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2017 Global Cryptocurrency Benchmarking Study

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... Several other financial services like online payments and digital assets are carried out with blockchain [16]. Garrick and Michel discovered that about 63% of central banks experiment with blockchain hoping to integrate it with their system after successful trial [88]. 7. IoT industry: Blockchain has got attentions for use in IoT because of the need for the IoT devices to be autonomous, communicate, and share data without human intervention. ...
... Asia are energy trading platforms using blockchain since 2016 and 2017. A Survey made by Cambridge university in 2017 revealed that 67% of central banks were experimenting with blockchain and many of them now reported successful trials [88]. 4. 2018-2020: In May 2018, the giant automobile companies and largest automakers in the world (BMW, Ford, Renault, and GM) formed a consortium with blockchain developers (Hyperledger and Consensys), IBM, Accenture, and some manufacturers of car parts (ZF and Bosch) for using blockchain in automobile industry. ...
Article
Blockchain technology gets more attention and adoptions in various countries and companies all over the world. Blockchain is currently bringing a revolution in many enterprises like finance, healthcare, supply chain, insurance, registry, and the internet of things. Many enterprises integrate blockchain with their systems for the benefits of the blockchain. Despite its strength, blockchain has some challenges in security, privacy, scalability, and other few. This paper surveys the breakthrough in blockchain technology, its applications, and challenges. As many blockchain papers focus on cryptocurrencies, IoT, and security, this paper focuses on the overall state of the art of blockchain technology, its recent developments, and adoptions, especially in areas besides cryptocurrencies. We give a comprehensive review of the cryptography behind the blockchain for a better understanding of the technology. We also review quantitative surveys and analysis on both the public and the enterprise blockchains. Finally, we review the future research opportunities and directions on the blockchain technology.
... Regular (non-money laundering) services The exchange sector has the highest number of operating non-money laundering services, as most new users begin trading on Bitcoin via exchanges [103]. This is followed by wallet services with 5.8 − 11.5 million active users [195]. Payment services such as CoinPayment and ...
... As the lines between different sectors have become increasingly blurred [195], when labelling regular services, we randomly selected nine active, large-scale exchange, payment and wallet services from the top wallet list on WalletExplorer.com [236], with reference to existing studies [194]. ...
... The development of industry 4.0 has brought changes in the world community in investing, not only choosing traditional investment instruments such as stocks, bonds, and mutual funds, now people are also starting to invest funds in cryptocurrency. The initial purpose of Cryptocurrency is not as an investment asset, but many investors make cryptocurrency investments (Inci & Lagasse, 2019), so Cryptocurrency takes an increasingly important role in life throughout the world (Hileman & Rauchs, 2017). The popularity of Bitcoin as a cryptocurrency with the largest market capitalization has made cryptocurrency investment a great demand. ...
... Bitcoin is the first cryptocurrency created by an anonymous person by the nickname of Satoshi Nakamoto, which established a decentralised money transfer system using blockchain (Nakamoto, 2008). Bitcoin is considered a standard digital currency (Burniske & White, 2017), but besides Bitcoin, there are many other cryptocurrencies like Ethereum, Ripple and Bitcoin Cash (Hileman & Rauchs, 2017). ...
Conference Paper
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The presence of cryptocurrency as a digital currency is increasingly popular as an investment instrument. This research was conducted to determine the potential losses in cryptocurrency investments. Ethereum as a cryptocurrency with the second largest capitalization value after Bitcoin becomes an investment choice other than Bitcoin. Furthermore, Ethereum is the strongest candidate to challenge Bitcoin. In this study, the GARCH model is used to estimate Value at Risk (VaR) as a loss that can be tolerated during the study period. The data in this study are the closing price of Bitcoin and Ethereum as a cryptocurrency with the largest capitalization market. The observation period was conducted on January 1, 2017-December 31, 2019. From this research, it is known that for the next one day period from January 1, 2020, predicted by the GARCH model, that the maximum loss that investors can tolerate with an investment of $ 50,000 for a 95% confidence level is Bitcoin has a VaR of 0.04556 with a value of $ 2,278 and a VaR Ethereum of 0.06842 with a value of $ 3,421, It's mean that Ethereum investments are riskier than Bitcoin.
... Venues facilitating the exchange of digital assets are a crucial part of the wider digital asset ecosystem, with centralized cryptoasset exchanges appearing as early as 2010 [49]. ...
Preprint
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Decentralized Finance (DeFi), a blockchain powered peer-to-peer financial system, is mushrooming. One year ago the total value locked in DeFi systems was approximately 600m USD, now, as of January 2021, it stands at around 25bn USD. The frenetic evolution of the ecosystem makes it challenging for newcomers to gain an understanding of its basic features. In this Systematization of Knowledge (SoK), we delineate the DeFi ecosystem along its principal axes. First, we provide an overview of the DeFi primitives. Second, we classify DeFi protocols according to the type of operation they provide. We then go on to consider in detail the technical and economic security of DeFi protocols, drawing particular attention to the issues that emerge specifically in the DeFi setting. Finally, we outline the open research challenges in the ecosystem.
... After the launch of the Bitcoin blockchain, China turned into a booming bitcoin market, with renminbi (CNY) accounting for 50 to 90 percent of global cryptocurrency trading by volume from 2014 through 2016. 171 But it also clamped down on such trading and adopted a highly unfriendly policy toward cryptocurrencies. Since September 2017, all cryptocurrency trading platforms have shuttered and all ICOs, stopped. ...
Technical Report
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This research project surveys the global landscape of regulatory frameworks and highlights the interesting decisions of various jurisdictions on the matter of blockchain-based token sales. It looks at initial coin offerings and explores how different regulators are categorizing these coins in their attempts to balance the protection of investors with the encouragement of innovators and entrepreneurs.
... They can be exchanged for other currencies, products, services, and so on [4]. Research produced by University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, where most of them were using bitcoin [5]. ...
... 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.
... While based on the secure trusted environment technology we have the Trusted Execution Environment (TEE) and Hardware Security Module (HSM) wallets. A comprehensive benchmarking of cryptocurrency wallets can be found in [4]. ...
Preprint
Full-text available
The security of distributed applications backed by blockchain technology relies mainly on keeping the associated cryptographic keys (i.e. private keys) in well-protected storage. Since they are the unique proof of ownership of the underlying digital assets. If the keys are stolen or lost, there is no way to recover the assets. The cold wallet is a good candidate for basic use cases, but it has a substantial challenge for more complex applications as it does not scale. Warm and hot wallets are more convenient options for blockchain-based solutions that aim to transact in a scalable environment. Hardware Security Module (HSM) is the de-facto standard physical device designed to manage high-value cryptographic keys. The HSM ensures that only authorized entities can execute cryptography key operations. In this demonstration, we present an HSM-based solution to secure the entire life cycle private keys required to unlock digital wallets and sign transactions. A working prototype based on software-based HSM (SoftHSM) has been developed for the Ethereum blockchain.
... These types of currency use cryptography to secure and verify transactions and control a particular crypto currencies creation of new units. Crypto currencies are basically limited recording in a database that no one can commutation unless specific stipulations are met (Hileman and Michel, 2017). Based on the above arguments, this study's test following hypothesis: ...
... When no one can be indifferent to the fact that humankind is probably facing the most important survival challenge in all its history, this status quo is hardly defensible. The mining community is aware of the negative environmental externalities of PoW algorithm, but most miners (especially the big ones) do not see the need to switch to another consensus algorithm in the future to address environmental concerns (Hileman and Rauchs, 2017;Rauchs et al., 2018). In other cases, the transition to more sustainable consensus protocols is being considered (e.g., in Ethereum) or has been successfully applied in other electronic currencies such as EOS.IO, which is in the 7th place of the cryptocurrencies ranking according to market capitalisation (CoinMarketCap, https://coinmarketcap.com/, ...
Article
This article presents an overview of the main developments of cryptocurrencies and discusses their future perspectives. First, it briefly reviews the history of cryptocurrencies since the creation of Bitcoin, presents the main market trends, and discusses the key features of cryptocurrencies in the context of blockchain. Second, it analyses current cryptocurrency projects, like the Libra project, and other applications of the blockchain technology. Third, it presents a systematic economics and financial literature review on cryptocurrencies. Fourth, it examines the challenges, benefits, and future perspectives of cryptocurrencies and blockchain technology, with a focus on the environmental issues and central bank digital currencies.
... Bitcoin, one of the virtual currencies, is distinguished from the others by its enormous potential. The majority of cryptocurrencies are largely clones of bitcoin or other cryptocurrencies [4]. For this reason, it attracted the attention of many researchers, and many articles on price prediction were published by using both statistical and ML methods [5]- [12]. ...
Article
Bitcoin is invented in 2009 by the pseudonymous Satoshi Nakamoto. Bitcoin is a decentralized digital currency system [1]. Bitcoin is the most acknowledged cryptocurrency in the world, which provide it interesting for financier. The cryptocurrency market capitalization on date 22nd July 2020 value represents roughly USD 277 billion of dollars, bitcoin representing 62% of it. However, a disadvantage for investors is the difficulty of predicting the price of bitcoin due to the high volatility of the bitcoin exchange rate. Measurement, estimation, and modeling of currency exchange rate volatility compose a significant research area. For this reason, a lot of studies done about bitcoin price prediction both Machine Learning (ML) and Statistical Methods. In comparison studies, ML methods perform better in general. This review is a comprehensive study on how we can better predict bitcoin prices by grouping previously done studies. The presentation of Bitcoin price prediction studies in groups reveals, the difference from other review studies. These are statistical methods, ML and statistical methods, ML-ML, frequency effect of selected time, effect of social media and web search engine, causality, optimization of hyperparameters methods.
... When no one can be indifferent to the fact that humankind is probably facing the most important survival challenge in all its history, this status quo is hardly defensible. The mining community is aware of the negative environmental externalities of PoW algorithm, but most miners (especially the big ones) do not see the need to switch to another consensus algorithm in the future to address environmental concerns (Hileman and Rauchs, 2017;Rauchs et al., 2018). In other cases, the transition to more sustainable consensus protocols is being considered (e.g., in Ethereum) or has been successfully applied in other electronic currencies such as EOS.IO, which is in the 7th place of the cryptocurrencies ranking according to market capitalisation (CoinMarketCap, https://coinmarketcap.com/, ...
Article
This paper presents an overview of the main developments of cryptocurrencies and discusses their future perspectives. First, it briefly reviews the history of cryptocurrencies since the creation of Bitcoin, presents the main market trends, and discusses the key features of cryptocurrencies in the context of blockchain. Second, it analyses current cryptocurrency projects, like the Libra project, and other applications of the blockchain technology. Third, it presents a systematic economics and financial literature review on cryptocurrencies. Fourth, it examines the challenges, benefits, and future perspectives of cryptocurrencies and blockchain technology, with a focus on the environmental issues and central bank digital currencies.
... Cryptocurrency exchanges such as BKEX, P2PB2B, and MKC are being operated actively. As of 2017, the value of cryptocurrency exchanges grew to over 25 billion dollars [23]. ...
Article
Full-text available
Emerging technologies have played an important role in driving major changes in human society. However, the advent of most technologies is typically initially accompanied by confusion; this is often because technology developers overlook the user perspective. This study was conducted to systematically determine the fundamental causes of problems that users encounter when they interact with blockchain technology, one of the promising emerging technologies today, and to suggest relevant design strategies. To this end, usability evaluation was conducted for the KDEX decentralized exchange application. To ensure the effective identification of the significant usability problems, heuristic evaluation with four experts and usability testing with 23 experimental participants were carried out. The results obtained show that more user-centered design is necessary to enable the widespread use of decentralized applications. Based on the experimental findings, actionable design strategies that facilitate the effective utilization of emerging technologies are suggested. The proposed strategies are expected to enable users to easily understand and navigate applications based on these technologies.
... Users do not seem to be blockchain experts however, the purpose to promote the large-scale adoption of the blockchain tools is based wholly on the technology which is surely required for the interfaces that human-friendly [18]. ...
... Despite its tremendous growth, the legality of its usage and its spread without central authority is still questionable. There are conflicting arguments about the usage of cryptocurrency in the financial industry (Hileman & Rauchs, 2017). The risk of Bitcoin involves price volatility as firms holding the Bitcoin for investment purposes are subject to the volatility of Bitcoin price. ...
Chapter
Digital currencies are unregulated and potentially have a destabilizing effect coupled with increased concerns over capital gains and losses in a high volatility environment. When added to a portfolio, this currency may have certain driving factors in terms of return and risks in the case of portfolio diversification. In this study, from the Sharia angle, we follow the position of Monzer Kahf (Fatwa on Bitcoin (by Monzer Kahf). http://lightuponlight.com/blog/fatwa-on-bitcoin-by-monzer-kahf/. Accessed 03 Feb 2020, 2017) who explained that Bitcoin is considered “Like any other currency”. It should be used under the “same conditions of exchanging currencies”. Therefore, we explore the effects of adding digital currencies to an Islamic portfolio by relying on a mean-variance efficient frontier and comparing the risk-return of portfolios with and without digital currencies for different scenarios. The results show that by adding digital currencies to Shariah-compliant portfolios, its performance improves; but this depends more or less on the increase in returns than in the reduction of total risk. Specifically, digital currencies may have a big role in bringing high risks with speculative effect in portfolio diversification. Therefore, we provide some recommendations to investors and regulators to secure these currencies in Islamic capital markets.
... While based on the secure trusted environment technology we have the Trusted Execution Environment (TEE) and Hardware Security Module (HSM) wallets. A comprehensive benchmarking of cryptocurrency wallets can be found in [4]. ...
Conference Paper
Full-text available
The security of distributed applications backed by blockchain technology relies mainly on keeping the associated cryptographic keys (i.e. private keys) in well-protected storage. Since they are the unique proof of ownership of the underlying digital assets. If the keys are stolen or lost, there is no way to recover the assets. The cold wallet is a good candidate for basic use cases, but it has a substantial challenge for more complex applications as it does not scale. Warm and hot wallets are more convenient options for blockchain-based solutions that aim to transact in a cloud environment. In this work, we focus on Hardware Security Module (HSM) based wallet. The HSM is the de-facto standard device designed to manage high-value cryptographic keys and to protect them against hacks. In this demonstration, we present an HSM-based working prototype that secures the entire life cycle of Ethereum public and private keys.
... According to a 2017 study by the Cambridge Center of Alternative, less than half of payment companies based in Asia-Pacific, Europe, and Latin America hold a formal government license, and forty percent of companies surveyed would like to see more regulatory clarity. 92 Regulation will have to reflect and accommodate the novel features of blockchain and recognize their legal validity (digital identity, Know Your Customer, dispute resolution mechanisms, smart contracts), particularly for open distributed ledger technologies where there is no entity in control of the ledger. ...
... Cryptocurrency was essential to the functioning of the first publicly utilized blockchains since currency availability incentivized early blockchain adoption even if those currencies were not easily convertible into U.S. dollars or other globally recognized ready cash. Validation in these public blockchains is a computationally and energy intensive pro cess (Hileman and Rauchs, 2017). ...
Technical Report
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In this report, the authors examine the propensity within China's innovation system to realize its potential as an innovating nation: What is the balance of systemic forces that incline toward seeing that the innovation assets China possesses lead to innovation outcomes? They lay out an innovation conceptual framework for capturing the major activities, interactions, and flows that give rise to technological innovations. They use this framework to place within a single matrix salient elements that appear in the global literature on innovation; the literature on innovation in China and on its political, economic, and social systems; the results from three case studies prepared for this report (pharmaceuticals, artificial intelligence, and distributed ledger technology); and three different inquiries into the nature and measurement of network organization. They then provide a determination of which cells in the matrix that result from placing these elements into the innovation framework might be most useful as windows into those aspects of China's innovation system dynamics that might be expected to affect innovation propensity and observed innovation outcomes. Measures are developed for these elements with an emphasis more on what observers would like to know as opposed to what information might be most readily available presently.
... Hypothetically, we can explain this finding from the perspective of market timing. As reported by Hileman and Rauchs [79], the Chinese yuan represented up to 90% of global Bitcoin trading volume until the regulations and bans executed by the Peoples Bank of China in 2017. While the unavailability of data due to these regulations does not allow us to share the most recent statistics, our results suggest that the Chinese investor and Chinese yuan is still a non-negligible fact in the price development of Bitcoin. ...
Article
Full-text available
This study examines the interaction of Bitcoin with fiat currencies of three developed (euro, pound sterling and yen) and three emerging (yuan, rupee and ruble) market economies. Empirical investigations are executed through symmetric, asymmetric and non-linear causality tests, and Markov regime-switching regression (MRSR) analysis. Results show that Bitcoin has a causal nexus with Chinese yuan and Indian rupee for price and various return components. The MRSR analysis justifies these findings by demonstrating the presence of interaction in contractionary regimes. Accordingly, it can be stated that when markets display a downward trend, appreciation of the Chinese yuan and Indian rupee positively and strongly affects the value of Bitcoin, possibly due to the market timing. The MRSR analysis also exhibits a transition from a tranquil to a crisis regime in March 2020 because of the pandemic. However, a shorter duration spent in the crisis regime in 2020 indicates the limited and relatively less harmful effect of the pandemic on the cryptocurrency market when compared to the turmoil that occurred in 2018.
... The popularity of cryptocurrencies has been underlined by several works. For instance, ElBahrawy et al. (2017) analyzed the statistical properties of the whole cryptocurrency market, Hileman and Rauchs (2017) focused on the cryptocurrency industry and how these digital currencies can be used, and Gandal and Halaburda (2016) investigated the appreciation and depreciation of six different cryptocurrencies. ...
Article
Full-text available
Recently, the world of cryptocurrencies has experienced an undoubted increase in interest. Since the first cryptocurrency appeared in 2009 in the aftermath of the Great Recession, the popularity of digital currencies has, year by year, risen continuously. As of February 2021, there are more than 8525 cryptocurrencies with a market value of approximately USD 1676 billion. These particular assets can be used to diversify the portfolio as well as for speculative actions. For this reason, investigating the daily volatility and co-volatility of cryptocurrencies is crucial for investors and portfolio managers. In this work, the interdependencies among a panel of the most traded digital currencies are explored and evaluated from statistical and economic points of view. Taking advantage of the monthly Google queries (which appear to be the factors driving the price dynamics) on cryptocurrencies, we adopted a mixed-frequency approach within the Dynamic Conditional Correlation (DCC) model. In particular, we introduced the Double Asymmetric GARCH–MIDAS model in the DCC framework.
... This is one of the key reasons for the great success of the company. This comes under the "bigdata" [65] analytics. ...
Chapter
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The enthusiasm for blockchain innovation has been expanding since the thought was authored in 2008. Blockchain refers to the system where records of transactions made in cryptocurrency are maintained. The reason behind the eagerness for blockchain is its key credits that give safety, ambiguity, and information uprightness with no third-party organization in charge of the exchanges, and thus it makes bewitching exploration zones, especially from the view point of exclusive difficulties and limitations. In this chapter, we have led a conscious planning concentrate with the sole purpose of collecting all the important developments on blockchain innovation. The primary goal of this chapter is to comprehend the momentum research points, identifying difficulties in the existing system and future headings with respect to innovations in blockchain from the specialized viewpoint. Results indicate that 80% of the papers focus on the framework and 20% focus on the applications which include agreements and authorizing. Most of the exploration is focusing in on uncovering and improving hindrance of blockchain from protection and safety viewpoints, and yet a large number of the proposed arrangements need solid assessment on their viability. Many other blockchain-related difficulties including throughput and inactivity have been left unstudied. Based on this research, proposals on future exploration and improvements in the existing system are also suggested in this chapter.
Chapter
Bitcoin has been trending worldwide as a revolutionary digital currency and a potential alternative monetary payment method that does not need a central authority. Several vendors, merchants and companies around the globe have accepted the Bitcoin as a valid encrypted currency for trading and investment purposes. However, relatively few Saudi and non-Saudi people have heard of Bitcoin and are unconscious of this financial phenomenon as its legality and legitimacy is still vague. According to the survey, we found that 67% out of 80 people who participated in the survey are aware of digital currency in general, 85% are aware of Bitcoin in particular and only 3% owned Bitcoin. The demographic characteristics are strongly associated with the awareness, adoption and utilization of Bitcoin in daily life activities of selling and buying conducted online as well as investment. Majority of sample survey has limited knowledge about the digital currencies including, but not limited to, Bitcoin. On the other hand, few people, mainly the younger generation, have adopted such electronic currency. Finally, we conclude with some useful suggestions to improve future surveys about this mysterious subject to achieve precise estimates about Bitcoin users.
Chapter
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Covid-19 still pressures global economies. Pandemic has seriously damaged both macro and micro indicators of countries. Economies try to accelerate their efforts towards a digital new normal in order to preserve their activities. Decreasing trust in monetary authorities and tools as a side effect of global financial crisis, decreasing demand for cash as a precaution towards virus, increasing demand for fast payment, increasing search for yield, search for a trustless, cost saving, peer to peer financial system accelerates the progress of creative destructors. The way to leapfrog developed countries requires benefiting more from digitalization. Governments, central banks, financial institutions and corporations that are aware of this swift transformation are in an effort to adapt the system to take the lead. This study aims to explore leading game changers, potential use cases and their potential impacts on EMs with a special focus on Turkey.
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Cryptocurrencies are a new form of digital asset that operate through blockchain technology and whose purpose is to be used as a means of exchange. Some, such as bitcoin, have become globally recognized in recent years, but the uncertainty surrounding cryptocurrencies raises questions about their intended use. This study has the task of investigating the different factors that affect the intention behind the use of cryptocurrencies by developing a new research model and using Partial Least Squares (PLS) to assess it. The results show that all the constructs proposed have significative influence, either directly or indirectly, on the intention behind the use of cryptocurrencies. The findings provide value and utility for companies’ and cryptocurrencies’ intermediaries to formulate their business strategies.
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In this study, the effectiveness of technical analysis, one of the analysis methods used in portfolio management, on the cryptocurrency market is measured. Technical analysis is a type of analysis used for the timing of buying and selling of financial instruments to the portfolio. The main aim of this study is to test whether the technical analysis gives the buy and sell signals in a timely and correctly. For this purpose, a study is conducted on the longest possible time series of 5 cryptocurrencies with the highest transaction volume. In order to perform technical analysis, RSI technical indicator consist is used separately for each cryptocurrency. Analyzes are performed on Excel 2016, and the success of these indicators is observed and interpreted through charts.
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Purpose The purpose of this paper is to conceptualise the chief aspects of policy interest in blockchain technology. Design/methodology/approach The paper outlines policymaking processes in the context of innovation and technological change, assesses generic variations in policy treatment towards blockchain, and identifies manifestations of policy entrepreneurship using national case studies of blockchain policies. Findings Favourable policy dispositions towards blockchain technology are interpreted as political efforts to develop local, blockchain-enabled economies. So-called “crypto-friendly” jurisdictions proactively clarify regulatory and tax treatments of cryptocurrency and other blockchain applications, and trial blockchain uses in fields predominated by public sector activity. Policymakers in countries hostile towards blockchain-related activity have instigated bans or strict limitations with respect to blockchain engagement by developers and users. Research limitations/implications Reliance upon case studies suggests the need for alternative study approaches (e.g. index construction, empirical research) as blockchain use consolidates throughout the global economy. Practical implications This paper provides insight to policymakers and blockchain practitioners regarding the attributes of accommodative policies towards distributed ledger technology. Social implications Countries and sub-national regions exhibiting a more welcoming policy stance are more likely to attract entrepreneurs and investors in the crypto-economic blockchain space. Originality/value This paper develops a policy “crypto-friendliness” construct to assess the extent to which policymakers enact accommodative policies for blockchain development.
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Much confusion and uncertainty exists about Bitcoin's-and by extension all cryptocurrencies'-carbon footprint. Although it is impossible to calculate the exact carbon footprint of cryptocurrencies, due to their decentralized nature, it is possible to make some fair predictions. This work proposes a method to estimate both the electricity consumption of and the e-waste generated by the cryptomarket industry, and convert them to emissions. Furthermore, an approach to estimating future consumption in function of the price is developed. We estimate that the cryptocurrency market consumes on average 80 TWh/year, with an average lower and upper bound of respectively 35.7 and 150.6 TWh/year. Between June 2019 and June 2020, we estimate that 27.1 kilotons of e-waste were produced by mining ASICs, and during the same period, 2.92 million new ASICs were produced. By using geographic mining data and an extensive study of the used electricity mixes, we calculate that per kWh of electricity consumed for mining, 473.64 g CO 2-eq is emitted. This results in an average carbon intensity of 38 million tonnes CO 2-eq per year for the used electricity. Finally , an extra 1.27 million tonnes is added by the creation of ASICs.
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A cryptocurrency system can be understood as a system intended for the issuance of tokens which are intended to be used as a general or limited-purpose medium-of-exchange, and which are accounted for using an often collectively-maintained digital ledger making use of cryptography to replace trust in institutions to varying extents. Against such a backdrop, the singular term cryptocurrency can mean a token, intended to be used as a general or limited-purpose medium-of-exchange, issued via a cryptocurrency system.
Chapter
Cryptocurrency has grown outstandingly in recent years. Additional events throughout the planet have acknowledged the significance of embracing numeral benefits virtually with rapid advances seen in these directions. In today's financial market, the decision to buy or sell cryptocurrency is an interesting challenge faced by day traders. Over the year, it has reached unprecedented highs leading to thoughts explaining the trend in its growth. The idea of whether the movement of financial assets can be predicted has kept investors, economists, and researchers very engaged in recent years. Therefore, the paper used machine learning to construct a model for the Stock and Cryptocurrency price prediction using technical indicators that are most important for market trend study. This study learns how to adapt Long Short-Term Memory (LSTM) to build the cryptocurrency price prediction model. The key factors used are available price, close price, high price, low price, volume and market cap with the interdependencies amid some cryptocurrencies thus centers on measuring vital features that influence the trade’s unpredictability by applying the model to increase the effectiveness of the process. Nonetheless, the cryptocurrency market lacks firm regulatory structures and is unpredictable, making forecasting prices more difficult and complex. From the analysis, it was established that machine learning models provide better performance in predicting cryptocurrency price. The LSTM model outperformed other models in terms of Bitcoin, Ether and Litecoin cryptocurrencies. The proposed model is found to be efficient for cryptocurrency price prediction when compared to similar models with 67.43% accuracy.
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"The essence of the blockchain technology lies in that via connected IT devices such a base of information is formed which simultaneously, with making a thousand copies, is able to register data of transactions, automated transactions, without any external supervision and the possibility of retrospective one-sided modification. Many believe that the system of blockchain (and the digital general ledger system forming its base) will bring about such a change into our lives which the Internet brought when it started to spread in the 1990s. The most successful examples of blockchains so far are financial tools. The Court of the European Union has already ruled in judgement no. C264/14 that bitcoin virtual currency is considered to be a contractual money, it is a direct money between economic actors who accept it. It is a perpetual dilemma of the law and legal regulations that lawmakers react to the events of everyday life slower than the speed at which economic actors find new solutions to various problems. Do new possibilities provided by blockchains surpass risks, or is it just like an Internet article warns: are hackers becoming the new lawyers? What can a corporate lawyer say to the previous question − can salary be asked for in bitcoin? This presentation tries to answer the question of how much the blockchain system facilitates the conclusion of employment contracts or the fulfillment, the control, and the administration of employment relationships and whether the human element is indispensable in the operation of these systems."
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Problem Statement. Distributed ledger technology (blockchain technology) has important advantages: reliability, immutability and transparency. This technology is used in various fields providing services in finance, industrial Internet of Things (IoT), public and socially important services. Despite the large number of studies conducted on the application of blockchain in various fields of activity, there are still relevant complex studies from a technical and applied point of view. The purpose of this paper is to systematize knowledge about blockchain technology, to identify problems and drawbacks, as well as to propose new directions for development. Results and novelty: the paper presents a comprehensive overview of blockchain technology (technical features). A comparative analysis of public and closed blockchain networks, as well as 3 types of consensus protocols was carried out. In addition, the successful domestic blockchain projects are considered and the areas in which this technology is in demand are identified. The main problems and shortcomings of this technology were also identified and new directions for research work related to the security of blockchain technology were proposed. Practical relevance. The results of the study may be useful for novice researchers who have chosen blockchain technology as an area of interest. They may also be in demand by government agencies and large corporations of the Russian Federation engaged in the development and implementation of blockchain solutions in information systems.
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Money has been important in every century, but the one-to-one alternative to money has gained importance in the current century. The world economy is now shifting from tangible money to crypto money and virtual banking system. This behavior has accelerated in recent years as people have become accustomed to the convenience of using cards instead of cash. With the development of the logistics system, people have had the opportunity to shop from a local dealer on the other side of the world. Moreover, there is no need to pay very serious differences for this. It would not be wrong to say that this globalization is driving the world towards a single currency. Sudden changes in the exchange rate, the availability of a product in different markets with very different prices, and the subjection of labor to different wages in different parts of the world have become challenging for people. As a solution to these and other problems, the transition to the global currency is and will continue to be shown. For this, firstly the current system should be collapsed and then the new system need to be installed. Whether the new currency will be Bitcoin is still a matter of debate, but it is certain that the current monetary system will no longer be used in the next decade. In this study, a cointegration analysis with Bitcoin and altcoin, which is thought to be related to it, with exchange rates, world-famous stock markets and commodities has been performed. The causality analyzes of the variables that were found to be cointegrated were completed and the deep learning method was applied to the artificial neural network model, and the 31, 45 and 60-day forecast of Bitcoin prices were made.
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Bitcoin introduced delegation of control over a monetary system from a select few to all who participate in that system. This delegation is known as the decentralization of controlling power and is a powerful security mechanism for the ecosystem. After the introduction of Bitcoin, the field of cryptocurrency has seen widespread attention from industry and academia, so much so that the original novel contribution of Bitcoin, i.e., decentralization, may be overlooked, due to decentralizations’ assumed fundamental existence for the functioning of such crypto-assets. However, recent studies have observed a trend of increased centralization in cryptocurrencies such as Bitcoin and Ethereum. As this increased centralization has an impact the security of the blockchain, it is crucial that it is measured, towards adequate control. This research derives an initial taxonomy of centralization present in decentralized blockchains through rigorous synthesis using a systematic literature review. This is followed by iterative refinement through expert interviews. We systematically analyzed 89 research papers published between 2009 and 2019. Our study contributes to the existing body of knowledge by highlighting the multiple definitions and measurements of centralization in the literature. We identify different aspects of centralization and propose an encompassing taxonomy of centralization concerns. This taxonomy is based on empirically observable and measurable characteristics. It consists of 13 aspects of centralization, classified over six architectural layers: Governance, Network, Consensus, Incentive, Operational, and Application. We also discuss how the implications of centralization can vary depending on the aspects studied. We believe that this review and taxonomy provides a comprehensive overview of centralization in decentralized blockchains involving various conceptualizations and measures.
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This chapter explores the underlying economics of cybercrime. The chapter begins by examining how cybercrime syndicates adapt to changing market conditions. This following section of the chapter explores how ransomware demonstrates the ability to monetise both valuable and innocuous data. The chapter then moves forward to discuss how Internet marketplaces have changed the dynamic for criminal activities and why some cybercriminals are shifting their focus to ransomware. It explores why cybercriminals have become more focused on holding files hostage for money than on unleashing stolen data to the black market (Parrish 2018). The final section of the chapter examines what are cryptocurrencies and what impact they have in ransomware attacks.
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Blockchains and cryptocurrencies are often discussed in the same context, partly because they were developed together.
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Most of the current decentralized blockchain approaches have disadvantages that need to be improved to have efficiency and completion. First, there is no motivation for any participants to take action honestly. Seller, buyer, and shipper do not trust each other completely. Second, the delivery depends on a trusted third party or arbitrator to act as a deposit and keep all the money from the start of the sales process until the end. Only a trusted third party who keeps money could be a focal point of failure and also costly. Moreover, there is no dispute settlement mechanism if it occurs. Therefore, there will be a loss for the seller, buyer, or both sides for any acts of dishonesty. In this article, we review technology deployment and develop distribution solutions using blockchain technology. We use Hyperledger Composer in our system to protect the rights of merchants and smart contracts to remove any third party or arbitrator.
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