Blockchain Papers

Ouassima Markouh, Amina Adadi, Mohammed Berrada

No abstract is available for this record.

wonguk lee, Euiseok Kim

No abstract is available for this record.

Khalil Bryant, Yesha Yadav

This chapter explores how decentralized digital asset markets, including decentralized autonomous organizations (DAOs), are reshaping the landscape of venture capital (VC) investment. Traditional VC tools – such as governance rights, exit strategies, and downside protections – often clash with the decentralized, token-based models of crypto markets. The authors analyze the legal, financial, and structural obstacles facing VC firms, including regulatory uncertainty, limited enforceability of term sheets, and reduced applicability of conventional exit paths like initial public offerings. Despite these challenges, the chapter argues that crypto's transparency, community-driven governance and smart-contract flexibility may offer new models of investor engagement. Venture capital may be particularly well-positioned to adapt to and shape these markets, but only with significant rethinking of risk pricing, control rights and legal frameworks. The chapter concludes by identifying pathways – such as tokenization and overseas regulatory regimes – that may support more stable VC involvement in digital assets.

ÖZLEM ATA POLAT

Geleneksel olarak fiziki senetlere bağlanan menkul kıymetler daha sonra teknolojinin gelişmesi ve piyasa ihtiyaçlarının değişmesiyle birlikte merkezi saklama sistemiyle aracılı bir şekilde saklanmaya başlanmıştır. Geleneksel saklama sisteminde söz konusu olan hak sahibi ile ihraççı arasındaki doğrudan bağlantı merkezi saklama sisteminde araya aracıların girmesi sebebiyle kesilmiştir. Merkezi saklama sisteminde, merkezi saklama kuruluşu nezdinde hak sahibi bazında izlenmeyen havuz hesaplar açılması yoluyla oluşan toplu ve misli saklama yöntemi, hak sahiplerinin menkul kıymetlerinden kaynaklanan haklarını kullanırken ihraççıya karşı kendilerinin mi yoksa aracı zincirinin en tepesinde olan aracının mı yasal hakka sahip olduğu noktasında sorunlara sebep olmaktadır. Bu nedenle özellikle milletlerarası sermaye piyasası işlemlerinde yabancı yatırımcıların kurumsal yönetime katılımları düşmektedir. Günümüzde ise teknolojinin gelişmesiyle birlikte menkul kıymetlerin dağıtık defter teknolojisi vasıtasıyla saklanması gündemdedir. Dağıtık defter teknolojisinin özellikleri nedeniyle bu yöntemde hak sahibi ile ihraççı arasında tıpkı geleneksel saklama yönteminde olduğu gibi yeniden doğrudan sahiplik sistemi söz konusu olmaktadır. Çalışmamızda menkul kıymetlerin dağıtık defter teknolojisiyle saklanmasının merkezi saklama sisteminin ortaya çıkardığı sorunlara çözüm getirip getirmeyeceği incelenmektedir.

Christos Makridis, Joshua Ammons

Abstract The emergence of large language models (LLMs) has made it increasingly difficult to protect and enforce intellectual property (IP) rights in a digital landscape where content can be easily accessed and utilized without clear authorization. First, we explain why LLMs make it uniquely difficult to protect and enforce IP, creating a ‘tragedy of the commons.’ Second, drawing on theories of polycentric governance, we argue that non-fungible tokens (NFTs) could be effective tools for addressing the complexities of digital IP rights. Third, we provide an illustrative case study that shows how NFTs can facilitate dispute resolution of IP on the blockchain.

Odnala Srinivas, Nihar Ranjan Pradhan

Blockchain Technology and Non-Fungible Tokens (NFTs) have drawn much interest due to their special qualities, and potential in numerous industries, including Pharma. Recently, medical asset management has grown significantly. This study explores how blockchain and a novel designed framework “TokenPharma” NFTs can transform medical asset ownership in healthcare. It examines cryptographic foundations, decentralized structures, and smart contracts. It addresses patient data security, asset management, and transparent transactions. This paper proposes an NFT-based Pharma marketplace using Solidity smart contracts, Ethereum Virtual Machine, and ERC721 tokens to overcome challenges. The proposed structure is tested by using Remix-IDE, Truffle, Metamask, and the Ethereum Sepolia test network. Various smart contracts, algorithms, events, and functions facilitate NFT token minting, purchase, and sale in the pharmaceutical marketplace. Performance tests using Ethereum SDK, Geth, and Hyperledger Caliper assess the proposal’s effectiveness. Following the data, the average latency for Resell_Token, Buy_Token, and Create_Token was 4.27 seconds, 4.68 seconds, and 5.04 seconds, consecutively. Further, the average throughput for Create_Token, Buy_Token, and Resell_Token was 223.83TPS, 262.7TPS, and 268.76TPS accordingly. Resell_Token has the highest throughput since it needs fewer write operations, although Buy_Token has a higher throughput than Create_Token, according to the performance analysis. The function measured the average CPU utilization, while the memory usage fluctuated between 645 to 780 MB on average. TokenPharma outperforms the state-of-the-art when the given parameters are taken into consideration.

Carla Reyes, Christine Hurt

No abstract is available for this record.

Dimitris Pechlivanidis

No abstract is available for this record.

Holger Neuhaus, Mirjam Plooji

Through its Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET) services, the Eurosystem facilitates the settlement of wholesale financial transactions in central bank money, the safest and most liquid settlement asset. The Eurosystem is continuing to modernize its settlement infrastructures and to adapt them to changing user needs, and it is analyzing the potential impact of emerging technologies, including distributed ledger technology, on the settlement of wholesale financial transactions. The initial analysis by the Eurosystem consisted of market outreach and an analysis of possible responses in the event of a significant uptake of distributed ledger technology. Following this initial analysis, the Eurosystem has started exploratory practical work. This paper discusses the rationale for the Eurosystem exploring central bank money settlement of transactions registered on distributed ledger technology platforms, the results of its analysis so far and the envisaged next steps.

David Krause

No abstract is available for this record.

Sen Li, Yan Chen

Effective governance plays a pivotal role in aligning the interests of diverse stakeholders and shaping the strategic directions of organizations. However, the dominant model of corporate governance often concentrates power among a limited group of directors, leading to concerns about potential power imbalances that may distort fair representation and compromise decision-making integrity. Decentralized autonomous organizations (DAOs) present an alternative model that distributes power among a broader base of stakeholders, fostering a more democratic approach to collective decision making and governance. However, the openness and fluidity inherent in DAOs can expose them to coordination challenges, governance complexities, and potential exploitation by malicious entities. In response to possible governance challenges, we consider DAOs as digital commons and adapt Ostrom's eight principles for governing the commons to propose a new governance framework for DAOs. This governance framework is designed to foster the collective stewardship of shared digital assets and the equitable distribution of decision-making authority in the Web3 era. As DAOs emerge as a novel organizational structure, our governance framework aims to maintain their resilience, inclusiveness, and decentralization, reinforcing their crucial role in the evolving Web3 landscape.

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.

Douglas J. Cumming, Niclas Dombrowski, Wolfgang Drobetz, Paul P. Momtaz

Coordination frictions prevent the efficient adoption and governance of blockchain-based platforms. Crypto funds (CFs) create value by smoothing frictions on decentralized digital platforms (DDPs). CF-backed DDPs obtain higher valuations in the primary token market, outperform their peers after issuing tokens, and benefit from token price appreciation around CF investment disclosure in the secondary market. Primary transaction data from the Ethereum ledger shows that the valuations of DDPs with meager adoption and a higher centralization of token ownership benefit more from CF backing. The positive valuation and performance effects for CF-backed DDPs are more pronounced for CFs that are more central in investor networks.

Deepak Kumar, B.V. Phani, Naveen Chilamkurti, Suman Saurabh · 5 authors

The International Finance Corporation (IFC) estimates that 65 million firms, or 40% of formal micro, small, and medium enterprises in developing countries, have an unmet financing need of $5.2 trillion annually, equivalent to 1.4 times the current level of global MSME lending. Current lending institutions and mechanisms have proven inadequate in filling this credit gap. Blockchain technology promises to replace intermediaries and enable peer-to-peer transactions using decentralized ledgers and smart contracts. In this study, we propose a Blockchain-based decentralized peer-to-peer lending framework for SMEs using Ethereum. We implement the solution using Solidity and simulate the Ethereum blockchain using Ganache. Blockchain-based decentralized peer-to-peer lending can make the SME lending process more transparent and efficient by ensuring information transparency. The decentralization and automation of the lending process can reduce the time and cost of SME lending, making it more accessible and affordable for SMEs to obtain credit.

Sandi Rahmadika, Winda Agustiarmi, Delsina Faiza, Putra Jaya · 6 authors

Collaborative learning techniques facilitate the collective participation of multiple individuals in enhancing artificial intelligence models by leveraging their respective private datasets. The training is conducted by the users in a local setting, with gadgets facilitating the frequent exchange of gradient values. In contrast to traditional training methods, collaborative procedures do not involve publicly disclosing training data. Irrespective of the positives associated with privacy concerns, customers frequently exhibit reduced motivation to enhance the model owing to insufficient procedural incentives. In summary, the available resources are not utilized to their fullest potential. In order to address the problem at hand, we have developed a collaborative learning model that incorporates a secure, equitable, and unalterable reward mechanism through the use of blockchain technology. Incentives are allocated in a manner that is commensurate with the individual contributions made by users. The incentive schemes are implemented on the Ethereum blockchain. Additionally, we assess the efficacy of collaborative learning in an alternative context. The experimental results show that the design objectives have been achieved.

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

Amit Kumar, Neha Sharma, Rahul Chauhan, Manish Sharma · 5 authors

In recent years, there has been a significant surge in the popularity of Non-Fungible Tokens (NFTs), and Ethereum has emerged as one of the prominent platforms for the production and trading of these tokens. The primary objective of this research paper is to conduct a thorough analysis of non-fungible tokens (NFTs) based on the Ethereum blockchain. This analysis will be accomplished by utilizing diverse datasets sourced from Kaggle. This paper aims to examine the trends, market dynamics, and factors that exert influence on the ecosystem of non-fungible tokens (NFTs) specifically within the Ethereum blockchain. This paper employs data analysis and visualization techniques to provide valuable insights into the expansion and potential obstacles encountered by the Ethereum non-fungible token (NFT) market. Moreover, it elucidates the influence of this market on the broader cryptocurrency and art sectors.

Vera Gerasimova, Gunnar Prause, Thomas Hoffmann

A smart contract is an electronic transaction protocol intended to digitally facilitate, verify, or enforce the execution of the terms of underlying legal agreements. Thus, by following the traditional perception, smart contracts target reducing transaction costs, including arbitration and enforcement costs, by realizing trackable and irreversible transactions using blockchain technology for distributed databases. However, the potential of smart contracts goes far beyond cost reductions by facilitating the entrepreneurial collaboration of cross-organizational business processes. Industry 4.0 aims to create smart supply chains. Smart contracts and Non-Fungible Token (NFT) solutions can realize new smart business models in the circular economy. The recent case study from the automobile industry demonstrates how using NFT technology in the form of a digital certificate can become an integral part of smart product lifecycle management in the frame of a circular economy integrating innovative business models with smart service design concepts. By doing so, the use of NFT paves the way for dynamic and adaptable supply chains, evolving needs of stakeholders towards a sustainable and circular economy. The authors participated in research projects related to smart supply chains and circular economy. Thus, the paper discusses the question of how and to what extent smart contracting, blockchain technology, NFT solutions, and Service Design can facilitate the implementation of smart business models in the context of the circular economy. The research is based on expert interviews, surveys, and case studies from EU projects focusing on the Baltic Sea Region.

Espen Bjellerås

No abstract is available for this record.

Xihan Xiong, Zhipeng Wang, Xi Chen, William J. Knottenbelt · 5 authors

In the Proof of Stake (PoS) Ethereum ecosystem, users can stake ETH on Lido to receive stETH, a Liquid Staking Derivative (LSD) that represents staked ETH and accrues staking rewards. LSDs improve the liquidity of staked assets by facilitating their use in secondary markets, such as for collateralized borrowing on Aave or asset exchanges on Curve. The composability of Lido, Aave, and Curve enables an emerging strategy known as leverage staking, an iterative process that enhances financial returns while introducing potential risks. This paper establishes a formal framework for leverage staking with stETH and identifies 442 such positions on Ethereum over 963 days. These positions represent a total volume of 537,123 ETH (877m USD). Our data reveal that 81.7% of leverage staking positions achieved an Annual Percentage Rate (APR) higher than conventional staking on Lido. Despite the high returns, we also recognize the potential risks. For example, the Terra crash incident demonstrated that token devaluation can impact the market. Therefore, we conduct stress tests under extreme conditions of significant stETH devaluation to evaluate the associated risks. Our simulations reveal that leverage staking amplifies the risk of cascading liquidations by triggering intensified selling pressure through liquidation and deleveraging processes. Furthermore, this dynamic not only accelerates the decline of stETH prices but also propagates a contagion effect, endangering the stability of both leveraged and ordinary positions.

Serhan Kotiloglu, Maria Paola Ometto

Initial coin offering (ICO) is a Web-3 based financing method for ventures, which allows them to use digital assets (e.g., tokens) to raise capital. During an ICO, the entrepreneur has control on ownership; they can choose to issue a very small number of tokens which would allow them to keep “their skin in the game” and retain ownership, or issue all the tokens they hold, which would distribute ownership to investors and have a community-decentralized orientation. While previous literature has identified several factors of ICO success, they have not delved into the role of ownership in ICO success. In this study, we explore whether retaining or distributing ownership during an ICO is more beneficial for raising capital. We find a two-pronged explanation. When looking at ICOs maintaining a higher level of ownership, entrepreneurs are catering to corporate-market logic investors, and we see a U relationship where the optimal percentage in which the entrepreneurs show they have skin in the game at the same time as giving enough to investors. But then, there are ICOs distributing most of its ownership in which entrepreneurs are attracting community-oriented investors, and as such, the higher the distribution the higher the investment. We propose that this is related to how there are different investors audiences’ that will value different practices and ideals and choose differently on what types of projects to invest in. Our research elucidates this new funding source. Nonetheless, future research should investigate these exploratory findings.

Guilherme Maia, João Vieira dos Santos

This chapter discusses the new DLT (Distributed Ledger Technology) Pilot Regime issued by the EU, considering its use and applicability regarding DeFi (Decentralized Finance). As set out in the ESMA (European Securities and Markets Authority) Report on crypto-assets, the authorities are having difficulties interpreting the existing legal requirements, discussing their application to crypto-assets and DLT structures. The DLT Pilot Regime is intended to operate in a way akin to a regulatory sandbox, permitting and framing the operation of market infrastructures that process trades in crypto-assets qualified as financial instruments and that otherwise would not be allowed to operate or would be subject to excessive and burdensome requirements. The regime aims to create legal certainty in view of the rules currently defined for secondary markets in financial instruments, particularly if these rules are fully suited to DLT and crypto-assets while also ensuring the protection of investors, market integrity and financial stability.

Ahmad A. Rabaa’i, Shereef Abu Al Maati, Nooh Bany Muhammad, Enas M. Eljamal

Investment in non-fungible tokens (NFTs) has decreased dramatically over the past two years, despite the financial value and potential importance of NFTs for the future of the economy and the current decentralized marketplaces. This study investigated the barriers influencing customers' resistance to investing in NFTs using the innovation resistance theory (IRT) components such as usage barriers, value barriers, risk barriers, tradition barriers, and image barriers. The data was gathered from 375 investors via an online questionnaire. To assess and evaluate the suggested model and its hypotheses, responses were investigated using a partial least square structural equation modeling approach (PLS-SEM). The findings indicate that the five resistance-related barriers are all substantial deterrents to investing in NFTs. The usage barrier was the most significant barrier, whereas the value barrier was the least significant. The study's findings have far-reaching implications for academics, NFTs’ marketplaces, policymakers, and investors.

Viktor Ström, Nima Sanandaji, Saeid Esmaeilzadeh, M Esmaeilzadeh

Purpose The purpose of this paper is to investigate the potential link between Sweden’s high reliance on equity capital financing among small and medium-sized enterprises (SMEs) and its recognition as the most innovative economy in Europe according to the European Innovation Scoreboard (EIS). This paper examines the idea that the high levels of trust within Swedish society can explain why private equity financing is more prevalent among Swedish SMEs. Design/methodology/approach To test these ideas, the authors use data from the Survey on Access to Finance for Enterprises to measure the private equity reliance of firms. The authors also use the EIS to measure the innovation capacity of nations and various aspects of SMEs’ innovation activities. Finally, societal levels of trust are measured through the World Value Survey. Findings First, the authors find that European countries with a higher proportion of SMEs relying on equity financing tend to be ranked as more innovative by the EIS. Second, the authors find that the correlation between a nation’s share of SMEs relying on equity financing and their level of innovation activities is marginally stronger for product innovations than for business process innovations. Third, the authors find that countries with higher levels of trust tend to have higher equity capital reliance among SMEs. Originality/value This study builds upon previous research on equity capital and SMEs’ innovation activity while introducing new insights into the relationship between societal trust and equity financing.