consolidated balance sheet and profit or loss statement the mapping process is implemented under using black chain software. Also, the percentage of fit between IFRS taxonomy 2020 and Egyptian financial practices are measured. The findings of the case study revealed that, for EDITA Food Company, 89 percent of the elements in the two basic financial statements exist in the taxonomy. The high degree of misfit is found in the balance sheet statement 14 percent and in income statement is 6 percent limitations and future research directions are, this paper contributes to the literature by expending upon emerging concerns and providing opportunities for future research.

Authors unavailable

The Senate's proposed infrastructure legislation includes a controversial section (Act § 80603) concerning information reporting for brokers and digital assets. If this (or similar) legislation is passed, the federal tax law concerning cryptocurrency will be significantly augmented. The provision is intended to generate $28 billion over 10 years, to help fund the infrastructure projects and reduce the tax gap.

Daniel Liebau, Nicholas J. Krapels

No abstract is available for this record.

Dirk Otto Beerbaum, Seppo Ikäheimo, Julia M. Puaschunder, David Derichs

No abstract is available for this record.

Daniel Dupuis, Kimberly C. Gleason, Yezen H. Kannan

No abstract is available for this record.

충남대학교 행정학부 교수, Jinhyuk Choi

자치분권에 따라 재정권한을 많이 향유하는 지방자치단체에는 그만큼의 통제와 책임이 확보될 수 있 는 방안이 필요하다. 따라서 우리가 추구하고 있는 재정분권의 강화가 회계책임성의 제고를 담보할 수 있는 것인가 라는 의문에서 본 연구는 시작되었고, 회계책임성의 강화를 주민의 참여, 의식제고나 자치 단체장과 지방의회 등 정책결정자의 도덕적 차원만이 아닌 재정관리제도의 개선으로 제고될 수 있는 현실적 방안을 도출하고자 하였다. 자치단체의 재정운용에서 재정정보의 수요도 제한적이며, 본질적인 정보가 아닌 부수적인 정보의 양 산과 이들이 공시되는 상황에서 시의적절한 정보(timely information that is objective, fact-based, nonpartisan, nonideological, fair, and balanced)가 필요하다는 점을 강조하였다. 이와 함께 지방자 치단체의 회계책임성을 구현하기 위해서 주민에 대한 재정공시제도와 재정책임성을 확보할 수 있고, 내 부관리자들이 더 나은 결정을 할 수 있는 각종 제도적 장치를 모색해야 한다. 그런 면에서 사업별 원가 산 정, 사업의 유사･중복 식별, 사업성과의 평가에 기본이 되는 예산분류체제, 예산편성형식(format)은 개 선되어야 할 과제이다. 아울러 재정담당부서(예산, 회계, 세정 등)의 내부통제가 강화되어야 할 것으로 예산부서는 사업에 관한 정보, 일상의 재정운영이나 예산･결산의 내용, 특히 차년도 예산편성 정보 등 재 무전반에 대한 정보에 관하여 총괄책임(control tower)의 역할을 하여야 할 것이고, 재정부서 공무원의 전문성 제고를 위한 조처가 필요하다. 그리고 재무회계와 관련해서는 회계감사제도의 도입, 재무회계결 산으로의 일원화 등이 논의될 수 있는데, 이를 위해서 우선적으로 재무회계 담당자의 전문성 제고, 자치 단체장의 인식 제고가 필요할 것으로 보았다.

Eleonora Stancheva-Todorova

Ethical behavior is a key factor for accountants to win the trust of their stakeholders in the digital age. Many ethical dilemmas are now under consideration and profession is more than concerned about the enhanced risks of ethical compromises. This paper is aiming to discuss the relevance of the fundamental ethics principles for professional accountants in a technology-led digital age. These five principles are: integrity, objectivity, professional competence and due care, confidentiality and professional behavior. Artificial intelligence and big data analytics that are currently changing work environment of the accounting profession are analyzed in this context. Cybersecurity, platform based business models and distributed ledger technology are also considered as ethical challenges in the light of exponentially growing digitalization of economy.

吳亦婷

[[abstract]]隨著去中心化金融架構的發展，以及使用者對理財應用的需求由單純逐筆式流水記帳，逐漸升級為欲系統化地統整個人財務資訊，基於區塊鏈原理之開放銀行服務架構即相應快速興起。本研究即以去中心化金融對開放銀行架構中，各類金融相關服務之設計的影響為主要研究議題。 重點分為產業面、使用面、應用面等三個主要面向，探討服務提供及使用模式的變革，以及以試驗模型(Mockup)模擬第三方應用工具其因應提高服務提供方與使用方雙方適用性而有操作、功能創新的運作架構，另並研究前述三項重點各面向之利弊。產業面之分析公開資訊數據，得知組織、投資、人力資源之發展將成為開放銀行商業模式之主要推動力；使用面進行假設檢定分析，得知各面向對於開放銀行之接受度之影響有各種異同；應用面則以Adobe Xd實際繪製並模擬開放銀行服務第三方應用工具之運行，得知其與市面上已活躍一段時間之主流第三方服務工具運行架構尚有雷同之處。 With the rise of Decentralized Financial architecture and the user's demand for wealth management applications are gradually upgraded from simple transac-tion-by-transaction flow accounting to the systematic integration of personal financial information, the Open Banking service architecture, which based on Block Chain the-ory, has attracted increasing attention. This research focuses on the impact of Decen-tralized Finance on the design of various financial-related services in an open banking structure. The emphasis is divided into three main aspects: the industry, the require-ments of use, and the application. Which discusses the change of service provision and use mode. Also simulates and discusses the operation structure of a third-party appli-cation tool with the mockup, that there are operation and functional innovation. The pros and cons of each of the three key points mentioned above are also studied. Analy-sis of “the industry” public data, knowing that the development of the organization, investment, and human resources will become the main driving force of the open bank business model; “the requirements of use” is to conduct a hypothesis testing, knowing that each aspect has an impact on the acceptance of open banks various similarities and differences; “the application” is actually drawn and simulated by Adobe Xd for the operation of third-party application tools for open banking services, and it is known that it has similarities with the operating architecture of mainstream third-party ser-vice tools that have been active in the market for some time.

Nishani Edirisinghe Vincent, Anne M. Wilkins

SUMMARY The novelty, ambiguity, and the lack of official guidance surrounding cryptocurrency transactions impose additional audit risks that should be considered during client acceptance and retention and planning audit procedures. We develop a four-quadrant model to assist auditors in client acceptance and continuance decisions and identify cryptocurrency risks that should be considered during audit planning and audit evidence gathering.

Amer Qasim, Faten Kharbat

ABSTRACT Recently, accounting academics have reported increased attention in the accounting profession toward the employment of various technologies. These studies only highlight the exploitation of these technologies in the profession and areas for future research, while missing the need for modernizing the accounting curriculum to meet the industry's technological needs. This paper follows an integrated model for curriculum redesign to reflect blockchain technology, business data analytics, and artificial intelligence employment in the accounting profession. By building on the main four educational curricula designs components, we propose ways to incorporate these technologies into the accounting curriculum. Current industry implementation of new technologies should be considered by academia when designing accounting curriculum to prepare graduates for the market and to ensure their employability. This paper calls for radical changes in the accounting curriculum to reach a balance between existing accounting knowledge and information technology skills relevant to the profession. JEL Classifications: M4; I23; O33.