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2017 Global Cryptocurrency Benchmarking Study

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... Recently, some studies have attempted to investigate the relationship between blockchain technology and cryptocurrencies, and the environmental quality [ (Dilek and Furuncu, 2019), (Goodkind et al., 2020, (Hileman andRauchs, 2017), (Krause and Tolaymat, 2018), (O'Dwyert and Malone, 2014)]. However, the linkages between Fintech development, and the environment have remained missing from this analysis. ...
... The steady rise in energy consumption of miners, for Bitcoin production is also instigating the rise of new problems. As (Hileman and Rauchs, 2017) revealed, the center of Bitcoin in China is dependent on coal for the energy that has been utilized by Bitcoin mining, which has eventually led to pollution, and continues to do so. Similarly, (Dilek and Furuncu, 2019) have also reported that the energy needed for bitcoin mining and the subsequent transactions has been obtained from coal and thermal plants, thus resulting in intensified CO 2 emissions, and increased global warming, air pollution and even an increase in the death rates. ...
... The inclusion of gross domestic product, gross capital formation, and trade related variables, such as the exports in greenhouse gasses emissions, function as determinants is a phenomenon that is heavily supported by (Hasanov et al., 2018;Knight and Schor, 2014;Shahbaz et al., 2018;Wang et al., 2020). Similarly, the negative role of Fintech development, via cryptocurrency mining on the environment and energy consumption has predominantly been reported by (Dilek and Furuncu, 2019;Hileman and Rauchs, 2017;Krause and Tolaymat, 2018;Mora et al., 2018;O'Dwyert and Malone, 2014). However, it is also noteworthy that the views on this relationship are divided, and the positive contribution of Fintech development for the environment has also been profusely praised (Green, 2018;UNFCCC, 2017). ...
Article
In the recent years, the concerns raised by environmentalists, over the excessive usage of electricity, particularly in the mining of cryptocurrencies, have caught the attention of the community at large. In this regard, regulators and stakeholders have been reevaluating the costs and benefits of technological development in general, as well as in Fintech, specifically targeting their efforts towards the restoration of the environment. Considering that technology has long been perceived as dual edged sword for the environment, this would be the appropriate time to assess its true role in the environmental improvement, or rather, even deterioration. Therefore, this study attempts to address the question of whether the Fintech development is helping economies towards a smooth transition towards a lower level of carbon and greenhouse gasses emissions. Our results in this aspect are highly encouraging, and confirm that Fintech development can in fact help to reduce the greenhouse gas emissions, after the inclusion of appropriate control variables. Moreover, these results are robust even after the incorporation of the potential endogeneity of Fintech development, by the usage of 2SLS and GMM estimations.
... The majority of cryptocurrencies are largely clones of bitcoin or other cryptocurrencies and simply feature different parameter values (e.g., different block time, currency supply, and issuance scheme). These cryptocurrencies show little to no innovation and can be referred to as 'altcoins' [7] . [5] In contrast, a number of cryptocurrencies have emerged that, while borrowing some concepts from Bitcoin, provide novel and innovative features that offer substantive differences. ...
... The combined market capitalization (i.e., market price multiplied by the number of existing currency units) of all cryptocurrencies has increased more than threefold since early 2016 and has reached 27 billion [7] A relatively low, but not insignificant share of value is allocated to duplication (i.e., 'altcoins'), while a growing share has been apportioned to innovative cryptocurrencies ('cryptocurrency and blockchain innovations') [7]. ...
... The combined market capitalization (i.e., market price multiplied by the number of existing currency units) of all cryptocurrencies has increased more than threefold since early 2016 and has reached 27 billion [7] A relatively low, but not insignificant share of value is allocated to duplication (i.e., 'altcoins'), while a growing share has been apportioned to innovative cryptocurrencies ('cryptocurrency and blockchain innovations') [7]. ...
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The reality is that we live in a society where a small group of people thinks they know better than we do and how we should live our lives. They don’t ever seem to realize that the power and wealth they surround themselves with is only possible because of the quiet acquiescence of the majority. They say employment is a record high, but fail to say wages have been going down in real terms for decades. This wall street elites and big head of governments and pharmaceutical businesses constantly keep telling the general population how great everything is but deep down we all know it’s not true as Recent estimates for global poverty are that 8.6 percent of the world, or 736 million people, live in extreme poverty on 1.90 dollars or less a day, according to the World Bank but we know in our bones it’s not true. But it could be and through technology, it will be. As the only answer to political and financial problems that assail us is to step outside the circus. That’s where cryptocurrencies come in, as they offer a secure form of transferring or recording ownership of our assets and the most important part is they function completely independently of governments. Whether you are with or against them cryptocurrencies represent one of the biggest bull markets in the history of finance and it’s the only boom that comes close to the California gold rush. So as a future Muslim Moroccan scientific researcher in the field of Cybersecurity and block-chain technology I couldn’t help but wonder how could we use this technology in my country to revolutionize the banking and Financial sector in it and especially after I learned that Morocco prohibited the use of bitcoin back in 2017. I then found myself asking the following questions: how does cryptocurrency conform to sharia’s Islamic teaching especially in Morocco? And how could the use of cryptocurrencies send shock waves across the Middle East?
... respectively. Cryptocurrency exchanges, which most likely are facilitating the highest number of cryptocurrency payments among all of the listed actors at the moment, and are the largest cryptocurrencyrelated industry by number of entities and headcount [37], only follow at fourth place with 28.26%, while specialized intermediaries land at last place with 15.6%. The same ordering holds when participants are asked which actors they would entrust their personal and financial data with, where again banks lead by far with more than 70% approval, followed by central banks with more than 41%, financial service providers at almost a third of respondents, and then cryptocurrency exchanges at 19% and specialized intermediaries at 14%, trailing the other actors by far. ...
... The picture looks different for users who already have used cryptocurrencies, with only 42.86% accepting banks as payment system providers and 51.02% accepting them as handlers of personal and financial data, although it should be repeated that this sample was a small minority of the overall respondents with just 49 instances. The picture flips when regarding cryptocurrency exchanges, which currently form the main gateway to cryptocurrencies for most individuals [37], as 59.18% of actual cryptocurrency users approve of exchanges as payment system providers and 46.94% would entrust them with their financial and personal data, compared to 28.26% and 19.08% for the total sample. In terms of approval for the other actors, the subgroups had otherwise similar views. ...
... The idea of decentralized digital currencies was present for decades, in the 1980s and 1990s, e-cash protocols were created based on a cryptographic technique known as Chaumian binding but failed due to their reliance on a centralized mediator [19]. Bitcoin first started operations in January 2009 [21] created by an anonymous group/person known as Satoshi Nakamoto. Now there are hundreds of cryptocurrencies currently being traded and at some point, thousands of cryptocurrencies have existed, what all of those cryptocurrencies have in common is the public ledger system created using blockchain technology that is shared between network participants, and the use of local tokens as a method to incentivize and encourage the usage of the cryptocurrency and to join the network in the absence of a central figure or authority [21]. ...
... Bitcoin first started operations in January 2009 [21] created by an anonymous group/person known as Satoshi Nakamoto. Now there are hundreds of cryptocurrencies currently being traded and at some point, thousands of cryptocurrencies have existed, what all of those cryptocurrencies have in common is the public ledger system created using blockchain technology that is shared between network participants, and the use of local tokens as a method to incentivize and encourage the usage of the cryptocurrency and to join the network in the absence of a central figure or authority [21]. Satoshi Nakamoto's vision behind bitcoin was to establish an electronic payment system that has its foundation based on cryptographic proof, instead of trust, that would allow any two entities to perform transactions with each other without the presence of a central third party, they also stated that, as these transactions are computationally irreversible, they protect the user from fraud [22]. ...
Thesis
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Blockchain technology is a booming disruptive technology with many uses and im- plementations. This thesis aims to discuss blockchain technology implementations in the field of supply chain management along with the benefits and drawbacks of blockchain. This thesis will also measure the factors of blockchain technology adoption in an Egyptian supply chain context, by using the extended UTAUT2 framework.
... Масалан, Г.Джонсон фикрича, ўзгарувчан валюта курслари учун фундаментал асос бўлиб, уларнинг ташқи мувозанатни автоматик таъминлаш орқали мамлакатларга халқаро битимларни амалга оширишнинг етарлича эркинлигини таъминлаш билан биргаликда монетар, фискал ва бошқа сиёсат инструментларини қўллашда мустақиллик бериши ҳисобланади 68 . Бундан ташқари, Брода валюта курсининг эркин сузиш режимининг муҳим ижобий жиҳатларидан бири, унинг реал инқирозларга нисбатан силлиқ мослашишга имконият яратишида эканлигини таъкидлайди 69 . Агар мамлакатда ички нархлар даражаси сезиларли даражада барқарор бўлса, ташқи инқирозларга жавобан нархлардаги ўзгариш паст суръатларда кечади. ...
... Federal Reserve Bank of St. Louis review 52, 1970, pp. 12-24.69 Broda, Cristian "Coping with Terms of Trade Shocks: Pegs Versus Floats." ...
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Ушбу монографияда валюта сиёсатининг моҳияти, шакллари ва амалга ошириш механизмлари, рақамли иқтисодиёт ривожланиши ва хусусий рақамли валюталарнинг пул-кредит ва валюта сиёсати самарадорлигига таъсири, алмашув курсини танлаш сиёсати ва валютавий интеграциялашувнинг назарий-услубий жиҳатлари тадқиқ қилинган. Шунингдек, криптовалюталар бозори ривожланишининг замонавий тенденциялари аниқланган ва омиллари таҳлил қилинган, криптовалюталар муомаласини тартибга солиш бўйича халқаро амалиётдаги мавжуд тизимлар, Марказий банк рақамли валютасини муомалага чиқариш бўйича мавжуд лойиҳалар ҳолати таҳлил қилинган. Монографияда Ўзбекистонда валюта бозори ва алмашув курси режими, валюта сиёсатини эркишлаштириш амалиётининг самарадорлиги таҳлил қилинган, валюта курсига таъсир этувчи омилларнинг эконометрик таҳлили амалга оширилган. Бундан ташқари, рақамли трансформация шароитида валюта сиёсатини амалга ошириш механизми самарадорлигини ошириш йўналишлари, миллий иқтисодиётда долларлашув даражасини камайтириш орқали валюта сиёсати самарадорлигини ошириш механизмлари, Марказий банк рақамли валютасини муомалага чиқариш шарт-шароитлари, рақамли иқтисодиёт шароитида валютавий интеграцияни чуқурлаштириш истиқболлари илмий жиҳатдан асосланган. Монография рақамли иқтисодиёт, валюта сиёсати, криптоактивлар билан боғлиқ масалалар билан қизиқувчи тадқиқотчилар, талабалар ва мутахассис-амалиётчиларга мўлжалланган.
... The notions of cryptocurrency and tokens are tightly linked. Cryptocurrencies are digital tokens that exist within a specific cryptocurrency system [14]. Native tokens are used to incentivise participants to run a network in the absence of a central authority [14]. ...
... Cryptocurrencies are digital tokens that exist within a specific cryptocurrency system [14]. Native tokens are used to incentivise participants to run a network in the absence of a central authority [14]. Furthermore, tokens provide the means for utilising certain blockchain services [15] or can be seen as a privately used type of currency [16]. ...
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With the influence of digital technology in our daily lives continuously growing, we investigate methods with the purpose of assessing the stability, sustainability, and design of systems of token economies that include tokens and conventional currencies. Based on a chemical approach, we model markets with a minimum number of variables and compare the transaction rates, stability, and token design properties at different levels of tokenisation. The kinetic study reveals that in certain conditions, if the price of a product contains both conventional money and tokens, one can treat this combination as one composite currency. The dynamic behaviour of the analysed systems is proven to be dynamically stable for the chosen models. Moreover, by applying the supply and demand law to recalculate the prices of products, the necessity of previous knowledge of certain token attributes—token divisibility and token–money exchange rates—emerges. The chemical framework, along with the analytic methods that we propose, is flexible enough to be adjusted to a variety of conditions and offer valuable information about economic systems.
... Research on the uses and gratification focuses on how users feel delighted while using unique and innovative technologies in daily life for comfort and ease (Shafieizadeh et al., 2021). In contrast, perceived usefulness depicts the feeling of the consumers when they consider that their selected service will be improved by the application of technology (Hileman and Rauchs, 2017). Many researchers have linked perceived factors (usefulness and ease of use) with the behavioral intention of consumers to adopt new technology (Saadé and Bahli, 2005;Daud et al., 2018). ...
... There are two frames for risk when it comes to cryptocurrency adoption. The first is that most people think cryptocurrency is riskier and related to speculative fraud and scams (Hileman and Rauchs, 2017). It happens due to the complexity of their operation and less knowledge of cryptography and computer science (Doblas, 2019). ...
Article
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Cryptocurrency has revolutionized the economic system of the world. It provides a new and innovative means of exchange that has speedily invaded the financial market trends and changed the traditional cash world. However, consumers have low acceptability for blockchain-based cryptocurrency due to increasing online scams and the absence of a regulatory framework. There is also a misconception about its usage on many platforms, which has created a clear gap in the literature to address this issue. Therefore, the current study intends to investigate the effect of technology awareness on the behavioral intention of crypto users through perceived factors (usefulness, ease of use, risk). It also empirically examines the moderating role of government support on these indirect paths. The underlying framework is investigated by surveying 333 respondents from the Z generation. Results revealed that perceived factors (usefulness, ease of use, risk) mediate the relationship between technology awareness and behavioral intention. Furthermore, government support strengthens the indirect relationship of technology awareness on behavioral intention through technology acceptance determinants, such that the effect of technology awareness on behavioral intention through perceived factors (usefulness, ease of use, risk) is more assertive when government support is high. The findings will provide a new dimension to different financial bodies implementing monetary policy and highlight the need to adopt innovative digital technologies in Pakistan.
... Knowing that the majority of bitcoin discussion occurs on these sites and assuming that the largest community yields the most results its not entirely unreasonable to estimate the total number of bitcoin ponzis to be somewhere on the order of 10,000. Estimates for the current number of cryptocurrency wallets suggest in excess of 35 million address with 96% of these supporting bitcoin transactions [7] . This suggests that the data imbalance is both relative and intrinsic. ...
Research
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The invention of cryptocurrencies has created new opportunities for criminals to leverage a variety of traditional scam techniques. Fraudulent activity associated with cryptocurrency is experiencing explosive growth and is a significant barrier for widespread adoption of blockchain technology. Early detection of ponzi schemes in this domain is a problem that is a good candidate for machine learning and whose impact surpasses hundreds of millions of dollars each year. This paper extends previous classification models for bitcoin ponzis from start to finish with a focus on dealing with the intrinsic relative imbalance in the data. We explore a variety of balancing techniques as well as models for dealing with the data and discuss their efficacy with regards to this classification problem. Finally we look to the future and discuss interesting avenues of investigation, improvements in data pipelining and data balancing, and the implications of these models now and in the future. Introduction Following the first proof of concept of Bitcoin established in 2009 by Satoshi Nakamoto, cryptocurrencies quickly became an attractive option for developers and investors looking to leverage new technology. Cryptocurrencies utilize blockchain ledgers maintained by all members, ensuring that transactions are validated and reliable. The underlying decentralized nature of blockchain ledgers gives users the ability to transfer currency between any two nodes on the network using generated alphanumeric addresses that require no personal information.
... De Vries uses a fixed emissions factor of 475 gCO 2 /kWh based on a location distribution of Bitcoin miners reported by Hileman and Rauchs [19]. De Vries started providing annualized emissions estimates around 2021-03-08 at 12.05 MtCO 2 , with a more recent estimate on 2021-10-08 at 36.41 MtCO 2 . ...
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The Ethereum ecosystem is maintained by a distributed global network of computers that currently require massive amounts of computational power. Previous work on estimating the energy use and emissions of the Ethereum network has relied on top-down economic analysis and rough estimates of hardware efficiency and emissions factors. In this work we provide a bottom-up analysis that works from hashrate to an energy usage estimate, and from mining locations to an emissions factor estimate, and combines these for an overall emissions estimate.
... The rapid growth of two important Chinese pools (F2Pool and AntPool) profoundly modified this landscape and made China the largest pool hosting nation from 2015 to 2018. According to Hileman and Rauchs [64], cheap electricity and land costs in remote Chinese areas (e.g., Sichuan and Xinjiang) are significant drivers of this location pattern. Between Mar. ...
Thesis
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Bitcoin is a pioneer cryptocurrency that records transactions in a public distributed ledger called the blockchain. It has been used as a medium for payments, investments, and digital wallets that are not controlled by any government or financial institution. Over the past ten years, transaction activities in Bitcoin have increased rapidly. The volume and evolving nature of its data pose analysis challenges to explore diverse groups of users and different activities on the network. The field of Visual Analytics (VA) has been working on the development of analytical systems that allow humans to interact and gain insights from complex data. In this thesis, I make several contributions to the analysis of Bitcoin mining activity. First, I provide a characterization of the past work and research challenges related to VA for blockchains. From this assessment, I proposed a VA tool to understand mining activities that ensure data integrity and security on the Bitcoin blockchain. I propose a method to extract miners from the transaction data and trace pool hopping behavior. The empirical analysis of this data revealed that emerging mining pools provided a better incentive to attract miners. Simultaneously, miners strategically chose mining pools to maximize their profit. To explore the evolution and dynamics of this activity over the long term, I developed a VA tool called MiningVis that integrates mining behavior data with contextual information from Bitcoin statistics and news. The user study demonstrates that Bitcoin miner participants use the tool to analyze higher-level mining activity rather than mining pool details. The evaluation of the tool proves that it helped participants to relate multiple information and discover historical trends of Bitcoin mining.
... Social networks like Twitter, Facebook, or Reddit are the main tools for advertising cryptocurrencies. The cryptocurrency industry consists of four sub-sectors: exchanges, wallets, settlements, and mining, as reported by Cambridge University on global cryptographic industry research (Hileman and Rauch 2017). Data on cryptocurrencies from social networks, primarily Twitter, were analysed by (Park and Lee 2019;Lu et al. 2017;Thelwall 2017;Kim et al. 2016;Matta et al. 2015). ...
Article
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The results of empirical analyses confirm that analysed unsystematic factors, the Stock-to-Flow index (S2F), and information on the Bitcoin (BTC) are directly correlated with BTC values. These results are expected and in line with the economic theory; however, this research paper aimed to investigate the impact of unsystematic factors on the value of decentralised virtual cryptocurrency BTC. Its aim was also to analyse the reasons for significant oscillations of market values in relation to the S2F and S2FX model and thus confirm the reliability of these models in the estimation of BTC value. The research further confirms the strong influence of non-technical information directly linked with the BTC. The limitations of this paper are the lack of possibilities for examining the impact of non-technical information affecting the Bitcoin price deviation regarding the S2F model. In addition to all mentioned limitations, the research results indicate the relevance of the S2F and S2FX models and show a strong impact of (half) the information on the value of cryptocurrencies.
... Due to COVID-19, foreign exchange markets were also extremely volatile [11]. The largest exchanges that dominated the cryptocurrency trading globally were USD, EUR, CNY, and JPY [30]. Bitcoin as a speculative asset may not be able to compete with the main currencies. ...
... A central question still lacking a definite answer is whether or not Bitcoin will keep its dominant position also in the future 34,37 or if its dominance will decrease. A diffuse opinion today is that the decrease of dominance observed in the last years could be a sign of decline 38 , while some others believe that Bitcoin dominant role is not in danger at all 39 . Trying to answer this key question, in 19 it was found out that Bitcoin dominance decreased linearly in time from 2013 to 2017 with the prediction that the dominance would have reached 50% by year 2025. ...
Article
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Blockchains are among the most relevant emerging technologies of recent times and, according to many, they will have a central role in shaping the future of our society. Since the introduction of Bitcoin in 2009, the first notorious blockchain system bound to a cryptocurrency, the blockchain ecosystem has experienced a huge growth, driven by innovations both in conceptual and algorithmic terms, and in the creation of a large number of new cryptocoins. New blockchains and their associated cryptocoins, emerge mostly as the result of forking already existing projects. Here, we show that the appearance of new cryptocoins can be well described by a sub-linear power-law (Heaps’ law) of the total crypto-market capitalization. At the same time, we propose a model that well reproduces the evolution of the cryptocurrency ecosystem. Our model suggests that each cryptocurrency triggers, on average, the creation of ca. 1.58 novel cryptocoins, a result confirmed by the analysis of the Bitcoin historical forking tree. Moreover, we deduce that the largest cryptocurrency, nowadays Bitcoin, will comprise around the 50% of the whole crypto-market and that this fraction is going to stabilize in the near future, provided that the present fundamental macro-economic conditions do not change radically.
... A blockchain is decentralized insofar as its transaction history is immutably recorded and maintained by a distributed network of computer nodes, in order to prevent systemic theft (i.e., rewriting the transaction history to enable double spending). The decentralized nature of a blockchain network does not, however, apply to the custody and secure storage of the keys that control the individual wallets on that network (Hileman and Rauchs, 2017). Centralized control and storage of these keys is a major security hole that explains numerous high-profile cryptocurrency exchange heists. ...
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The design and management of digital identity is a complex challenge. On the one hand, it requires a clear understanding of the parameters that are involved in identity management. On the other hand, it requires the cooperation of many stakeholders. In particular, this involves those public authorities and private organisations that need to be aligned to define technical standards, develop identification infrastructures and maintain them. A shared understanding of fundamental concepts that define identity in the digital age is then a prerequisite. Such a complimentary reflection and evaluation of what the emergence of distributed-ledger technologies means from the perspectives of human rights, human dignity, as well as individual and collective autonomy are essential to ensure their use for good purposes. While technical capabilities are important, they are increasingly insufficient without guiding theoretical frameworks. Sound governance mechanisms which respect, protect and promote human rights such as privacy are equally essential. The COVID-19 pandemic has only further increased the desire to use data to understand and manage our societies (Zwitter and Gstrein, 2020), which also increases the degree to which we are defined through data and our access to digital services.
... Second, DLT has a high risk, which influences the security of cryptocurrencies. According to Hileman and Rauchs [32], DLT varies according to data access restrictions and limits on which parties can validate transactions. e most typical ledger is the public ledger, which is a semi-anonymity that ensures that each user sees each transaction. ...
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Blockchain technology applied to cryptocurrencies is the dominant factor in maintaining the security of cryptocurrencies. is article reviews the technological implementation of cryptocurrency and the security and stability of cryptocurrency and analyzes the security support from blockchain technology and its platforms based on empirical case studies. Our results show that the security support from blockchain technology platforms is significantly insufficient and immature. In addition, we further Zyskind and Nathan (2015) and Choi (2019) and find that the top ten platforms play critical roles in security support and have significant advantages in terms of funds, duration, and human resources. Moreover, these platforms provide computational resources and benefits to the consensus algorithm selection for blockchain practitioners. Second, encryption ensures the security of crypto-currencies. On the one hand, the digital signatures identify the identity of the signatory and the transaction. However, the principle of the hash algorithm (SHA256) confirms ownership. Meanwhile, SHA256 is infeasible to compute in the reverse direction and is difficult to attack. Furthermore, the records in the blockchain can be queried by every participant, making the system information transparent and open reliable. ird, compared to the study of Fu and Fang 2016, we find that the blockchain structure is composed of security components and basic components of six layers that are independent and cannot be extended completely and have a certain coupling among them. Fourth, the underlying ledger structures of Bitcoin and DAG are highly correlated to their security. Specifically, we follow Sompolinsky et al. (2016) and detect that the structure of SPECTRE ensures network security and robustness from its block production, conflict resolution, and generated trusted transaction sets. Meanwhile, the voting algorithm of SPECTRE makes resolving conflicting transactions by calculating votes and ensuring the transaction information that is virtually unable to be tampered with possible. In particular, the security calculation power of SPECTRE can reach 51% and resist "double-spend attacks" and "censorship attacks" effectively. In addition, the RDL framework of SPECTRE achieves security confirmation of transferring funds. Moreover, PHANTOM identifies evil blocks by employing block con-nectivity analysis and ensures its security. Eventually, we also expand the studies of (Sompolinsky et al., 2016 and Sompolinsky et al., 2017) and compare the basic characteristics of the protocols of Bitcoin, SPECTRE, and PHANTOM and find that protocols play imperative roles throughout the implementation process of cryptocurrency. In addition, the underlying ledger structure and consensus mechanism make up a blockchain while the confirmation time, throughput limit, and ordering are prerequisites for smart contracts.
... Since the birth of Bitcoin, the cryptocurrency market is much more diverse and in just over a decade there are now more than 6000 forms of cryptocurrencies, known as 'coins', available (Hileman & Rauchs, 2017). The evolution of the cryptocurrency market has seen the total market cap to be valued at over $1trillion (CoinGecko, 2021), in comparison to the gold market, the cryptocurrency market is only worth roughly 10% of the gold market (Business Insider, 2021). ...
Article
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The cryptocurrency market has been described as revolutionary due to the constant technological evolution and innovation that the blockchain technology provides. Leading many to believe that this could be the next step for the human race, just like how fiat currency replaced gold. Cryptocurrencies were originally created to be a form of savings or income for the unbanked, reduce costs and energy consumption, for a means of data transparency and to remove financial intermediaries. It is undeniable that the cryptocurrency market has created a divide of opinions, as some look to explore the market further while others reject the thought of adopting this innovative technology completely. This study focuses on the perception and intention to use cryptocurrencies. Diving into previous literature about the adoption of cryptocurrencies and new technologies. Highlighting key factors that can affect an individual’s perception and gaps in the literature that need to be explored further. A quantitative approach was used to gather data from 102 participants. The findings indicated that performance and effort expectancy as the most influential variables for cryptocurrency adoption, as people seek understanding as what benefits cryptocurrencies can provide for them when they feel incapable of using the innovative technology.
... In addition to these cryptocurrencies, Ethereum (ETH) provides an ecosystem where decentralized applications (Dapp) can be implemented based on the blockchain [14]. Ripple (XRP) has a dissimilar purpose in the sense that it acts as a bridge between cryptocurrencies, whose transactions are not active, in a centralized manner [15]. Although these cryptocurrencies (i.e., BTC, LTC, USDT, ETH, XRP) have different inherent characteristics, they share coherent relationships that affect each other's prices. ...
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Cryptocurrency has recently attracted substantial interest from investors due to its underlying philosophy of decentralization and transparency. Considering cryptocurrency’s volatility and unique characteristics, accurate price prediction is essential for developing successful investment strategies. To this end, the authors of this work propose a novel framework that predicts the price of Bitcoin (BTC), a dominant cryptocurrency. For stable prediction performance in unseen price range, the change point detection technique is employed. In particular, it is used to segment time-series data so that normalization can be separately conducted based on segmentation. In addition, on-chain data, the unique records listed on the blockchain that are inherent in cryptocurrencies, are collected and utilized as input variables to predict prices. Furthermore, this work proposes self-attention-based multiple long short-term memory (SAM-LSTM), which consists of multiple LSTM modules for on-chain variable groups and the attention mechanism, for the prediction model. Experiments with real-world BTC price data and various method setups have proven the proposed framework’s effectiveness in BTC price prediction. The results are promising, with the highest MAE, RMSE, MSE, and MAPE values of 0.3462, 0.5035, 0.2536, and 1.3251, respectively.
... Foteinis (2018) explored the blockchain carbon footprint. They estimated the global carbon emissions of 43.9 Mt in 2017 for Bitcoin and Ethereum mining using the life-cycle impact-assessment technique (Hileman and Rauchs 2017). According to Digiconomist's Bitcoin and Ethereum energy consumption indexes, Bitcoin consumes 55.76 TWh and Ethereum consumes 8.38 TWh of electricity yearly, equating to 0.25% and 0.04% of global electricity consumption, respectively (Digiconomist 2019a;Digiconomist 2019b). ...
Article
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Blockchain is an emerging technology that has demonstrated great uptake potential in Peer-to-Peer (P2P) energy trading. The revolution of blockchain brings substantial benefits and innovation to sustainability energy transitions through P2P trading. Blockchain enables energy commodities to be traded. However, perceptions of this technology’s impact on the environment and its associated costs have garnered recent adverse publicity. This paper aims to look at the linkages between blockchain technology and energy systems in terms of blockchain power consumption against blockchain advantage over renewable energy transitions via peer-to-peer energy trading. The amount of energy used and carbon released during the blockchain validation process is estimated, and the cost of blockchain is computed to assess its economic benefit in a peer-to-peer energy trading scenario. Real data from running peer-to-peer energy trading systems are used, and numerous insights on the transformation of peer-to-peer energy trading utilising various blockchain scaling methods are provided. Based on the analysis, this paper concludes that the cost of processing trading transactions is lower using blockchain than current coordination costs. Also, blockchain-based energy can be traded more frequently than current regulations allow in order to reap the full benefits of renewable energy. A secure blockchain-enabled P2P trading environment would lead to fair rates for energy providers and prosumers resulting in stimulating the renewable energy market.
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The purpose of this research in progress is to investigate the potential impact of Cognitive Reflection Test (CRT) scores, temporal discounting, and risk preferences on crypto-assets adoption and non-adoption. This article, therefore, proposes a novel theoretical framework and hypotheses which can potentially improve the understanding of the financial behavior of crypto-assets adopters and non-adopters. Integrating the existing body of knowledge from Dual Process Theory, Theory of Discounted Utility and Prospect Theory enables us to use cognitive reflection scores, discount rates, and risk preferences as constituents of crypto-assets adopters and non-adopters. The intention of this research proposal is to test the soundness of our theoretical framework and hypothesеs and to enhance our theoretical framework and hypotheses, as well as overall paper, based on the conference feedback and our initial findings in the near future.
Chapter
The National Institute of Standards and Technology (NIST) has defined the blockchain as a distributed and immutable ledger that does not need a central authority. In principle, a blockchain is a set of chained information blocks for storing transaction records that are shared between all peers, distributed all over a network. The main advantage of the utilization of blockchains includes achieving a decentralized architecture, transparency, trustworthiness, anonymity, and nonrepudiation characteristic. The present chapter provides an overview of the research in the field of blockchains and smart contracts. The features of interest include blockchain attributes, blockchain architectures, cryptography in blockchains, smart contracts, and the industrial applications of blockchains.
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This paper applies social network analysis in two experiments. In the first experiment, social network analysis is conducted on student friendship networks to find relational patterns. Then, three community detection methods are used to divide the student network. The RSiena package is used to illustrate the coevolution of friendship networks with smoking and drinking behavior. In this experiment, it was determined that in the closed network, same-sex reciprocated relationships are preferred. The second experiment analyzes a weighted trust network that involves users trading with Bitcoin on the BTC-Alpha platform. Since the dealers of Bitcoin are anonymous, there is an urgent need to record every dealer’s credit history to prevent fraud and other security problems. The second experiment aims to improve security problems within the Bitcoin trust network by applying social network analysis.
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Preprint
Financial innovations are taking place around the world in the form of widespread storms and one of such major innovations is cryptocurrency, introduced in 2008. It has the properties of both a currency (medium of exchange) and an asset (stored value). Hence it can be used as a payment method as well as portfolio investment option. Seeking the importance of cryptocurrency, the present study aims to explore its adoption worldwide. Based upon the use of secondary data, Google Trend time series, Google Trend country interest points, Bitcoin nodes network and software download trend of the countries are taken as proxies for analysing the awareness and adoption of cryptocurrency around the world. The result of the study provides that the cryptocurrency market is highly searched and adopted in developed countries than in developing countries. Some countries have restricted or put an implicit restriction on the use of cryptocurrency, but on the other hand, many tech-savvy countries such as the USA, Canada, Ukraine, and the European Union have welcomed this new technology with open arms.
Chapter
Blockchain can be successfully utilised in diverse areas, including the financial sector and the Information and Communication Technology environments, such as computational clouds (CC). While cloud computing optimises the use of resources, it does not (yet) provide an effective solution for the secure hosting scheduling and execution of large computing and data applications and prevention of external attacks. This chapter briefly reviews the recent blockchain-inspired task scheduling and information processing methods in computational clouds. We pay special attention to security, intrusion detection, and unauthorised manipulation of tasks and information in such systems. As an example, we present the implementation of a new blockchain-based scheduler in the computational cloud. We defined a new Proof of Schedule consensus algorithm, which works with the Stackelberg game, regulates checking and adding new blocks to the blockchain, and determines how to validate schedules stored in transactions. The proposed model assumes competition between different schedule providers. The winner of such a competition takes account of the client’s requirements faster and prepares an optimal schedule to meet them. The presented scheduler extends the possibilities of using different scheduling modules by the end-users. By delegating the preparation of the schedules, providers can get benefits only for that, without executing customer tasks.
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"Nowadays, science and technology are in an elevated development and it has effects upon all levels of social life. In this context, payment systems, trading and money have gradually become further and further influenced by elements of information technology and cybernetics. Digitization is an irreversible process, it involves adapting theoretical knowledge to the updated reality, thus, the research aimed to review, through analysis of contemporary writings, key issues related to virtual currencies, Fintech and technologies that are increasingly influencing economic transactions and money. The main purpose of the paper is to assess the degree of knowledge and acceptance of people related to virtual currencies and services offered by companies in the Fintech segment, in the context of their prompt emancipation and the possibility to replace the classic options in the foreseeable future. The methodology approached is the qualitative one, and a questionnaire was conducted to substantiate the research. In conclusion, through this research, we managed to expose an overview of what fintech, blockchain and virtual currencies entail, but also of some risks, opportunities and related weaknesses, to assess the degree of knowledge and acceptance of society related to virtual currencies and Fintech services, but also their ability to influence the quality of life and implicitly the human society."
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Purpose: The current study investigates the behavioral intention to use cryptocurrencies. The study's major goal is to prioritize the key motivations behind it mainly Investment in cryptocurrency and to learn the investors behavioral intentions. Design/Methodology: This study examines whether different factors determine the investors towards cryptocurrency usage like Ease of use, Social Impact, Convenience, Trust, Price volatility, Individual believes, Privacy, Risk and Decision making. Findings: This research's findings are intended to provide useful information on behavioral intentions of cryptocurrency users and merchants will be able to construct a viable business strategy to stay competitive. Originality: A literature review is conducted to examine the cryptocurrency usage behavior of Investors. The goal is to review the existing cryptocurrency behavior & try classifying and provide an exhaustive analysis of the determinants influencing the cryptocurrency behavioral intention of its users. Academic references, as well as essential facts and data taken from websites, scholarly articles were used in the study. Paper Type: Review Paper
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There is an urgent need to control global warming caused by humans to achieve a sustainable future. CO 2 levels are rising steadily and while countries worldwide are actively moving toward the sustainability goals proposed during the Paris Agreement in 2015, we are still a long way to go from achieving a sustainable mode of global operation. The increased popularity of cryptocurrencies since the introduction of Bitcoin in 2009 has been accompanied by an increasing trend in greenhouse gas emissions and high electrical energy consumption. Popular energy tracking studies (e.g., Digiconomist and the Cambridge Bitcoin Energy Consumption Index (CBECI)) have estimated energy consumption ranges of 29.96 TWh to 135.12 TWh and 26.41 TWh to 176.98 TWh respectively for Bitcoin as of July 2021, which are equivalent to the energy consumption of countries such as Sweden and Thailand. The latest estimate by Digiconomist on carbon footprints shows a 64.18 MtCO 2 emission by Bitcoin as of July 2021, close to the emissions by Greece and Oman. This review compiles estimates made by various studies from 2018 to 2021. We compare with the energy consumption and carbon footprints of these cryptocurrencies with countries around the world, and centralized transaction methods such as Visa. We identify the problems associated with cryptocurrencies, and propose solutions that can help reduce their energy usage and carbon footprints. Finally, we present case studies on cryptocurrency networks namely, Ethereum 2.0 and Pi Network, with a discussion on how they solve some of the challenges we have identified.
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Kimilerine göre finansal anlamda yeni bir çağın başlangıcı anlamına gelen kimilerinegöre de oldukça karışık ve geçici olarak nitelendirilen kripto para birimlerinin sayısı her geçen gün artmaktadır. Devletlerin (merkezi bir otoritenin) çıkarmış oldukları para birimlerine bir alternatif olup olamayacağı, ülkeler ve ekonomik birimler tarafından kabul görüp görmeyeceği ve uluslararası finansal sistem içerisindeki yeri tartışılmaktadır. Tüm bu tartışmalara rağmen bu para birimleri çoğu yatırımcı tarafından bir yatırım aracı olarak görülmekte ve kripto para birimleri piyasasında günlük ciddi işlem hacimleri ortaya çıkmaktadır. Teknolojinin getirdiği yenilikler yatırım, para ve finansal sistemlere de etki ederek, dijital sermaye ve finans sisteminin önünü açmaya başlamıştır. Bu doğrultuda finans alanında teknolojinin getirdiği son yenilikler arasında en dikkat çekenin ise kripto para teknolojisinin olduğu söylenebilir. Blok zincir tabanlı olarak gelişen kripto teknolojisi dünya genelinde yatırım, ticaret, vergilendirme, yeni iş alanı geliştirme, Ar-Ge gibi birçok alanda ilgi görmeye başlamıştır (Rahmand vd., 2020:1196). Bu yönüyle kripto para sisteminin küresel ekonomik yapı ile banka ve finansal kurumları kökten değiştirme gücüne sahip bir yeniliktir. Böylece Bitcoin ve Ethereumve diğer bağımsız kriptopara birimlerinin gerek ekonomi gerekse finans alanında birçok yeniliği ortaya çıkarması kaçınılmazdır (Dave, 2021). Kripto paralar zaman zaman geleneksel finansal sistemdeki araçlara bir alternatif olarak görülmektedir. Bu duruma paralel olarak uluslararası finansal piyasalar içindeki yeri ve önemi giderek artmaktadır. Gerek ödeme aracı olarak, gerek yatırım aracı olarak gerekse de kendine özgü borsalarda işlem görmesi açısından uluslararası finansal sistem içerisinde ciddi boyutlarda yer almaya başlamışlardır. Kripto paraların uluslararası finansal sistem içerisindeki yeri para piyasaları ve sermaye piyasaları olarak iki ana başlıkta ele alınabilir. Para piyasası anlamında uluslararası ticarette ve ödemelerde kullanımı, sermaye piyasası açısından ise kripto para borsalarının sayısı ve bu piyasalardaki günlük işlem hacmi, dalgalanmaların boyutu, piyasa kapitalizasyonu gibi unsurlar kripto paraların uluslararası piyasalara entegrasyonunu belirleyen temel unsurlardır. Ayrıca finansal piyasalardaki gelişmeler, bilgi ve iletişim teknolojilerindeki gelişmeler de kripto para piyasasının motorunu oluşturmaktadır. Bunun yanında finansal sektördeki işlemlerin, süreçlerin daha hızlı ve daha kolay gerçekleştirilebilmesi için gerek donanım anlamında gerekse yazılım anlamında geliştirilen yeni teknolojiler geleneksel finans anlayışına hizmet ettiği gibi kripto para piyasasına da hizmet etmektedir. Yeni teknolojiler sayesinde kripto para piyasalarına ve kripto borsalara her yerden erişim ve kripto işlemlerin yapılması kolaylaşmaktadır. Bu çalışmanın amacı; kripto para piyasasının gelişimini ortaya koyarak, uluslararası finansal sistem içindeki yerini ve küresel finansal sisteme olan entegrasyonunun hangi aşamada olduğunu ortaya koymaktır. Bu bağlamda; kripto para piyasasını para piyasası anlamında ve sermaye piyasası anlamında ele alarak uluslararası para ve sermaye piyasaları içindeki yeri ve gelişimi vurgulanmaya çalışılmıştır.
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Cryptocurrencies are digital assets that can be stored and transferred electronically. Bitcoin (BTC) is one of the most popular cryptocurrencies that has attracted many attentions. The BTC price is considered as a high volatility time series with non-stationary and non-linear behavior. Therefore, the BTC price forecasting is a new, challenging, and open problem. In this research, we aim the predicting price using machine learning and statistical techniques. We deploy several robust approaches such as the Box-Jenkins, Autoregression (AR), Moving Average (MA), ARIMA, Autocorrelation Function (ACF), Partial Autocorrelation Function (PACF), and Grid Search algorithms to predict BTC price. To evaluate the performance of the proposed model, Forecast Error (FE), Mean Forecast Error (MFE), Mean Absolute Error (MAE), Mean Squared Error (MSE), as well as Root Mean Squared Error (RMSE), are considered in our study.
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Bitcoin is becoming a popular financial asset and means of transacting. However, little is known about an important aspect of the bitcoin market: its liquidity. We consider whether various dimensions of liquidity evident in other asset classes are present in bitcoin spot and futures liquidity. We find variations in spot liquidity across bitcoin exchanges and a strong commonality in bitcoin spot and futures market liquidity. The pricing of spot and futures bitcoin is relatively inefficient, and liquidity plays an important role. Deterioration in liquidity also contributes to bitcoin crash risk and large return declines. JEL Classification: G11, G23
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A medium to facilitate the exchange of value has been the sole necessity for the mere existence of currency. As the civilization moved from using metals, paper, and plastic to facilitate exchange, our requirements from a currency became refined. Some of those requirements were the prevention of counterfeiting and accountability. As the human civilization moves forward, the solution to some of the problems faced by us are discovered by humans. Cryptocurrency is a decentralized form of currency mined by computers by solving complex equations in exchange for a reward of the very same commodity. This article aims to study the major cryptocurrencies and the concept of blockchain, how they operate, how it will be affecting India, and what are the consequences of banning this form of currency. This research is carried out by evaluating white papers of Bitcoin and Ethereum (the two main cryptocurrencies of present time) along with research papers and news articles found with the help of search engines and online discussion threads.
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