Blockchain Papers

Yue Liu, Qinghua Lu, Xiwei Xu, Liming Zhu · 5 authors

No abstract is available for this record.

Kose John, Maureen O’Hara, Fahad Saleh

At their essence, blockchains are digital sequences of numbers coded into computer software that permit the secure exchange, recording, and broadcasting of transactions between individual users operating anywhere in the world with Internet access. Like most technological changes, the development of blockchains drew on and combined several existing technologies. Blockchains incorporate digital encryption technologies that mask, to varying degrees, the specific content exchanged as well as the identities of individual users. Algorithms, pre-coded series of step-by-step instructions, are also mobilised in solving complex mathematical equations and arriving at a consensus on the validity of transactions within networks of users. Time-stamping technologies then periodically bundle verified transactions into datasets, or ‘blocks’. Linked together sequentially, these ‘blocks’ form ‘chains’ that make up larger ‘blockchain’ databases of transactions that broadcast a permanent record of transactions whilst maintaining the anonymity of users and specific content exchanged. Blockchains are intended to be maintained by all users in manners meant to be immutable, unless users arrive at a clear consensus to undertake changes.

Hubert Pun, Jayashankar M. Swaminathan, Pengwen Hou

Counterfeiting is a severe problem in many sectors. There are two types of counterfeits: non‐deceptive and deceptive. While both types are important business challenge, deceptive counterfeit has an additional negative impact—customers have a post‐purchase regret if they expect to purchase a real product but ended up with a fake. The focus of this study is on the setting that relates to deceptive counterfeits. Our paper is one of the first that examines the effectiveness of blockchain as a solution to a supply chain challenge. Specifically, the unique feature of blockchain that we model, which none of the traditional strategies studied in the literature is capable of, is that blockchain adoption changes the analysis from a deceptive counterfeit setting to a non‐deceptive counterfeit setting. We also consider government being a decision maker and customers' privacy concern from blockchain adoption, two features that are not examined in the existing literature. We consider a market with a manufacturer and a deceptive counterfeiter. The manufacturer can signal product authenticity either with blockchain technology or through pricing. The government can provide subsidy to encourage blockchain adoption. Blockchain should be used when the counterfeit quality is intermediate or when customers have intermediate distrust about products in the market. If government provides subsidy, blockchain can be more effective than differential pricing strategy in eliminating post‐purchase regret. Our results advocate for government providing subsidy because it benefits both customers and the society and could be a better approach than government enforcement efforts.

Roman Beck, Christoph Müller-Bloch, John Leslie King

Blockchain technology is often referred to as a groundbreaking innovation and the harbinger of a new economic era. Blockchains may be capable of engendering a new type of economic system: the blockchain economy. In the blockchain economy, agreed-upon transactions would be enforced autonomously, following rules defined by smart contracts. The blockchain economy would manifest itself in a new form of organizational design—decentralized autonomous organizations (DAO)—which are organizations with governance rules specified in the blockchain. We discuss the blockchain economy along dimensions defined in the IT governance literature: decision rights, accountability, and incentives. Our case study of a DAO illustrates that governance in the blockchain economy may depart radically from established notions of governance. Using the three governance dimensions, we propose a novel IT governance framework and a research agenda for governance in the blockchain economy. We challenge common assumptions in the blockchain discourse, and propose promising information systems research related to these assumptions.

Hemang Subramanian

In a decentralized marketplace, buyers and sellers transact directly, without manipulation by intermediary platforms.

Wenchi Ying, Suling Jia, Wenyu Du

No abstract is available for this record.

Ying‐Ying Hsieh, Jean‐Philippe Vergne, Philip C. Anderson, Karim R. Lakhani · 5 authors

Bitcoin represents the first real-world implementation of a “decentralized autonomous organization” (DAO) and offers a new paradigm for organization design. Imagine working for a global business organization whose routine tasks are powered by a software protocol instead of being governed by managers and employees. Task assignments and rewards are randomized by the algorithm. Information is not channeled through a hierarchy but recorded transparently and securely on an immutable public ledger called “blockchain.” Further, the organization decides on design and strategy changes through a democratic voting process involving a previously unseen class of stakeholders called “miners.” Agreements need to be reached at the organizational level for any proposed protocol changes to be approved and activated. How do DAOs solve the universal problem of organizing with such novel solutions? What are the implications? We use Bitcoin as an example to shed light on how a DAO works in the cryptocurrency industry, where it provides a peer-to-peer, decentralized, and disintermediated payment system that can compete against traditional financial institutions. We also invited commentaries from renowned organization scholars to share their views on this intriguing phenomenon.

Marten Risius, Kai Spohrer

No abstract is available for this record.

Jens Ekkenga

Article Bitcoin und andere Digitalwährungen – Spielzeug für Spekulanten oder Systemveränderung durch Privatisierung der Zahlungssysteme? was published on November 27, 2017 in the journal Computer und Recht (volume 33, issue 11).

Maria-Lluïsa Marsal-Llacuna, Miquel Oliver

Blockchain is here to stay. Some affirm that it is the next big thing after the Internet. Blockchain is a network-based technology that rewards participants to assemble transactions which will next configure blocks and later be part of a chain. Blockchain guarantees immutability and integrity of data without the need of a third surveilling party. It is therefore a revolution in current systems of trust. It also brings automation and self-execution of processes thanks to its embedded smart contracts functionality. Current standards drafting and development processes can definitively benefit from blockchain technology, and perhaps see the standardization domain revolutionize, like it already happened in the fintech and insurtech arenas [1]. In this paper, we explain what these advantages are. And, before new standard drafting models emerge from the disruptive blockchain community, challenging traditional standard development models-with this paper-, we want to inspire and give tools to established standardization bodies for them to take the lead and initiate a transformation towards `Blockchained Standards' so that they can keep their authority and leadership in the field going forward.

Frank Hofmann, Simone Wurster, Eyal D. Ron, Moritz Böhmecke‐Schwafert

The blockchain technology can be regarded as a groundbreaking invention with the potential to bring the digital revolution to the next stage by helping to realize peer economy solutions. The blockchain technology and the concept of blockchain immutability is discussed. The benefits of early standardization of the blockchain technology are argued based on the literature and the analysis of the central blockchain immutability characteristic. From this, a framework is proposed aimed at understanding the dimensions and boundaries of blockchain immutability. The resulting framework is suggested as a good practice standard for the implementation of blockchain systems. Based on these efforts, the article supports initiatives to better exploit the blockchain technology's full potential by standardization.

Bert-Jan Butijn, Damian A. Tamburri, Willem‐Jan van den Heuvel

In recent years, the UK railway industry has struggled with the effects of poor integration of data across ICT systems, particularly when that data is being used across organizational boundaries. Technical progress is being made by the industry towards enabling data sharing, but an open issue remains around how the costs of gathering and maintaining pooled information can be fairly attributed across the stakeholders who draw on that shared resource. This issue is particularly significant in areas such as Remote Condition Monitoring, where the ability to analyse the network at a whole-systems level is being blocked by the business cases around the purchase of systems as silos. Blockchains are an emerging technology that have the potential to revolutionize the management of transactions in a number of industrial sectors. This chapter will address the outstanding issues around the fair attribution of costs and benefits of data sharing in the rail industry by proposing blockchains as a forth enabler of the rail data revolution, alongside ESB, ontology, and open data.

Yong Ming Kow, Caitlin Lustig

No abstract is available for this record.

Natalija Kostrikova

Decentralization, on one hand, brings more transparency and trust to the parties involved in transactions,but on the other hand, it narrows possibilities for central control. Distributed Ledger Technology(DLT) is a recent decentralized innovation in the field of information and communication technology(ICT) that acts as self-sustainable ledger for documenting transactions self-protected against counterfeitingand hacker attacks. The aim of the current research paper is to reveal opportunities and barriersfor utilization of distributed ledgers in the context of EU digital single market strategy. The main tasksare (1) to analyze functionality dynamics of existing distributed ledgers, (2) to analyze utilization areasof distributed ledgers, (3) to analyze digital trends related to utilization of distributed ledgers within theEU. The current research paper utilizes methods of content analysis, grounded theory, descriptive statistics,correlation analysis and regression analysis. The research has revealed that half of EU DigitalSingle Market priorities can be facilitated through distributed ledgers.DOI: http://dx.doi.org/10.5755/j01.eis.0.11.18134

Jan Sürmeli, Uwe Der, Stefan Jähnichen, Andreas Vogelsang

No abstract is available for this record.

Bilal Göde, Habib Küçükşahin

Kripto Para Birimlerinin Kayitdisi Ekonomi Uzerine Etkileri; Bitcoin Ornegi Ars. Gor. Bilal Gode Pamukkale Universitesi, Ars. Gor. Habib Kucuksahin Pamukkale Universitesi, hkucuksahin@pau.edu.tr OZET Her gecen gun dijitallesen dunyada, temel manada mubadele, deger biriktirme ve deger olcusu olma fonksiyonlarina sahip olan para da degisime ugramaktadir.  Devletlere ait olan degisik para birimlerine alternatif olarak herhangi bir devlete, kurum ya da kurulusa ait olmayan ve “blockchain” teknolojisi uzerinde yukselen para birimleri ortaya cikmaktadir. Bir para biriminin ekonomik islemlerde kullanilabilmesi icin; kabul edilebilirlik, deger istikrari, tasinabilirlik, bolunebilirlik, uzun omurluluk, tek bicimlilik ozelliklerine sahip olmasi gerekmektedir. Kripto paralar olarak adlandirilan elektronik paralar teorik olarak bu ozellikleri tasimaktadir. 15.10.2017 tarihi itibariyle 878 adet kripto para cesidi mevcuttur ve her gecen gun bu sayi artmaktadir. Kripto para birimlerinin piyasa degeri de yine ayni tarihte 175,79 Milyar Dolar seviyesindedir. Bu paralar icerisinde en unlu olani ise ilk kripto para olmasi itibariyle Bitcoin’dir. Bitcoin (BTC) ornegine baktigimiz zaman fikri olarak 31 Ekim 2008 tarihinde ortaya cikan bu kripto para birimi, 9 Ocak 2009’da ilk blok’un yayinlanmasiyla fiili olarak dolasima girmistir. 15 Ekim 2017 tarihi itibariyle piyasadaki Bitcoin miktari 16,622,962 adet ve bu coinlerin piyasa degeri de 95,11 Milyar Dolar seviyesindedir. Bitcoinler bireyler arasinda transfer edilirken bir araci kurum vasitasiyla gerceklestirilmemektedir ve bu durum transferin taraflarini ve sebebini gizli tutmayi saglamaktadir. Transferlerin disaridan mudahaleye kapali olmasi kayit disi ekonomi adina kripto paralari cok onemli bir arac haline getirmektedir. Bu durum gerek yasal cercevedeki islemlerin gerceklestirilmesi ve vergisel amaclarla bu islemlerin gizli tutulmasinda; gerekse de yasa disi islemlerin gerceklestirilmesi adina onemli bir anonimlik saglamaktadir. Yakin gelecekte kripto paralarin yayginliginin artisi ile beraber kayit disi ekonominin boyutunda da artis meydana gelmesi oldukca olasi gozukmektedir. © 2017 PESA Tum haklari saklidir. Anahtar Kelimeler: Kayitdisi Ekonomi, Blockchain, Bitcoin, Kripto Para ABSTRACT In the digitizing world, the money that has the functions of exchange, value accumulation and value in the basic sense is undergoing change day by day. As an alternative to the different currencies belonging to States, currencies are emerging on blockchain technology that do not belong to any state, institution or organization. In order for a currency to be used in economic transactions; it must have the characteristics of acceptability, value stability, portability, divisibility, longevity, uniformity. Electronic monies, called crypto currencies, theoretically carries these characteristics. As of 15.10.2017, there are 878 crypto money types and this number is increasing day by day. The market value of crypto currencies is also at the level of $ 175.79 billion. The most famous of these is Bitcoin as it is the first crypto money. when we looked at the example of Bitcoin (BTC),this crypto currency emerged on October 31, 2008 later it was actually circulating on January 9, 2009, when the first block was released. As of October 15, 2017, the amount of Bitcoin on the market is 16,622,962 units and the market value of these coins is $ 95,11 Billion. While bitcoins are being transferred between individuals, they are not carried out by an intermediary institution, and this ensures that the parties and the reason for transfer are kept secret. As transfers are closed to external intervention, crypto money is a very important tool for the informal economy. This situation requires that legal transactions are carried out and that these transactions are kept confidential for tax purposes; as well as providing an important anonymity for the execution of illegal transactions. It is highly probable that the extent of the informal economy will increase in the near future with the increase in the prevalence of crypto-money. © 2017 PESA All rights reserved. Keywords: Informal Economy, Blockchain, Bitcoin, Cryptocurrency

Elżbieta Jantoń-Drozdowska, Alicja Mikołajewicz-Woźniak

Research background: The year 2016 ended the period of the migration from national payment services to the SEPA instruments. At the same time, however, it has become apparent that some problems remained unresolved. Overcoming them requires finding suitable technological solutions. The potential of the distributed ledger technology (DLT) is currently being explored by the financial sector and its implementation may affect the SEPA schemes in a variety of dimensions. Purpose of the article: The aim of the article was to determine the potential impact that the DLT transfer to the banking sector may have on the functioning of the SEPA in the future. The paper presents SEPA?s assumptions and the current status of the project as well as the DTL?s concept. It describes the technology transfer implications for the banking industry and compares the SEPA schemes currently operating with those based on the DLT. It also indicates the opportunities and threats that are the consequence of the new technology implementation and examines their significance for the SEPA. Methods: In the article, a qualitative analysis is supplemented with a quantitative one. Elements of descriptive statistics have been used to characterize the functioning of the main pillars of the SEPA schemes. The final conclusions are based on the comparative analysis of the SEPA schemes and developed DLT applications. Findings & value added: The existing problems might be solved by supplementing the SEPA payment schemes currently operating with the applications based on the DLT. The systems that will be subsequently developed will provide the required real-time processing and a global reach. They will also extend the functionalities of the SEPA schemes with the ability to transfer other currencies. The implementation of this technology will result not only in new financial products but, first of all, in creating new business models. Consequently, we may expect a modification of the currently operating SEPA schemes, based on their supplementation rather than total replacement in a short time frame.

Ron Lavi, Or Sattath, Aviv Zohar

The Bitcoin payment system involves two agent types: Users that transact with the currency and pay fees and miners in charge of authorizing transactions and securing the system in return for these fees. Two of Bitcoin's challenges are (i) securing sufficient miner revenues as block rewards decrease, and (ii) alleviating the throughput limitation due to a small maximal block size cap. These issues are strongly related as increasing the maximal block size may decrease revenue due to Bitcoin's pay-your-bid approach. To decouple them, we analyze the “monopolistic auction” [8], showing: (i) its revenue does not decrease as the maximal block size increases, (ii) it is resilient to an untrusted auctioneer (the miner), and (iii) simplicity for transaction issuers (bidders), as the average gain from strategic bid shading (relative to bidding one's true maximal willingness to pay) diminishes as the number of bids increases.

Purwono Purwono, Alfian Ma’arif, Wahyu Rahmaniar, Qazi Mazhar ul Haq · 6 authors

Blockchain technology has a promising future in a number of industries and enterprises. Formerly connected to virtual currency like Bitcoin, blockchain has evolved into a versatile technology with many applications. In the upcoming years, it is predicted that blockchain will revolutionize a variety of industries, including banking, supply chain management, healthcare, voting systems, and more. The future of blockchain technology depends critically on its ability to increase security and transparency. By providing a decentralized and unchangeable record, eliminating the need for middlemen, and boosting participant confidence, blockchain promotes secure and traceable transactions. This transparency has the potential to transform whole industries by reducing fraud, streamlining processes, and increasing output. Blockchain also has the power to change financial systems. Blockchain-based smart contracts facilitate faster, more efficient transactions by automating and enforcing contractual agreements without the need for middlemen. By enabling speedier cross-border transactions, reducing costs, and boosting financial inclusion, tokenization and blockchain-based digital currencies have the potential to overturn conventional banking institutions. Blockchain’s key attributes, including decentralization, transparency, immutability, and security, make it a desirable choice for a range of organizations. Cross-border payments, trade finance, and smart contracts are just a few of the financial sector processes that blockchain technology has the potential to enhance and automate, lowering costs and increasing productivity. Additionally, the tamper-resistance of blockchain technology can boost transaction security and reliability, allowing for a wider use in traditional financial institutions. Outside of the financial industry, blockchain technology has a lot of promise, particularly in industries like supply chain management, healthcare, energy, intellectual property, and governance. By enabling transparent and traceable transactions, blockchain may improve supply chain efficiency, ensure product authenticity, and boost customer trust. By facilitating the secure exchange of patient data and research data, the decentralized nature of blockchain technology can enhance data security, interoperability, and privacy in the healthcare sector. A more decentralized and sustainable energy ecosystem may be supported by blockchain technology through peer-to-peer energy exchange, grid management, and monitoring of renewable energy certificates in the energy sector. Additionally, blockchain technology has the potential to transform decentralized governance structures, voting procedures, intellectual property rights, and digital identity management. By allowing people to own and manage their digital identities, blockchain can enhance privacy and reduce identity theft. Blockchain-based voting systems can offer transparency, security, and verifiability, thereby increasing voter turnout and public trust in democratic institutions. Blockchain can also enable the secure and transparent management of intellectual property rights, fostering author credit and just compensation.

Richard Adams, Glenn Parry, Phil Godsiff, Peter M. Ward

Abstract Blockchain technology provides an exciting application space for innovation in diverse domains but threatens disintermediation for organizations providing a trusted and auditable account of ownership and transactions. It needs, however, an appropriate regulation to keep pace with technological developments. Technology remains very young, akin to the Internet in the early 1990s. Use cases, practical demonstrators, standards, and lexical consistency are urgently required.

Sarah Manski

Abstract Blockchain technologies are reconfiguring the global economy, though often in contradictory ways. Blockchain technologies are disrupting key economic and financial sectors. Some blockchain applications allow for democratization of finance, services, agriculture, and governance, yet they may also deepen inequality and weaken democracy. We need new understandings of the countervailing tendencies of blockchain technologies and the contingencies that shape their deployment.

Beth Kewell, Peter M. Ward

Abstract Blockchain technology is considered, in some quarters, to have outgrown its primary association with the Bitcoin payments ecosystem. This belief has fostered numerous predictions of blockchain futures, in which the Bitcoin ecosystem is largely absent. It is nevertheless wholly possible to imagine a future for blockchain in which Bitcoin plays a presiding role. In drawing attention to subtexts of this kind, expectations of the future can prove highly persuasive within the context of technology selection and adoption processes of the present, lending an invisible hand to the design of business models, while also guiding strategic choices and the purchasing decisions made by managers.

Katiuscia Mannaro, Andrea Pinna, Michele Marchesi

Bloekehain - software technology used for peer-to-peer transaction platforms - is being increasingly applied to alternative opportunities for a variety of industries and use cases such as also in the energy sector. As of now all energy related to blockchain applications are still in a concept stage. This paper aims to present the preliminary ideas of a research project that we have launched in collaboration with a small Fintech company: the Crypto-Trading project. From a research perspective we have explored how a blockchain-based system integrating smart contract functionality can be used to share energy in order to promote smart grids for the management of electricity in the Sardinia Region. From a technical perspective the project will implement a modular blockchain-based software platform for extending the features of cryptocurrency exchanges to the renewable Energy Market, including a robo-advisor which will suggest prosumers the best selling strategy. Blockchain technology shows a lot of promise. In our opinion this might boost the growth of renewable energy production and consequently also have a positive effect on the regional economy.

Ali Kazerani, Domenic Rosati, Brian Lesser

The purpose of this study is to investigate to what degree usability and user experience are factors in the uptake and use of bitcoin. This paper investigates whether usability affects bitcoin adoption by beginners. To ascertain whether this is true, a pilot study was designed to gather rich qualitative data. Participants in this study were asked to provide commentary while completing an assigned task that was designed to emulate a common case that a person unfamiliar with bitcoin might encounter when dealing with the currency for the first time.